Onboarding suppliers is often perceived as a complicated and time-consuming process, one that involves all manner of data. For example, you need to establish not only whether the supplier is a legitimate legal entity, but also whether the supplier’s finances are healthy.
This guide described a step-by-step plan to help you to organize your supplier screening and onboarding process as efficiently as possible. It also explains how to use automation and external data to tackle the compliance challenges of onboarding.
Why a properly organized supplier onboarding process is so important
Supplier onboarding is a major process, requiring vast amounts of information about the new supplier. Accurate information goes a long way to building a stable relationship with your supplier and protecting your reputation.
Efficient supplier onboarding in 6 steps
First, you need to establish the supplier’s identity. This includes asking the following questions: What is the supplier’s official name, what is its official address? What are its operations, and do they align with the rest of the information? Are you sure that your business partner is in fact an existing entity?
Automation & external data: minimize the harm, maximize your efficiency
Myths abound in the complicated world of compliance about supplier onboarding. For example, you do not need to hassle your suppliers again and again with exhaustive and mandatory compliance checks. Compliance teams can draw on external data as the perfect solution to speed up the compliance process.
