How Do Supplier Management Systems Fit With E-Invoicing?

supplier management

One of the fastest growing areas of the procurement and accounts payable (A/P) technology automation market is a sub-sector that many describe as supplier or third-party management. As we’ve noted in this series already, supplier management is analogous to customer relationship management and involves managing overall contact details and related information for suppliers, running campaigns to capture supplier information such as diversity or environmental compliance information, onboarding new suppliers and more.

In practice, supplier management is a catchall for a wide-ranging group of technology solutions for capturing and managing supplier information outside of sourcing events and transactional exchanges. The technology used to support supplier management efforts includes supplier portal, internal and supplier workflow, initial supplier enablement, supplier performance management, supply risk management, supplier diversity, content enrichment, supplier collaboration and supplier audit.

As with the other areas we have explored, supplier management is an area that has material overlap with e-invoicing. E-invoicing initiatives can support the capture and maintenance of a range of supplier management data.

However, e-invoicing is not a substitute for broader supplier management programs outside of A/P-specific, vendor file-centered programs. Separate programs, which require their own workflow and systems, may include programs centered on:

  •      Regulatory compliance (outside of tax/VAT compliance)
  •      Supplier diversity
  •      Supplier performance management
  •      Supply chain risk management.

This article is based on content from the Spend Matters Perspective: Understanding How E-Invoicing Fits. Authored by Spend Matters Founder and Managing Director Jason Busch, with input and guidance from Trade Financing Matters’ David Gustin, it provides a foundation for organizations considering or already putting in place an electronic invoicing (e-invoicing) or purchase-to-pay (P2P) program.

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