When things are going right in an organization, it’s easy to put supplier data on the back burner. When things go wrong in an organization, most people hesitate to invest in quality supplier data tools. In a world where most of the population has access to technology, it’s easy to assume that the large procurement technologies are working with accurate and up to date supplier information. However, this assumption is wrong, and when procurement technology fails to deliver promised results, supplier data is usually the point of breakdown. Companies of all sizes require better supplier data, and up until now, doing this has been a demanding endeavor without much success. Thankfully, there are tools on the market that can help take the burden of supplier data off the hands of employees and countless working hours working on manual tasks.
Once this conversation starts, those presenting should highlight how poor supplier data has held the company back. Oftentimes, the ROI for better supplier data is hidden within increased compliance on other modules. Adding specific examples of how insufficient supplier data affects the company and sharing how each of those situations could have been avoided can share a viewpoint that has possibly been looked over in the past. Here are three tips to get c -suite leaders on board with improving the company’s supplier data platform.
Emphasize How it Can Save Money and Time
Money is one of the most influential factors in any organization. At many companies, the old saying “time is money” speaks to many executives. Those who have dealt with the procurement space understand the many negative effects of poor supplier data on a company’s bottom line. Some of the most common are:
- Time wasted finding suppliers
- Failure to meet demand
- Lack of competition between suppliers
- Lack of agility
Along with the money savings improved supplier data platforms can bring, the time savings is just as important. The amount of research it takes to find quality suppliers, getting said supplier approved by upper management and then onboarding suppliers is not an easy lift.
Tools that can help speed up the process can help save countless person-hours for all levels of the organization. Highlighting the money savings in tangent with the working hours that can potentially be saved will be a potent tool for c-suite executives and other stakeholders. The money saved can be used to invest in different aspects of the company, and the time saved can be focused on other essential tasks.
Focus on Supplier Diversity
Supplier diversity has been gaining popularity over the past few years. It has even started to become a topic of discussion among those in the c-suite because it is mutually beneficial for everyone involved, no matter the size of the organization involved. To be categorized as a diverse supplier, 51 percent or more of the business needs to be owned by someone who falls into an underrepresented or marginalized group. Focusing on diversifying suppliers can help organizations reach their Environmental, Social, and Governance (ESG) goals and increase their spending with small and diverse businesses.
Minimize Risk
While saving time and money and focusing on supplier diversity is great for any organization, it can be done safely without accurate supplier data. 93 percent of procurement leaders have experienced the adverse effects of insufficient data and misinformation. The executives, stakeholders and c-suite members of today are focused on ensuring that their spending targets are met. Still, there is uncertainty on how to do so and communicate it to their teams.
This is why having accurate information regarding which suppliers are actually fulfilling orders or have sanctions on them can allow for a more informed decision on what suppliers should be selected. The benefits of ensuring the correct suppliers are chosen will be seen within the first few purchases, as opposed to over time, like most fixes. Using tools that can save working hours for employees and researching this information for companies can help decrease company risk and help tighten up unnecessary spending.
Most c-suite members understand that saving money, saving time and ensuring that risks are minimized are important to keep their company moving forward. However, the problem is knowing where to get started and taking the leap to try something new. When bringing up how companies should improve their supplier data platform, it’s essential to frame the need for data accuracy around different strategic initiatives that can help company-wide goals. At the end of the day, clean and complete data will require support from every part of the company. Teams who are focused on procurement efforts should be prepared to outline the need for a solid supplier data foundation through saving time, saving money, and minimizing risk.
