Ask:
Allow suppliers access to key information so they can self-manage inventory, invoicing, and the invoice reconciliation process to be paid promptly.
Case Study: Supplier Portal
Challenges:
⦁ Industrial Giant had over 20,000 suppliers. They wanted to pay vendors exactly in 30 days. It was very difficult to pay people and be in exact compliance with accounting principles. For example, timecards, expenses, and hardware shipments required documentation. If it was missing or didn’t match exactly, vendors did not get paid.
⦁ Additionally, most projects had changes. Even if these change requests were agreed to verbally, but were not properly documented with an approved PCR, payment was delayed. Worse was vendors would wait to follow up until 60 days, so the already large problem was compounded.
Solution:
Built the Global Supplier Portal (GSP). Vendors were able to see the exact status of the invoice. Every vendor could log in to see the status of their invoices. If a timesheet was missing, they could see it, if a packing list was missing, they could see it, if a PCR was approved, they could see it. Vendors learned to follow-up on all the missing or flagged items. They could see exactly when the day was going to be paid electronically.
Outcome:
Suppliers manage information required to get paid. Suppliers see real time inventory levels to manage proactivity improving supply chain Less friction getting paid meant lower pricing.
Bonus:
Vendor relations improved. They became known as “Good Payers” and discounts followed. Administrative overhead reduced.