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There are five critical steps for supplier transformation, and each one is critical in terms of design, execution, adoption, and sustenance. 

1. Identification – “The first blow is half the battle”. The suppliers may fall under many categories – digital-savvy - non-savvy, high frequency – low frequency, high value – low value, critical – not critical, SME – Enterprise, etc. 

Approach in phases & categorize vendors before implementing supplier digital transformation for supplier portal. It is crucial to start with the right set of vendors or suppliers. The first step is to create a supplier competency & impact map. 

Ask our expert to build one for your organization.

 2. Planning & Design – The design needs to take into account.

  1. what functionalities do the organization and supplier want?
  2. training  & ease of use; 
  3. how easily can this be scaled;
  4. minimum change management
  5. data security.

3. Simplified On-boarding – this is pivotal to the implementation, clear communication plan with suppliers on benefits, timelines, training, and adoption plan. The solution should have user-friendly interfaces (simple web logins and minimum clicks with tooltips) or with no interface (email & SMS as channels).

#1 use case - ‘PO-Invoice Flip’ 

This feature allows the suppliers to take the required information from a PO and create an invoice automatically. They can have the option of uploading with digital signatures also.

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Product information, quantity, and company details can all be leveraged to create a compliant invoice which can then pass through the requisite matching and approval process. There are strong validations to make sure the quantities and items auto tally. This process significantly decreases the internal AP effort required, significantly increases first-time match rates and gives the supplier confidence and visibility of the processing of their invoices.

#2 use case – KYC &Profile updates 

Supplier documents such as GST certificates, PAN cards, etc. are required to be validated before on-boarding. This activity cannot take days or weeks, instant verification and requisite communication during the on-boarding gain the trust of the supplier. 

Furthermore, the information needs to be continuously maintained and updated. Vendor Master Data and exceptions (say payment failed due to change of banking account of supplier or payment hold due to contract expiry) handling are crucial for successes. 

One of the many asks from many suppliers is to have multiple GST and Bank Profiles.

4. Swift Execution & progress monitoring – Often a very long implementation cycle and no communications lead to loss of interest of internal and external stakeholders. The execution needs to be quick in multiple sprints, and continuous progress monitoring and announcements are required to keep up the momentum. Integrations need to be well designed, whether it be catalog management, EDI or ERP. 

The supplier community should feel that this is there chance to embrace change!

5. Sustainability & ROI – Hurray! The solution implemented; does it mean job completed? No. The adoption plan needs to kick in to make sure users regularly use the system and therefore, and the company reaps benefits and ROI. The initiative can be made more impactful by introducing add on benefits like bill discounting, reporting and reconciliation for statutory filing, etc. 

Techpanion supplier portal implementation takes into account all the above and makes it a very compelling proposition for organizations to transform the supplier invoice processing ecosystem. We have financial partners to assist and enable add on benefits like bill discounting.

supplier transformation infographic

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