Regulatory pressure makes availability of up-to-date supplier data crucial
There is an increasing need for supply chain transparency within organisations. If not from intrinsic motivation, then certainly prompted by regulators and governments. But what data do you all need from your suppliers and how do you bring this information together in a well-organised way? ISPnext has drawn up a roadmap.
"In particular, ever-increasing legislation, both national and international, is fuelling an urgent need for availability and proper management of up-to-date supplier data," says Maarten de Ru, Director Partners & Alliances at ISPnext, developer of Business Spend Management software. De Ru is referring to legislation around privacy (AVG), cyber and data security (NIS2 and DORA) and corporate sustainability (CSRD, CSDDD and EUDR). "These regulations are becoming more comprehensive and will apply to more and more companies."
Issues
De Ru notes that in many places, supplier data is now out of order. "It is often unclear which data should be inventoried and where it should come from. The next challenge is to unlock the stored data to meet reporting requirements. In practice, much is repaired after the fact. That is labour-intensive, costly and therefore frustrating. While you can automate a lot."
"To help organisations get started in retrieving, capturing and unlocking supplier data, we have created a roadmap."
- Dirk Jan Leppers, Solution Consultant | ISPnext
Roadmap
To help organisations get started in retrieving, capturing and unlocking supplier data, ISPnext has created a roadmap. Dirk Jan Leppers, Pre Sales Consultant at ISPnext, explains the steps.
1. Vision and strategy
First of all, define the goals. Which legislation applies to me? In which risk environment am I operating? And what supplier data do I need for that? In short: map the landscape.
2. Separate responsibility
Data are often scattered throughout the organisation: some in Legal, some in Finance, Supply Chain, and so on. Make one person (or several) fully responsible for supplier data and make sure there is a clear picture of the desired situation per supplier.
3. One database
Make sure you have the right tools at your disposal. Use one source for managing supplier data. It is too voluminous and complex to keep track of in Excel, let alone on paper. And a traditional ERP system is often not suitable for all functions and requirements.
4. Segment suppliers
The impact of a facility service provider is different from that of a commodity supplier. Classify suppliers according to aspects such as cost impact, compliance, security of supply, for example, and then determine what you need to know about which parties.
When a new supplier presents itself, that is the moment to request necessary information, about certifications for instance. Make use of this momentum. The supplier will then want to cooperate, because it is in his interest to do so. Once in operation, this is a lot more difficult.
6. Use existing platforms
Do not bother suppliers unnecessarily by requesting everything from them. A lot of information is available on platforms. Think of the Chamber of Commerce, but also parties like IntegrityNext, GraydonCreditsafe, Hellios, Dun & Bradstreet.
Leppers stresses that the BSM platform has links to such third parties. "That sharing of existing data is what we call silo unlocking," he says.
Supplier data as USP
"Take the subject of supplier data seriously," Maarten de Ru wants to emphasise in conclusion. "You can't just add this in Excel or something. Controlling the supply chain can be smarter and more efficient, it really can be automated." He still often sees an audit query degenerate into a very labour-intensive project. "Accountants are specially hired to collect all the data and fill in reports correctly. An expensive joke, especially as it has to be repeated regularly."
According to him, good supplier data will eventually be a real USP. "It is becoming increasingly important to have a grip on your data. Not only regulators but also clients require you to be able to account for the entire chain. Having access to and being able to easily access data is crucial."
This article was produced in collaboration with CMweb.
Be inspired
Automate FSQS-NL data with Hellios and ISPnext
ISPnext and Hellios are working together to enrich and better manage supplier information for financial institutions. With this collaboration, it is...
Regulatory pressure makes availability of up-to-date supplier data crucial
There is an increasing need for supply chain transparency within organisations. If not from intrinsic motivation, then certainly prompted by...
ISPnext Recognized in the 2024 Gartner® Market Guide for Supply Chain Finance Platforms
In August 2024, Gartner® publishedits Market Guide for Supply Chain Finance Platforms report ISPnext is recognized as a RepresentativeVendor. The...
Minimising the risks of fraud and error with AP Automation
Invoice processing has been rapidly digitised in recent years. As a result, this process is a lot more efficient and faster. But according to John...
Minimising the risks of invoice fraud using algorithms and AI
Invoice processing has been rapidly digitized in recent years. As a result, this process is a lot more efficient and faster. But according to John...