In this blog, we focus on the importance of a rules-based engine and the automation of supplier onboarding.
Every procurement team needs to be able to vet and approve suppliers according to a governance framework that minimises risk. Essentially, you need to know that suppliers can do what they say they will and where they will do it. And for international businesses, this can be a particular challenge as you'll need to respond to different legislative frameworks and business culture in other markets. That may mean you have to ask a bespoke set of questions for each jurisdiction in which you operate. With the Canopy supplier management platform, you can set this up with ease. In the next of our occasional series of blogs looking at Canopy's features, we focus on our rules-based engine and automation of supplier onboarding.
A rules-based engine optimises supplier oversight
There's a fundamental problem for many procurement teams. Onboarding can be a time-consuming and labour-intensive process, especially when you need to bring in a supplier in a hurry. A new supplier questionnaire may answer all your immediate and practical questions. But for companies working on multiple sites, and across different countries, it can be difficult to respond dynamically to local jurisdictional differences. What's more, a new supplier questionnaire is often a snapshot of the situation that can be difficult to update, so you can as time progresses.
The Canopy supplier management platform addresses some of these problems head-on. Canopy's intelligent rules-based engine and automation options ensure all suppliers are fully vetted and approved according to your governance framework. With everything in one secure location, procurement teams can facilitate onboarding quickly and effectively. You'll have confidence that suppliers are compliant, and that their information is accurate and complete. (In a later blog we'll be picking up how Canopy automates processes for ensuring suppliers stay compliant for as long as you work with them).
Three advantages of onboarding using a rules-based engine:
1. Automated processes save time and resources
Canopy eliminates time-consuming manual tasks through business rules and automation. This can cut the cost of supplier onboarding by two-thirds. By shifting the onus on to suppliers to provide the information, procurement teams can spend less time chasing information and more time reviewing it and approving new suppliers.
2. Different question sets in different jurisdictions
Canopy's rules engine can determine which data to collect and monitor about each supplier, based on what they do and where they do it. This means that procurement teams respond to different legislative frameworks and business culture, making you a better customer. Whether it's a local law empowering a minority group or the specifics of a tax code, you'll be asking the right questions to get the answers you need.
3. Relevant people get the information they need
When you're onboarding a new supplier, there may be many people in an organisation who need updates. Different teams may need to check various permits, licences, and certificates that prove a supplier can deliver their product or service. Canopy automatically routes relevant tasks to the right people when they need to take action. From reviewing compliance documents through to designing a questionnaire for a new supplier in a new market, you won't be duplicating tasks.
To find out more about onboarding suppliers using the rules-based engine behind Canopy, our award-winning supplier management platform, contact one of our team today.
Post by Nick Verkroost
Nick is an experienced business leader and the CEO for Canopy (OCG Software), the rules-based Supplier Management platform. Nick's focus is on commercial and operational excellence and ensuring our clients maximise the opportunities that Canopy offers.