An analysis of what are the challenges faced by companies in managing their suppliers/vendors.
Bit Wave Solutions has developed iSupplier Portal to overcome those challenges and streamline procurement process effectively.
1. Supplier/Vendor Management Challenges
iSupplier Portal – Closed loop supplier management1
How can we address critical issues managing your suppliers
iSupplier Portal= Supplier Communication+ Automate Supply chain + Remove pain areas
2. Pain areas in Supplier/Vendor management
2
Processing Purchase orders manually to suppliers/vendors or from ERP
Key critical areas in procurement process
Tracking goods/services delivery in appropriate time
Processing invoices from suppliers/vendors
Tracking supplier queries- for invoice processing, payments processing, remittances advice
Managing supplier information up to date
Manage paper based purchase orders/invoices every year- Purchase manager
Key issues people faces while managing procurement process
Tracking invoice processed/payment status for suppliers– Accounts receivables
Validating supplier data multiple times in a year to keep up to date – Supplier manager
Handle supplier queries regarding invoice & payables- Support
Frequent communication to track deliveries in proper time- Procurement manager
Manage storage space (hard drives, equipments) to record paper based supplier documents- Administrator
iSupplier Portal – Closed loop supplier management
3. 3
TCO shoots up every year– Why?
This might look like a sales pitch but in reality, 15% to greater than 20% of a companies' operating revenue is spent on
establish proper supplier communication
Payment reconciliation- Issue tracking supplier
payments
Communication- Supplier/vendor communication
issue for invoices & payables
Order Delivery- No firm process in sharing delivery
information by suppliers in REAL-TIME
Manual process: Manually manage purchase
orders/supplier invoices/supplier information
iSupplier Portal – Closed loop supplier management
4. Did you know ??
1. Average time company spend to process PO to suppliers/vendors manually is
10 minutes
2. Company spend around £20K per year just to process purchase orders
3. Average cost a company spent to handle supplier/vendor queries to track
invoices and payables is more than £15K
4. Company spend around £10K per year to process supplier payment
remittance advices
5. Many organizations spend a considerable amount of resource cost to update
supplier/vendor master information (£3K )
6. Companies spend around £15K every year to track goods/service deliveries
due to lack of sharing delivery information by suppliers/vendors
7. Perhaps the most important cost by company is to manage storage space by
a hefty amount of £9K per year
8. Managing supplier data impacts a company operation 20% of the time
9. Lack of information triggers operation cost by a staggering 45% annually
10. On top of the above stats, lack of accessing information on the move by
higher authorities cost 20% on the operation cost
4
£0 £5,000 £10,000 £15,000 £20,000 £25,000
PO
vendor queries
Remittance advice
Supplier information
Track deliveries
Storage space
iSupplier Portal – Closed loop supplier management
5. iSupplier Portal- Supplier-Company Co-ordination
15%
15%
20%20%
20%
10%
iSupplier Portal- Cost savings areas
Purchase orders
Supplier invoices
Supplier queries
Supplier information
Tracking Delivery
Payment reconciliation
Graph shows the share of reasons how iSupplier Portal can help to manage
Supplier/vendor management
Effective collaborative tool between companies and suppliers
Purchase orders
• Process purchase orders to suppliers electronically in iSupplier Portal
• Integrate with existing ERP application to fetch PO directly
Supplier Invoices
• Electronically process supplier invoices for purchase orders iSupplier Portal
• Post invoices to ERP automatically from the application
Supplier/Vendor queries
• 24*7 real-time information availability
• Complete information sharing for supplier invoice & payments status in iSupplier
portal
Supplier/vendor master information
• Supplier self-service to update their information directly from iSupplier Portal
• Removes manual errors or engagement of company resources to update information
Goods/Services delivery
• Real-time information sharing on shipment status from suppliers
• Post all delivery information to ERP from iSupplier Portal
Payment reconciliation
• Track all payables with invoices& PO electronically from iSupplier Portal
• Automatically post all transactions to ERP from the application
iSupplier Portal – Closed loop supplier management
6. iSupplier Portal- Modules
6
iSupplier
Portal
Handling
supplier
queries
Dashboard &
Reports
Electronic
document
filing
Supplier/
Vendor
master
Invoice processing
• Supplier can create an invoice directly
from iSupplier portal
• Electronically manage supplier invoices
within the application
Dashboard & Reports
• Graphical representation of purchase
process within the company
• Quick information about supply chain
process
Electronic document filing
• Feasibility to store invoices/purchase
orders/remittance advices
electronically
• Removes paper based documents
Supplier/ Vendor master
• Supplier self-service portal to directly
access and update their details
• 100% accurate information for supplier
compliance
Supplier queries
• Company can handle and response to
multiple supplier enquiries in real-time
• Suppliers can access information 24*7 for
their invoice/payments status
Goods/ Services delivery
• Suppliers can share delivery information
• Organization can track deliveries in real-
time
Goods/
Services
delivery
Invoice
processing
ERP
Integration
Purchase orders
• PO are electronically processed in the application
• Purchase orders are directly pulled from ERP
(Sage/Oracle) applicable to the logged in user
ERP Integration (Sage/Oracle)
• Integrates with ERP to pull critical
information directly (PO, Suppliers
• Automatically post all transactions to
ERP
Purchase order
processing
iSupplier Portal – Closed loop supplier management
7. iSupplier Portal- Benefits
7
iSupplier Portal
Implementation
Supplier can share information Reduce manual errors Electronic filing
Information access
Supplier self-service
portal to minimize
any
miscommunication
Effective reporting
tool for complete
Supplier/vendor
management
24*7 Real-time
information- Speeds
up all process of
supply chain
Helps in reducing
delivery lead times
& inventory level
Transparent information
flow
Operational efficiency Track goods/service
deliveries
Reduce storage cost
(hard drives,
equipments) for
paper documents by
moving electronically
Allows companies &
vendors to share
information using
effective technology
More time for
sales/purchase
department to focus
on strategic issues
iSupplier Portal – Closed loop supplier management