Supplier onboarding is the process of setting up another company as an approved vendor or supplier for your business. You might rely on these vendors to conduct business, maximize efficiency and to purchase goods and services, and as you grow, you will need more and more.
The process of setting up a new supplier can be complex. Usually, it requires documentation, data, vetting, and validation to make sure the supplier is compliant with corporate laws and regulations. You’ll need background information such as audited financial statements, customer references, policies, health and safety documentation – as well as agreements of the terms and conditions and perhaps an NDA for your business.
If you want to cut through some of this organizational red tape and save some time, you may have thought about automating your onboarding process. By establishing an automated onboarding process, you can avoid many setbacks and issues that can happen as a result of poor supplier governance.
Use a supplier portal
The key to seamless automation is excellent technology platforms. It’s well worth investing a little if you want to become more efficient as your business grows, without falling behind on your compliance. Omnia supplier portals, specifically built for SAP ERP running companies, provide a single point of entry for the creation of suppliers for your entire organization. Using such portals will provide both you and your suppliers with a full view of tasks to be completed, taking the headache out of the process so you can get on with other value-added tasks. For more information on how your business could benefit from this technology, visit omniaecommerce.com.
Send automated email invitations
Setting up automated email invitations to your suppliers with log-in links for your SAP portal (as well as username and password information) will save you time and admin costs during the onboarding process. It may only be a small portion of the overall task of onboarding, but you’d be surprised how much time it could save. Your suppliers will have access to the platform immediately with minimal organizational input. Of course, automated processes do occasionally fail, and it’s easy for users to run into issues with passwords or login details, so it’s sensible to have a core team standing by during the initial on-boarding phase.
Reduce risks from the beginning
One mistake that many companies make is not to deal with the risks of fraud before they occur. It’s better to have a fool-proof strategy in place from the start so you can remain vigilant and protect your business. This means carefully vetting your suppliers and ensuring compliance during the onboarding process. Rather than sending, receiving and reviewing this information manually, moving to the right automation platform will help you achieve sustainable growth while taking much of the hassle out of the process.
Lastly, it’s essential to ensure consistency across all your business locations to make sure the same standards are in place for all suppliers. Using technology that’s able to provide a 360-degree view of your company – along with your supplier relationships across the board – is the key to remaining consistent in this area.