Have you been hearing your fellow supplier management professionals tout the business-changing benefits of data enrichment? How it's improved their supplier management processes and freed up valuable administrative time? And yet, somehow, no one has actually explained to you what data enrichment actually is?
Don't worry—in this post, we'll not only tell you what data enrichment is, but we’ll also outline how it can help your company streamline supplier management, improve reporting, and reduce risks.
What is data enrichment?
Data enrichment is the multi-step process of refining supplier data across your organization by running it through a trusted master database.
What can data enrichment do for you?
Data enrichment ensures you're working with accurate, up-to-date supplier data. For example, when you sign up for CVM Solutions' data enrichment services, your data is cleansed and referenced against CVM's Master Database—providing standardized supplier information, record de-duplication, certification status validation, and more.
Through supplier normalization and standardization, your input file is compared against a master database containing public and private sources of market information in order to provide company name standardization; address standardization to USPS format; and the completion of missing data such as contact information, telephone numbers, tax IDs, revenue, and number of employees.
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, as these records will no longer have to be maintained.
Data enrichment also tracks certification status of diverse suppliers, as well as mergers and acquisitions, which can impact diversity certification. Staying alert to changes in certification lets you know in advance if you need to make changes to your supply chain to meet internal spend goals.
What if you had to perform this verification and standardization process manually? Soul-crushing, right? Release yourself from the mundane and use your expertise to develop relationships with suppliers, implement new initiatives, and analyze the data to grow your supplier diversity program.
Why do you need data enrichment?
In addition to releasing you from countless hours spent manually updating supplier data, using a data enrichment service makes your job easier (remember what happened to Nino Campos when he got extra time back in his day?) with accurate, up-to-date data necessary to track and analyze the supply chain.
Data enrichment provides a detailed report of your current utilization of diverse suppliers within your existing supply base, providing visibility into ownership and minority type. With that information, you can establish a baseline of your diverse supplier count and spend, then set realistic goals to diversify your supplier base.
Whether you are required to report and track diverse spend because you are a federal (sub)contractor, or a Tier I supplier to a large corporation, or you do so to meet your own goals and key performance indicators, you need to be confident that the data you are using is accurate. Through regular supplier data enrichment projects, you can easily track the growth of your supplier diversity program and the increase in your organization's engagement with diverse suppliers.
As mentioned above, data enrichment is a valuable risk management tool. Monitoring certification changes and mergers and acquisitions keeps you alert to possible negative impacts on your diverse spend. Additionally, after cleansing your data, the report generated identifies your top suppliers by spend—as well as identifying corporate family trees—enabling you to reduce supplier dependence by diversifying your supply base. When you are fully aware of how your suppliers are related to each other, you can identify and avoid costly disruptions to your supply chain.
Confidence in your data lets you focus on supplier development and strengthening the supply chain. Data enrichment ensures verified, up-to-date information, saving you time and money through accurate reporting, risk management, and tracking.
How has data enrichment, or lack thereof, impacted your organization?