What impact does accurate and readily available supplier information have on an organization?
Honestly?
It can make or break an enterprise.
The wrong supplier and inaccurate vendor information can be extremely inconvenient, leading to colossal losses of both time and money.
Whether you’re the Chief Procurement Officer, project manager, or strategic compliance officer: you should always be looking for the most effective vendor management best practices.
If you desire a smooth and streamlined procurement process, one of the prerequisites is a good supplier management database – which is built by having excellent supplier information management skills.
But, wait. What exactly is supplier information management to begin with?
Supplier Information Management Defined
Supplier information management (SIM) is a structured communication process with vendors involving the collection, authentication, and management system of accrued data and associated documents.
The objective of SIM is to provide a framework that can be employed to effectively manage the colossal amounts of vendor data being collected from several disparate sources.
SIM allows the creation of the supplier management database.
Because SIM takes into account all relevant information collected by the different departments within an enterprise, it is important to have a proper SIM solution.
What Supplier Information Management Solutions Do
What are SIM solutions, you’re asking?
To put it succinctly, SIM solutions are designed to assist businesses in aggregating, collecting, and effectively managing cloud-based data received from within the company so that a supplier management database can be established in real-time.
Also, SIM technology is designed to provide enterprises with targeted information from vendors in a regulated and streamlined repository.
This is exceedingly important as it enables procurement teams to have a comprehensive overview of supplier metrics which are used to determine which vendors may be suitable partners.
CPOs on the hunt for a SIM solution should always ask for solid proof and evidence of the efficacy of any recommended technology to see if it properly manages supplier performance and data.
What Elements to Look for in SIM Technology
What should you be on the lookout for when seeking reliable SIM solutions?
A suitably qualified SIM solution should cover the complete vendor lifecycle.
This is to say, the chosen SIM software should be able to curate, classify, and collate data from the onboarding process, through credentialing, enrichment, covering spend analysis, profit recovery, and even provide payment visibility.
Benefits of SIM Technology
Are there any advantages to be had when investing in supplier information management solutions?
Yes – plenty.
First and foremost, companies that leverage software for SIM will benefit from:
· Automated data collection
· Easier workflow for procurement teams
· Better supplier information visibility
· Seamless integration with other ERP systems
That’s not all. Here are additional core benefits enterprises can seek to reap when they invest in a sophisticated SIM solution:
1. SIM produces actionable vendor metrics
Data collected from SIM avails itself to managers needing to make decisions. The visibility provided by data is invaluable.
In fact, according to Harvard Business School Online, companies that employ data in their decision-making fair at least three times better than their counterparts who don’t use data to make informed decisions.
2. SIM guarantees vendor information governance
How can you ensure that vendor data is governed properly? SIM ensures CPOs and their teams are equipped with a solution that allows smooth data collection, secure storage, and easy retrieval.
SIM solutions from ProcurePort paired up with other robust procurement software for contract management, for example, will reduce contract management issues, guarantee smooth operations, and foster trust between vendors and buyers.
3. SIM centrally consolidates information
If trying to aggregate disparate data from various suppliers is driving you and your sourcing team mad, then SIM just might be the right solution for you.
SIM solutions provide procurement teams with a centralized platform to govern all collated information. Having one place where information is consolidated ensures easy retrieval saving you time and money.
4. Match global standards with a proper SIM solution
For enterprises working on a global scale, the need for an effective, high-quality SIM solution is even more pressing.
Large and mid-size companies that deal with numerous vendors but do not have a centralized SIM solution can frustrate suppliers.
An amalgamated SIM platform such as that provided by ProcurePort will ensure your company stays competitive and relevant on the international stage.
5. SIM improves productivity and accuracy
Did you know that two-thirds of company audits always comment about the accuracy of supplier data?
The more accurate the supplier data, the faster procurement teams can identify vendors to work with and move forward with establishing a relationship.
By employing SIM, procurement teams will ultimately spend less time going back and forth trying to find information on suppliers.
Interesting Supplier Information Statistics
Conclusion
There can be no doubt that data is king in this tech-centric age we’re currently living in.
Procurement teams should be interested in building a solid supplier management database as it will provide them with clear supplier metrics, vendor visibility, and the necessary information required to make objective data-driven procurement decisions.
As you seek ways to improve your procurement efforts, don’t neglect the importance of having the best supplier information management software.
ProcurePort is one of the leading providers of cutting-edge innovative procurement solutions trusted by enterprises and organizations such as UNOPS, HUD.GOV, and conEdison.
Schedule a demo of our technologies. Alternatively, contact us to discuss tailored procurement solutions.