How To Automate Your Supplier Evaluation Process For Better Procurement Management?
Role of Supplier Evaluation in Procurement
Supplier evaluation process is an important element in the overall supplier management system which ensures a streamlined and effective procurement process for helping companies to select a best in class supplier for high-quality products, maintaining a better and positive relationship with the suppliers by promoting transparency and trust in all their dealings with suppliers and effective risk management of the entire procurement process that creates a win-win situation for both parties.
Supplier evaluation forms the backbone of the entire supplier management process where the assessment of the capabilities of suppliers is carried out by companies to determine if the suppliers under consideration are competent enough to fulfil all the organizational standards and obligations defined under the contracts that are in-line with the quality standards and other expectations of the companies.
This rigorous supplier evaluation process is important since it ensures that the selected suppliers are compliant with the existing laws, standards and regulations to minimize the supplier-related risks, one of the main goals of any supplier management processes. In addition to compliance and risk management, a supplier evaluation process also helps in better contract enforcement and performance evaluation of vendors for a holistic approach towards rating their performance and determining the future course of action in the form of vendor deboarding or contract renewals.
Companies are increasingly turning to an automated supplier evaluation process to reduce the amount of time and labor taken for rigorous and stringent supplier evaluation. Also, by automating the supplier evaluation process, companies are in a position to streamline their overall supplier management system for superior procurement.
Factors Impacting Supplier Evaluation Automation
- Change in the company priorities and the need to automate their operations and business processes to better focus on achieving strategic goals.
- The rapid growth of companies translating to a higher number of suppliers. More number of suppliers that companies need to handle more is the work they need to carry out as per the set supplier management system. So, companies turn to automation for faster and efficient processes.
- Due to the rigorous and stringent supplier evaluation that takes place in the pre-qualification stage, the procurement department has to conduct detailed verification of the supplier info and lots of paperwork leading to errors. Automating the entire supplier evaluation process helps greatly in reducing the errors and allay fears regarding data confidentiality.
- Intense competition and a highly unpredictable business environment have resulted in companies needing faster decision making and effective implementation of critical business processes for staying competitive and relevant in the market. Automation helps companies to achieve all such objectives.
How To Automate Supplier Evaluation?
An automated, centralized and strategic supplier evaluation process is a prerequisite for streamlined supplier management. Axonator helps companies to set up a highly structured, systematic and efficient supplier management system by automating the bulk of activities, chiefly concerning supplier evaluation processes.
The Axonator supplier management system software helps in the creation of a supplier self-service portal where all the suppliers can easily register and provide all the necessary information and documentation for companies to evaluate them faster and better. This reduces the time taken for supplier evaluation, leading to faster onboarding of new suppliers. Automation plays a huge role in this process.
The supplier self-service portal enables suppliers to easily register themselves and furnish all the necessary information digitally instead of sending all the documents manually. This supplier self-service portal is designed as a user-friendly system for suppliers to easily provide information and companies can approve or reject this information after verification or ask for changes in particular fields in the registration form for better accuracy and efficiency.
Filling up Supplier Registration Form
Suppliers can fill up the registration form by providing the required information and upload the necessary documents needed for each of the fields required to be filled in the registration form. The supplier self-service portal created for this purpose allows them to save a partially updated version of the form that can be completed later. No information is lost even if the registration process cannot be completed in one go and also suppliers cannot accidentally submit a partially filled form.
Axonator ensures that the supplier registration form is customized as per the specific needs of the clients and clear instructions are provided in every field present in the registration form to enable suppliers to provide the necessary information without any hassle.
Verification of Supplier Information
The procurement department can easily review and mark every field in the supplier registration form as approved or rejected based on the verification of the information filled by the suppliers. Also, remarks can be added to the fields where corrective actions are required from the suppliers and resubmit the related documents and information. The supplier management system created by Axonator notifies the supplier if their registration has been approved or if they need to resubmit some information through the self-service portal. Based on this, suppliers can view the remarks, update their registration form and resubmit the required information.
Update And Resubmit Registration Form
For each iteration of the resubmission of the supplier registration form, only the requested changes are displayed in the form along with the remarks associated with the fields. Suppliers can make the necessary changes to the information and documents submitted earlier and again submit the changed information. Since only the required form fields in which supplier needs to make changes are displayed now and the rest of the form fields are hidden, it becomes easier for them to quickly update the information.
Once all the information is received and verified, the system gets updated with the new supplier record and automatically generates and shares the new supplier report with the concerned departments.