If there is anything that businesses value today is data. Data helps entrepreneurs understand their businesses, improve their business processes, and increase efficiency. Business owners can take their ventures to the next level if they are able to leverage data.
Technology has proved to be an instrumental part of most, if not all, business operations. That is in addition to data. While there are different types of data, supplier data is an area of interest for many organizations. Part of the reason being suppliers are constant in business operations. Supplier data help businesses track supplier records for purposes of improving their relationships.
Vendor data management is, therefore, critical for a good supplier relationship.
What is vendor or supplier data management?
Vendor data management is a technique that businesses use to manage detailed records of suppliers. The data consists of detailed supplier information ranging from the services and goods that the company supplies, contracts, procurement history, and much more information.
Supplier data management ensures that the large data sets are handled the right way, to result in healthy data handling habits like avoiding duplication of data and overlapping of data. It also ensures that data is easily accessible and can be integrated across different systems in the organization.
The main processes in supplier data management
In order to better understand what vendor data management is, you need some insights into what the supplier data management process entails.
1. Supplier onboarding
This is the first step towards supplier data management as it is the point where the business collects data from the vendors. The data is then evaluated and approved if the supplier meets the requirements and expectations.
Things might change sometime after data has been collected. The suppliers can add products to their portfolio or even change the ownership of their businesses. This makes updating a crucial part of vendor data management. Making changes to existing data will keep the data up to date and useful.
3. Supplier deactivation
Supplier deactivation can be motivated by a wide range of reasons, but mostly maintaining only the data the company needs. Deactivation can be due to poor services and products, better options, end of a contract, and inactivity.
Just like you deactivate a supplier for inactivity, then you might need to reactivate them when you need to use their products and services again. It is, however, worth noting that reactivation is more than just clicking a button.
During a non-engagement period, which could even be years, a lot might have changed internally and externally. This could call for an update of certificates, terms, and much more. This might lead to the reactivation process taking the shape of supplier onboarding.
Supplier data management is crucial as it ensures that the business keeps an accurate record of suppliers. Supplier data management may also vary depending on the organization. The four stages of vendor data management above apply across all organizations, and they ensure that the supplier master data helps the company make informed decisions.