With today’s complex global supply chains, changing regulations and compliance requirements, effective and holistic supplier management is no easy feat. Enterprises often deal with multiple disconnected systems, broken processes and disparate sources of supplier data.
Join this 45-minute live demo to learn how to:
- Ensure you’re in compliance with tax law, business regulations and trade sanctions–wherever in the world you do business
- Monitor risk continuously and receive real-time alerts in case of trouble
- Enable your suppliers to keep their data up-to-date, accurate, and complete
2. Jason Reichl
Director of Product Management
Tradeshift
Jason has spent the last five years leading enterprise product schedules and
innovating how business applications function. Currently, Jason leads the product
vision for Tradeshift’s supplier network-powered applications.
4. Executives accept $150M+ in bribes
Fourteen people — including nine FIFA officials — are indicted for an alleged
scheme involving more than $150 million in kickbacks and bribes.
Scandal-ridden FIFA confirmed Thursday that it paid Irish soccer authorities
more than $7 million in a secret agreement not to go to court over Ireland's
elimination from the 2010 World Cup.
Supplier security leak costs $68M
Target told reporters at The Wall Street Journal and Reuters that the initial
intrusion into its systems was traced back to network credentials that were
stolen from a third party vendor.
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Factory fire and collapse
In 2013, a factory fire and collapse at Rana Plaza in Bangladesh resulted
in death of over 1,100 people and as many as 2,500 injured.
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6. The pain you & your suppliers experience
Average time to
onboard suppliers:
60 days
Data is always out-
of-date
68% surveyed say “Time
spent managing supplier
data” is a big issue
(Hackett)
Global compliance is
a full-time job
2007 FCPA Fines = $150M
2014 FCPA Fines = $1.6B
Limited
Value
Data
Ownership
Staying
Compliant
Manual systems cost
time and money
10+ people required to
complete 1 task
Process
Breakdown
7. Where (in the evolution) are you?
Vendor Master File
Focused primarily on
ERP/eProcurement fields needed to
place POs, pay invoices and analyze
spend.
Supplier Lifecycle Mgmt
1.0
Organizing and managing all key
supplier information more efficiently
and effectively.
● “Virtual supplier master”
● Starts earlier in life cycle (e.g.,
pre-registration via supplier
portal)
● Focus on hosted supplier self-
service
Supplier Lifecycle Mgmt 2.0
Linking information with knowledge,
intelligence and analytics.
● Workflows driven by supplier
attributes & other rules (process,
regulatory) to support:
o Supplier performance
measurement
o Regulatory compliance
o Supply risk management
● Intelligence from supplier
network
Source: The Hackett Group
11. Supplier Management
Segment your supply base and build custom programs like onboarding, using
components from our compliance, risk, and performance offerings.
12. Verified Supplier Profile
A compliant, healthy, supply chain begins with empowering your suppliers.
Connections
Verified Profiles
Living Data
Suppliers maintain their own
master data and keep their
profile fresh with self-service
capabilities.
13. Supplier Data Subscription
Data Freshness
Controlled Data
Verified Identity
Subscribe to verified supplier profiles
on Tradeshift for 100% of your supply
base and integrate changes easily into
your ERP.
Stay in-the-know with your suppliers.
15. Risk
Network
3rd-Party
Self Assessment
Identify and analyze risk of your
supplier base from data sources
within and outside of Tradeshift
Use network transactions, 3rd-party data sources, and self-assessed surveys to monitor
risky suppliers.
16. Performance
Measure performance of suppliers
via qualitative and quantitative KPIs.
Track how your supplier base is doing against objectives.
Qualitative
Quantitative
17. Supplier Management
Segment your supply base and build custom programs like onboarding, using
components from our compliance, risk, and performance offerings.
Note for presenter: Identify what the customer cares about and spin the story accordingly. Brand, CSR or fines...
Detailed notes for presenter
We've learned four big lessons from our clients, the competitors and through analyst interviews and we've found that everyone is doing supplier management wrong.
Process breakdown: 10+ people = Requester, to sourcing, to supplier manager, to supplier, to supplier validation, to legal (if needed), to ERP / Tech (if possible), to supplier support.
Onboarding processes are manual, expensive, and time-consuming, resulting in an inability to capture the entire supplier base. Your program needs to be able to adapt on the fly to the demands of business.
Data ownership: Master data is difficult to update and manage causing out-of-date, inaccurate information. Keeping up to date historical has meant disrupting daily business.
Staying compliant: Organizations exposed to risk struggle with the dynamic nature of changing compliance requirements. Requirements for one region, country or segment may not be the same across all suppliers.
Limited value: Most onboarding or supplier management systems offer little to no value to Supplier’s interacting with the system. Tradeshift offers tools to the Supplier that will ensure once they are connected to an organization that their data and interactions stay healthy.
Vendor Master File:
AP and procurement operations-biased
Data governance (“Who can do what to which fields”)
Data integration (e.g., across multiple VMFs)
Data quality for spend analysis
SLM 1.0
“Virtual supplier master”
Starts earlier in life cycle (e.g., pre-registration via supplier portal)
Focus on hosted supplier self-service
Inclusion of document- based and/or external content
SIM application vendors: “SIM platform”
Increasing level of bi-directional MDM integration
SLM 2.0
Workflows driven by custom supplier attributes and other rules (process, regulatory) to support:
Supplier performance measurement
Regulatory compliance
Supply risk management
Intelligence from supplier network
Integrating supplier data to analytics (e.g., supply-base segmentation analysis)
Get live updates and master data more efficiently and accurately by connecting to Tradeshift’s verified profiles
Tradeshift verifies your suppliers’ business identity, tax, address, and bank account information to ensure legal requirements are met. Suppliers maintain their own master data and keep their profile fresh with self-service capabilities.
connections: the profile of a supplier on the network is their digital business card and we are optimizing the profile pages/the way connections work. Suppliers will be able to share data with an organization on or off the network. This will generate more revenue and value for suppliers.
verified profiles: verifying a supplier’s business identify is a time consuming process. The platform will now verify supplier identity from day 1 against trusted sources enabling organizations to trust suppliers on the network. Verified suppliers are given preference in search results and sourcing.
living data: all data supplied to the network is reusable and owned by the supplier. Elements like previous tax-form information, automatic identity verification, and products being created from transactional data create a business platform that enables quick and painless interactions
Features
Verification is done by checking against third-party databases (e.g. D&B) for business identity, tax, address, and bank account information
Verification is country specific
Suppliers can reuse their data (IRS forms - W9, W8 etc, FCPA questionnaires) and sanction verification checks across multiple buyers
Supplier gets a unique badge on their profile once they are verified
data freshness: the platform will make sure through constant network activity to interact with suppliers, so data is always current. you’ll have the ability to listen to any data updates that you care about keeping data up-to-date at all times
controlled data: not all changes are equal and with data subscription you can control what updates make it into your backend system and what updates stay in the cloud. stirking the perfect data harmony between your business and suppliers
verified identity: let the network take care of validating supplier identities while you focus on your own corporate policies, decreasing time for onboarding. be ready to do business faster.
You can create a compliance program of templates (default legal/government) and custom questionnaires mixed together. Establish triggers to suspend transactional activity in the event of non-compliance.
Taxation: access to tradeshift tax related templates that make collecting supplier info in supported geographies easier. These templates can be used as elements to build your program
ABAC: (Anti-bribery and Anti-corruption) ABAC questionnaires are necessary when you are doing global business. Tradeshift supported templates allow you to collect and ensure the compliance of your supply chain. These templates can be used as elements to build your program.
Trade Sanctions: During the program, if a supplier fails any governmental sanction checks you’ll know. Currently, these checks are available for limited geographies (more coming 2016). The network will monitor your suppliers and alert you if a supplier appears on the list.
Questionnaires: as a business you may have one or more questionnaires you would like to distribute to your supply chain. These questionnaires are 100% configurable and can be added as an element to your program.
Assess your exposure to risk by leveraging numerous data sources covering viability, delivery, market, brand image, and performance
Develop risk scores for suppliers based on individual and category-specific weightings
Monitor risk continuously from connected data source
Receive alerts if a supplier goes beyond your preferred risk score
Network: every interaction a supplier conducts on the Tradeshift network is captured. Soon we’ll be rolling out tools for organizations to see items like average response time, the number of errors when transacting and other leading indicators that only a network could provide.
3rd-party: monitor your supply chain health with integrated solutions through the TS app store. examples might be supply chain disruption, financial risk, or quality risk
self-assessment: every questionnaire created can be used to complete a self-assessment of the risk of the supplier, giving an organization full control over what factors are most relevant in determining risk tolerance
Measure and evaluate supplier KPIs and set annual performance goals that can be measured quantitatively and qualitatively.
Monitor quantitative supplier performance, based on network transactions like volume and response rate
Assess qualitative supplier performance through buyer review forms that can be routed to employees for performance data collection
Enable collaborative in-product discussions around performance between buyer and supplier
Conduct quarterly business reviews with suppliers
Quantitative: Track and assign KPIs that impact the contractual agreement with the supply base. Track quarterly reviews and program requirements
Qualitative: Track and assign goals that impact how it feels to do business with the supply base. track quarterly reviews and experiential requirements