Powering Supplier Engagement with Real-Time DataMost procurement teams engage with suppliers via communication channels like email or phone. In reality, this data is usually spread across several disparate systems that deal with supplier information, transactions, collaboration, and planning. It is often assumed that all supplier information is accessible, visible, structured, and accurate. In reality, that’s far from the truth. Consider this possible scenario. An engineer may learn about quality issues in equipment installed at a plant. Ideally, procurement should hold further orders from that supplier until those issues are resolved. However, in reality this crucial information might not be aggregated and might not be accessible in real-time. A CRM-like procurement model can help consolidate such useful information within a single repository which enables procurement teams to follow suppliers, categories, issues and projects. To foster more effective supplier relationships, the knowledge of past successes and failures is important too. Teams need this actionable supplier information in real-time to drive decisioning.
Enabling a System of Record for Procurement OrganizationsEver-evolving market conditions demand a complete revamp of traditional supplier management processes to avoid leakage of value and money. Gartner predicts that nearly 6 in 10 organizations are planning to revamp their supplier management process in the next 3 years to future-proof against upcoming industry challenges. Addressing knowledge gaps involving existing unaddressed quality issues, expiring contracts, strategic supplier’s capacity etc., is crucial. Procurement professionals who work with data spend up to 40% of their time collecting it before even starting to analyze it. Post analysis, procurement managers need to also look at negotiating cost reductions and driving supplier performance improvements based on what they learn from the data. Procurement teams may be unaware of which good supplier might be getting overloaded or underutilized. Keeping such scenarios in mind, it’s necessary to build a corporate memory, which a CRM-like supplier management framework can enable.
The Benefits of Enabling a CRM-like Procurement ModelAn ideal supplier management framework handles standard procurement challenges while also catering to unique business use cases, processes, and policies. A robust vendor management system, based on a CRM functioning model, can transform supplier lifecycle management.
- More transparency in the supplier- procurement engagement
- Credibility to supplier performance metrics
- Reduction in resolution cycle time to solve supplier-related issues
- Elimination of unforeseen supplier risks
- Improvement in supplier collaboration and engagement
- Enforcement of regulatory compliance across the business units
With CloudIO Supplier Connect, procurement organizations can
- Enable suppliers with smart self-service portals
- Improve vendor relationships with timely communication
- Empower their procurement teams to function at maximum efficiency
Contact us to learn how you can manage suppliers at scale with CloudIO Supplier Connect.