In today’s competitive global economy, all buying organisations, regardless of their size and market, need to ensure that they are working with the right Supplier to maximise their organisations supply outcomes.
It is important that procurement professionals understand what it is that their business needs and sets out arrangements to ensure that their Suppliers perform as required, with collaboration being of paramount importance.
What is Supply Management and how is it relevant?
If we look at the definition of ‘Supply Management‘
It is a broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run a business or organisation. These include physical goods, as well as information, services and any other resources needed – Investopedia.
Hence the notion of true Supplier management value is to work with your Supplier base in collaboration as a collective to drive more value to your organisation. Indeed, it really should not be a surprise to anyone then that procurement organisations who invest in their Supplier Management programs and ultimately collaborate effectively across the supply base do realise savings, cost reduction, better buying together with improved speed, fulfilment, service levels and stakeholder satisfaction alongside macro flow on social and environment impacts.
This sounds quite complex. How can I make this work on a transactional level?
Although most of the attention is based on more complex strategic value added Supplier Management programs, what if we were to turn our attention towards the transactional level.
Is there a gain to be made from Supplier collaboration here?
How do we deliver better outcomes at the transactional level, in ‘the bunkers’ so to speak, so to a derive value outcome?
The following should be considered:
- How is supply information shared between parties?
- How can a Supplier Network aid Supplier Onboarding, as well as competitive and informed purchasing?
- How is a transaction efficiently transacted between a Buyer and a Supplier?
- How is the transaction fulfilled and ultimately settled?
Indeed technology has a big say in this, hence the digitisation of supply marketplaces and advancement in B2B eCommerce really do now allow Buyers and Suppliers to come together to effectively share, interact and transact more efficiently.
It’s all about Sharing
An effective component of Supplier collaboration is the requirement to share information in real time across parties whether at the strategic level or at the transactional level. As such, within the given marketplaces, procurement practitioners should be attempting to create near to transparent communication, in actual fact trying to create a spectrum of collaborators which pass on information to aid informed buying with the purpose to get the right product to the right Buyer, at the right price, at the right time – in fact, yes, 101 Procurement.
How can a Marketplace help Collaboration?
The fact is that modern marketplace technology platforms are dramatically changing how Buyers interact and conduct their businesses with their Suppliers. For example, Supplier Network focused solutions allow Buyers to rapidly find, assess, validate and most importantly, interact with the right Suppliers.
From a transacting standpoint, integration and interactive portals are now very much a true value collaborator between parties, allowing for enhanced catalogue management, quick bidding and sourcing activity, competitive quoting, service qualification, PO flipping, eInvoicing, payment and settlement. In fact, if internal business rules and workflow allows for it, then this should be a single pass fully automated process.
Technology is driving the change!
Technology certainly allows for collaboration to be enhanced, digitising the marketplace allows for better collaborative outcomes. Procurement professionals need to ask themselves how they can unravel this value contributor for their organisation. Hence how can they automate their processes, improve the information flow and enhance and mitigate their Supplier enablement and make their transactional procurement more efficient.
It is absolutely critical in today’s business landscape that marketplace digitisation is considered and key questions are asked by procurement professionals. Unfolding before our very eyes is an opportunity to enhance the role of Procurement and Supplier management within our given organisations. Aided by technology and well thought of eCommerce strategies, interactive Supplier networks, and integrated ecosystems procurement can now enhance the transactional collaboration value between Buyers and Suppliers.
Science Warehouse is a provider that dedicates its energy to making transactional collaboration between Buyers and Suppliers easy and efficient. By looking at all the transactional links within this collaboration equation we are ultimately driven to deliver efficiency, visibility and control to both buyer and supplier. We believe as an enablement provider that all parties including us as solutions provider should be equally invested in the transactional collaboration value between Buyers and Suppliers.