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    Blog Image

    Why Your Business Must Have a Supplier Portal

    • Internal business teams and third-party suppliers often look at two different, out-of-sync datasets, which creates confusion.
    • Supplier portals help address this issue by providing vendors and merchants with a single, shared view of data.
    • By promoting seamless communication, supplier portals eliminate the need for merchants and vendors to repeatedly chase or follow-up with each other for delays or exceptions.

    June 10, 2024 | Procurement Software

    For procurement organizations, managing the supplier database is tedious yet crucial. When this is done manually, it requires frequent updating and regular follow-up with suppliers.

    In fact, the entire procurement process — from raising a purchase order to products being received and paid for — often requires too many follow-ups as well as a lot of manual work.

    As such, there is a lot of back and forth and a high possibility of human error.

    Suppliers, on their part, cannot be held accountable for data mismatches.

    Also, do suppliers and third-party vendors today work in the same manner as they did five or 10 years ago?

    Not really.

    Many of them have come of age and adopted advanced technology and tools to digitize processes.

    It’s not surprising to see many suppliers registering on online portals today.

    So, how does a supplier portal work? What benefits does it offer to a supplier?

    Let’s find out.

    What is a Supplier Portal?

    Supplier portals are online platforms that allow businesses to connect and collaborate with third-party suppliers of goods and services. These platforms provide a secure and efficient space for transaction processing, information exchange and collaboration on procurement processes.

    Suppliers usually register on the portal and use it to track goods and services they have provided to the business. The business running the portal can track the same data across multiple suppliers, find patterns and reduce redundancies in the supply chain.

    Supplier portals simplify routine tasks such as onboarding suppliers, document submission and communication. They can be used to submit copies of documents such as purchase orders , contracts and vendor invoices.

    With real-time access to purchase orders, invoices and payments, supplier portals enhance transparency and efficiency in procurement operations.

    How Supplier Portals Create a Win-Win for Both Parties

    Supplier portals benefit businesses as well as their vendors. They can help a business manage supplier relationships effectively by streamlining communication between both parties. By enabling seamless communication with vendors, these portals eliminate the need for internal teams to send notifications or reminders to suppliers via traditional means such as emails.

    In case there is a delay, the portal sends automated notifications to the relevant party to proceed with next steps.

    Additionally, supplier portals can automate several administrative tasks, such as supplier data entry, and reduce the workload of the procurement workforce.

    Most importantly, supplier portals help create a single source of truth, enabling both parties to access the same data at any given time.

    In this way, they eliminate the possibility of businesses and suppliers looking at different sets of data in different systems. Both vendors and merchants have a single, shared view of data that is directly integrated with the ERP.

    Supplier portals can also help bifurcate the supplier database by commodity, category and even diversity, thereby providing a perspective on progress toward internal business goals.

    From a vendor perspective, these portals allow suppliers to register and sign in to their online account and view all account information. They do not need to deal with multiple internal teams and stakeholders. They can also update their account information on the portal while the merchant can view those updates directly in the ERP.

    Suppliers can look at a history of open and closed quotations, purchase orders, invoices and other documents. They can also expedite procurement processes and provide better service to their customers. Improved service can, in turn, lead to shorter lead times or even more competitive prices.

    Additionally, supplier portals create an action log for reference and accountability. Both parties can track any changes and check the status of purchase orders. In case there is an issue, they can refer to the action log and identify and address problems promptly.

    Conclusion

    Supplier portals provide a secure and easy means for suppliers to operate and carry out routine tasks while also enhancing data accuracy and simplifying supplier relationship management for merchants.

    By providing a single version of data for internal and external stakeholders, supplier portals enable both parties to work more efficiently.

     

    Tags: Supplier Portal

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