Before we explore the features of modern Supplier Management Software, let’s briefly understand what supply chain is to avoid confusion between supply chain management and supplier management. Supply chain management deals with the network of suppliers, manufacturers, logistics providers and other related service providers working together to ensure that the product reaches the client safely and within the stipulated time. Supplier management, on the other hand, is crucial component of the entire supply chain management process that ensures that we work with the best suppliers in an efficient and cost-effective way.
Today’s hyper-connected business landscape makes effective supplier management more crucial. Businesses rely on a vast network of services and products while globalization is increasing with each passing day. The success of a business today relies significantly on effective supplier management leading to the rise of Supplier Management Software System (SMS) or Supplier Relationship Management Software (SRM) or in a generic way as SXM.
What is a Supplier Management Software System?
Supplier Management Software, like MeRLIN Sourcing, is an IT solution that helps businesses to monitor, manage and optimize their relationship with suppliers in a centralized environment. The software incorporates multiple tools and features to streamline the process of onboarding suppliers, evaluating the suppliers, conducting performance assessment and audits. Thus, multiple functions of supplier management are integrated into SMS so that businesses can effectively monitor all aspects of their supplier relationships.
The Supplier Management Software brings several benefits to businesses and some of the key features are listed below:
Supplier Onboarding
MeRLIN streamlines supplier onboarding by automating the process, making it quick and hassle-free. It ensures that all necessary supplier information is collected and verified, helping you establish strong, compliant partnerships right from the start. This efficient onboarding lays the groundwork for successful, long-term supplier relationships.
Database of Suppliers
A central repository for all information pertaining to all the company’s suppliers. The supplier portal can be accessed for supplier service/product offerings, contact information, contract terms, pricing and other relevant information. Sometimes this is also referred to as the Supplier Information Management (SIM) system.
Dashboards and Performance Metrics
SMS provides tools to analyze and measure supplier performance in real-time. Customizable Dashboards help businesses assess supplier performance in terms of delivery, product quality and adherence to contractual agreements. This feature is also referred to as Supplier Performance Management.
Assess potential risks that individual suppliers may present including financial stability financial stability, regulatory compliance issues, and geopolitical concerns. Solutions like MeRLIN Sourcing also offer integration with Third-Party Risk data providers to get accurate and real-time risk data of suppliers as well as of the supply chain.
Auditing and Supplier Evaluation
Periodic evaluation of suppliers based on their performance, feedback and other important metrics to ensure suppliers meet or exceed expectations consistently.
Benefits of Supplier Management Software
- The supplier management software offers a multitude of benefits, including Supplier risk evaluation
- Efficient and faster onboarding of suppliers
- Seamless supplier collaboration
- Supplier portal for supplier self-service and interaction
- Integrations with ERP, third-party data providers
- Easy to use
- Cost savings and better utilization of good suppliers
- Enhanced supplier relationship
- Regular and systematic supplier evaluation
- Supplier engagement
- Risk assessment, evaluation and mitigation
- Centralized supplier information
- Regulatory compliance, maintenance of all supplier documentation in a single repository
- Contract analytics and management
- Scalability
- Enhanced visibility of the supply chain
Supplier Relationship Management
Supplier Relationship Management or SRM refers to a structured process of assessing vendors for a given business. This process helps the business determine which suppliers have a profound impact on the growth and success of the business. Supply chain management professionals typically handle SRM, given their involvement in operations, project management, and procurement. Supplier Relationship Management contributes significantly in enhancing sourcing, procurement and overall improvement in Supply Chain Management efficiency.
