Taulia: 5 best procurement practices for supplier onboarding
When it comes to the day to day operations of an organisation, suppliers and vendors play a crucial role in the production and sourcing of raw materials through to the supply of essential services to operate.
As a result, it is important to adopt the best practices when it comes to the supplier onboarding process to ensure that strong relationships are built, and suppliers are prioritised.
“Minimising supplier risks and ensuring long and healthy relationships doesn’t just involve selecting the suppliers best suited to the company’s needs, though, it’s also important that you onboard them effectively,” explained Taulia.
“A positive supplier onboarding experience can lay the foundations for a strong future relationship, but by that same logic, a negative experience may get the relationship off to a rocky start. Equally, an inefficient onboarding process could lead to missed opportunities, lost sales, and delays to your daily business operations. As a result, it’s important to ensure your supplier onboarding process is as smooth and efficient as possible.”
Five best practices for supplier onboarding
While a vital part of an organisation’s operations, the onboarding process can be inefficient, time-consuming and costly. By automating the processes as much as possible, organisations can improve efficiency and accuracy, as well as gain access to streamlined information and data.
“You can also see efficiencies by utilising a self-service system, whereby suppliers enter their own information through a supplier portal,” commented Taulia.
While it is important to adopt an efficient onboarding process, it is just as important to make sure that it is consistently used across the entire organisation. It is also crucial to maintain consistency when it comes to care and attention after the onboarding process.
“An ongoing focus on supplier management can bring about benefits for your business,” said Taulia.
3. Information security
Another essential element of the onboarding process is the security of data. Taulia highlights the importance of investing in systems that protect supplier information and data from threats.
4. Due diligence
Being due diligent in the early stages can help to ensure a more efficient process in the long term. Organisations can benefit from the ability to discount suppliers early on that are not well suited to the organisation. Key elements to consider include reputational risk, financial information, insurance information and information security measures.
5. Early buy-in
A best practice as old as business itself, top-down support has always been essential to ensuring successful processes are implemented, and the onboarding process is no different. It is important to make sure all internal stakeholders are involved from the beginning.
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