This post is based on material contained in the following Spend Matters Compass Series brief: Beyond One-Off Initiatives and a Virtual Vendor Master – Advanced Use Cases for Supplier Management. It's important to note that what we're calling "closed registration" elements of supplier management also can apply to open registration processes – i.e., supplier "walk-ups" to a portal. The good news is that since properly implemented open registrations seamlessly intersect with the onboarding process of closed registrations, these tactics and capabilities deliver the best of both worlds when you guide suppliers through the hoops.
Integration – the integration of internal and external content is a core component of advanced closed (and some open) registration approaches. This includes:
- Validation – IRS, OFAC, OSHA, DOT etc. – the validation sources depend on industry ?vertical; it is important to note that public data sources can usually be incorporated in an ?automated fashion at very low expense
- Augmentation – premium content such as D&B and diversity data from specialist or ?boutique providers can provide valuable insights in this realm. Companies may also wish to consider additional data from sources that can provide item/substance level insight as well (or general environmental certification/practices on the vendor level)
- Multi-tier (ownership) analysis preparations – if not done earlier in the process, parent-child linkages must be addressed as well, before multi-tier analysis is considered.
- ERP data – examples of data that should be resident in ERP systems and related ERP business suite tools. This includes on-time delivery, quality and other performance scorecards
P2P and sourcing enablement. Closed registration advanced capabilities include:
- Contact information management – almost always a critical shortcoming in nearly all A/P ?vendor masters and often a triggering factor when deciding to acquire a SIM solution
- Detailed supplier capabilities enabling "3 bids and a buy" functionality – building on the ?capabilities gathering mentioned in the earlier "open registration" section combined with deeper onboarding and even product catalog integration, the ability to enable a rapid sourcing capability as an extension of SIM tools (either within the supplier management toolset itself or directly integrated into such capability within P2P) is highly valuable
- Disseminating information across the organization – for example, the data resident in SIM solutions should be organized or linked to internal category management responsibilities and other more HR (or org chart) related aspects. As a specific example, it can drive notifications to the right manager when suppliers fail to meet requirements, which enables management by exception, a core tenant of advanced supplier management
Stay tuned as we investigate additional closed registration topics including contract management, services procurement and supplier performance management intersections. Or download the full paper today in the Spend Matters PRO Research Library: Beyond One-Off Initiatives and a Virtual Vendor Master – Advanced Use Cases for Supplier Management.