w Contents Heading 1 ................................................................................................................................................ 2 Heading 2 ................................................................................................. Error! Bookmark not defined. Heading 3 ................................................................................................. Error! Bookmark not defined. Supplier On-boarding Best Practice Guide Date: May 2018
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Supplier On-boarding Best Practice Guide · approval workflow and be updated in your ERP through the process described in this document. Open request set up The Continuous Supplier
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Considerations before start .................................................................................................................... 3
Supplier Onboarding set up .................................................................................................................... 7
I want suppliers to register for the marketplace ................................................................................ 7
I want to ensure the supplier meet my standards .............................................................................. 7
I want to update my supplier’s data ................................................................................................... 8
Open request set up ........................................................................................................................... 8
Data Structure ......................................................................................................................................... 9
Supplier On-boarding Best Practice Using SourceDogg
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Introduction
Availability of accurate and content-rich supplier information is a necessity for every organisation.
Improved insight into supplier capabilities is critical for any activity related to the supplier, that
includes sourcing, category management, contracts, payments, etc.
Active management of supplier data has several very significant benefits for the organisation:
• helps firms to manage their active vendors, which results in less time that accounts payable
spend managing data and collecting information on suppliers organisation no longer deals
with.
• increases overall productivity and usage of procurement team’s time to focus on more
strategic tasks related to supplier selection, supplier evaluation and performance
management and category management.
• prevents poor data quality and inconsistent data standards for vendors, this results in more
time spent on obtaining, harmonizing, and enriching vendor information, rather than trying
to identify the accuracy of supplier information.
SourceDogg offers a simple and user-friendly solution that will allow vendors to self-serve and
provide required information on regular basis and automate the process of data updates in the ERP
systems.
Considerations before start
Several elements of data collection must be considered before the start of the project. We
recommend starting with looking at the desired final objective and then configuring the platform to
achieve this, keeping in mind the requirements of your organisation, available resources, and level of
integration and automation needed.
Please consider the following:
1. What data needs to flow to ERP and other systems and in what format?
Each ERP has different requirements when importing data from other systems. It is therefore important to consider the data that needs to flow from SourceDogg to another system, and what format this data needs to be in. This will influence the format of the questions in your Supplier Onboarding form and the Supplier Profile Custom Fields these questions populate. 2. What reports need to go to which users and of what subset of the data should they see? Not all your users need to see all your supplier data. Groups of users can be assigned to different views of supplier data or can be added to separate report distribution lists. Views of data are created through sub-pools based on the data the supplier have on their profile, e.g their category, are they
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approved or not and the country they are based in. You can also include what data in include and exclude Accurate and readily available data is a necessity for decision making, therefore the data collected from your suppliers should be exported to decision makers within your organisation. Customised regular updates could be set up to each category manager with data relevant for their category and their supply chain partners. 3. What searches are your users going to complete to find suppliers and have you captured
enough data to enable that search? You could potentially be collecting large amounts of data from your supply chain partners and you need to be able to search through hundreds of suppliers, finding ones that fulfill your current requirements. SourceDogg enables this provided you have collected this information through the system in the correct format. We recommend asking your suppliers to answer questions that will categorise them and allow you to filter on their capabilities, locations, company type, legal entity, etc. Finding the supplier to match your needs will then take a matter of seconds. 4. What is the matrix of certification and qualifications you demand from suppliers? Are you
capturing these to ensure suppliers are qualified to supply different categories of products and services?
Managing and reducing the supply risk it one of the main targets of supply chain professionals in the current business environment. A failure to verify supplier’s certifications before awarding the contracts might cause problems at a later date. SourceDogg features will allow you to collect certifications of your supply chain and these will be available for any member of your team by visiting their Supplier Profile in SourceDogg. Every supplier will be automatically notified when their certification is due to expire and asked to provide an update through their account, and this will also be immediately available to you. If the supplier fails to update their certification, a report can be scheduled to notify the responsible user so further action can be taken. Examples of certifications collected by our clients are ISO 9001 Quality Certificate, ISO 14001 Environmental management, OHSAS 18001:2007 Occupational Health and Safety Management Certification, or ISO 22000 Food safety management. The same approach can be used for collecting the insurance certificate, such as Product Liability, Employer’s Liability, or Public Liability. This functionality can also be used in a similar way to collect internal policy documents of your supplier, e.g. Health and Safety Policy, Anti-Bribery policy, Human Rights policy, Business Continuity policy or Equal Opportunities and Diversity policy. Below are the examples of outputs from SourceDogg after a Supplier On-boarding process.
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Figure 1 Example of Contact Information on Supplier Profile
Figure 2 Example of Profile Custom Fields, includes both data collected by Supplier On-boarding and manually entered data
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Figure 3 Supplier profile tags
Figure 4 Example of Certifications on Supplier Profile
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Supplier Onboarding set up
Depending on the nature of the supplier that requires being on-boarded, we recommend setting up
several on-boarding questionnaires. These would include a “speculative” supplier on-boarding form
for any business expressing an interest in becoming your supplier, where the range of information
collected would probably be limited to simple contact information, category information, and
perhaps supplier certifications.
Existing suppliers or vendors identified as critical to the business would be required to provide
detailed information about the company, this could include the data such as registration number
details, VAT information, or banking details.
As described above, the most important characteristics of Supplier Master Data should be the
accuracy of the information and this can only be achieved by regular data updates. Due to nature of
the business and frequent changes to contact information, new capabilities of the supplier, or
changed banking information we recommend that organisations regularly refresh their onboarding
information with the use of separate “refresh” supplier onboarding questionnaire.
I want suppliers to register for the marketplace
Any vendor who contacts your organisation with an interest in becoming a supplier should be
subject to simple supplier on-boarding questionnaire that will allow you to make a later
determination on whether you have any interest in doing business with them. The content of this
form should be aimed at getting basic information from a supplier such as:
1. Contact information – name, address, email, website, phone details, etc.
2. Category information – a description of what products and services the vendor provides.
This information will later help with the selection of suppliers for any RFx and will grow the
supplier base, provide more competition and result in an opportunity for better prices and a
higher quality of products or services provided to your company
3. Product / Service delivery information – it is important to understand where vendors
deliver the products or provide the services. The importance of such information grows with
global suppliers and in case your organisation operates in multiple countries or regions.
4. Any other information your company considers essential – e.g. company registration
number or VAT number
I want to ensure the supplier meet my standards
For any existing vendor or supplier identified as critical to business, we would recommend using the
“full” supplier on-boarding questionnaire that will be extensive in content and collect all the major
information from your supplier. The types of information we recommend collecting could be split
into several sections:
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1. Contact information – as above
2. Category and delivery information
3. Financial information – would include the bank details, financial performance information
(revenue and gross profit margin information for previous years), tax information, invoicing
details, currency, etc.
4. Certifications – such as ISO 9001 Quality Certification, ISO 14001 Environmental
Management Certification, etc
5. Insurance – public liability insurance details, product liability, employer’s liability, etc.
6. Business Policies – Health & Safety policy, Business Continuity, Equal Opportunities and
Diversity, Anti-Bribery policy, etc.
This is only a very small selection of information you might need in your organisation and
SourceDogg can share the list of best practice questions used for the full supplier on-boarding so
nothing important is forgotten.
I want to update my supplier’s data
Your suppliers will be changing their banking details, addresses, contact people over the time you
deal with them and therefore it is a necessity to update the data you hold in their profile. The easier
solution to this to publish a separate questionnaire on SourceDogg and link it to your website so
supplier could alter the information as needed.
We recommend that data refresh questionnaire is a copy of the full supplier on-boarding so it will
allow the supplier to change any details they have provided previously. The data refresh
questionnaire should not have any mandatory questions so the supplier can only amend the details
that have changed since they were on-boarded. The updated information can go through the
approval workflow and be updated in your ERP through the process described in this document.
Open request set up
The Continuous Supplier on-boarding request in SourceDogg generates an URL link that can be
added to your website or sent to potential suppliers by email if required.
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Data Structure
In SourceDogg, functionalities of profile custom fields and tags are used record the information
provided by a supplier on their profile and consequently to schedule reports. The approach we
suggest taking is to consider how the data collected are going to be used and which of the data must
be available for reporting, integration, or just available to be searched for in SourceDogg.
The below document provides guidance and will help you to identify the data that your organisation
need to report on, or data needed to create new supplier records in your ERP system.