Getting it right from the start will pay big dividends in both money saved and securing your supply chains with a strong vendor community!
The function of on-boarding vendors is as diversified in the process and execution as any business process you will find. Every organization takes a somewhat different approach to vendor onboarding (supplier onboarding) of new vendors as well as building a list of qualified, potential vendors. Some of the differences are driven by industry issues such as regulatory and licensing requirements while other processes differ mainly due to “cultural” considerations or governmental compliance demands.
What is standard across companies and industries however is the importance of getting it right. Getting it right means making sure than you have all the information to not only setup a vendor to do business with your company, but insuring the information is accurate and compliant. This will facilitate doing business with that vendor throughout the procure-to-pay process without downstream consequences such as those that would result from expired licenses, lapsed insurance, missing permits, or fraudulent activity from a bogus vendor.
This means that many different constituents may have to be involved in a collaborative process with your suppliers and internal stakeholders in the onboarding process. Procurement, Accounts Payable, Risk Management, Legal, Diversity, Logistics/Supply Chain, Operations, IT, Security and others may need to be “in the loop”, particularly where onboarding strategic suppliers who are crucial to your supply chains, or potentially high risk vendors who could pose financial and operational liabilities. Of course not all vendors will need a high level of scrutiny, but having processes in place to insure compliance is high and risk is low will help insure the suppler relationship is right from the start.
The challenge is performing all these tasks: collecting all the information (documents & data); reviewing the information; obtaining approvals; and doing the actual leg work to insure you can do business with and pay your new vendor. ICG’s cloud-hosted vendor onboarding & vendor maintenance portal provides your organization with the platform and tools to streamline the onboarding process in a secure, vendor self-service model. And this same vendor portal (supplier portal) based solution will allow you to monitor ongoing compliance of your suppliers by utilizing the automated tracking of expirations of insurance, licenses and permits, diversity certifications, and any other area of compliance where you need to stay on top of expirations.
To fit the needs of your companies unique and dynamic processes, along with ever changing industry and government regulations, the solution must be flexible and configurable to be fully effective. Contact ICG today for more information about our dynamic Vendor Onboarding solution or request a demo today for you and your team!