What is supplier information management?
Supplier information management (SIM) refers to a system a business uses to capture, store, update and analyse all supplier data into a single location.
It helps organisations create a detailed understanding of their supplier’s capabilities and weaknesses.
Typically, SIM tools are packaged into an online portal, where suppliers can self-serve on-boarding, account maintenance, and data management processes. It also includes processes to complete full audits to ensure compliance and minimize supplier risk.
In addition to the features mentioned above SIM, also sends automated alerts to ensure suppliers can stay on top of key metrics and documents with the need for administrative overhead from the buyers.
Benefits of supplier information management
Supplier information management offers significant benefits for procurement teams and the most common are listed below:
- Cut administrative costs – instead of having to manually enter supplier information yourself, SIM encourages suppliers to self-serve, ensuring you have the latest information for your business, without entering the data yourself – therefore saving time and cash.
- Automates certain tasks – SIM automates many rudimentary tasks. Alerts, notifications, and messages are sent to suppliers to ensure that essential documents are kept up-to-date. In addition, rudimentary compliance tasks can be automated to ensure new certifications and accreditations are kept up-to-date. SRM also intervenes when suppliers don’t update their details, by putting non-compliant suppliers on hold.
- Centralises data – with just one system managing all your supplier data, you’ll avoid duplication, reduce errors and ensure all of your supplier data is the same across your entire business. This ensures that all teams in the business are on the same page.
- Capture key information– SIM encourages procurement teams to capture better quality data on their suppliers. This includes risk metrics, KPIs, and specific supplier capabilities. This information proves to be invaluable for procurement teams when it comes to evaluating suppliers.