Most companies lack an automated tool that can minimize risk and eliminate headaches in supplier registration, on-boarding, and management.
Supplier registration is generally the last piece of the procurement system to be automated.
The procurement group will typically employ a labor-intensive manual process that exposes the company to inherent risks.
Here are some of the most common processes I have reviewed:
- Shared file system
- RFI tool to ask questions and collect documents
- Spreadsheet “database” that lists contacts, documents, expiration dates and other details
- Internally developed system to collect data and house documents
The biggest shortcoming of these systems is the lack of a standardized approval and update process.
A reliable list of approved suppliers rarely exists.
Suffice to say that rogue spend is normally a problem for these companies.
Supplier and operational risk issues grow due to the lack of control.
If your company is facing some of these issues simple and elegant tools exist to mitigate most if not all these issues.
Here are some of the features that you should consider in a solution:
- Self-registration path that allows supplier that want to do business with your company to submit information and documents for approval.
- Internal registration path to help stakeholders and business owners to fast-track the approval process for new suppliers.
- Approval step or steps in the registration paths that must be completed before a supplier is added to the approved supplier list.
- Flexible tagging feature to categorize each supplier to support business needs.
- Self-contained communication capability for requests, updates, alerts and reminders.
- Auto-reminders sent to suppliers to eliminate internal tracking of due dates for insurance, qualifications and other key information
- Search capability on any data point.
- Standardized reports on new approvals, due dates, updates, removals etc.
- Reporting to satisfy legal and audit requirements.
- Integration and information exchange with other company systems – this can be done automatically or on a schedule
How many risks could you mitigate, and headaches could you eliminate with a seamless supplier registration system?
Most if not all of them.
Why not make this your first goal in 2020?
If you want to learn more, set up a 30-minute discovery call.
That is normally all the time it takes for us to determine if our platform can help you. If it can’t, we will part friends.
Ask better questions, make changes and 2020 will be your best year ever.
Action Step: If you are uncertain where to start the process of change, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.
If you want to go explore this topic in greater detail, please contact me. I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that what I have to offer will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office which is likely.
If you would like to know more ways to reduce costs without changing the way you do business, simply give me a call or send me an email with your contact information and the best time to reach you.
You Won’t Drift to Success©
Commit to taking the next step.
Until Next Time, I Wish You Great Success in Your Business and in Your Life