Digital Disruption at ConnXus: A Shift in Global Supplier Management
Successful supplier management optimizes global business outcomes.
Buying firms around the world have been trying to figure out the perfect formula: having vendors deliver products and services at the right time, place, and price point, with the optimal level of quality and risk (1). E-procurement and real-time sourcing technology has paved way for innovations in the complexities and specifics of international supplier management. Research by the Hackett Group reveals that digital strategies can save companies between 24-35% of their procurement process costs, and top performers can generate over $10 in savings for every $1 of procurement cost (2).
Change Begins at the Vendor Level
To take advantage of technology, it’s imperative for buyers to begin with an organized vendor strategy. A robust vendor registration process with smart automation offers insights and competitive advantage down the road. Many buyers have supplier registration portals as their first vendor data touchpoint. Portals are useful because they offer business process automation (saving time and money), and provide more collaboration and visibility between parties (3). The value of a self-service portal lies in the ability to access accurate data related to a firm’s supplier community, and benchmark procurement operations for continuous improvement (4).
A Complex Global Supply Chain
There’s an increasing need for digital solutions that meet multi-tier reporting requirements and enable international business. Firms interested in buyers from other countries must be aware of presiding norms and business practices. For example, diversity and inclusion mean different things to different people; requirements for validating statuses and reporting can vary country-to-country or even region-to-region. In the US, supplier diversity includes minority, women, veteran, and LGBT-owned businesses. In South Korea, ethnic minorities are not tracked and ethnic backgrounds are defined as “homogeneous”. By being aware of regional norms and business practices, a firm can make better business decisions and position itself with a competitive edge.
Our One-Stop Solution
ConnXus sits at the forefront of global supply chain technology with a host of software solutions for diversity reporting and supplier management, customized according to your needs. Our international products track multi-tiered diverse and non-diverse spend. We offer a simple dashboard interface for clients to view data summary across multiple, localized registration portals. With multilingual portal support, we are currently used in eight different countries. International vendors are being added to our database every day with diversity validations and classifications from Canada, South Africa and United Kingdom. Make sure your supplier data is centralized with our premium tools. To learn more about our localized supply chain portals and to download a product guide, click here.