Implementing procurement technology often comes with the challenge of supplier onboarding — a process that is both essential and underestimated. Many companies hesitate when supplier participation is required, fearing resistance to change. However, without supplier involvement, the full benefits of your chosen procurement tool cannot be realized. Based on our experience, here are the five key steps to ensure a successful Supplier Enablement process.
Have Your Data Ready
Preparation begins with good data quality. Start by compiling an accurate list of your suppliers with their correct contact information. This is essential for your Supplier Enablement team to establish communication. Next, collect data for analysis:
Additional details such as supplier commodity categories or your internal point of contact may also prove valuable later in the process.
Quick Tip: Check if any of your suppliers already have accounts on your chosen procurement platform. If they do, enabling them on your account will be a straightforward win.
Make a Plan
A detailed plan sets you up for success. Start by grouping suppliers based on importance, using spend analysis and input from your procurement team. This classification allows you to prioritize strategically and tailor your messaging for each group.
With your classification complete, develop a wave plan to decide the order in which suppliers will be approached. Prioritize meetings with strategic suppliers to explain the benefits and emphasize their importance in the process. While lower-priority groups require less immediate attention, ensure that all suppliers feel valued and are well-informed.
Align with Your Leadership
Resistance to change can come from both internal stakeholders and suppliers. To overcome this, clearly articulate the benefits of Supplier Enablement for all parties involved. Your internal team must not only understand the project but also act as change agents, leveraging established supplier relationships to promote the initiative.
Examples of benefits for suppliers:
Strong leadership support is crucial. Top-down messaging and clearly defined KPIs will keep your procurement team motivated and aligned.
Prepare for Roadblocks
Anticipate challenges and create a plan to address them efficiently. Consider offering incentives for supplier participation, such as granting “preferred supplier” status. Conversely, you may need to exclude uncooperative suppliers from future tenders.
Building a compelling business case for suppliers is also vital. Calculate the savings from transitioning to electronic invoicing to demonstrate the tangible benefits. This data can also inform your wave plan and help identify cases worth escalating.
Set realistic KPIs, such as targeting a specific percentage of suppliers transacting electronically by the go-live date. Tracking progress ensures accountability and allows for course corrections as needed
Support Your Suppliers
Supplier Enablement can be overwhelming for some suppliers. A dedicated support team can make all the difference by providing resources, training, and ongoing assistance. For example:
These efforts strengthen supplier relationships, fostering trust and collaboration for future partnerships.
Embedding Supplier Enablement in Daily Business
Supplier Enablement isn’t a one-time project but an ongoing process. After the go-live, monitor compliance and extend the same level of support to new suppliers. Remember, the goal is not to replace relationships but to enhance them by automating repetitive tasks.
With the right approach, Supplier Enablement can transform your procurement operations, creating efficiencies and strengthening supplier partnerships. For more information or assistance, don’t hesitate to reach out to us. By following these steps, you can navigate the challenges of Supplier Enablement and maximize the value of your procurement technology.
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