Managing Supplier Data – Why you need to do this!
Supplier Data management is the basis for efficient strategic sourcing and helps considerably with costs reducing initiatives. Quality supplier data enables organizations to manage and monitor their supplier records while improving and even optimizing supplier relationships.
When you manage your supplier data, you convert it into supplier intelligence that empowers your organization and makes you more confident about your actions across your entire P2P effort. Unfortunately, many companies are suffering from very poor supplier data. Before anything can be done to improve your organization – your poorly managed data has to be addressed.
Why Does Supplier Data Break Down?
As your supplier database grows, the challenge to manage all of that data grows right along with it! There are several different reasons why data becomes unwieldy or difficult to manage. Keep a close eye on this decline as the side effects can be extremely costly to your organization. Here are just a few common reasons why your supplier data breaks down over time.
- Systems and databases are force-fed with supplier data from various sources.
- Local requirements don’t comply with the global controls.
- Matrixed organizations have poor governance over their data in different areas.
- Supplier information is decaying due to improper management.
- Most companies do not have a proactive management system.
- The system offers oversight on supplier changes to their data.
Understanding that your supplier data is constantly under attack, you need to consider putting a process in place to manage your supplier data. Constructing a list of both requirements and necessary features for your process is a must! In our experience, we see that industry leading firms rely on the following mindsets. First, they think “what are my requirements?” and then they consider “what are the necessary features that I need to accomplish my requirements.” It’s impossible to build out the rigors of a world class supplier data management program in this blog, but let’s at least contemplate requirements and features:
Requirements of Managing Supplier Data
The requirement of a supplier data management process or system is growing on a large scale for many companies, and globalization is one of the biggest reasons. When the supplier records gets big, the information is required to be preserved in a systematical format; this is where a supplier data management becomes a necessity.
- The introduction of “Big Data”
- Growing tax compliance requirements
- Managing global controls against local limitations
- Accepting the rapid globalization of business
- Developing technologies, especially mobile
- Account for cyber threats
The Necessary Features of Your Program
If you’re looking for an effective supplier data management system, then you must look for the following features to ensure you have the best product for your business success.
- Cross company transparency, to maintain a healthy connection among various companies.
- Supplier Outreach, to connect with potential suppliers on a global level.
- Workflows & Approvals, to streamline the working process of the firm.
- Collection & Storage, to save and secure the data collected from SIM.
- 3rd party validation, to get confirmed and accurate information.
- Data Syndication, to maintain the supply and reusability of information.
- Health Scorecarding, to visibly view collected data for analyses.
- Reporting & Monitoring, to keep track of every data and its process.
- Visible Audit Trail, to check the final reports of audit.
The importance of a supplier management program cannot be overstated. Developing your process is vital for any business with a global reach and big revenue. It is also important for small businesses looking to achieve a stronghold in the marketplace. A supplier data management system is imperative to gain a competitive advantage as well as to stay ahead of the very real threat of risk and fraud. For any companies looking for a solution to their Supplier Management needs, please review the Lavante SIM Solution page on this website.