Convincing suppliers to use more efficient channels when working with your business can be a major challenge. The implementation, onboarding, and training processes can prove frustrating to suppliers, especially those who have utilized the same software or manual processes for years.
This blog will explore ways businesses can address supplier onboarding barriers while improving supplier collaboration to elevate the procure-to-pay process.
What is supplier collaboration?
Supplier collaboration is a dynamic partnership between a company and its suppliers aimed at fostering mutual growth and success. It involves close cooperation and communication with suppliers to enhance product quality, reduce costs, and improve overall efficiency.
What is the Importance of Supplier Collaboration?
Supplier collaboration involves the joint effort of a company’s internal departments and third-party vendors in the areas of cost effectiveness, supply chain processes, and innovation. It offers numerous benefits to businesses of all sizes, including:
- Higher levels of stability: More frequent and open communication allows suppliers to inform buyers of possible shortages, issues, supply chain risks, or bottlenecks.
- Cost savings and better deals: Suppliers who understand an organization’s needs can offer suggestions on more cost-effective choices and potential discounts.
- Significant competitive advantages: Supplier collaboration can lead to increased growth, boosted revenue, and lower operational costs.
What are some common barriers to supplier collaboration?
Although supplier collaboration provides advantages to both suppliers and the businesses they serve, getting there can be challenging. Insufficient time or resources, unpredictable economic conditions, and lack of trust can discourage innovation or the adoption of new processes.
- Lack of time and resources: There’s often a high amount of volume and manual work to use a portal when integrating a new software system. Researching and finding the best system, onboarding, and conducting ongoing training take time and patience, and some suppliers don’t want to invest their resources.
- Multiple supplier portals: Many suppliers are required to work with numerous supplier portals used by different customers. This can cause confusion and each system will take time to learn.
How to improve supplier collaboration
Not sure how you can improve supplier collaboration? Here are a few tips:
1. Choose the right supplier.
While it may be ideal to work with companies and partners that are open to innovating and streamlining their processes, many organizations don’t have a choice. Larger and more established companies are typically viewed as more stable with a reliable supply base. They also have more money to invest. However, working with diversity suppliers or small businesses can provide various benefits to both parties.
2. Use a supplier portal to get the conversation going.
A cloud-based solution that offers self-service capabilities and a point-and-click interface can streamline process flows and encourage communication between organizations and suppliers. An easy-to-learn system, like Vroozi’s Supplier Portal, is ideal for businesses that want to boost supplier collaboration.
It allows buyers to submit purchase orders, send messages, and receive shipping notices and invoices. On the other end, registered suppliers can confirm, reject, dispute, and send invoice purchase orders to their clients.
3. Communicate or meet with your suppliers frequently.
Whether speaking in person or through a video conference, regular communication with suppliers allows you to identify any obstacles, bottlenecks, or unnecessary processes that can be remedied. Creating an action plan to deal with performance issues and monitoring supplier performance are also beneficial.
4. Understand your supply chain.
Only 6 percent of companies say they have full visibility into their supply chains. Gaining an in-depth understanding of your suppliers can help you better understand current or upcoming supply issues that may occur.
5. Focus on the long-term benefits of supplier collaboration.
Establishing any meaningful partnership takes time and energy. Keep this perspective in mind when developing a plan that focuses on both short-term and long-term goals.
Boost your supply chain with a supplier collaboration platform.
Start improving supplier collaboration today! Vroozi simplifies business-related processes and delivers higher user adoption, improving supplier participation and long-term partnerships. Click here to book a demo now.
