How do you take the cost out of supplier engagement?
You interact continually with suppliers to send, receive, and process transactions and to keep important supplier and catalogue information up to date. Your business depends on this interaction, but the cost can be extremely high - often even higher than financial and procurement executives realise. Streamlining your supplier communication can greatly reduce cost while also improving supplier relationships.
Like many organisations, you likely have some or all of the following challenges:
- High administrative costs in both Accounts Payable and Procurement because of all the communication, transaction processing, and information maintenance tasks.
- Persistent delays that hurt operational performance (e.g. supply shortages or service delays), and increase costs (e.g. late payment fees or missed early payment discounts).
- Concerns that you might not be aware of supplier risk.
- Difficulty increasing "spend under management" via your eProcurement system because of the difficulty of maintaining supplier catalogues.
By gaining a clear understanding of the underlying causes of these issues, and then applying the right tools to address them, you can expect to:
- Reduce the need for manual communication by deploying a self-service portal that makes it easy for suppliers to securely submit and maintain information, download POs, and access invoice status.
- Increase the % of electronic invoices by providing suppliers with practical ways to submit invoices electronically regardless of their activity volume or technical capabilities.
- Reduce process times by eliminating paper and all its inherent delays.
- Reduce supplier risk by ensuring compliance with evaluation, adoption, and review policies.
- Ease the burden of catalogue management by enabling suppliers to make updates themselves while you maintain a consistent catalogue structure within eProcurement.