Challenge: Supplier and Risk Management

Traditionally Supplier Management entailed ensuring a vendor was setup correctly and enforcing end user compliance of purchasing items from preferred or contracted vendors. While these challenges may still exist, clients additionally struggle with suppliers improperly being onboarded or vetted due to manual disjointed processes that are segregated between multiple groups.  In today’s heavily regulated, hi-tech environment clients run a higher risk of onboarding fraudulent vendors as well as staying compliant with both internal policies and more importantly HIPAA and other regulations.  Other challenges clients deal with are suppliers adopting the organization’s preferred business practices and responding to supplier’s inquires in a timely manner.

Solution/Case Study:

Our client was dealing with all these supplier management challenges. We evaluated the situation together, developed a future vision and guided them through the selection and implementation of a Supplier Portal solution with a robust Supplier Registration module which has led to the following benefits:

1. Streamlined/Automated Process – It encompasses the entire Vendor Onboarding/Vetting process in one on-line solution.

2. Reduced Risk and Increased Data Integrity – Through real time supplier data verification, appropriate business level review/approvals and documentation requirements enforcement.

3. Enforces Compliance – Requiring associates/suppliers to comply with the organization’s policies and Govt regulations:

• Purchasing – Reduced non-approved maverick spending with Procurement’s approval of suppliers.
• COI – ensures appropriate up-to-date insurance types, levels and documentation are maintained.
• HIPAA/PHI/BAA – ensures suppliers of all sizes and spend are HIPAA compliant and puts a BAA in place if they handle the Health System’s PHI.

4. Facilitates Adoption of Preferred Practices – By making preferred practices the only available options for suppliers it facilitates payment terms extension, increase in electronic payments and other electronic transaction methods.

5. Supplier Benefits – Provides suppliers full on-line self-service through:

• Maintenance of their own master data and required documentation
• 24/7 on-line transaction/payment status inquiry, statement reconciliation and collaboration with customer service.
• Ability to control their own DSO through accelerated payments options.