Forging Tighter Communications Links
A Fortune 500 company’s supplier diversity team recently was challenged to expedite the process of locating and qualifying suppliers that could meet specific purchasing requirements. The critical need was to cut time and costs by forging a more effective communications link with its prospective suppliers to ensure they had the scope and scale to do business with a Fortune 500 company.
This company’s solution was to implement a supplier registration portal to facilitate the selection process. Its supplier diversity team also allows purchasing to have direct access to this registration portal.
As a result, after implementing its supplier registration system that includes supplier prequalification surveys, the company now reports a much tighter integration between its buyers and suppliers, as well as with its supplier diversity program. “The surveys were written by the buyers and they now only spend time with diverse suppliers that meet the criteria to do business with us,” a supplier diversity manager explains.
As the example above shows, allowing your procurement teams to have direct access to your supplier registration process can be critical to your success in locating and qualifying suppliers in the most cost-effective and least time-consuming way.
A supplier diversity manager at another Fortune 500 company, for example, reports spending significantly less time talking to suppliers that their company would never do business as a result of connecting suppliers and buyers by means of a registration system that aligns buyer needs with supplier capabilities.
Cutting Costs… and Improving Competitiveness
An effective supplier diversity management program will result in cost reduction and improved competitiveness as a result, in part, of a simplified and streamlined ability to find and manage new, qualified suppliers. By automating the process of gathering accurate information on suppliers and providing direct access to this information, your supplier diversity team can enable your procurement organization to deliver dramatic efficiencies and bottom- line results very quickly.
Beyond the automation and facilitation of the supplier on-boarding process, your challenge is to effectively manage the performance of your supplier diversity program to ensure its success.