Many organisations do not have a single view of their supplier base. It is all too common for supplier details to be incomplete, duplicated and out-of-date. There are often inconsistent or non-existent supplier qualification and review processes. Extensive time and effort is required to recruit and on-board new suppliers and carry out reviews. Furthermore, supplier communications are generally carried out through manual means, such as fax and email.
It is every procurement professional’s dream to have a quality supplier base with complete and up-to-date information. An accurate supplier base would not only provide a broader and better rationalised pool of suppliers, but also lead to improved supplier policy compliance. It would also deliver increased savings from greater capacity for sourcing, reduced disruption from non-performance, reduced cost of liabilities caused by non-compliance, increased savings from negotiated prices and reduced cost of admin support.
So how can a company improve the accuracy of its supplier base?
- A central supplier directory – this includes a directory with complete, accurate and up-to-date supplier information.
- Standardised processes – the processes for supplier recruiting, qualification, adoption and review all need to be standardised to ensure consistency, reduce supplier risk and form stronger supplier relationships through easy and effective interaction.
- A cloud-based supplier portal – this streamlines supplier communication, removing the time consuming manual interactions that take place.
Here at Eclipse we partner with PROACTIS to provide a best-in-class Supplier Management solution that enables procurement teams to build and maintain a strong supplier base by structuring and streamlining the entire supplier lifecycle - from initial identification through adoption, approval, transacting and analysis. This is achieved with the steps outlined above.
For more information, feel free to contact us on +44 203 866 8800. Alternatively, download the ‘Jump-start Suppliers Guide’ for details on how to quickly, easily and cost-effectively improve the accuracy of your supplier base with PROACTIS: