In today’s complex supply chain environment, mastering vendor onboarding is critical. Vendor onboarding is a stepping stone in the Source-To-Pay process. A mismanaged onboarding can put the entire payment chain at risk of vendor fraud or mistakes.
JAGGAER and Trustpair are happy to share their latest white paper: Supplier Risk, The Modern Guide To Secure Vendor Onboarding. Download it right now!
Navigating Supplier Risks in a Globalized Market
Businesses face increased supplier risks due to complex global supply chains and evolving regulatory environments. This was very visible during the COVID-19 pandemic. Disruptions in one region had a global impact on production and growth.
Digitalization, while beneficial, introduces cyber risks, and geopolitical instability can lead to significant supply chain challenges. Workforce volatility also adds to the complexity of supplier management.
Businesses now face seven key supplier risks: financial instability, regulatory non-compliance, cybersecurity threats, quality inconsistencies, geopolitical disruptions, ESG (Environmental, Social, Governance) shortcomings, and the viral nature of social media which can amplify minor issues into major crises.
In this context, supplier onboarding is more critical than ever.
Effective Supplier Onboarding: the Key to a Reliable Source-To-Pay Process
Effective supplier onboarding is critical in the Source-to-Pay (S2P) process. It helps prevent fraud, data inaccuracies, and regulatory violations. On top of that, it’s the occasion to test the budding supplier relationship and set the stage for future interactions.
The main steps involve gathering operational and compliance information, as well as controlling bank account information. Establishing clear KPIs and streamlining requests by importance ensures a smooth start and paves the way for open communication and collaboration.
By defining specific expectations and creating efficient approval workflows, businesses can strengthen their supplier relationships and ensure a balance between thoroughness and efficiency in the onboarding process.
In the end, it’s all about striking a balance between asking too much or too little.
Streamlining Supplier Risk Management with Automation and AI
Automation and AI are revolutionizing vendor onboarding – and risk management overall – by securing the entire Source-to-Pay (S2P) cycle.
Adopting supplier management platforms that automate tasks like data validation and performance tracking is efficient and helps avoid fraud or mistakes. These solutions offer real-time alerts, reduce manual tasks, and increase the time for strategic missions. Throughout the S2P journey, automation ensures traceability of actions and data security.
Trustpair and JAGGAER’s integration facilitates supplier onboarding by automating account validation checks during the onboarding phase. It also ensures data security throughout the entire payment chain, thanks to ongoing vendor data audits.
Do you want to streamline and secure your vendor onboarding process? Request a demo!