A Comprehensive Guide to Vendor Onboarding Best Practices
Introduction to Supplier Lifecycle Management, Supplier Onboarding, and Supplier Offboarding
Introduction
You’re tasked with developing and implementing a supplier lifecycle management (SLM) program. Congratulations! This critical initiative can significantly impact your organization’s operations.
But before you can get started, you need to understand the main aspects of supplier lifecycle management. In this article, you’ll learn about SLM and best practices for supplier onboarding and offboarding.
What Is Supplier Lifecycle Management?
Supplier lifecycle management (SLM) is the proactive oversight of supplier performance and relationships from when a supplier is onboarded to when they are offboarded. It includes all steps in the supplier relationship, from finding new suppliers to maintaining existing ones and offboarding suppliers you are no longer doing business with.
SLM is important for two reasons. First, it helps ensure a company gets the best possible value from its suppliers. Second, it helps protect the company from risk. By monitoring supplier performance and having protocols for dealing with all stages of supplier management, a company can avoid costly disruptions to its business.
Benefits of Supplier Onboarding and Offboarding
When you onboard a new supplier, you welcome them into your organization. This is an opportunity to set the tone for the relationship, establish expectations and get them up to speed on your processes and requirements.
The benefits of a smooth supplier onboarding process are clear: You reduce the risk of disruptions to your operations, ensure that they meet your quality and performance standards, and build trust for future collaborations.
Offboarding a supplier is just as important as onboarding them. When done correctly, it can minimize the risk of disruptions to your operations, protect your brand reputation and mitigate any future legal issues.
Strategies for Effective Supplier Onboarding and Offboarding
When it comes to onboarding and offboarding new suppliers, there are best practices to keep in mind:
- Automate the process when possible. Manual processes are time-intensive and inaccurate. According to Informatica, businesses that automate part or most of their supplier onboarding processes spend up to 80% less time onboarding new suppliers. Automation allows for greater accuracy and efficiency when gathering critical supplier information or identifying suppliers for offboarding. You can maximize onboarding efficiency by establishing a self-service portal where suppliers can enter their own data. Identifying suppliers eligible for offboarding can also be automated based on specific criteria.
- Be consistent in your approach. Onboarding and offboarding aren’t just for procurement. Processes should be consistent company-wide. Utilizing the same supplier onboarding software regardless of department helps establish a single source of supplier information. Receiving alerts when a supplier should be offboarded helps ensure consistent risk mitigation practices.
- Be serious about due diligence. Spend adequate time with the supplier selection process, especially when choosing suppliers critical to your business. This can ultimately save time by eliminating unfit suppliers from your selection pool. Pay particular attention to data security practices, reputational risk, financial information and risk, and insurance information. When offboarding suppliers, revoke access to company systems, data, and physical spaces if applicable.
- Get leadership buy-in ASAP. Leadership buy-in early on is essential when creating a supplier onboarding and offboarding process for company-wide use. Make sure all necessary stakeholders are involved. Leadership buy-in ensures that your entire organization uses and understands the SLM process, which drives the success of an onboarding and offboarding program.
Strategies for Successful Supplier Offboarding
Supplier lifecycle management doesn’t end after a supplier onboards. Your company needs a defined process for ending supplier relationships that is graceful and mitigates risk.
A clear roadmap is essential for both parties during the supplier offboarding process. This roadmap should include steps such as providing notification of termination, establishing an exit timeline, determining transition responsibilities, and more.
Document the entire process between the buyer and supplier. Documentation helps mitigate unforeseen legal and reputational risks for your business. It also establishes expectations and ensures that both parties have fulfilled all contractual obligations before the relationship ends.
By setting up a well-defined plan during offboarding, you can help build healthy relationships with your suppliers even after they are no longer active partners.
Automating the Supplier Lifecycle Process
Supplier lifecycle management isn’t something you can do quickly and easily, but automating your supplier lifecycle process can help simplify onboarding while ensuring the safety and security of your supplier relationship. Automation also reduces manual data entry and prevents costly errors.
At SupplierGATEWAY, we’re experts in automating the supplier lifecycle process, allowing your team to focus on other tasks. Our software streamlines onboarding through custom workflows based on supplier type, and automatically checks for supplier data correctness through over 300 databases.
Our automated system does the heavy lifting for compliance. Our platform automatically notifies buyers and suppliers about supplier compliance and audit requirements and tracks their compliance status. Automation ensures that your vendors remain compliant with all relevant regulations and laws throughout their lifecycle with your organization.
The Impact of Supplier Lifecycle Management on Your Business
Supplier lifecycle management can have a significant impact on your business. But how exactly? Depending on the size and complexity of your supply chain, you could be looking at lower costs, improved supplier relationships, and increased quality and innovation.
With a strong SLM strategy in place, you can minimize the time spent evaluating and onboarding new suppliers while maximizing the quality of those suppliers. You can also improve visibility into your current suppliers’ performance, allowing you to quickly identify areas that need improvement or high-risk suppliers to avoid.
Plus, with the supplier lifecycle management tools in SupplierGATEWAY’s Enterprise Supplier Master Data Management Platform that make onboarding and offboarding smoother and more efficient, you can quickly identify any areas of opportunity. With the right supplier lifecycle management processes, you can save time and money and reduce risk while ensuring a better relationship between you and your suppliers.
Conclusion
Regarding supplier management, it’s essential to have a process for onboarding and offboarding suppliers. These processes help your company get the best products and services from your suppliers while maintaining good relationships during the contract. Offboarding suppliers you’re no longer doing business with ties up loose ends and protects your company from unknown risk factors.
To learn more about SupplierGATEWAY’s onboarding and offboarding solutions, get in touch and schedule your demo.
A Guide to Understanding the Complex Dynamics of Procurement Stakeholders
Introduction
When it comes to procurement, there are a lot of stakeholders involved. It’s all about collaboration—building relationships, creating trust, and getting the job done. However, understanding the complex dynamics of stakeholder relationships can be tricky.
We’ve put together this guide to help you understand the different roles and responsibilities of those involved in the procurement process. Whether you’re a novice or have experience working with various stakeholders in purchasing, this guide will give you a greater appreciation for the complexities of a successful procurement project.
We’ll look at each stakeholder’s role in detail and examine how they interact with each other and when their involvement is necessary. So let’s dive into better understanding everyone involved in this critical supply chain process.
What Is a Stakeholder in Procurement?
Stakeholders are often overlooked in the procurement process. While it’s easy to focus on the tangible steps involved in the process, like negotiating costs and contracts, it’s important to understand the different people that make up a procurement system.
Stakeholders are essential in the procurement process. They include customers, suppliers, vendors, and internal teams working together toward a common goal. Each of these groups has its own objectives and agendas in the system. This creates complex dynamics that must be managed for successful negotiation.
To break it down, customers are looking for cost-effective solutions. Suppliers want to increase their profit margins, vendors are looking for good relationships with customers, and internal teams need to ensure that any decisions made align with company goals—all at the same time! Considering all stakeholder needs is critical when it comes to successful procurement.
Different Roles and Responsibilities of Stakeholders in Procurement
Stakeholders in procurement have different roles and responsibilities. The most important stakeholders are the supplier, the buyer, and the procurement team. All three must work together to ensure a successful agreement and maximize value for their organization.
The supplier is responsible for providing necessary goods or services at the highest quality and lowest cost. They should also be accountable for delivering on schedule and honoring agreed-upon terms.
The buyer is responsible for finding qualified suppliers, negotiating terms, and ensuring that the supplier understands all expectations related to pricing, delivery timelines, product quality, product specifications, and more.
Finally, the procurement team bridges the gap between buyers and suppliers by expertly negotiating and managing contracts. They should also be involved in post-contract activities such as performance tracking, dispute resolution, and compliance monitoring.
While buyers, suppliers, and procurement teams are critically important to the success of procurement projects, executive buy-in is also critical. According to PMI’s Pulse of the Profession survey, “projects with high support from executives were 40% more likely to be successful than those with low executive engagement.”
By understanding their roles and how to collaborate effectively, stakeholders can ensure a successful purchase deal that meets their organization’s needs while delivering maximum value.
Strategic Partnerships Between Stakeholders in Procurement
When considering procurement, stakeholders may seem like a small part of the process. However, not understanding strategic stakeholder relationships can cause missed opportunities or costly mistakes. So it is critical to take the time to recognize and understand the complexities of stakeholders in procurement.
So what kind of strategic partnerships can you expect? Well, here are a few different types:
Buy-side/Sell-side Partnerships
The traditional partnership between buyers and sellers revolves around parties agreeing to terms for goods and services in exchange for agreed-upon value. This relationship is essential for successful procurement operations and requires lots of collaboration between buyers and sellers.
Government Partnerships
Government entities often get involved in procurement activities to ensure fairness and oversight when goods or services are purchased from suppliers under certain circumstances. These partnerships help protect the interests of taxpayers by ensuring compliance with laws and regulations in public spending.
Supplier Partnerships
Suppliers also play a key role in successful procurement operations, providing goods or services at agreed-upon terms. Buyers need to develop close relationships with their suppliers to have greater control over production times, cost structure, quality assurance, and other factors that contribute to project success.
Understanding these partnerships—as well as how they interact with other stakeholders—is critical to having effective procurement operations. Taking the time to recognize the complexity of stakeholders in this process is key to ensuring successful outcomes.
The Impact of Stakeholders on the Success of Procurement Projects
Stakeholders directly affect the success of any procurement project. Understanding who they are and what they do can help you create a better plan, achieve goals efficiently, and reduce potential risks.
Buyers
The buyer is responsible for buying goods or services or signing contracts. They have the authority to purchase on behalf of their organization and must research suppliers and vendors to determine which offers the best overall value. Buyers also have to negotiate prices, terms, and conditions with suppliers.
Suppliers
Suppliers provide goods or services to buyers at an agreed-upon cost. Suppliers must understand their customers’ needs and work with them to meet those expectations. They should strive for good relationships with buyers and work with them to ensure smooth transactions.
Affected Parties
Affected parties are those impacted by decisions made during the procurement process. These could include employees in other departments, government regulators, end-users of goods or services, and others who may be indirectly affected by the project’s outcome. Procurement teams need to consider Affected Parties when making decisions that affect them as their needs are unique.
An effective stakeholder management strategy is the key to successful procurement projects. It allows you to manage expectations, build relationships with stakeholders (buyers, suppliers, and affected parties), ensure buy-in from all involved, and ultimately make better decisions for your organization as a whole.
Tips for Successful Procurement Stakeholder Management
The key to successful procurement is understanding and managing stakeholders and their demands. Here are some best practices for successfully managing procurement stakeholders:
Establish Effective Communication Strategies
Good communication is fundamental for any successful procurement process. Ensure all stakeholders are informed about timelines, changes to the project, and progress in the process. Schedule regular meetings to keep all stakeholders up-to-date on project progress. Clear, consistent communication helps ensure the success of any procurement project.
Keeping communication respectful also helps build security and trust among stakeholders. Keep an open mind when considering the needs and perspectives of other stakeholders.
Assign Roles and Responsibilities
It’s important to assign roles and responsibilities immediately so that everyone in the group understands their part in the bigger picture. Understanding how each person contributes to the process is necessary for efficient procurement management.
Get Buy-in from Key Procurement Stakeholders
Conflicting interests can block progress if certain groups of stakeholders don’t buy in or accept suggested approaches or objectives. Understanding the needs of different stakeholders is crucial for obtaining their buy-in. Learn about stakeholders, understand their backgrounds and motivations, then tailor your presentation or approach accordingly.
By considering these practices during the life of a procurement project, you’ll find it much easier to identify, engage with, and understand the needs of key stakeholders and meet expectations during the project.
For more best practices for managing procurement stakeholders, check out this article.
Create Long-Term Commitments
Finally, building long-term relationships with your stakeholders requires deep commitment from both parties. Investing time in understanding each other’s priorities and points of view will help create a sense of trust between you and ensure that everyone is on the same page—which is an essential ingredient for successful procurement projects.
Conclusion
To effectively manage procurement stakeholders, it’s essential to understand the different roles and responsibilities of each, as well as their objectives and interests. Knowing which stakeholders to target, when, and with what message will help you get support, buy-in, and trust. Strategic communication, continued stakeholder engagement, and mutual understanding help create successful and efficient procurement projects.
Adopting a collaborative and inclusive approach to procurement management is the optimal way to ensure everyone involved feels heard and understood. Accomplish this by regularly reviewing stakeholders’ roles and objectives to ensure everyone works together towards the same goals. Additionally, educating stakeholders about their respective roles and the procurement process as a whole is essential for creating a successful and transparent procurement process.
Strategic Thinking: How to Find RFPs, Connect With Buyers, and Other Opportunities as a Small B2B Business
Introduction
As a small business, you know you need more buyers and opportunities to continue growing. The challenge is: how do you go about making those connections? After all, it can be hard enough just to find the right people in the first place, let alone get their attention and turn them into paying customers.
The good news is that there are several strategies you can use to find buyers, find RFPs, increase your visibility, and identify new opportunities in the B2B space. In this article, we’ll walk you through some of the most effective tactics for finding RFPs, connecting with buyers and other stakeholders, as well as how to position yourself as an attractive partner for larger companies. By the time you’re done reading this piece, you’ll have the tools and knowledge needed to take your small business’s growth to the next level.
Identify Your Buyers’ Needs
In any line of business, your buyers’ needs should be your number one priority. As a small B2B business, understanding what potential buyers are looking for allows you to tailor your services specifically to their wants and needs.
The first step to identify your buyers’ needs is to research what they want and need from the products and services you offer. An effective way to do this is by searching relevant blogs, forums, or industry-specific websites for trends and customer feedback. You can also ask existing customers what their pain points are in relation to your services.
Another great way to dig deeper is by attending industry-relevant events or webinars where you can get up close with potential buyers. This will give you valuable insights into the types of businesses they represent, what they are looking for in terms of services or product offerings, and how they prefer being contacted. This will help you tailor your pitch to make sure it resonates with them every time.
Use Your Network to Generate Leads and Referrals
You already know that your network is one of the most powerful tools in your arsenal. But did you know that it can also be a powerful source of new business opportunities? Building relationships with colleagues, partners, and even prospective customers can be a great way to uncover value and leads.
Here are some tips for using your network to find buyers:
- Reach out to industry contacts and ask for referrals. Make sure you have existing relationships with the people you ask for help—the more trust you have established, the better your chances of getting referrals.
- Utilize LinkedIn groups and networks. They can connect you with potential buyers and give you insights into what kinds of projects are in high demand.
- Connect with decision-makers at businesses directly. Reach out via LinkedIn or cold email to inquire about any RFPs they may have or other opportunities they may be seeking.
By leveraging your existing relationships and connecting with decision-makers, you can open up a world of opportunities as a small B2B business. The key is to stay consistent and persistent when looking for new buyers.
Utilize Online Platforms to Find RFPs and Opportunities
One great way to discover new buyers and opportunities as a small B2B business is to utilize online platforms. With SupplierGATEWAY’s Premium Supplier Platform, you can easily connect with buyers from some of the world’s biggest companies like Target, The NBA, LVMH, and Home Depot.
Our platform eliminates the time-consuming prospecting process and makes it simple to find potential clients and opportunities that fit your business model. With our platform you can:
- Access RFPs directly through our database
- Find new customers and build relationships with them
- Send messages directly to interested buyers
- Utilize a secure transaction system for when it’s time to close a deal
Expand Your Reach With Advertising and Promotions
Advertising and promotions are great ways to expand your reach. When you advertise, you showcase the unique value of your services and products to potential prospects. And when you promote your small business, you gain visibility and generate more leads for your offerings.
But how do you know what kind of promotion will bring in the best leads?
Try a mix of advertising and promotions
When it comes to getting new B2B buyers, there’s no one-size-fits-all answer— try different strategies to see what works best for your business. Some tactics you could try are:
- Paid search campaigns through Google Ads or Bing Ads
- Using social media platforms like LinkedIn or Twitter to target potential buyers with ads
- Investing in email campaigns that focus on showcasing your products or services uniquely
- Creating content such as blog posts or videos that demonstrate the value of what you offer
- Joining relevant industry associations where potential buyers may already be members
- Answering RFPs (Request For Proposals) through an online supplier platform like SupplierGATEWAY’s Premium Supplier Platform. Our platform is used by some of the world’s biggest companies for their sourcing needs.
No matter which tactics you choose, creating a well-thought-out advertising and promotions plan will help ensure that you reach the widest possible audience—and garner more B2B buyers.
Leverage Social Media to Connect With Buyers
Social media has become an important tool to connect with potential buyers and create meaningful relationships with them. With a simple search on the platform, you’ll be able to find potential buyers, learn more about their likes and interests, and follow them. This allows you to get on their radar and get noticed by them.
When it comes to connecting with buyers on social media, there are some key things to keep in mind:
- Keep your profiles updated and well maintained: Ensure that your profile is up-to-date with the latest information about your business. This includes pictures of your products or services, relevant content, and any other details that might be helpful for buyers to make an informed decision.
- Join relevant groups: Find groups related to your industry or field of interest and join them. This is a great way of finding and connecting with potential buyers in the same space as you who may be interested in what you have to offer.
- Engage thoughtfully: Once you’ve established contact with potential buyers, engage thoughtfully in conversations online so they get a good impression of your business. Respond to comments that they make, give insights into topics related to your industry, and overall make yourself open for communication – this helps in building trust and credibility between yourself as a seller and them as a buyer.
- Leverage paid campaigns: If you have the budget for it, leverage social media paid campaigns such as Twitter Ads or Facebook Ads (or other platform-specific campaigns). Using targeted ads can help reach more potential clients than organic traffic alone could do – this means reaching out to more people who may have never heard of your product or services before but might truly benefit from it given
Research Government Portals to Find RFPs and Other Opportunities
Have you ever considered looking for business opportunities on government websites? It may sound intimidating but it’s worth a shot— lots of governments are using digital portals to make it easier for businesses to find out what they have to offer.
You can take advantage of those portals and start finding RFPs (Request for Proposals) and other bids that your small business could participate in. Government bidders usually look for suppliers with specific criteria, so make sure your business is ready to meet the requirements before responding to any RFPs.
Where do you find government portals?
It’s not hard to find government portals— all you have to do is enter the name of your city plus some keywords like “government bids”, “RFPs”, or “vendor opportunities”.
At the end of the day, thinking strategically will help you gain more business as a small B2B. You need to know where and how to look for opportunities, but when done right, you can bring amazing results.
Conclusion
As a small B2B business, it’s critical to stay ahead of the competition by staying connected to new buyers and understanding how to find RFPs. Doing so will open up more opportunities to secure new leads and win more sales.
Fortunately, there are strategies and tools to help you succeed. From utilizing data to monitoring keywords to leveraging technology to simplify the process, there are many ways to help you identify and pursue the right customers.
By implementing an effective strategy for finding RFPs and connecting with buyers, you’ll be able to create a successful small B2B business and stay ahead of the competition. With the right tools and knowledge, you can find the buyers and opportunities you need to take your small B2B business to the next level.
New Custom Economic Impact Reporting Updates are Now Available!
We are excited to announce new improvements and updates to the economic impact reporting tools! You can now create custom economic impact reports that include your own images, graphics, and custom program statements. We also expanded the number of Metropolitan Service Areas (MSAs) you can choose from in the Economic Analysis “what-if” tools, and all BEA data is now up to date with the latest multipliers.
New On-Demand Custom Report
It’s now easier than ever to create customized economic impact reports! Tell a story about a specific project’s impact using your own images, program statements, and commentary— all on the fly.
Expanded MSAs
This update expands the number of MSAs that can be pinpointed from 13 to 26! You can still run economic impact reports for suppliers anywhere in the United States. But, if you want to focus on specific areas like New York and New Jersey, or Los Angeles and Long Beach, now you can. The expanded MSAs are available in the Economic Analysis “what-if” tools.
Updated Model Data
We have also updated the Bureau of Economic Impact BEA RIMS II models. The system now features the latest multipliers, helping ensure the accuracy of your impact estimates. The updated models also provide better insights into the jobs you are supporting and the economic activity your spend is creating.
What Is Supplier Information Management: An Essential Guide
How to Access Capital for Small Business Owners: A Step-by-Step Guide
Introduction
Congratulations! You are a small business owner. You have worked long and hard to get to where you are. But now, as your company grows, you need additional capital to take it to the next level.
The problem is: you don’t know where or how to find the funds that you need to keep your business growing. Well, don’t worry—we’re here to help! In this article, we will give you a step-by-step guide on how to access capital for small business owners.
We will cover the different types of funding available for small businesses and provide some tips on where and how to get started in applying for these funds. By guiding you through the process of accessing capital for your small business, we hope that with our help, your business can grow big and strong!
Understanding Your Funding Options
Are you a small business owner looking for capital to start or grow your business? Accessing capital can be a daunting process, but it doesn’t have to be. With this guide and the proper understanding of the different funding options available, you’ll have the confidence to go out and secure the financing you need for your venture.
The type of capital you need depends on which stage your business is in. For a start-up, you might look for venture capital or angel investors. For an established business, consider getting a loan from a bank or peer-to-peer lending networks. For businesses needing extra cash flow, invoice financing could also be an option. Finally, individuals and businesses may be able to take advantage of grants from government agencies or non-profits.
No matter which option is right for your business, it pays to do your research. Understanding each source of capital—from investors to loans—will empower you to make informed decisions about where and how to raise funds for your venture.
Securing Small Business Loans
No matter how good your business idea is, access to capital is one of the key elements to get it off the ground. One of the most common ways entrepreneurs access much-needed capital is through a small business loan. Loans can be taken out from both traditional and online lenders, although there are different rules and regulations that come into play when dealing with each.
Before you even start looking at loan options, though, it’s important to make sure your business’s credit score is up to date and improve it if necessary. A good credit score will give you more flexibility and options when it comes to getting approved for a loan—and have better interest rates too!
Learn more about your business credit score and why it’s important to your financial and personal security.
Once your credit score is in order, you should start doing some research on the various loan options available for small businesses. Compare interest rates, terms, and repayment terms before settling on a loan that best suits your needs. Consider any collateral you may need—real estate, inventory, or equipment—to secure the loan if needed. And make sure to go over all of the fine print with a legal professional before signing anything!
Connecting With Potential Investors
When you’re ready to start raising funds for your business, you need to start connecting with potential investors. This step may seem intimidating, but with the right resources and networks, you can be sure to make strong connections that will serve your business well over time.
Research
Before anything else, do your research. Find out who the key players are in your sector – look at companies that have been successful in terms of investments and impact – and take notes on who their investors were. Knowing who is investing in your industry can help give you an idea of who you should reach out to and what kind of strategies they’ve used to raise money.
Networking Opportunities
There are plenty of networking opportunities available if you know where to look. You can attend events where small business owners and entrepreneurs gather to share ideas and get advice from experienced professionals. You can also join online networks like LinkedIn or tap into online communities dedicated specifically to connecting businesses seeking investment and investors looking for start-ups or other small businesses they can invest in.
Consider Non-Traditional Sources of Financing
When it comes to getting started with a new business, you may have to look beyond traditional sources of financing. Non-traditional sources of funding are becoming increasingly popular amongst start-up entrepreneurs, and there are a few key options you could consider.
Crowdfunding
Crowdfunding is the practice of raising funds for a project or business through small donations from a large number of individuals. You can put together a unique crowdfunding campaign that appeals to potential investors, offering incentives such as discounted products or exclusive access to content in return for their support.
Angel Investment Networks
Angel investors are wealthy individuals who invest in development-stage businesses in exchange for an ownership stake. There are several online networks that bring together start-up entrepreneurs with angel investors looking for impressive opportunities — so it’s worth checking out if you need capital quickly.
Microfinancing Services
Microfinancing services offer financing plans with lower interest rates and longer repayment terms than a traditional loan. If you have perfect or near-perfect credit and verifiable income, this could be an option worth considering when looking for capital.
These three non-traditional sources of financing are gaining traction among entrepreneurs — so they’re definitely worth exploring when starting your business!
Optimizing a Crowdfunding Campaign
One way to access capital as a small business owner is by running a successful crowdfunding campaign. Crowdfunding can be an attractive option for many entrepreneurs, but you have to do your homework and create a well-thought-out plan in order to make the most of it. Here are some tips to help you get started:
Set Clear Goals
Before you launch your crowdfunding campaign, you need to have a clear goal in mind for what you’re trying to achieve. Set realistic and achievable funding goals so that donations will keep coming in as the campaign progresses.
Build an Engaged Audience
You can’t run a successful crowdfunding campaign without an engaged audience. Take the time to build relationships with potential backers before launching your campaign—this will give you more exposure and increase the chances that people will support your project.
Understand the Process
Make sure you understand the crowdfunding process before you launch your campaign. Understand how different platforms work, what their fees are, and how they process payments.
Create an Impactful Story
Your story needs to be emotionally resonant in order for people to donate money to it. Craft an effective and compelling narrative around why you’re raising funds, and make sure it resonates with potential donors. Donors want to feel like they are making a difference and helping someone achieve their goals, so make sure that your narrate focuses on impact rather than just money.
Identifying Grants and Other Resources
Raising capital for your small business can be challenging, so it’s important to identify all the grants and other resources available to you. After all, you don’t want to miss out on a great opportunity that could be the difference between success and failure.
To get started, ask yourself these questions:
- Are there local or state grants available?
- Are there industry-specific grants or incentives?
- Are there funds available from nonprofit organizations or government agencies?
If you’re having difficulty finding a grant that fits your needs, try talking to a qualified accountant who can provide insights into potential resources. Also, remember that some organizations offer free advice and guidance for start-ups and small businesses.
Lastly, don’t forget about crowdfunding options like Kickstarter, which can be an invaluable source of funds for small businesses. But keep in mind that it’s important to approach any financing opportunity with caution and discretion. There are lots of scams out there designed to prey on unsuspecting entrepreneurs. Research thoroughly before committing any money or time.
Conclusion
Raising funds for a startup business can be daunting, but with the right knowledge and strategy, it can be a relatively painless process. All it takes is a comprehensive understanding of the fundraising landscape, knowing the different types of loans available to small business owners, and which type is most appropriate for your particular needs. Having the right plan and strategy, as well as access to the right resources, can make it much easier to secure the capital you need. With the right approach, you can be well on your way to achieving the success you’ve been dreaming of.
What Is Category Management and Why Is It Important?
Procurement is one of the most important departments for all businesses. As the primary department in charge of end-to-end organizational spending, procurement ensures that all business operations function smoothly through the acquisition of key supplies and inventory.
With procurement and supply chain management becoming increasingly complex in today’s global economy, organizational spending can easily become excessive, which can have a negative impact on the company. It’s crucial to adopt a strategic approach in procurement and supply management to adapt to the rapidly evolving nature of the market. One of the most beneficial approaches involves effective category management.
What is Category Management?
Category management is a strategic approach to procurement that involves segmenting similar products and services into categories to identify opportunities to consolidate spending and create more value for the business.
It was developed in the late 1980s by Dr. Brian Harris to take a data-driven project management approach to procurement. Its main goal is to streamline decision-making, optimize the usage of resources, and improve procurement performance.
Another strategic approach discussed frequently along with category management is Strategic Sourcing. Both terms are often used interchangeably with each other, although they differ in focus and scope.
Strategic Sourcing mainly focuses on identifying channels where procurement can secure products and services at the lowest cost to itself, which may not necessarily be the lowest price. This is essentially a way to satisfy the organization’s present needs while maximizing the value of its purchases.
On the other hand, category management takes a more holistic approach as it involves analyzing the current market and building relationships with suppliers to drive maximum value to the organization throughout the whole life cycle of goods and services.
Why is Category Management Important?
Category management is a crucial aspect of procurement as it goes beyond simply acquiring goods and services. Through the development of categories, the organization can better understand its spending patterns and identify critical areas where savings are possible. Building meaningful relationships with suppliers can aid in negotiations for better contracts. More insight into the company’s supply network minimizes risks by diversifying its supplier base.
Overall, category management helps businesses build value throughout the entire supply chain. By adopting a more strategic, data-driven approach to procurement, the company can improve business efficiency to achieve better outcomes.
What are the Benefits of Category Management?
The implementation of your category management plan may be the responsibility of your Category Manager, but it is a company-wide function that impacts the organization as a whole. Thorough implementation will affect every facet of the business, resulting in the following benefits:
Improved Vendor Performance
When done strategically, an effective category management plan can streamline your vendor and supplier management processes. Category management gives you a framework to evaluate vendor performance and make changes as needed, helping you work more efficiently.
Better Client Satisfaction
A single Category Manager handles all aspects of each category. They are tasked with sourcing requirements, bid collection, and contract negotiations with suppliers, among other functions. With all that taken care of, other team members can focus on their core organizational responsibilities, allowing them to deliver value-based services that satisfy client needs and expectations.
Greater Insight Over Resource Allocation
Category management offers more insight into the usage of resources, which aids in better decision-making. With a Category Manager in charge of each category, the organization can gather information on price, cost, and spending. You can acquire a complete list of vendors and data on expenditures, giving you an accurate picture of how your resources are allocated.
Build Stronger Relationships with Suppliers
Category management creates more opportunities for businesses to establish meaningful supplier relationships. You can work with suppliers more effectively and efficiently by establishing clear communication channels, encouraging collaboration, and providing an established framework for evaluating vendor performance and streamlining processes.
What is the Category Management Process?
The category management process involves a series of steps, each helping business owners achieve better outcomes in a structured and measurable way. Below, we break down each of the steps:
A category is any group of similar items or services under a single retailer. Since businesses deal with a wide range of products and services daily to fuel their operations, grouping these into different categories enables the company to be more efficient with its procurement processes.
Groupings can be made in various ways and will depend on the company’s structure, the industry it operates in, its spending policies, and the nature of the market. More important here is adhering to a single standard of categorizing these goods and services to remain consistent. Today’s most well-known category system is the United Nations Standard Products and Services Code (UNSPSC).
Involving different sets of data is also helpful in understanding the procurement goals of the business. You can obtain greater insight from data on supplier performance, past organizational spending, and the changes in the pricing of products and services to identify prevailing trends and savings opportunities.
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Evaluate the Category’s Role
Once different categories have been created, evaluate how well they fit within your entire portfolio. This involves assessing how the category works within the organization’s entire portfolio and how they contribute to the overall profitability of the business.
Can these categories help you reach your procurement goals? Is there anything else that needs to be addressed? Assessing the roles of each category enables you to gain valuable insights and make informed decisions that ensure all your efforts are contributing to the efficient allocation of resources.
As a critical aspect of category management, category performance assessment involves the systematic analysis and evaluation of category performance to identify opportunities for improvement to ensure maximum profitability. In this process, the performance of each category can be evaluated using various key performance indicators (KPIs) as benchmarks.
Analyzing the performance of different suppliers and key competitors is also necessary during this process. Obtain valuable insights using each category’s detailed strengths, weaknesses, opportunities, and threats (SWOT) analysis. Depending on the results obtained, recategorization may be needed.
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Set Objectives and Targets
Set attainable and quantifiable targets for sales, volume, and margin once category assessments are completed. Setting objectives helps you define what outcomes you want to achieve for a specific category.
It’s also equally important to set realistic and achievable goals. Whether you’re trying to improve your profit margin or increase sales volume, category management should be able to help you align your procurement efforts with your organization’s targets. Then, with a category scorecard, you can keep track of the data to understand your progress.
Once you’ve set your targets, you will need a targeted strategy to help you achieve them. The following are some examples of methods you can employ:
- Transaction Building: improve sale volume through aggressive pricing, strategic packaging, and promotions.
- Cash Generating: the main focus is to increase the turnover of goods in high-volume categories.
- Profit Generating: instead of increasing the volume of sales, the emphasis lies on categories with high margins.
- Traffic Building: the primary goal is to improve shopper traffic, which is ideal for destination categories.
- Excitement Generating: the strategy focuses on creating excitement for a particular category by tapping into relevant social trends.
- Turf Protecting: this strategy is often used when a competitor has increased its activity and you want to protect existing sales. However, this strategy will often have consequences on profit margins, so it should be used as a last resort to remain competitive.
- Image Enhancing: use this strategy to improve your overall image and encourage customer loyalty.
Category tactics are specific tools, actions, or initiatives an organization takes to implement a strategy and achieve its objectives for a particular category. These tactics are designed to achieve the maximum possible and can be any of the following:
- Product selection
- Pricing
- Promotion
- Placement
- Supplier management
- Analytics
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Implement the Category Plan
Implementation is perhaps the most important step in Category Management. It involves executing the plan developed during the first six steps of the process and working towards your goals.
This process usually involves five key steps:
- Execution: putting tactics into action with the help of all team members, from internal marketing teams to suppliers.
- Monitoring and Adjustment: continuous monitoring is required in order to identify areas where adjustments can be made.
- Effective Communication: all stakeholders must be aware of the plans and aligned with the goals and objectives set.
- Optimization: ongoing optimization is necessary to ensure that all strategies and tactics employed for a specific category perform at their best.
- Evaluation: the overall effectiveness of the plan must be evaluated to assess whether the objectives have been met and whether further optimization is required.
8. Review Each Category
While implementing your action plans, you may need to review each category to ensure they remain current. As the market continues to evolve, so will the category dynamics and the strategies you must implement to achieve your procurement targets. Whenever possible, you may need to make changes to each category to adapt and remain competitive.
Implement An Effective Category Management Plan With Supplier Gateway
At its core, category management is all about maximizing productivity while optimizing the procurement process to ensure the efficient allocation of resources. With Supplier Gateway, you can gain the means to create an effective category management plan using our all-in-one supplier management platform.
Get in touch with us today to request a demo of our platform.
SupplierGATEWAY is selected as the Exclusive Software Platform for the Historic CREDS Consortium
The Real Estate Roundtable and Partner Real Estate Associations Join Together for the First Time to Expand Supplier Diversity Opportunities
The Commercial Real Estate Diverse Supplier (CREDS) Consortium is a first-of-its-kind coalition to provide more opportunities for minority- and women-owned businesses in the industry’s supply chain.
Ade Solaru, Founder and CEO, SupplierGATEWAY: “Our partnership with the CREDS Consortium is an important component of our mission to generate meaningful economic impact at scale for our customers. Each member of the CREDS associations can now create meaningful social impact at the local level without sacrificing efficiency, cost or risk.”
Washington, D.C. — Today, an industry-wide group of seven real estate trade associations announced a first-of-its-kind alliance to foster supplier diversity in real estate. The Commercial Real Estate Diverse Supplier (CREDS) Consortium aims to expand economic opportunities for businesses owned by minority- and women-owned businesses (MWBEs) in the chain of providers that supply the real estate industry.
In addition to The Real Estate Roundtable, CREDS Consortium associations include CREW Network, ICSC, Mortgage Bankers Association, NAIOP, Nareit and the National Multifamily Housing Council. CREDS Consortium associations will highlight tools that their members can use to identify, track, report, and procure products and services from MWBEs and companies owned by veterans, LGBTQ+ persons, and persons with a disability.
The Real Estate Roundtable’s President and CEO, Jeffrey DeBoer, said, “Owners, developers, and financiers of commercial and multifamily real estate are committed to help minority, women, and other historically under-represented entrepreneurs prosper in our great industry. The CREDS Consortium can help our members realize their intentions to advance economic opportunities across the vast and varied supply chain that serves real estate, makes our buildings productive, and strengthens the fabric of our communities.”
The CREDS Consortium has launched a two-year pilot program that will run through the end of 2024 with SupplierGATEWAY, a leading supplier management software platform and minority-owned firm that automates and simplifies supplier and vendor management. SupplierGATEWAY’s products include supplier sourcing, registration, risk management, compliance, and management—and provide support for corporate social responsibility, diversity, and inclusion goals.
Members of the CREDS associations can subscribe—at a discounted price—to SupplierGATEWAY’s software platform to search for, connect with, and potentially hire MWBEs as contractors, service providers, vendors, and joint venture partners. CREDS associations’ subscribing members can access the vendor management software and a comprehensive database of MWBE suppliers through the Consortium’s portal page, hosted by SupplierGATEWAY.
Hiring companies can also post their purchase orders and other contracting opportunities through the CREDS portal. Tools available on the platform that measure and track MWBE procurement spending will support companies that intend to advance environmental social, and governance (ESG) and diversity, equity, and inclusion (DEI) goals.
During the pilot program, the Consortium also hopes to gain broad insights into supplier diversity trends across the commercial real estate industry.
Visit https://creds.suppliergateway.com to learn more about the CREDS Consortium pilot program. An FAQ document can be found here.
Maximizing Your Procurement Process With Supplier Relationship Management
Introduction
You’ve probably heard the term “supplier relationship management” before, but what does it mean? And more importantly, how can you implement it in your procurement process?
Put simply, supplier relationship management (SRM) is the practice of managing your suppliers and their relationships. This can include everything from maintaining contact information to tracking orders and payments.
The goal of SRM is to create a more efficient procurement process and strengthen relationships with your suppliers. By implementing SRM in your organization, you can save time and money while improving supplier performance.
What Is Supplier Relationship Management?
Supplier Relationship Management (SRM) is the proactive management of supplier performance in order to optimize the relationship and achieve better business outcomes. Put simply, SRM is a process that enables you to manage your suppliers more effectively. Despite the fact that CPOs are increasingly concerned with SRM, only 56% of polled procurement teams use technology to implement supplier relationship management programs.
To implement SRM in your procurement process, you need to understand what it is and what it can do for you. SRM is not a new concept, but its importance has increased as organizations have become more complex and supply chains have become more global.
The benefits of SRM are numerous and can include improved supplier quality, reduced costs, accelerated innovation, and improved customer service. By implementing SRM in your procurement process, you can maximize the value of your suppliers and achieve better business outcomes.
Four Tips To Develop an Effective Supplier Relationship Strategy
Developing an effective supplier relationship strategy is critical to the success of your procurement process. Here are some tips on how to get started:
- Define your needs and priorities. What are your top priorities when it comes to sourcing and procurement? What qualities are you looking for in a supplier? Defining your needs and priorities upfront will help you develop a strategy tailored to your needs.
- Establish selection criteria. Once you know what you’re looking for, establish selection criteria to help you evaluate potential suppliers. Your criteria could include quality, price, delivery time, risk level, and other factors.
- Build a strong relationship with key suppliers. Establishing strong relationships with key suppliers is essential for developing a successful partnership. Take the time to get to know your suppliers and their business. Ensure that both parties agree on expectations and objectives.
- Communicate regularly. Communication is key in any relationship; it’s no different for supplier relationships. Make sure to share updates on projects, deadlines, and goals. This communication helps ensure that both parties are working towards the same objectives.
The Benefits of SRM for Procurement
There are several benefits to implementing SRM in your procurement process:
- Improved communication: SRM systems facilitate communication between buyers and suppliers. Both parties understand expectations, and can quickly resolve any issues that arise.
- Better supplier management: With SRM, you can keep track of all your suppliers in one place, making it easier to compare prices, quality, and delivery times. Consolidated data also makes it easier to decide which supplier is best to work with.
- Increased efficiency: SRM systems help automate the procurement process. This means that tasks like ordering, tracking, and paying for goods can be done quickly and easily.
- Reduced costs: By improving communication and coordination between buyers and suppliers, SRM systems help reduce waste and improve efficiency. This leads to cost savings for both parties involved.
Challenges of SRM Implementations
When it comes to implementing Supplier Relationship Management into your organization, there can be a lot of challenges. One of the biggest is proper management. You’ll need to dedicate resources to setting up systems and managing supplier relationships. It may also be difficult to get all stakeholders involved in the process on board.
Another potential challenge is getting access to the correct data and metrics that will help you meet your objectives. Without this data, it can be hard to make decisions about what processes and relationships you should focus on or how effectively you are meeting your goals.
At SupplierGATEWAY, we understand these challenges. That’s why we created our Enterprise Supplier Data Management Platform. Our platform makes it easy for you to collect the necessary data to manage a successful SRM program and ensure that your organization gets the most out of its supplier relationships.
Best Practices for Implementing SRM in Your Procurement Process
The best way to implement SRM in your procurement process is by establishing standardized processes and protocols throughout your entire supply chain. This includes developing clear rules and guidelines for suppliers, including offering comprehensive training for suppliers on how to meet company expectations. It also includes regular communication with suppliers to ensure issues are addressed quickly.
At SupplierGATEWAY, we believe that technology is key to efficient supplier management. Our Enterprise Supplier Data Management Platform is an all-in-one, cloud-based platform that centralizes your supplier data. Our platform includes supplier risk management tools, a supplier onboarding portal, supplier sourcing, supplier payment, economic impact, Tier 1 and Tier 2 supplier diversity reporting, and more.
The platform makes it easier for buyers and suppliers to do business, enables visibility into the supply chain, and helps organizations proactively manage the risks associated with long-term strategic partnerships. With this platform in place, you can ensure your SRM process is efficient and effective.
How SupplierGATEWAY Enables Efficient Supplier Management
SupplierGATEWAY is a one-stop shop for supplier relationship management. Our Enterprise Supplier Data Management Platform can help you maximize agility in your procurement processes and gain greater visibility into your supply chain.
Our all-in-one, cloud-based platform centralizes your supplier data and includes risk assessment tools, supplier onboarding, sourcing, payment, economic impact, Tier 1 and Tier 2 supplier diversity reporting, and more. Thanks to automation, our platform makes it easier for both buyers and suppliers to do business quickly.
SupplierGATEWAY’s platform enables auditable processes for capturing purchase orders (POs) and provides a holistic view of supplier performance in real time. This allows you to quickly identify any areas of non-compliance or supply chain risk as they arise. With detailed analytics and performance metrics built in, you’re able to run reports to get a better understanding of the overall health of your supply chain.
Plus, you gain greater control over the entire procurement process — from sourcing to payment — so you can reduce exposure to potential vendor risks while optimizing cost savings throughout the entire cycle.
Conclusion
So, what is supplier relationship management? It is a process that allows you to track, monitor, and evaluate the interactions between your organization and its suppliers. By doing so, you can identify and assess the risks and opportunities associated with each supplier, and implement strategies to improve supplier performance.
To maximize your procurement process, you should implement supplier relationship management. This will allow you to improve your supplier management process and get the most out of your suppliers.
