In the post 1 of the series, we discussed why Supplier Management is gaining importance. We will now elaborate on Supplier Information Management in this post. Supplier Information is often scattered throughout different parts of the organization according to its importance in various departments.
Supplier Information Management (SIM) technology allows an enterprise to aggregate, collect and maintain the information from all distribution systems within the organization and to also get all the relevant information from the supplier in a standardized and centralized repository. This enables the organization to have a consolidated view of supplier data, process status and relationships.
Importance of Supplier Information Management
Supplier Information is important as it is used by the organization for the following reasons:
- Communication and Collaboration:
Communication with suppliers can be leveraged for putting collaborative efforts into the new product development stage, where suppliers’ knowledge and insights into raw materials and markets can become an invaluable asset.
- Capability Assessment:
Information regarding the nature of manufacturing methods, machinery and capacity available, certification, insurance documentation and the like help in the capability assessment of suppliers to meet existing and future demands.
- Risk Assessment:
Information about supplier performance in terms of delivery and service, coupled with external intelligence, such as financial scores, balance of trade, news and events, help in assessing the risk of dealing with a particular supplier.
In the next blog we will discuss in detail the Best Practices for Supplier Information Management and the technology enablers that help implement the best practices. So Stay tuned…
Learn More: Vendor Management
