How Supplier Portals Impact Vendor Management?
Supplier portals are an important part of a vendor management system where manufacturing units can maintain a methodological order of their data and improve their turn-around time.
What are the Common Issues?
Manufacturing firms are often riddled with highly specific issues. Since they engage with a lot of vendors, decisions such as finding the relevant partner, material purchase, storage, and distribution take the beating due to confusion and lack of streamlined processing. This lack of clarity, in turn, affects the initial and maintenance cost that is invested for the purchasing process to be fruitful
Moreover, there was also an issue of a severe shortage of structured documents with different nomenclatures. The sourcing department was devoid of a comprehensive view of the supplier information, project spends, the performance and the associated risks.
Since the vendors vary from one category to another, the systems too are curated across platforms, ranging from a combination of SAP & Oracle to in-house systems to manual processes.
These adversities can be resolved by adopting the supplier portals solution that allowed all the suppliers to be documented on one online portal.
- This will incorporate vendor information like their range of services provided, quality policies and the history with the organization.
- A transparent portal, the listed vendor names will also be listed along with the ratings to allow the organizations to make informed decisions. This helps new buyers and sourcing organizations as well, have a consolidated view of all the suppliers.
- Tackling the lack of organization, this system also enables a structured influx and outflow of structured documents. This unlocks a range of accessibility. For instance, the sourcing organization can choose the vendors and issue the PO and the vendor can issue the invoices and ASN.
- Similarly, the warehouses can issue the GRN after the QA and all of these happen through the system and can also identify this as part fulfillment or entire fulfillment and can factor the payment approval as part of the PO.
- These documents can be assimilated and accessed via a one-time configuration parameter post which the data can be transferred through mails, flat files, and file transfers.
- The suppliers can stick to their preferred format and the data is transferred, resting on an EDI equivalent project. Thanks to this, the suppliers can easily log into the system and track their delivery status, GRN status and payment status to name a few and offer the accessibility to view and forecast the material required for the next 45 days.
- The SAP &Oracle integrated system enables a seamless flow of work of information from one system to another and cuts down on a lot of manual labor as well as the risk of duplication.
What are the Benefits of the Solutions Portal?
This solution has been specially crafted for organizations that find the existing proprietary solutions highly expensive for their needs.
- The dashboard has a consolidated view of the suppliers where they will be able to view purchase orders, dispatch orders & material, and forecast data.
- The suppliers are sent notifications regularly and can also log in to the portal to see the status about the engagement right from PO to GSN to payments. This successfully automated the process and reduced the time required for engagement with the procurement department e-mails and phone calls.
The solutions portal is indeed a helping hand for organizations, many of them that are still governed by the old regulations to automate their process and as a result, yield better productivity.