Don't play supplier data base liars poker! And let’s hope you never have to where your supplier data is concerned!
Today’s post is from Ron Southard, CEO of SafeSourcing Inc.
I was just re-reading some of my old posts and came across this one. You know what? It’s still true!
So, when SafeSourcing in 2021 says it has 5 suppliers (think 5 Aces) because it does.
Locating, managing and updating supplier information for companies you may choose to do business with has never been more difficult. How many former suppliers from let’s say 4-5 years ago are no longer in business? How many newer companies have evolved or taken their place? I already know the answer you are going to give me. It’s I don’t know.
We keep hearing about big data. What you need relative to suppliers beyond just their name is more data. With new regulatory requirements emerging daily, economies failing, the supply chain shrinking in some places and expanding in others, changing safety factors and environmental factors ( think LEEDS), detailed supplier information and traceability are but a few of the issues that require regular maintenance in order to mitigate a company’s risk.
Solution Providers like SafeSourcing that provide supplier databases (SafeSourceIt™) that are part of automating the procurement process, need to step up and make sure that their data support these changes on a regular basis to the greatest extent possible by providing tools that interact with both regulatory agencies and suppliers in order to insure consumer safety and environmental impact.
Particularly as more new sources of supply and a continual stream of new products enter the supply chain daily.
Actions that solution providers should take include but are not limited to:
1. Monitor daily alert data as to product recalls and safety warnings.
2. Trace warnings back to the original source of supply automatically and maintain history.
3. Require that suppliers meet certain safety certifications in order to participate in their database.
4. Require that suppliers meet required environmental certifications or programs in order to participate in their database
5. Provide a regular purge of suppliers that do not comply with necessary standards.
6. Validate the entire database regularly for companies no longer in business
7. Adhere to a strict RFI process for new suppliers requesting participation in your database.
8. Provide a KPI rating system for suppliers you offer to companies as new sources of supply.
9. Monitor regulatory agencies such as ISO for new standards and include them as further requirements for suppliers in your supplier databases.
10. Conduct on going category research for evolving new sources of supply.
11. Compare your best customers GL to your database for additions deletions.
Ask your solution provider what their process is to grow manage and maintain their supplier database for your benefit.
If you’d like more information on the SafeSourceIt™ Supplier Database of nearly 500,000 cleansed global sources of supply, please contact a SafeSourcing customer services account manager.
We look forward to and appreciate your comments.
