Photo by Jungwoo Hong on Unsplash.
You can optimize time spent onboarding suppliers and reduce errors with something as simple as automation. And one possible way is by leveraging smart contracts and blockchain technology.
After covering what supplier onboarding and qualification are in a previous post, today, we’ll look at this simple guide to supplier onboarding and qualification for companies.
At Trakti, we try to simplify the entire process – from start to finish and for procurement this starts with supplier onboarding and qualification.
There are tangible time and cost-related benefits in automating this process as it allows you to increase your efficiency, reduce your risk and costs, and achieve a higher ROI. By using a platform for your supplier onboarding process, you can avoid most of the pitfalls resulting from poor supplier management.
Part of nurturing relationships with customers includes having a good supplier onboarding process in place. It will not only help you strengthen business relationships, but it will also help you:
- mitigate risks
- streamline processes and increase efficiency
- ensure compliance with regulations
- increase ROI
- reduce redundancies
- track data and workflows
- automate basic tasks
- reduce time to approve and activate new suppliers
- cut out intermediaries and reduce human error
When you are starting your supplier onboarding process, the first thing to do is create a supplier registration form
This is a document you use to gather information from suppliers. Many companies still collect and store suppliers’ information on paper, but procurement software and automated platforms make this process a lot easier.
Just think about companies that have hundreds of suppliers. Gathering and organizing supplier information without a centralized procurement solution would be very difficult.
A contract negotiation and management platform helps you determine a supplier’s capability for delivering specific goods and services. It also enables you to easily compare suppliers based on different criteria (such as price, risk of supply disruptions, regulatory requirements, etc.). However, it’s important to remember that supplier onboarding and qualification differs for large enterprises and SMBs.
In deploying new forms of technology such as blockchain, we can empower companies to gather and store supplier information that’s critical to their business anywhere, any time.
What’s even more – the immutable nature of the blockchain means that every change or update will be diligently recorded and no record can be lost, misplaced or erased.
The smart contracts that govern the data exchange between the blockchain and real-world support multiple conditional scenarios and response types, allowing you to assign specific outcomes to your suppliers after evaluating the information you receive. Even more, you can use these outcomes to automatically score suppliers based on the rules you create.
Since all data is easily accessible and connected, onboarding and management becomes even easier
You can activate and manage evaluations, electronic signatures, reviews, payments, and obligation management with one click in a single, certified, end to end solution.
A cloud-based solution is ideal for managing RFX, Tenders, Auctions, bilateral and multilateral contract negotiations with full security and access control.
By using an end to end supporting framework to supplier onboarding, you can enhance your contractual flow and integrate the deployment of smart contracts for post-awarding activities: payment automation and obligation management will be much easier thanks to the power of the blockchain and Trakti smart legal contracts.
Do you want to know more? Activate a trial period with us it is free!!!!