The Fundamental Goals of Supplier Integration & Enablement

Charlotte Sutton
Charlotte Sutton,
Looking beyond the noise and confusion, what are buying organisations really trying to achieve with supplier networks and eMarketplaces?
In the organisations we work with, it’s pretty clear – they tell us that their fundamental goals are:
Reduce costs by introducing standard purchase-to-pay (P2P) processes

Introduce a standard set of processes and incorporate as many qualified/preferred suppliers as possible to:
  • Make it easy for people to find and buy the things they need, whilst assuring the appropriate controls, policies and procedures are in place
  • Therefore… maximise the use of the P2P system
  • Therefore… reduce overall spend and maximise the percentage of spend under management
Reduce the cost of transaction processing
Automate as much PO and invoice transaction processing as possible in order to improve efficiencies in both Procurement and Accounts Payable
Reduce the cost of supplier enablement
Eliminate as much of the effort involved in supplier profile and catalogue management as possible
You may perceive that the “biggest and broadest” public supplier network will enable you to achieve those objectives, but keep in mind that:
  • They don’t really come without a cost
  • They don’t cover every spend category
  • They don’t provide suitable capabilities for all types and sizes of suppliers
  • They don’t really relieve you of all supplier enablement tasks
  • Most importantly… they don’t automatically put more spend under management or transform your procurement process