Automating supplier interactions is a win-win for buyers and suppliers. Read this blog to discover why supporting your suppliers via automation through the complex, multi-faceted process of supplier management is a great move.

Having weathered the supply-chain storm of the pandemic, many organisations have harked back to business-as-usual methods of managing their suppliers: manual, lengthy, paper-based processes that cause inefficiencies, delays and errors, putting at risk the continued supply of valuable components and services.

As volatility continues in the global economy, it’s more important than ever to incorporate business resilience and continuity into every department, and procurement – particularly supplier management – is no exception.

Despite its importance, supplier management is all too often an inefficient and manual process, causing delays and increasing costs across the Procure-to-Pay (P2P) cycle. Automating supplier interactions is a win-win for buyers and suppliers – read on to discover why.

What is Supplier Management?

Supplier management is a complex, multi-faceted process that needs carefully piecing together to create a mutually-beneficial relationship based on trust and accountability. This includes consideration of components such as:

• Supplier Information Management (SIM) – capturing, storing and analysing suppliers’ data
• Supplier Relationship Management (SRM) – evaluating each supplier’s goods & services and their contribution to the business
• Supplier Risk Management – identifying, assessing and mitigating threats by vetting and monitoring suppliers
• Supplier Quality Management – monitoring and managing suppliers’ abilities to fulfil needs on time and at quality

Getting all these processes working correctly and efficiently takes time and effort, but the benefits can be seen both in the P2P cycle and to the wider business. From cost savings and quality control, to improved supply chain transparency, increased compliance and mitigated risks, supplier management is truly embedded in the heart of a business.

The value of supplier relationships

Relationships built with suppliers can benefit businesses in more ways than one. Collaborating with suppliers and involving them in the supplier management process helps build longer-lasting, trust-based relationships that can be leveraged in the future.

Making processes easier from the supplier’s side makes your organisation easier to do business with, nurturing a valued relationship that both businesses will want to be a continued part of.

Here’s where automation comes into its own, simplifying processes and making significant decreases in both time spent and processing errors. This includes areas such as:

• Self-service onboarding and registration forms
• Automated reminders and communications
• Automatic verification of supplier details and IBAN
• Supplier portals to check and submit information
• Supplier enquiry management
• Contract management
• Secure and compliant archiving

Internal Business Value

It’s not just the buyer/supplier relationship that benefits from P2P automation; Esker’s customisable solutions mean that stakeholders across the business can benefit from supplier management automation technology.

From AP specialists and Buyers right up to the CFO, an efficient process reduces time and costs for all concerned, and increases visibility right across the process. Customer dashboards allow each stakeholder to set their own KPIs to track what matters most to their department.

Positive Sum Growth

As economic uncertainty and supply chain issues continue (and for who knows how long), modernising supplier management processes should be nearing top of the priority list to ensure business continuity and minimise risk.

By providing suppliers with an easy-to-complete onboarding process, self-service portals, automated communications and expedited enquiry management through automation, their staff will also benefit from time savings and increased efficiency.

Our Customers Support their Suppliers

Automating supplier management and other P2P processes are often driven by internal needs and goals – but Esker customers are proud to bring efficiency gains to their suppliers too.

Hillarys implemented Esker’s Accounts Payable (AP) solution to assist in processing 50,000 invoices a year. Suppliers were key in their requirements list – with a want to automate the processing of both PO and non-PO invoices, and to overhaul a time-consuming and manual supplier enquiries process.
Read the Hillarys Customer Success Story in full here.

Spanish group Domingo Alonso have been an Esker customer since 2018, when they undertook an automation project to reduce process complexity and automate manual tasks.

Supplier management was again at the core of their objectives; amongst other internal business needs they wanted to improve supplier relationships with accurate on-time payments, timely dispute resolution and direct communication via a supplier portal.

The resulting automation solution streamlines the entire AP workflow, from invoice reception to payment. With easy access to invoice status and payment information via the customised portal, suppliers also benefit from the solution.

Read more on Domingo Alonso’s end-to-end AP solution by clicking here.

Jennifer Ball

As Marketing Co-ordinator for Esker UK, Jennifer manages Esker UK's marketing campaigns and events for S2P solutions. She has been part of the Esker family since 2019.

Read more insights from Jennifer Ball

The solution completes and strengthens Esker’s P2P suite and promotes business continuity with its agile, cloud-based infrastructure, which has proven more critical than ever given recent events. This flexible infrastructure helps organisations maintain their operations while protecting employees, serving customers and interacting with suppliers. Offering a 360-degree view of supplier information, the solution helps businesses effectively manage compliance, minimise risk, gain full process visibility and reduce their P2P staff workload.

Self-Service Portal and Visibility
With the ability to collect information and legal documents directly from their vendors with supplier self-registration, companies can accelerate the new supplier process and start doing business faster. Esker’s supplier management solution enables businesses to request only the right information needed, depending on the type of suppliers. With visibility into all supplier activities (e.g., new vendor registration, validation, documented audit trail, etc.), businesses can ensure that decision making is data-based and reminders can automatically be sent to suppliers to update their information.

From a supplier standpoint, Esker’s simple supplier self-service portal enables vendors to quickly and easily complete and submit their account information, significantly speeding up their onboarding process. They can make changes to their information at any time and in full autonomy, and they are notified when their changes have been reviewed and approved by the buyer. This also benefits the buyer’s P2P teams as they no longer need to chase down suppliers for updated information. Coupled with Esker’s intuitive user interface, the new solution features offer a user-friendly and collaborative experience, encouraging supplier and employee participation.

Risk Management and Compliance
Esker’s scalable and risk-free Supplier Management solution protects businesses by verifying that all supplier information is correct (e.g., bank details, VAT number, D‑U‑N‑S Number, W9, insurance certificates, diversity questionnaire, code of conduct, etc.), and ensures that financial and compliance regulations are met. Additionally, Esker leverages third-party data to monitor supplier risks. Businesses simply approve new suppliers, the same way they would a purchase requisition, without having to leave Esker’s interface or use another solution to manage the information.

“We are continuously enhancing the scope of our P2P solution and providing a truly collaborative platform,” said Catherine Dupuy-Holdich, Product Manager at Esker. “Buyers and suppliers alike want a comprehensive supplier management policy to generate sustainable business relationships, compliance and process excellence.”

“A comprehensive supplier management policy plays an important role in the success of our organisation,” said Irene Kouam, Director, Shared Services Centre Manager at Lapeyre. “It’s crucial that we engage properly with our suppliers, manage requirements and maintain our reputation. Esker has given us a view into all our supplier activities and ensures that processes are informed with accurate supplier, risk and performance data.”

Esker’s Supplier Management solution spans the entire P2P process, bringing much-needed unity, efficiency and transparency to financial operations. In its ongoing commitment to bring value to businesses in their digital transformation across P2P and order-to-cash (O2C) processes, Esker continues to enrich its P2P suite to transform the way businesses purchase, book and pay.

Esker’s Supplier Management solution is immediately available across the globe to customers and prospects.

Read full press release here.

Esker UK

Unlocking Positive-Sum Growth with AI-Driven Business Solutions for P2P & O2C Cycles

Read more insights from Esker UK