What is Supplier Onboarding?
Supplier onboarding is the process of collecting the documentation and data needed to set up a company as an approved vendor or supplier and to enable your organization to efficiently conduct business, purchase goods and services, and make payments to that company. Supplier on-boarding also requires vetting and validation to insure the prospective supplier is compliant with laws, regulations and your corporate standards.
Why is Supplier Onboarding important?
Supplier onboarding is the backbone of effective supply base management programs, yet corporations often find themselves in reactive positions, unable to efficiently and proactively capitalize on actionable supplier information. A successful supplier information management program starts with the right supplier onboarding process.
Furthermore, it’s not only your biggest suppliers that matter. If all your suppliers don’t participate, it’s difficult to increase your efficiency, reduce costs, capture discounts, and get a high ROI.
By establishing best-in-class supplier onboarding processes, organizations can avoid many of the concerns that happen downstream or happen as a result of poor supplier governance during a supplier lifecycle.
MtendersTM Supplier Onboarding Process Example
The diagram illustrates the typical steps for a Supplier Onboarding process on MtendersTM eProcurement solution.