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Better manage your supplier data for an effective IT procurement system

, by Thierry Jaffry

Good supplier data management (SIM: Supplier Information management) is key to establishing an effective IT procurement system. It is complicated (or even impossible ?) to manage in a reliable way data of thousands of suppliers without having a dedicated system to connect with your overall information system (ERP, Sourcing solution, accounts payable solution, digitization solution…) as the tiniest lack or out-to-date supplier information can :

  • represent an important financial risk (penalties, payment issues…)
  • or environmental problems, dependency or even procurement issues
  • reduce spend accuracy and its analysis
  • generate frustration from internal communication but also with the suppliers themselves.

Whereas some studies prove that the cost of managing one supplier per year is $500, only a few companies have acknowledged the issues involved.

And you, have you evaluated the cost within your organization?

Nowadays, supplier data management technologies have become a major concern for most companies, manipulating supplier data heterogeneously (multiplication of solutions, data governance, complex processes…). This situation implies supplier data urbanization and real-time update.

Discover the major benefits of implementing a centralized and unique supplier database:

  • Data cleansing
  • Better control over supplier creation
  • Data integrity and accuracy over time
  • Centralized data
  • Synchronization with any external system
  • Shared documents
  • Delegation of data maintenance to the supplier himself

Do you want to improve your supplier data management?