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Setting up SBM Frameworks: Managing Suppliers at Scale

11 Apr, 2019

Today, your suppliers are seen as a source of innovation leading towards new ways of collaboration and engagement. Managing suppliers, supplier relationships and supplier information efficiently is of growing strategic importance. Smart organizations know how to leverage these relationships to build true competitive advantage and scale.

Supplier Base Management (SBM) frameworks are essential for organizations, especially if you are dealing with a multitude of suppliers across different touchpoints of your supply chain. Supplier onboarding forms the backbone of an effective SBM framework. It involves documentation and information needed to set up a company as an approved vendor or supplier. A robust SBM framework can enable your organization to efficiently and transparently conduct business, purchase goods/ services, and make timely payments. Also, it helps you track vendor reliability, dependency and engagement ROI in the long run.

Despite this, organizations find themselves in a reactive position, unable to efficiently and proactively capitalize on actionable supplier information. Supplier on-boarding requires vetting and validation to ensure prospective suppliers are compliant with laws, regulations, business requirements and most importantly, corporate standards.

The Need for an Effective SBM Framework

As enterprises scale, the scope of regulatory and compliance induced liabilities scales up as well. Which is why organizations are extremely careful with their business relationships and engagements. Your core business touch points might have a heavy dependency on certain suppliers. SBM frameworks help organizations vet and onboard the right partners, without taking up too much time or resources.

Effective SBM frameworks, typically consist of set processes and practices that help reduce quality issues and delays. By focusing on establishing and nurturing long term relationships, these costs can be offset. Especially, with both parties actively looking to avoid any unnecessary costs which may arise from re-tendering, re-negotiating or forced contract exits. Better relationship trackability effectively leads to lesser incidents or quality/ performance issues. This translates to reduced liabilities in the event of potential engagement failures.

Managing Multiple Suppliers Across Touchpoints

Manual processes, untimely responses, and forgotten action items can slow down the onboarding and contracting process drastically. These aspects eventually trickle down to impact an organization’s input costs and overall revenue significantly. With a manual process, dealing with these challenges for multiple suppliers can be nightmarish.

Organizations waste resources on manual efforts, to address ever-changing workflows, information needs, and verification processes. A better understanding of current inefficiencies, and roadblocks, in the supplier onboarding processes, can provide that baseline for improving supplier relationships. Supplier onboarding and management can be a highly transactional process. Untimely responses can cause unnecessary delays. Validation of vital taxation and other financial details can be time-consuming. So it is critical to capture all supplier requirements up front, to operate downstream systems, and drive other strategic supplier processes.

Modern SBM frameworks with self-service mechanisms have proven to be highly beneficial when dealing with suppliers at scale. According to the Aberdeen report, The Value of Strategic Supplier Data Management, supply chain leaders are over 30% more likely to have an efficient supplier data management process to accelerate supplier onboarding.

The Supplier Connect Lifecycle

A typical supplier connect lifecycle involves tracking and managing the following stages

  1. Vetting, validation and onboarding
  2. Strategic sourcing and procurement
  3. Accounts payable
  4. Risk management
  5. Supplier performance
  6. Spend analytics
  7. Compliance – Local and Global

Buyer Onboarding Dashboard

  • Supplier Invitation Dashboard
  • Supplier Onboarding Approval
  • Collaboration with Supplier
  • Invitation Email Templates
  • Onboarding Validation Rules & Workflow

Supplier Onboarding

  • Real Time validations of TIN, DUNS, Bank details, Address, and Phone
  • Onboarding Workflow with Approvals
  • Collaboration between Supplier & Buyer
  • Document Management with expiry notifications
  • Completely configurable on-boarding forms

Supplier Portal

  • Supplier Information Management (Company Info, Addresses, Contacts, Users, Banks & Documents)
  • Change Request Management with Approvals
  • Supplier Views (POs, Invoices & Payments), Create Invoice Online from a Purchase Order

Buyer Portal

  • Supplier 360 Views (POs, Invoices, Payments, Cases & Documents)
  • Case Management
  • Secure Views (Company wide, By Operating Unit, By Supplier Type etc.)
  • Invoice Review & Approval

CloudIO Supplier Connect Solution helps onboard suppliers at scale, rapidly and seamlessly. All this is made possible via a self-service portal. Eliminate all the headache associated with onboarding, right from finding and getting their TIN & DNB number, to tax forms and bank information. Provides full visibility into the supplier relationships and management.


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