3 tips for onboarding your C-Suite with an improved supplier data platform
When things are going well in an organization, it’s easy to put supplier data on the back burner. When things go wrong in an organization, most people are hesitant to invest in quality vendor data tools. In a world where the bulk of the population has access to technology, it’s easy to assume that big tech procurement works with accurate, up-to-date supplier information. However, this assumption is flawed and when procurement technology fails to deliver the promised results, supplier data is usually the breaking point. Businesses of all sizes need better supplier data, and so far it’s been a demanding endeavor with little success. Fortunately, there are tools on the market that can help take the burden of supplier data off employees’ hands and countless hours of manual work.
Once that conversation begins, presenters need to point out how poor vendor data has held the business back. Often the ROI of better supplier data is masked by increased compliance on other modules. Adding specific examples of how insufficient supplier data affects the business and sharing how each of these situations could have been avoided can share a point of view that may have been reviewed. in the past. Here are three tips for engaging c-suite leaders in improving the enterprise vendor data platform.
Highlight how it can save money and time
Money is one of the most influential factors in any organization. In many companies, the old adage “time is money” speaks to many executives. Those who have dealt with the supply space understand the many negative effects poor supplier data has on a company’s bottom line. Some of the most common are:
- Time wasted finding suppliers
- Do not respond to request
- Lack of competition between suppliers
- Lack of agility
In addition to the cost savings that vendor-enhanced data platforms can bring, the time savings are just as important. The amount of research it takes to find quality vendors, get said vendor approved by senior management, and then onboard vendors is no easy elevator.
Tools that can help speed up the process can help save countless man-hours at all levels of the organization. Highlighting the money savings in tangent with the man hours that can potentially be saved will be a powerful tool for senior executives and other stakeholders. The money saved can be used to invest in different aspects of the business, and the time saved can be spent on other essential tasks.
Focus on supplier diversity
Supplier diversity has grown in popularity over the past few years. It has even started to become a topic of discussion among members of management, as it is mutually beneficial for everyone involved, regardless of the size of the organization involved. To be classified as a diverse supplier, 51% or more of the business must be owned by someone from an underrepresented or marginalized group. Focusing on supplier diversity can help organizations achieve their environmental, social and governance (ESG) goals and increase their spend with diverse small businesses.
Minimize the risks
While it’s good for any organization to save time and money and focus on supplier diversity, it can be done safely without accurate supplier data. 93% of procurement managers have experienced the adverse effects of insufficient data and misinformation. Today’s C-suite leaders, stakeholders, and members are focused on meeting their spending goals. Yet there is uncertainty about how to do this and how to communicate it to their teams.
That’s why having accurate information about which vendors are actually fulfilling orders or facing sanctions can help make a more informed decision on which vendors to select. The benefits of ensuring the right vendors are chosen will be seen from the first purchases, as opposed to over time like most patches. Using time-saving tools for employees and researching this information for businesses can help reduce business risk and reduce unnecessary expenses.
Most C-suite members understand that saving money, saving time, and ensuring risk is minimized are important to keeping their business moving forward. However, the problem is knowing where to start and leapfrogging to try something new. When discussing how companies need to improve their supplier data platform, it’s critical to frame the need for data accuracy around different strategic initiatives that can help enterprise-wide goals. Ultimately, clean and complete data will require support from every part of the business. Teams focused on sourcing efforts should be prepared to stress the need for a strong supplier database to save time, save money, and minimize risk.
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Matt Palackdharry serves as Chief Strategy and Revenue Officer at TealBook. Matt is a visionary leader who has helped make TealBook an industry-leading supplier intelligence platform. Matt has over 12 years of deep experience in enterprise technology. He was part of the management team that took over the acquisition of Vinimaya in 2015, then served as Vice President of Business Development for Acquiire. Over the course of his career, Matt has excelled in creating real-time sourcing, bringing the concept of eliminating price dispersion to client companies, and setting growth records in his role at Acquiire as well as in previous roles at NEP and CDC News.