Manually updating supplier diversity data is time-consuming and cost-prohibitive. But without constant monitoring and updates, your supplier data goes stale, which can negatively impact your entire organization through missed opportunities, inefficiency, and supply chain interruption.
Data enrichment tools transform your supplier data into supplier intelligence, thus enabling your company to make business decisions with confidence, leverage buying power, and mitigate risks.
Depending on your needs, there are two types of data enrichment:
Enterprise Data Enrichment
Enrich supplier data throughout your organization with enterprise data enrichment. This multi-step process enhances data accuracy and quality by eliminating outdated and redundant information across all departments, thus empowering you to make confident business decisions.
Through supplier normalization and standardization, your input file is compared against master databases containing public and private sources of market information in order to develop standardizations in areas such as company names, addresses, contact information, tax identification numbers, revenues, number of employees, and so on.
The cleansing process also identifies duplicate entries and appends the standardized information to your file. This allows you to review duplicates and make the final decision about whether the entry should be eliminated or consolidated into one entry. Eliminating duplicate records from your vendor master can translate to cost savings since these records will no longer have to be maintained.
An enterprise data enrichment service also provides parent company information which can help identify links between suppliers that may not be visible otherwise, and identify updates resulting from mergers, acquisitions, or ownership changes. Identifying corporate families through parent data also helps you leverage total vendor spend to negotiate better pricing terms or volume discounts, and make more informed decisions about your supplier relationships.
Enrich your supplier data by assigning commodity classification codes, such as SIC and NAICS, to enable you to search, track, and report on suppliers based on standard categories. Gain additional visibility into your global supplier information through data by generating reports based on country, continent, and categories.
Diversity Data Enrichment
Whereas enterprise data enrichment focuses on refining supplier data across your organization, diversity data enrichment will give you targeted insight into your supplier diversity program.
The first step to developing your supplier diversity program is to determine which of the suppliers you're already doing business with would qualify as diverse. A diversity data enrichment service provides a detailed report of your current utilization of diverse suppliers and identifies your top diverse suppliers by spend, thus enabling you to mitigate risk by reducing supplier dependency if needed.
A diversity data enrichment service compares your supplier data file against a master database of third-party certification sources and identifies which of your suppliers are certified or classified as MBE, WBE, LGBT, SDB, DBE, 8(a), HUBZone, Veteran, Service-Disabled Veteran, Disabled and Small Business supplier.
When you use a diversity data enrichment service to determine supplier certification and classification, applicable certification expiration dates and certificate numbers are also included so you can track changes in status. This enables you to mitigate risk and maintain the integrity of your diverse spend by actively monitoring changes in certification or classification status which can indicate merger and acquisition activity, ownership changes, and updates to certification or classification status.
Accurate, quality supplier data enables you to make actionable decisions about your supplier diversity program and set realistic goals and KPIs in alignment with company objectives. Easily track the growth of your supplier diversity program and the increase of your organization's utilization of diverse suppliers through regular supplier data enrichment projects.
Supplier data is constantly changing. With data enrichment, you not only save the time and money that would be spent manually entering and verifying data, but also empower your organization to make business decisions with confidence backed up by accurate, quality supplier data.
Learn more about Data Enrichment Services