What organization does not have thousands of suppliers that ideally they would onboard into a closed-loop, visible procurement environment? Just about every middle market and larger entity wants this level of supplier enablement. Yet one size never fits all when it comes to onboarding and enablement for a given supply base, which is why the great majority of vendors are not linked into a closed-loop system.
For supplier enablement, companies must make trade-offs when it comes to how quick and cheap they want a process to be. Furthermore, they must consider what level of automation touch points they require: self-service supplier data management, eCatalog loading/maintenance, supply chain collaboration, or P2P integration for POs, ASNs, invoices and payments.
They also need to consider whether they want to use new vendors or just past vendors and their existing connections. The fundamental challenge then lies in trading off these requirements against the cost and effort required to support those requirements effectively.
One approach to solving this challenge is to gather insight on the suppliers for factors including current connectivity capabilities and working capital intelligence (e.g., using enriched supplier data to compare supplier days sales outstanding to identify targets for payment discounts and SCF candidates) in order to actually execute these campaigns. This takes some work and requires some CRM-like functionality such as segmentation analysis, enrichment/data mining and CRM campaigns – but applied to the supplier base rather than the customer base.
Download the full paper on which this post is based: Avoiding “Dumb Ways to Die”: eProcurement and P2P Style Adoption Scenarios to Breathe Life into Implementations. The paper, authored by Spend Matters Chief Research Officer Pierre Mitchell and Jason Busch, is available for free download in our Spend Matters research library.