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CVM Supplier Diversity Blog

4 Signs That You Could Benefit from Supplier Management Solutions

4_signs_that_you_could_benefit_from_supplier_management_solutions

“I want to expand my supplier base, but I don't know where to start.”
“I feel like we're missing out on cost savings within our supply chain.”
“Our procurement team is completely overwhelmed.”
“The spend reports we generate aren't giving us a clear picture of how – or if – we're meeting our goals.”

Does this sound familiar?

Building and managing a successful supply chain is integral to the growth and sustainability of your business, but sometimes it feels overwhelming. Don't make supplier management harder than it needs to be. Effective use of pre-existing supplier management solutions can jumpstart your program, saving you time and money to invest elsewhere. If you recognize your organization in any (or all!) of the above statements, it's a sign that your company could benefit from supplier management solutions.

1. You want to expand your supplier base, but don't know where to start.

Without the right tools, identifying, qualifying and establishing relationships with new suppliers is time consuming and costly. A supplier locator tool can help you easily find new sources of suppliers that meet your specific requirements. Search and filter by category, commodity and area of expertise, geographical location, whatever criteria you need. An effective supplier locator tool will provide you with the most up-to-date company and supplier contact information, saving you valuable time and making it easier to contact the right person.

Strategic expansion of your supplier base has tremendous impact on your bottom line. Adding key suppliers who inspire innovation can increase revenue and market share while also driving down costs due to increased competition among suppliers.

2. You're missing out on cost savings.

Strategic sourcing practices significantly contribute to your company's bottom line. Do you know if you're doing business with more than one related company within a family tree or corporate structure? A data enrichment process aids you in identifying and understanding parent-child family linkages, enabling you to leverage that knowledge for contract negotiations, diversifying your supplier base and mitigating risk. Also, scrubbing your data offers you a  “supplier clean up” in terms of identifying duplicate records, name and address standardization and normalization.

3. Your spend tracking and reporting is superficial and inefficient.

Producing reports with irrelevant information is a disservice to everyone involved. Without clear goals that tie in to your organization's objectives, the data is useless. It’s critical to create, track and align relevant metrics that are specific to your organization’s core business drivers. These may include metrics such as average contract amount, cost savings and avoidance, revenue growth, category assessment and supplier rationalization.

A third party supplier management solution can assist you with defining these goals and objectives so your reports provide a concise, accurate picture of how your supply chain is performing within the organization.

4. Your procurement team is overwhelmed.

Communicating bid opportunities, building relationships with suppliers, establishing goals, benchmarking, tracking and reporting spend, identifying and qualifying suppliers, developing and implementing a supplier diversity program – these all fall under the purview of your procurement team. Depending on the resources your company has available, your team may be overwhelmed by the many moving parts that make up the supply chain.

Reduce administrative workload and make onboarding suppliers easier by implementing a supplier registration portal that prequalifies suppliers and routes their information to the appropriate purchasing manager in your organization. Free up your team to focus on identifying opportunities and developing relationships with suppliers, further strengthening your organization’s procurement strategy.

Establishing and advancing your procurement program is so much easier when you use the right tools. Supplier management solutions increase efficiency, reveal cost savings and add to your company's overall growth.

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For over a decade CVM's mission has remained unchanged: lead the transformation of Supplier Diversity program management and support Supplier Diversity programs. CVM helps corporate supplier diversity programs in every stage of their evolution; from those that are just getting started, to the most advanced, world-class programs. Equipped with unparalleled data intelligence, superior technology and expertise guidance, businesses can effectively establish and advance their Supplier Diversity initiatives.