Measuring Supplier Onboarding Success in Trade Financing Jason Busch - March 3, 2015 6:20 AM | Categories: Supplier Management, Supplier Performance, Trade Financing | Tags: L2, Sourcing and Categories My colleague David Gustin (Trade Financing Matters) likes to say that supplier onboarding success is measured in 3 simple ways: The success rate onboarding suppliers you targeted The success rate in having suppliers use the service The retention rate after a period of time We might also add another metric to this list: the “success rate adhering to 100% of compliance requirements.” There are other metrics, too, to consider that are centered on the successful integration of programs with other initiatives like accounts payable automation, P2P and supply chain risk management. Yet even taken alone, David’s 3 metrics are a perfect starting point to measure the success of supplier onboarding initiatives in buyer-led trade financing, regardless of program type. But don’t ignore the other aspect of the onboarding effort either – having suppliers collect their own information and conduct due diligence. After all, retention rates will suffer if suppliers leave programs. As David also observes, “In reverse factoring programs, even if suppliers are attracted to cheap Libor-priced money, they still should get an outside auditor opinion to ensure the receivable is a true-sale and complies with FAS-140 – Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.” Part of any onboarding effort should include educating suppliers not only on requirements and benefits, but also potential due diligence efforts they should conduct. This post was based in part on content in the Spend Matters Perspective, Supplier Enablement for Invoice Discounting and Supply Chain Finance: Background, Tips, and Secrets for Success. In this research brief, Jason Busch and David Gustin explore the history and future of supplier enablement, centering not only on P2P processes, but also onboarding for trade financing (e.g., supply chain finance, invoice discounting, etc.) initiatives. Related ArticlesSupplier Relationship Management: Where Is It Going? Are You Keeping Pace?SciQuest 14.2 Update Part 2: Total Supplier Management – Sophisticated Supplier Lifecycle Management Solution RenewedSciQuest 14.2 Update: Total Supplier Management – Sophisticated Supplier Lifecycle Management Solution RenewedGet the Most Out of Invoice Discounting Programs, Supplier Uptake and SavingsSupplier Lifecycle Management: "SLM with MDM" Approach, Reporting, and MillennializationSupplier Lifecycle Management (SLM): Pros and Cons of Suite Approaches Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.