What Is Supplier Onboarding?
- Gültekin Can Gökalp
- Oct 11, 2021
- 1 min read
Supplier onboarding is the process of collecting the information and data required to set up an organization as an approved supplier, or vendor. The purpose of this procedure is to enable your company to efficiently conduct business, purchase goods and services, and make payments to said supplier.
The first onboarding stage consists of vendor evaluation and risk assessment:
Review supplier’s service track record.
Check their sustainability credential.
Evaluate their financial/credit history.
Assess their compliance with regulations and governance.
Ask them to sign an ethical code of conduct.
Why it is important...
It's because not only will a vendor onboarding process strengthen your business relationships, but it will also help your organization to:
Mitigate risks.
Streamline processes and increase efficiency.
Ensure compliance with regulations.
Develop a positive reputation in the industry.
Increase ROI.
Reduce redundancies.
Track data and workflow.
Automate basic tasks.
Reduce time to approve and activate new suppliers.
Cut out middlemen and reduce human error.
Without a good onboarding process, at best you may face reduced productivity and efficiency and at worst you risk losing valuable business due to poor training, management, or partner nurturing.
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