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Supplier Lifecycle Management

Effective Supplier Lifecycle Management is a key aspect of the entire Procure-to-Pay processes, allowing for enhanced collaboration between suppliers and organizations, from the onboarding process to day-to-day management.

In this post, we’ll talk about supplier lifecycle management, what it is, key elements and its benefits.

What is Supplier Lifecycle Management?

Supplier Lifecycle Management refers to the onboarding and management of suppliers, allowing organizations to gain full control and visibility over their supplier information, processes and manage supplier relationships.

It ensures the structured and secure onboarding of suppliers at the beginning of the procurement process, and allows businesses to monitor and approve future changes, enhancing communication and collaboration between businesses and preferred suppliers.

Supplier Lifecycle Management is essential for businesses that deal with multiple suppliers, ensuring total control and visibility over the procurement process, whilst fostering stronger relationships.

Key Activities in the Supplier Lifecycle Management Process

There are some key stages that take place in the Supplier Lifecycle Management process, as discussed below.

Supplier Onboarding

At the beginning of the Supplier Lifecycle Management process, suppliers are invited to onboard themselves through a portal, where they are instructed to complete onboarding forms and attach additional documentation as specified by the organization.

Supplier Verification

Once suppliers have completed the onboarding process, a member from the organization’s compliance team will either approve or reject the application. Sophisticated Supplier Lifecycle Management software use AI-enabled third-party verification of key information such as tax, VAT, TIN and bank details.

Ongoing Maintenance

Following approval, suppliers have continued access to supplier lifecycle management portals, where they can make any changes to key information such as address, bank details or regulatory documents. Internal compliance teams can continue to monitor and approve supplier details, ensuring control and visibility over the process.

Improve Supplier Lifecycle Management With a Dedicated Solution

The SoftCo Supplier Lifecycle Management (SoftCoSLM) platform is designed to transform how businesses manage and interact with their suppliers by simplifying supplier data management, ensuring strict compliance with business processes in addition to adherence to industry and geographical specific regulations.

It ensures that the supplier is competent enough to meet your business needs. Supplier management aims to maintain quality and consistency while making sure that the agreed-upon terms are fulfilled. 

Supplier management is essential for larger businesses that deal with hundreds or thousands of suppliers. Working with suppliers across borders is also difficult, which is why it’s important to develop a process for managing key trading partners.