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Vendor Management Software

22 Mar

Vendor Management and the digital opportunity

Rupert Heather

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Capturing the digital opportunity means adopting new technology and innovation to maintain the advantage. For buying groups, digital supply chains dramatically improve vendor management.

Vendor management software transforms how companies manage complex supply chains by improving visibility and control of suppliers.  

The introduction of the cloud, big data and process automation removes complexity and allows trading partners to connect in ways not possible before.

The goal is to ensure a consistent supply of the right products at the right price, to exceed customer expectations and achieve margin & turnover targets.

Best-practice is achieved by interlinking systems to manage the end-to-end procurement process and get detailed information on price, availability and product attributes.

Whether you need to enhance product flow, reduce lead times or cope with fluctuating demand, awareness of how healthy the supply chain is critical.

Many companies suffer from issues with the quality of information being exchanged with suppliers.

Poor communication with suppliers is often the cause of costly disruptions like stockouts and delays in getting product on shelf.

It’s impossible to keep a supply chain running smoothly without an adequate process for obtaining, storing and maintaining product and supplier information.

Visibility of all suppliers is key to:

  • Identifying supply chain risks
  • Dealing with ebbs and flows in demand
  • Preventing delays and backlogs
  • Correcting supply problems faster
  • Reducing the cost of doing business

Businesses become more efficient by increasing the volume and complexity of information to improve visibility of overall spend, supplier data and market intelligence.

Vendor management software offers new levels of integration and standardisation across the value chain. Organisation that strive for supply chain innovation transform their trading capabilities.

Those that rely on legacy ERP systems and the manual processing of supply chain documents are open to mistakes which can impact the customer experience. 

Not only that, lack of visibility leaves companies unsure of the true costs of dealing with poorly performing suppliers or identifying who the poor performers are.

This lack of operational effectiveness limits the ability to utilise suppliers to drive down costs and improve profit margins.

Enhanced vendor management software

A new generation of digital vendor management tools is emerging to help companies make more confident and informed procurement decisions.

By providing clean data and rationalising information flows across the value chain they are designed to simplify the management of multiple suppliers.

A procurement process based on integrated workflows and enhanced supplier collaboration, reduces the complexity of processing orders, deliveries and payments, giving greater visibility and control of trading activities.

Advanced supplier portals put standard business rules in place to send and receive documents and manage a community of suppliers. An effective portal is made up of services and workflows that add real business value to supply chains.

Benefits include;

  • Extend supplier base to source better products
  • Drive value, reputation and customer loyalty
  • Identify non-compliant suppliers
  • Meet consumer demand for product transparency
  • Speed up the payment process

Celtrino’s Tradehub:Buy supplier portal fuses traditional EDI with cloud technology to digitally transform supply chains making them more efficient.

One of the key advantages of Tradehub:Buy is that it ensures a single process for managing all your suppliers irrespective of their size or technical capability.

Find out more - download our free guide to managing multiple suppliers.