Benefits to Supplier Information Management

In the face of supply chain disruptions and major shifts in economic conditions, many organizations are working with more vendors to establish supply chain resiliency and get products at the best possible price.

As the number of vendors increases, so too does the complexity of management and the potential for issues. A single company may manage relationships and contracts with hundreds of suppliers yet still use spreadsheets. 

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Supplier information management (SIM) brings order to the chaos of vendor management and data organization, allowing companies to reap the benefits of better access to data and more secure data governance. These management tools make it easier for procurement teams and accounting to maintain an organized, scalable process.

Today, we’ll share an overview of supplier information management:

• What is supplier information management?
• Things to look for in a supplier information management solution
• Benefits of implementing supplier information management
• How a procurement platform with SIM capabilities saves time and money

What is supplier information management?

Supplier information management is the collection, storage, verification, and maintenance of data for suppliers and their products or services. In a cloud-based SIM system, organizations create and maintain a detailed database for the suppliers they do business with. This data is useful for performance reviews, analysis, budgeting, forecasting, etc.

SIM systems are often part of a larger procure-to-pay (P2P) process solution. These tools' data centralization, dashboards, approval workflows, and spend analysis features allow organizations to manage vendor performance while maintaining ease of use and improving user experience. 

A SIM system collects all details necessary for conducting business with a vendor, as well as historical and benchmarking data. The info a SIM system incorporates can include the following: 

• Contact information
• Pricing and costs
• Production capabilities and turnaround estimates
• Payment terms and accounting information
• Delivery schedules
• Historical transactional data
• Price benchmarking
• Performance data
• Contract information 

Supplier information management aims to increase communication between buyers and vendors, optimize supplier relationship management (SRM), and centralize data for future use.

Tool

Vendor Scorecard Template

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Elements to look for in SIM technology

A supplier information management solution (sometimes called a vendor management software solution) is most powerful when part of a procurement platform. The best platforms centralize vendor information while providing easy workflows and curation for procurement across your organization.

Here are a few benefits to look for when evaluating technology solutions:

Intuitive, flexible use: Ease of use is important in SIM. Your chosen solution should be straightforward for IT and management to administer and simple for buyers to navigate. Look for technology that makes it easy to perform daily research, procurement, and reporting activities using: 

• Dynamic search capabilities
• Preferred vendor curation
• Approval workflows and automation
• Role-based spend guidelines

Real-time data access: Constant, granular access to spend data makes reporting easier and more effective. It provides a consistent, complete view of the system's procurement function and vendors.

Robust reporting and analytics: Centralized data is most valuable when easily accessible. The right spend visibility brings context to your purchasing, highlights opportunities for savings and growth, and informs discussions about vendor selection and performance. 

Integration potential: SIM should be a part of your larger information ecosystem. Look for a solution with off-the-shelf and API-based integration opportunities to prevent redundant data input, ensure accurate numbers, and reduce information silos.

Finding a solution that meets the above criteria ensures you get the most out of your SIM program, realize better cost savings, and achieve smoother operations within your procurement process.

7 Top benefits of supplier information management

Supplier information management is a proven method for improving procurement outcomes and financial performance. A procurement management solution like Order.co allows you to complete procurement and manage data management within a single, easy-to-use platform. 

Here are seven ways implementing supplier information management improves the procurement process:

1. Centralizes information

Centralizing your vendor data with SIM lets you streamline purchase order creation, order processing, payment, and tracking. It also helps identify vendors with the best prices and services as well as keep track of quality assurance protocols. It allows all departments and stakeholders access to an organized record of vendor communication and transactions.

2. Enables performance management

SIM allows companies to track and measure supplier performance over time. Centralized supplier information provides reporting and analysis regarding supplier quality, contract compliance, cost savings, and other metrics that can be used to make informed decisions about suppliers. It improves strategic sourcing initiatives and ensures cost performance remains strong over time. Additionally, it helps companies identify gaps in performance and the need to evaluate other options.

3. Improves information governance

SIM ensures secure communication protection against unauthorized access, prevents data loss or theft, and provides an efficient platform for managing all vendor-related activities. This level of security is especially important when handling sensitive information, such as bank account numbers.

4. Lowers supplier risk

SIM allows organizations to maintain up-to-date and accurate records of their suppliers, including contact details, financial terms, performance profiles, and banking info. It ensures compliance with regulatory and legal requirements and reduces the potential of procurement fraud through supplier data manipulation. Data security is important since nearly 70 percent of organizations experiencing fraud report that the most disruptive incident came via an external attack or collusion between external and internal sources.

Tool

Vendor Scorecard Template

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5. Reduces AP processing burdens

A supplier information system streamlines the payment process and reduces manual data entry, resulting in fewer errors (such as invoice duplicates or data entry issues) and more accurate payments. Automating the payment process with SIM also allows businesses to track spending patterns better, identify potential opportunities for cost savings, and improve forecasting and budgeting.

6. Speeds the buying cycle

A centralized procurement solution allows buyers to easily search for and access relevant supplier information, such as product availability, pricing, delivery times, and payment terms. With information at their fingertips, buyers quickly identify potential vendors and make decisions faster. Some solutions, like Order.co, enable direct ordering and approval from within the system, further speeding the procurement process.

7. Enables reporting and KPIs

With an SIM system, managers and finance team leaders use data to track key performance indicators (KPIs) such as delivery times, product quality, order accuracy, cost, and contract compliance. This provides visibility into each vendor's performance and real-time data for stronger procurement outcomes and supplier lifecycle management. Reporting allows stakeholders across the organization to quickly gain actionable insights for better-informed decision-making.

Top 5 supplier information management tools to consider

Choosing a procurement management tool with strong SIM features ensures an organization can maintain full visibility and speed up the order and payment processes. 

When looking at solutions, consider the following five options. Each provides the services and capabilities necessary to maintain order accuracy and vendor data integrity while allowing stakeholders to order goods and services independently. 

1. Order.co 

A procurement platform like Order.co gives small businesses and mid-market organizations the tools and features to manage supplier information effectively, including vendor profiles, transactions, payments, and other vital data. Its centralized system also allows procurement managers to route orders, track fulfillment, and analyze spend by vendor, category, department, or other parameters to ensure full budget control and visibility. 

Features: 

• Easy vendor onboarding with direct integrations or API connectors
• Intuitive UI for buyer self-service and a curated vendor catalog
• As a procure-to-pay solution, it ensures timely, centralized vendor payment

2. Coupa

The Coupa platform serves enterprise organizations with modular procurement solutions to facilitate orders and payment through a central source. The platform enables stronger third-party relationships and reduces vendor risk with comprehensive onboarding, compliance, and AI-enhanced procurement monitoring. 

Features: 

• Automated email and paper-based invoice capture
• SIM features that integrate with other business management and business intelligence (BI) tools
• Contract management and procurement integrations

3. Airbase

Airbase provides a mid-market spend management solution for financial administration and risk management. It combines traditional procurement software features like AP automation and expense management with tools to warehouse vendor information and monitor relationships. The platform allows vendors to input payment information and streamline SIM activities.

Features: 

• Email invitation feature for vendors to self-service onboarding 
• Security features to reduce third-party risk 
• Robust integrations to tie information systems together

4. SAP Fieldglass

As part of the SAP suite of tools, Fieldglass offers vendor management for mid-market and enterprise organizations. The Fieldglass app allows organizations to store details, assignments, and workforce data necessary to execute, administer, and pay service-based contacts for every project.

Features: 

• External workforce management for flexible and contingent staffing solutions
• Procurement management services for statement of work (SOW)-based projects 
• Extensive support resources for easy back-end administration of offerings with a self-service portal

5. Precoro

Precoro is a comprehensive procurement software solution designed for small to medium-sized businesses. It streamlines purchasing processes while providing visibility and control of spend. The platform also offers robust supplier management capabilities and vendor-led onboarding features to ensure data accuracy and strengthen supplier relationships. 

Features:

• Invitation-based supplier management portal for easy onboarding
• Option to design select modules for customizable management solutions
• Works with ERP and other data systems through direct integration and open API

How Order.co enables better supplier information management

Supplier information management is an invaluable tool for organizations that want to simplify and streamline their vendor management process. It centralizes data, reduces issues, and provides more visibility into spending and vendor performance. 

Using a spend management solution like Order.co helps you keep track of all procurement activities, centralize supplier information, and enable better accounts payable management. Order.co offers strong features for improved outcomes throughout the procurement process, including: 

• A centralized vendor database with thousands of high-quality vendors for faster, lower-risk procurement
• Purchasing through curated supply catalogs for total, role-based spend management
• Line-level general ledger (GL) coding for accurate spend categorization and analysis

To learn more about using Order.co and bring your procure-to-pay software and supplier information management into sharper focus, request a demo.