Driving Business Value Through a Data-driven Supplier Ecosystem
Ankur Gupta, Sr. Product Marketing Manager, Reltio
Supply chains are everywhere – from the biggest company in the world to running your household! Regardless of the industry, it is very important for a company to develop long-term, mutually beneficial strategic partnerships with key suppliers. Supplier planning and management require current, complete and in context data, but often data remains unclean, siloed and delayed. Poor data quality and inconsistent data standards for suppliers lead to inefficient processes and subpar performance across IT, Finance, Procurement, Compliance and other departments. With increasing data volume and variety, it is more important than ever to have business applications that are both operational and analytical, for a true, reliable Supplier 360° view for actionable insight and measurable, correlated outcomes.
A Single Supplier View Across the Enterprise
A Modern Data Management Platform consolidates all information about your supplier organizations from multiple databases (e.g. eligibility, contracting, compliance, onboarding, financial) in one place and makes it accessible in real-time. Further, data from internal, external and third-party (e.g. Dun & Bradstreet) sources are blended to create comprehensive, reliable and enriched supplier profiles. With easy to use UI, akin to modern consumer applications like LinkedIn and Facebook, all business users quickly achieve a higher level of productivity.
Personalize Hierarchies and Uncover Relationships
Context is an important factor in creating a usable Supplier 360° view. A modern Supplier 360° solution provides all the relevant supplier information to the user, based on the user’s role and the task at hand. For example, different business users across Finance, IT, Procurement and Compliance teams gain real-time visibility into suppliers’ relationships with their parent companies, subsidiaries and so on. With endless ways to model relationships, you can create custom hierarchies beyond just formal legal structures, and add business logic, such as global sourcing to create visual and actionable views of your suppliers.
Make Your Supplier Relationship Management Data-driven
Supplier 360° data-driven application helps understand who your suppliers are and where your services, products and raw materials are sourced from. It facilitates data-driven management of your supplier selection, onboarding, innovation and development including post-merger supplier management scenarios. It helps negotiate better pricing with a view of your total supplier relationship. Furthermore, it not only improves supplier spend and performance management, but also drives top line growth by selecting the right suppliers for the right product or service, in the right geography.
Improve Operations and Save Time & Money
Supplier 360° views enable procurement to deliver cost efficiencies. It helps align all transactional and strategic processes (such as sourcing, order fulfillment, demand management, spend analysis, contract lifecycle management, category management, returns management and so on), reduce business overhead and save time significantly. The procurement team can identify product and service gaps, and uncover profitable deals across the supplier ecosystem. Additionally, it helps shrink supplier onboarding and qualification from weeks to days, and get products to market quickly.
Demonstrate Ongoing Compliance
With a Supplier 360° data-driven application, you can drive compliance across the supplier life cycle for handling taxation, credit risk, pricing, discounting, financial information and contract adherence. It helps meet regulatory requirements, such as OFAC screening, diversity tracking and new 1099 Tax legislation. Rather than just meeting compliance needs, a Modern Data Management Platform as a Service (PaaS) allows dynamic analysis of the data, with machine learning to reveal relationships and opportunities that can proactively reduce violations, and help improve your supplier engagement and satisfaction levels.
The combination of Modern Data Management and data-driven applications will dramatically change the way organizations manage their suppliers. Business leaders must take a holistic approach towards digital transformation in order to revamp their supplier ecosystem and stay competitive in today’s global market. Digitization does not mean applying the latest technologies, it means creating a reliable data foundation and adopting a data-driven operating model to locate the untapped potential of existing resources and capabilities. The advantages will by no means be limited to reduced cost and greater efficiency, but will also reflect in accelerated innovation, larger market share and increased long-term business value.