Tuesday Jul 09, 2013

Why Supplier Enablement is Critical

Your employees won’t use a self-service procurement system if it is not connected to most of their relevant suppliers. If end users don’t find the products they need in the system, it won’t have value to them. Maverick buying will result, less spend will be managed, and the consequences are lost savings. A waste of all the negotiations you have conducted in order to save money. 

The reason most companies don't enable more suppliers is simply a matter of resources, time, and IT complexity. Large suppliers are very sophisticated and may have the ability to hook into customers through direct integrations with their systems, typically through electronic data interchange or extensible markup language (XML). Small companies can connect through a supplier portal, where they can view and manage transactions. That leaves a forgotten middle tier that are too small and may not have the resources to connect into a supplier network in an automated fashion, but have sufficient volume of business to make using a manual supplier portal cumbersome. This tier of suppliers is less likely to be enabled, in fact the average company only enables a handful of companies less than 10% of their total supply base!   Though the other 90% may not have the same dollar volume they still represent a huge number of transactions which creates a burden on your company to process and collaborate with suppliers around POs, invoices and status. 

Oracle now offers an important solution that combines Oracle Supplier Network, with Oracle iSupplier Portal, or Oracle Fusion Supplier Portal, or Oracle PeopleSoft eSupplier Connection and services and solutions delivered by Oracle partner Transcepta, that enables supplier/network connections. Oracle Supplier Network provides a free way to connect with a core group of suppliers that support XML and have the IT resources to establish the connection. A supplier portal provides transaction management for small suppliers.

For customers that would like to connect thousands of suppliers as opposed to only their top 20, Oracle partners such as Transcepta can enable all suppliers with an automated connection, regardless of sophistication level, system, or transaction volume. This means customers can finally connect the forgotten middle tier—gaining a greater ability to manage spend. Plus, Transcepta can provide value-added tax compliance where required.

Learn more by downloading the whitepaper Maximize Supplier Enablement for Procure-to-Pay Success.  

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A Blog about how Oracle helps organizations transform their supply chains into more holistic and integrated value chains that cover the three key operational pillars; Demand, Supply and Product.

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