Building good business relationships will lead to healthy business growth. This doesn’t apply to just clients or customers, but with regard to supplier and vendor relationships too. The first step to building critical business partnerships with vendors, starts with a vendor onboarding process that will build a strong supplier base management process.
Create a Vendor Onboarding Process
Navigating through the vendor portal system to onboard a new vendor (supplier) may be complex if a clear system is not in place and could hinder developing those relationships. So, you not only risk losing valuable business and growth, but profit margins too. Here is how to create a robust vendor onboarding process that consists of several separate steps. You’ve to push the vendor through the various steps of the onboarding process for the vendor portal, which is put below.
- Registration link will be sent to vendor through email to register the vendor
- Vendor to register on the portal by providing various data like company details, shipping address, account details etc.
- Two level of approvals for vendor to onboard, from Supply Chain management team and Finance team
- If data provided is not satisfied, the buyer can reject the applicant
- If data provided is not sufficient and if additional data is required, change request is made possible
- If all requested data is received, vendor can be on-boarded and login details will be sent to vendor
How Vendor Onboarding process helps your Business
Since all these features are digitized, the amount of time spent for sending emails, calling vendors is all considerably reduced and so increases the efficiency of the vendor management system. Not only does this system streamline and strengthen business relationships, it also helps in other ways, such as –
- It helps to mitigate risks
- Streamlines process to increase efficiency and productivity
- System can ensure better compliance.
- Build a positive reputation in the market
- Reduces redundancies and improves ROI
- Track your data and workflow over the system
- Scope to automate many tasks and reduce human error
- Reduces time in approving and onboarding vendors
Following best practices to develop your vendor onboarding process will be equally helpful.
Assigning a person to manage your vendor onboarding process would help to avoid mistakes, miscommunication and guide the new supplier over the steps of the onboarding process. Automate steps or tasks in this process wherever possible to make things less complicated or tedious, to increase efficiency and avoid human error. The onboarding plan should be flexible with guidelines, as each vendor is different. Individualize the plan for each supplier relationship to match your growth strategy and follow up on the plan to ensure best value from vendor relationship. Vendors should understand the expectations for pricing, lead time, payment, quality, delivery and other factors.
By using a vendor management software like our Vendora, your processes and relationships will be better organized and streamlined to meet upcoming challenges. Installing this versatile cloud hosted application will significantly improve vendor workflow and procurement management processes. Gain better productivity and reputation to boost your business turnover. Please contact us for your requirements.