Good supplier data management (SIM: Supplier Information management) is key to establishing an effective IT procurement system. It is complicated (or even impossible ?) to manage in a reliable way data of thousands of suppliers without having a dedicated system to connect with your overall information system (ERP, Sourcing solution, accounts payable solution, digitization solution…) as the tiniest lack or out-to-date supplier information can :
- represent an important financial risk (penalties, payment issues…)
- or environmental problems, dependency or even procurement issues
- reduce spend accuracy and its analysis
- generate frustration from internal communication but also with the suppliers themselves.
Whereas some studies prove that the cost of managing one supplier per year is $500, only a few companies have acknowledged the issues involved.
And you, have you evaluated the cost within your organization?
Nowadays, supplier data management technologies have become a major concern for most companies, manipulating supplier data heterogeneously (multiplication of solutions, data governance, complex processes…). This situation implies supplier data urbanization and real-time update.
Discover the major benefits of implementing a centralized and unique supplier database:
- Data cleansing
- Better control over supplier creation
- Data integrity and accuracy over time
- Centralized data
- Synchronization with any external system
- Shared documents
- Delegation of data maintenance to the supplier himself