The percent of duplicates in a vendor master file (VMF) typically increases as the number of vendors increase. According to Jon Casher of Recap, Inc. the following represent average duplicate rates as follows:
- Vendor files with 100 or fewer vendors rarely have duplicates
- Vendor files with 100-1,000 vendors typically have around 1-3 percent redundant vendors.
- Vendor files with 1,000-10,000 vendors generally have 2-6 percent redundant.
- Vendor files with 10,000-100,000 vendors typically have 4-10 percent redundant.
- Vendor files with 100,000 vendors primarily have over 10 percent redundant.
The number of redundant vendors that are actually in a company's VMF is often twice as big as they think, Casher says. For example, a company with approximately 150,000 vendors typically will have around 30,000 redundant. If you include inactive vendors the numbers are much higher. Companies with extremely clean vendor master files will find a very low redundancy rate.
The following are reasons why some companies might have a higher number of redundant vendors than the average ranges:
- Two or more companies may have merged
- The company has many federal, state and local governments in its vendor master file.
- The company has converted from a system that allows only one address per vendor such as GEAC-E or GEAC-M, to a system that allows multiple addresses per vendor such as Oracle or PeopleSoft.
- Multiple people and/or multiple departments are allowed to add vendors.
- There is inconsistent handling of "Doing Business As."
- Vendors are added via automated feeds from other systems.
- Each business unit or legal entity has its own set of vendors.