DOCUMENT & DATA MANAGEMENT
BUILDING FOR BETTER SUPPLIER INFORMATION MANAGEMENT
According to recent research published by leading supplier management software provider, Trade Interchange, many FM providers are leaving themselves exposed due to significant gaps in supplier information, here, they explain more.
Research that targeted the top 50 facilities management providers in the UK, found that two thirds of facilities management companies lack comprehensive information on their suppliers, putting them at operational and reputational risk. The report suggests FM companies fully recognise the significance of good supplier data, but the main obstacle faced is that trying to collect this by running manual, labour intensive processes or using ERP or FM maintenance systems can be both inefficient and ineffective; and often these processes are not designed specifically for supplier information gathering.
Effective supplier management is key to FM providers, who often need to demonstrate to their clients that they have the information needed to ensure suppliers can meet the standards expected of them, reducing the risk of under- performance or failure. Real-time access to that information on a need- to-know basis is a critical factor.
Supplier Information Management (SIM) software offers FM companies a central supplier data management solution. Suppliers on-board themselves, completing tailored questionnaires that can range from a few key compliance questions for peripheral suppliers, to in-depth and multi-tier questionnaires for more strategic partners. A central dashboard gives easy visibility of all this data, so users can ensure information is complete and up-to- date. Simple workflows and alerts
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can easily provide reminders both internally and directly to suppliers to ensure regulatory and compliance requirements are met in real time.
“THE CONCEPT OF ‘SUPPLIER ON-
BOARDING’ PLACES THE ONUS ON
SUPPLIERS REDUCING
MANAGEMENT COSTS BY 60-80%.”
Building a business case for better supplier information is the first step towards driving a more strategic approach to managing supplier information and improving vendor governance.
CURRENT CHALLENGES One of the first steps in setting out
a business case is to identify the key pain points around managing supplier information. This helps set the scene and highlights why change is needed within an organisation.
The recent research report highlighted that the three main challenges for FM providers in managing supplier information were: holding incomplete information, out-of-date information and getting information from suppliers in the first place.
It is important to try and explain what the key challenges are that need to be addressed within a
business and identifying how they expose the company to risks, create inefficiencies and cause missed saving opportunities. This provides a good business case for the introduction of a ‘system’ to manage these challenges.
PROPOSED SOLUTION Once the key challenges have been
identified, the proposed solution needs to be defined, highlighting how it will solve the company’s pain points.
Outlining the specification of the suggested Supplier Information Management system can provide a framework for the proposal. Drawing upon suggested features of the proposed software solution and aligning them against the business pain points can emphasise their need for change.
The next step is to set out what supplier information is core to the company’s sourcing strategy. The research report indicates that key categories for FM providers include insurance documentation, Health & Safety accreditation, capabilities/ service/products, environmental accreditations, quality accreditations and financial information. It is then important to identify how this information will be managed.
Many FM companies look to introduce SIM software as part of a wider supplier management project, incorporating Supplier Contract Management (SCM) software or a Supplier Scorecard (SS) solution to give a 360° and strategic view of supplier lifecycles. As part of the
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