Effectively managing suppliers is critical to the success of procurement organizations. But as supply chains become more geographically extended and the numbers of suppliers steadily increases, organizations need to take proactive measures in order to mitigate any disruptions that could potentially arise within their supply chain which can be very costly in terms of financial performance and the company’s reputation. By implementing a supplier management solution, organizations are able to take a strategic approach and effectively manage their suppliers. Below are some of the reasons your company should focus on implementing a modern, supplier management solution:
1. Increase Visibility and Minimize Supplier Risk
According to the recent Deloitte Global Chief Procurement Officer survey, 61% of procurement leaders reported that they have seen an increase in risks within the last year and only 37% of procurement organizations are prepared to address those risks. What is even more alarming is that in that same report, 65% of CPOs said that they had limited or no visibility beyond their Tier 1 suppliers. While supplier risks can never be completely mitigated, the first step that an organization can take to help mitigate supplier risks and minimize losses is investing in a supplier management solution so they have a systematic way of qualifying suppliers and increasing the visibility into their supply base.
Implementing a platform, such as Oracle Supplier Qualification Management Cloud, allows procurement organizations to effectively manage their supplier qualifications and capabilities and mitigate any potential risks. Using a built-in survey mechanism that is entirely configurable to your organizations specifications, users are able to collect necessary information from internal and external stakeholders that is vital to their business, such as critical capabilities and certifications. This allows organizations to easily detect any potential risks and monitor the compliance of their suppliers.
2. Ensure Accurate Supplier Data
Supplier information is constantly changing and having stale supplier information can potentially cause delays and add additional risks. In the Spend Matters’ article, The Future of Procurement: Accurate Vendor Master Data, they shared that, “94% of financial and procurement executives don’t completely trust their supplier master data.” With an automated supplier management solution, organizations can ensure that they have consistent and standardized supplier profile data that is accurate and up-to-date and can organize their suppliers in to categories.
Using Oracle Supplier Qualification Management Cloud, all of the collected information becomes part of your supplier’s profile, ensuring that your organization has the most up-to-date information for managing your suppliers. Also, users are automatically alerted when a qualification is about to expire or when new information about their supplier becomes available that may potentially impact their qualifications and profile, ensuring that they take the necessary steps for renewals and qualifications.
3. Strengthen Supplier Relationship
Good and reliable suppliers are hard to come by. And when an organization has several suppliers that they partner with, it’s difficult to have the same high-level relationship with each one. By implementing a supplier management solution, organizations can ensure their procurement processes are running more smoothly and can break down communications barriers, improve supplier collaboration which in return can increase supplier loyalty.
Oracle Supplier Portal provides organizations with a supplier work area that allows users to have complete visibility into transactions, improve supplier communication and enable electronic invoicing. Users are able to access agreements, purchase orders, advance shipment notifications, invoices and negotiations enabling suppliers to address specific needs for an organization.
4. Quickly Onboard Suppliers
The time and resources needed to onboard a new supplier can be time consuming and can decrease the productivity of your team. Using Oracle Supplier Portal Cloud, procurement organizations are able to streamline their supplier on-boarding through a self-registration process. Suppliers are provided with all the tools they need to manage and maintain their supplier information such as addresses, contacts, payment information as well as business classifications for compliance and reporting.
Interested in learning more about Oracle Supplier Qualification Management and Supplier Portal Clouds, click here.