7 essential steps for successful supplier onboarding

Jan 13, 2021 | Digitalization invoices, EDI

7 essential steps for successful supplier onboarding :

Why adopt a supplier EDI deployment strategy?

EDI or electronic exchanges between customers and suppliers are the catalyst for improved productivity and performance.

The annual negotiations between supplier and customer are a win-win situation. EDI exchanges mean that the customer does not have to pass on manual processing costs to the supplier. The result is a financial gain for both parties.

Disputes over invoicing due to human error are eliminated, streamlining the payment process between customers and suppliers.

How can you successfully deploy a supplier?

Your suppliers are heterogeneous and have different levels of maturity when it comes to electronic exchanges. That's why knowing how to adapt to the different types of supplier you deal with will enable you to deploy quickly and efficiently.

To do this, you need an onboarding strategy that can be articulated as follows:

1 - Defining the business project 

It must be clear about the objectives to be achieved, the types of flows to be digitalize, the management of change, and the resources allocated to the supplier onboarding project.

2 - Have an up-to-date repository in your information system

You need to keep your supplier and item databases up to date.

3 - Deployment methodology, supplier audits

  • Define the target number of suppliers to bring on board (volume in terms of number of suppliers, but also in terms of the number of part numbers to be delivered).
  • Qualification of suppliers'EDI capabilities
  • Subdivision of suppliers according to audit results (by profile, size, type of product, etc.)
  • Offer a range of technical solutions betweenEDI and WebEdi to federate all suppliers.

4 - Define a provisional deployment schedule

5 - Communication kits 

A communication that first explains the objectives and benefits of the project, the operating mode, the schedule, etc. Then, a technical and functional specification with the expected business rules.

6 - Supplier loading

A dedicated, agile team that supports suppliers from testing to production:

  • Distribute all materials to target audiences and/or organize webinars
  • Make contact with suppliers, follow up, convince them, schedule the various stages with each of them and manage the process.
  • Carry out tests and check data quality and compliance with specified rules
  • Certify suppliers after a series of conclusive tests (technical and business validation)
  • Empower your suppliers through a testing platform

7 - Deployment follow-up :

  • Set up monitoring KPIs in terms of volume and number of suppliers deployed.

For over 30 years, ICD has been working with manufacturers and distributors in a wide range of sectors, including retail, automotive, optics, trade, etc...

ICD can support you at every stage of the Onboarding process.

 

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