Quickly identifying and onboarding suppliers while ensuring compliance and mitigating supplier risks is critical in today’s business climate. As supply-chain upheaval due to COVID-19 disrupts long-standing commercial relationships, companies are rushing to identify new suppliers. They need to onboard them quickly, while still ensuring the suppliers comply with internal and jurisdictional rules—including company initiatives and regulations regarding diversity.
However, supplier onboarding has traditionally been a cumbersome and time-consuming exercise, impeding fast supplier onboarding and effective risk management. Common challenges include:
- Poor user experience on supplier portals requires suppliers to fill out the same form multiple times, frustrating business partners.
- The time and effort needed to have suppliers comply with organization rules and documentation requirements can be vexing for suppliers.
- A fragmented onboarding process can result in limited supplier information capture and poor supplier visibility for the buying organization.
- New suppliers struggle to conform to multiple policies and protocols, such as required documentation, diversity compliance, and contract evaluations and buyers find it difficult to keep track of supplier documentation and expiry dates of supplier contracts.
- Suppliers are frequently in the dark about their onboarding status, making it difficult for them to track and meet compliance obligations.
- Rapidly changing regulatory environments add complexity to the compliance process in addition to the need to adhere to diversity regulations by major corporations