A Supplier Information Management System is a system that makes it easy for businesses to review information related to their suppliers and even allows suppliers to perform some basic account maintenance, manage their data, and simplifies onboarding of new suppliers considerably.
In most cases, the SIM is integrated into an online tool, offering access to suppliers and the company through a portal. It allows them to set up alerts so that vendors can remain up to date with orders, document requirements, and more.
Supplier information management offers a plethora of advantages to businesses. Here are some of the most common advantages they offer.
Many businesses spend a considerable sum on administrative expenses. With a SIM in place, companies don’t have to manually maintain a database of suppliers. Instead, suppliers can use an online portal to seamlessly create an account, enter their details, and manage their profiles.
It streamlines the whole process and reduces the need for the business itself to manage and regularly update any key vendor details.
SIM makes it easy for businesses to automate different tasks, ranging from notifications to messages and alerts. For instance, notifications can be sent out at regular intervals to suppliers to update their details in the SIM.
More importantly, any new certifications or business documents needed by the company can also be updated from within the portal. Suppliers periodically receive notifications requiring them to update documentation.
Accounts can be frozen for suppliers that don’t meet the compliance requirements, making it easy for the company to choose those suppliers that meet their requirements.
SIM makes it easy for the procurement department to capture key information about their suppliers and store it. This includes important KPIs, metrics related to lead times and goods supplies, as well as the capabilities of specific suppliers.
This information can prove to be useful when the company is evaluating different suppliers.
Another major benefit of using a SIM platform is that it can integrate with any organization’s Vendor Master, thus ensuring a single, consistent source of truth for supplier information. This reduces the risks of duplication, and in case of any errors, suppliers will receive notifications to update inaccurate information.
Companies can even define specific parameters when requesting information from suppliers to ensure they are on the same page.
Using data from the SIM makes it easy for procurement departments to make important decisions. It allows companies to determine whether some suppliers can meet their demand, the average lead times, and other requirements.
Companies that work with global suppliers often need to make sure that they have proper documentation on hand to ensure compliance. Instead of having to approach suppliers one by one, using a SIM makes it easy for the business to ensure compliance, as the SIM automatically sends alerts for suppliers to upload documents.
When bringing on new suppliers, it’s much easier for the company to onboard them by giving them access to the SIM portal. This reduces the burden on the procurement team and also ensures that the team doesn’t have to engage in low-impact activities.
SoftCo’s Vendor Management Software is the ideal SIM for growing businesses, as it reduces cost inefficiencies and makes it easy for the business to onboard new suppliers and keep updated information about them.
It allows companies to gain full visibility of all orders and invoices, and makes it easy for them to ensure that all disputes and queries are answered through the portal only.