What is Supplier Information Management?
Supplier information management (SIM), also known as vendor information management, is a business system that allows you to store, capture, update, and analyze your supplier data in one place. Moreover, it enables businesses to thoroughly grasp their suppliers' strengths and limitations.
Typically integrated into an online portal, SIM tools help suppliers perform self-service account maintenance, onboarding, and data management. It also contains procedures for conducting complete audits to assure compliance and reduce supplier risk.
SIM also delivers automated alerts to ensure suppliers stay on top of crucial metrics and documentation, in addition to the functionality mentioned.
Advantages of Using Supplier Information Management Solution
Supplier information management offers substantial benefits for procurement teams, and the most common are listed below:
Helps Capture Critical Information
SIM encourages procurement teams to capture superior data on their suppliers. This data includes KPIs, risk metrics, and specific supplier capabilities. This information is invaluable for procurement teams when it comes to evaluating suppliers.
With just one system managing all supplier data, organizations can reduce errors, avoid duplication, and ensure all supplier data is the same across the entire business. By doing this, organizations ensure that all business teams are on the same page.
Reduces Administrative Costs
Rather than manually entering supplier information, SIM promotes suppliers to self-serve, ensuring organizations have the latest info for their suppliers without entering the data themselves, saving time and cash.
Automates Specific Tasks
SIM automates many essential tasks. Notification, messages, and alerts are sent to suppliers to keep documents updated. Automating rudimentary compliance tasks ensures that new certifications and accreditations are up to date. SIM intervenes when suppliers don't update their details.
There's no denying that data is king in this tech-centric society. Hence, procurement teams should be interested in developing a robust supplier management database because it will offer them clear supplier metrics, vendor visibility, and the information they need to make objective data-driven procurement decisions.
Don't overlook the value of having an excellent supplier information management solution as you look for ways to improve your procurement processes.