Below we have selected examples of data that should be up-to-date and reviewed by the sourcing team from time to time. We have also highlighted the reasons why up-to-date supplier information is important.
1. Contact information
Accurate, reliable and up-to-date supplier contact information makes the sourcing team's work more efficient.
When the contact information, contact persons’ responsibilities and company data are correct, the sourcing team can directly contact the right person – whether it is about tenders, quality matters, compliance or, for example, contractual matters.
Noventia's supplier portal enables the suppliers to manage their own contact information.
2. Term approvals
The sourcing organization may have minimum requirements or conditions that must be met in order to start a collaboration with the supplier. Often, the supplier is required to at least approve the Code of Conduct, and NDA or, for example, confirm that they do not belong to any Sanctions list .
Up-to-date information on the terms acceptance helps the sourcing team in many ways. Based on the information, it is possible to identify whether the supplier can participate in the tenders or whether contracts can be made with the supplier.
Acceptance of all the relevant terms and conditions can be requested when logging into Noventia's supplier portal or later with the questionnaires. The information is stored in the supplier database.
3. Compliance
In addition to the terms and conditions described above, the sourcing organization may have qualitative requirements that need to be checked with the suppliers. Some examples of this kind of data are ethical requirements, qualitative requirements, environmental requirements and different kinds of different kinds of certificates, that need to be collected from suppliers.
With Noventia's Supplier Questionnaire tool, suppliers' compliance can be comprehensively checked.
4. Contract status
Information about the supplier's contract status shows the buyer immediately whether contracts have been made with the supplier and whether they are currently valid.
The supplier's contract status can be seen in Noventia directly from the supplier info sheet. In Noventia, it is also possible to find more detailed information about contracts when necessary.
5. Spend
The supplier's spend information shows whether business has been done with the supplier during the previous months or years. Spend data can be displayed in Noventia's supplier info sheet.
All the information mentioned above helps to form an overall picture of the suppliers and to make data-driven decisions at different stages of the sourcing process.
Up-to-date and centralized information brings many advantages
Cost savings
Up-to-date supplier information enhances supplier cooperation. Collaboration is more efficient when the buyer has the right contact information.
Based on the overview created from the supplier's information, it is possible to identify the supplier's capabilities and possible development areas for cooperation. The more information the buyer has, the better decisions can be made based on facts - and this usually creates also cost savings.
Risk Management
Up-to-date information on the suppliers’ capabilities can help companies reduce risks related to their supply chain, such as supply disruptions, quality issues or compliance violations.
Companies can monitor the performance of their suppliers using the collected data and identify potential risks. The information also helps companies to take proactive measures in order to minimize the effects of possible future problems on their own business.
Ensuring compliance
Continuous data collection is important so that the sourcing team has access to up-to-date information. Acceptance of the terms and running questionnaires on a regular basis enables ensuring compliance with various regulatory requirements (such as anti-money laundering, anti-bribery and anti-corruption laws).
Based on the information collected from the suppliers and imported from other sources, it is possible to assess the supplier's risk profile and ensure that the suppliers meet the quality requirements of the sourcing organization. It is also possible to report collected data, for example, as part of various audits.
Summary
By investing in effective supplier data collection and management, the sourcing team can ensure that reliable and up-to-date information about suppliers is available.
Cooperation based on up-to-date information benefits both parties. Sourcing decisions are justified, which will increase the company's competitiveness.
Up-to-date and comprehensive supplier information is in a critical role in ensuring the sourcing organization's efficiency, cost savings, risk management and compliance .
Sanni Laine-Luoto
CEO, Noventia Oy
+358 45 114 4883
sanni.laine-luoto@citrus.fi
