Supplier Data Quality Resources
This spring has become the season of “Supplier Data Quality” at Lavante. We have initiated and/or completed a number of projects centered on the Supplier Data Quality conversation:
- Last week, we announced a spring webinar series on the impact of data quality across the P2P process.
- In the same time frame we ran a joint-webinar with strategic partner Taulia to discuss the benefits of driving quality data into your supply chain financing program.
- On Tuesday, we ran a record setting webinar about the “Costs of Poor Supplier Data” that had over three hundred attendees.
- Today, we are releasing a white paper outlining the results from our annual “Vendor File Data Accuracy Survey”
- Within the next month, we our scheduled to run our next series webinar entitled, “Will the Real Supplier Portal Please Stand Up?!”
Why do we place so much emphasis on Supplier Data Quality?
In a 2014 Deloitte survey of 239 chief procurement officers and directors from 25 countries, 67% of respondents stated that poor supplier data quality was a key barrier to implementing systems. In another recent study by Procurement Leaders, 95% of procurement professionals identified supplier data quality as extremely important or crucial to achieving procurement objectives.
Regardless of what report you read, the conclusion is the same; supplier data quality is critical to the success and health of your organization. Truly, supplier data is the foundation of your entire P2P effort. One of the most in-depth observations about the importance of data quality came in a 2016 report on Supplier Information Management by Paystream Advisors where they outlined the following argument:
“In today’s business environment, supplier data is the underlying foundation upon which an organization operates—and the quality, timeliness, and dependability of critical supplier data can make or break a company. Organizations without a cohesive supplier management process have little ability to drive suppliers to use various point solutions in their P2P processes, such as dynamic discounting, electronic invoicing, and spend analytics. The failure to engage suppliers not only robs companies of potential ROI from this software, but it also reduces the quality of financial reporting, tax reporting, business analytics, and decision support, all of which impact the organization’s key stakeholders.”
One trend is becoming clear in 2016 and very evident in just these few examples from Deloitte, Procurement Leaders and Paystream Advisors – and even from the Lavante research. They all make a strong case about the opportunity costs (and hard costs) associated with failing to maintain supplier data. One challenge we should all address in the remaining three quarters of 2016 is, “How do we develop methods and strategies for maintaining our supplier data quality and at the same time develop a method for maximizing the ROI of our P2P environments?”