Supplier data, now more than ever, is a business-critical component of enterprise operations worldwide.
How does your procurement team quantify this so that you can build a business case for investing in digital transformation and building your data foundation?
A March 2020 survey of 250 procurement and sourcing executives found a staggering number of critical issues that enterprises are dealing with due to poor supplier data.
- 93% of supply chain leaders have experienced the adverse effects of misinformation about their suppliers
- 47% experience these negative consequences regularly
There are truly severe business consequences stemming from poor supplier data.
Nearly half (47%) of procurement executives said that they’ve had projects delayed because of poor data quality.
- 51% of supply chain leaders said that poor data resulted in missed deadlines
- 42% of procurement executives have experienced unhappy clients due to poor supplier data
- 40% of procurement leaders have had a financial loss because of poor data quality
- 24% of supply chain executives said that poor quality or misinformation caused the termination of a supply relationship
More than three-quarters of procurement leaders aren’t confident in their supplier data.
Of the supply chain and procurement leaders surveyed, 81% are not completely confident in their supplier data.
And 60% of those who use supplier portals do not trust their suppliers to keep the information there updated. That task takes time, and with every other company having its own slightly different supplier portal, suppliers can’t possibly keep them all up to date.
If your suppliers aren’t updating your portal (or every other company’s supplier portal), you need to update it manually, and 60% of executives reported that it took them four days to update outdated supplier information. We’re talking about executive-level staff spending four days to update records on suppliers they do business with.
On average, companies spend 21 days to validate and onboard their suppliers. That’s too long.
If we have to spend three weeks collecting different records to make sure we have the right information on suppliers before they are even onboarded to our system, we’re failing our business stakeholders immensely.
If you’re trying to create value-add functions for your stakeholders, and you’re responsible for delaying projects, you’re going to be seen as a huge roadblock and friction to the business.
How can we shrink updating supplier data and onboarding suppliers down to ideally no time?
How do we have all the information at hand to be able to onboard suppliers immediately so that ultimately the stakeholders can get the job done with the best supplier, with the best value, with mitigating risks, and all those important factors that we’re considering?
By investing in data solutions to build a solid data foundation that includes automatically updating supplier data.
Enterprises are experiencing severe problems because of misinformation and outdated supplier records. Procurement can solve this problem by conducting a digital transformation and building an autonomous data lake on a solid data foundation. We need reliable data to make decisions, and the data is there to support investing in a supplier data solution.