Supplier Intelligence: Would You Dine at a 1-Star Restaurant?
Just as ratings and reviews go beyond what a restaurant tells you about itself, so does supplier intelligence tell you more about a supplier and their industry than their profile in your supplier portal.
What is Supplier Intelligence?
Supplier intelligence is all the information there is to know about a supplier. It may include things like
- A supplier’s profile information
- A supplier’s past performance on delivery times, quality, and price
- A supplier’s position within their industry, amongst both their peers and competitors
- Any regulatory or compliance reports related to their company
- Any legal information about their company
- Reviews from other procurement professionals who have worked with the supplier
It’s a lot of information to gather and digest, but having it on hand has significant benefits.
Supplier intelligence should be seen as a coordinated sourcing and monitoring process to fully understand both your existing suppliers and any potential suppliers you may be considering working with. The key to supplier intelligence is that it’s ongoing work that regularly gathers and assesses the data about a supplier.
Why is Supplier Intelligence so Important?
Supplier intelligence improves the purchasing experience and makes it possible for a procurement function to deliver maximum value.
Maintaining supplier intelligence on your existing suppliers helps you regularly assess your contracts and sourcing categories and better manage your spend by having the information to back you up on decisions to renegotiate, combine, or alter sourcing agreements.
Accurate and complete supplier intelligence gives you the full picture of a supplier. This can drastically speed up sourcing events, from weeks or even months to a handful of days. It enables you to deliver value to your organization much more quickly, both in terms of speed of sourcing and in lowering cost and risk.
Having accurate supplier intelligence not only gives you a clearer view with which to consider potential suppliers, but it also puts you in a better position for negotiating with them. Chances are, the supplier’s representative knows a lot more about their industry than you do and knows a lot about your business, too, so they can upsell you. The more information you can come into the room with about their company and their industry, the better off you’ll be.
Data is like gold; the more you have, the richer you are, and the more you can do. If you can make your data actionable, you can leverage it to get more value and deliver more value.
Sharing Supplier Intelligence
Like restaurant reviews, information about a supplier isn’t helpful if you don’t have access to it. That’s why organizations like Tealbook have created cloud-based platforms for acquiring and sharing supplier information so that it’s accessible to entire procurement teams and can easily be integrated with other kinds of data.
The goal is to deliver as much value to stakeholders while making procurement operate as seamlessly as possible. That way, you don’t risk getting sushi from a one-star restaurant that gave food-poisoning to its previous eight patrons.
To learn more about how Tealbook makes supplier intelligence accessible and actionable, contact us and ask for a free demo of our machine learning and AI-powered platform.