Siksi toimittajien hallinnan tulisi perustua koko elinkaaren kattavaan prosessiin, ei pelkästään perustietojen ylläpitoon.
“Supplier management is not just about maintaining a supplier register. What matters is being able to manage suppliers throughout the entire lifecycle of the relationship and continuously maintain an up-to-date view of where each supplier stands and what should happen next.”
Sanni Laine-Luoto, CEO, Noventia
With Noventia’s supplier management solution, the supplier lifecycle can be managed automatically based on predefined rules. This gives the sourcing organisation visibility into the current status of each supplier and the actions required next.
The supplier relationship begins before the first sourcing event
The supplier journey begins with registration. Suppliers can be invited to register using an online registration form, or they can be added to the system by the sourcing team. During registration, basic company information is collected, and suppliers can also be asked to accept requirements such as the Code of Conduct.
Following registration, additional information can be collected from suppliers, for example on sustainability-related matters. Once the required information has been collected, the supplier can automatically be moved to potential supplier status, making them eligible to participate in sourcing events.
”At this stage, supplier management already extends beyond maintaining basic supplier information: the information collected can be used to determine whether the supplier meets the organisation’s requirements for progressing to the next stage of the lifecycle.”
From sourcing event to active supplier
Potential suppliers can be invited to respond to RFx events. The winning supplier can automatically be moved to active supplier status, marking the start of the collaboration and making the supplier part of the company’s active supplier network.
As the relationship develops and purchasing volumes reach a sufficient level, the supplier can be elevated to partner supplier status. This decision can be based, for example, on the contract status or spend data integrated from ERP or financial systems.
“When actual business data is available, a supplier’s status can be assessed based on what the relationship really looks like in practice.”
The value of lifecycle management comes from continuous monitoring
The real value of lifecycle management emerges during the ongoing supplier relationship. Information on active suppliers, and particularly partner suppliers, can be continuously monitored using external data sources. This can include, for example, contractor's liability status, risk classification, credit rating, collection receivables, the company’s official status, or other risk indicators defined by the organisation.
If a supplier’s situation changes, the sourcing team receives automatic alerts. This enables proactive risk management without the need for continuous manual monitoring.
“In supplier management, it is not enough that information has been collected at some point. What matters is that the information remains up to date at all times. This allows sourcing to respond to deviations before they develop into larger problems.”
Deviations are also part of the supplier lifecycle
Not all suppliers remain at the same status throughout the relationship. If, for example, the supplier’s risk classification rises too high, contractor's liability information is not in order, or there is a significant change in the company’s financial situation, the supplier can automatically be moved to a status requiring further review. In more serious cases, the supplier can be moved to a “do not use” status.
Once the issues have been resolved, the supplier can return to active or partner supplier status without cumbersome manual processes. This allows the organisation to maintain control while ensuring equal treatment of all suppliers. A supplier’s status is not based on individual interpretations, but on predefined rules and the information available.
Integrating lifecycle management into the company’s ecosystem
When Noventia is integrated with other business systems, a supplier’s status can automatically affect processes elsewhere in the organisation.
For example, an ordering block can be applied in the ERP system if the supplier moves to a restricted status. In financial systems, the supplier can be blocked from new transactions if the company has ceased operations or the supplier has been removed from the list of approved suppliers.
The final stage of the lifecycle is a closed supplier. At this point, the supplier relationship has ended, but the history, documentation and audit information are retained for future review.
Towards more strategic supplier management
At its best, supplier lifecycle management brings together onboarding, compliance, sourcing events, spend data and risk management into one integrated process. Instead of sourcing reacting to problems after they occur, activities can be guided by predefined rules and up-to-date information.
“Supplier lifecycle management makes it possible to combine available data with predefined rules, giving sourcing a clearer view of the current state of the supplier network and enabling action when it is needed.”
The result is a more transparent supplier network, less manual work and a better ability to identify risks before they develop into business problems.
Noventia’s supplier lifecycle management model is designed to meet this need.
Sanni Laine-Luoto
CEO
Noventia Oy
