Organisations that have put in place a solid Supplier Management environment (which typically includes a supplier portal) are seeing that they can leverage this new capability to drive added benefits.
Organisations that have put in place a solid Supplier Management environment (which typically includes a supplier portal) are seeing that they can leverage this new capability to drive added benefits. They are starting to go to their most important suppliers with the message: “We want your very best price/value offering, but we are going to make that a win-win for both of us.” These organisations are saying to target suppliers that they will reduce the supplier’s ‘cost to serve’ by making all forms of interaction easier. They will make it EASY for the supplier to:
- See what the organisation is buying (tenders)
- Participate in sourcing events for new products or services
- Put agreed upon segments of their catalogue content in front of day-to-day purchasers
- Receive purchase orders in whatever way is most productive for them
- Submit invoices in the most efficient manner for them (e.g. various options for electronic invoices or paper/fax/email if that’s what they prefer)
- Consistently get paid on time
- Always have self-service visibility of their account status
Gartner says that the advantages of allowing suppliers to manage their own information, sourcing events, contracts, catalogues, purchase orders and invoices in one place should not be underestimated. They remind buyers that suppliers are important stakeholders in procurement technology implementations. Organisations that are expanding their use of technology to streamline supplier interaction and position themselves to confidently offer these supplier benefits are standing out from the crowd at contract negotiation time and getting the better deals.
To learn about 'New Buyer Initiatives' in more detail, download 'Procurement Automation: Key Trends & Hot Topics'