Supplier Onboarding Challenges and How To Overcome Them

supplier-onboarding-challenges-and-how-to-overcome-them Published 1 month ago Views (16) Technology Lifestyle

Supplier onboarding comes with its own set of challenges. The process can get inefficient in medium or large enterprises due to the numerous stakeholders and moving parts involved. Delays and anxiety often characterize this process.

What is Supplier Onboarding?

Supplier onboarding or vendor onboarding is the registration of a supplier in the company’s records so that the company to transact with them to source & purchase goods or services. It is a part of the larger purchase-to-pay (p2P) process. 

The steps before supplier onboarding are Purchase requisition, Purchase order, and Supplier selection. Once the supplier selection is approved, supplier onboarding occurs, and invoices and payments follow. 

Supplier Onboarding Challenges

Employees are unaware of the exhaustive list of suppliers the company is working with: this leads to superfluous suppliers getting onboarded to provide the same services and goods. This duplicate vendor onboarding costs the company time and money. 

Inefficient line of communication with the supplier: Most times The supplier’s PoC is in the middle of all communication between the finance team and the supplier leading to inefficiency. However, opening this line of communication can lead to a lot of chaos as a direct line to the finance team can overwhelm them with too...

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Nora Roberts was born in Silver Spring, Maryland, the youngest of five children. After a school career that included some time in Catholic school and the discipline of nuns, she married young and settled in Keedysville, Maryland.

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