Many disbursements are made to payees that typically do not have involvement with purchasing</li></ul>Tax Payments<br />Garnishments<br />Employee Reimbursements<br />Donations<br />Customer Refunds <br />VENDOR MASTER FILE: A Strategic Resource<br />
<ul><li>Federal, state, international laws and regulations make it important to keep your vendor file accurate
Eliminating duplicate payments, strategic price negotiations and accurate financial reporting are impossible without a clean vendor master file
An accurate Vendor Master File strengthens your vendor relationships by reducing mistakes and vendor correspondence</li></ul>VENDOR MASTER FILE:A Strategic Resource <br />
<ul><li>Make accurate and timely vendor payments
Other - Industry, Country, State specific</li></li></ul><li><ul><li>Using your ERP system to check for duplicates based on Vendor ID, Invoice #/Invoice Date and like combinations will prevent the obvious.
The majority of duplicate payments today are caused by related suppliers and purchasing card transactions.
Stats show that 7% of the vendor population change their name, affiliation or standing on an annual basis.
If duplicate vendors are eliminated, over 75% of duplicate payments can also be eliminated.</li></ul>Reduce Duplicate Payments<br />
Executive Apartments</li></ul>KNOW YOUR VENDORS:How are these related?<br />
RESULT: Increased Efficiency and Decreased Costs<br /><ul><li>Purchase Smarter</li></ul>Know your full spend with the supplier and it’s family to negotiate better pricing and take advantage of volume discounts and rebates.<br /><ul><li>Process Smarter</li></ul>Reduce the vendors in your pull down list to show only vendors for today’s orders/payments.<br /><ul><li>Pay Smarter</li></ul>Get the payment to the right place the first time and eliminate stale dating, phone calls, past due invoices and statement research.<br />
Vendors tied to inventory items with low turn rates
35%-65% of “active” vendors are one-time vendors
Limited resources to manage the vendor master file</li></ul>Common Vendor File Issues<br />
A Proactive Vendor Management ProgramStep 1: Assess<br /><ul><li>Survey Current Situation
Identify and collect ALL relevant documentation
Identify ALL vendor files and data sources including those used for e-procurement, e-payment and p-cards
Review and verify your actual Vendor Setup and Maintenance Processes and Controls against documentation</li></li></ul><li>A Proactive Vendor Management ProgramStep 1: Assess<br /><ul><li>Other Vendors You May Want to Look At
Identify parents and subsidiaries across the vendor file then link them together.
Establish a standardized processes for naming and numbering all vendors.
Limit who can add or update vendors. Make sure these employees do not also process invoices and purchase orders.</li></li></ul><li>A Proactive Vendor Management ProgramStep 3: Re-Assess<br /><ul><li>Verify New Adds and Changes against Guidelines and Standards
Review and revise procedures, guidelines and documentation, as required
Involve purchasing for any new vendor who will be issued a purchase order</li></ul>VENDOR MASTER FILE:Best Practices<br />
THANK YOU!<br />If you would like to see a live demo of Lavante’s<br />On-Demand Vendor File Management<br />On-Demand Strategic Profit Recovery<br /> and Vendor Self-Service Portal<br />Visit the Lavante Booth or contact:<br />Janna.Locke@lavante.com<br />Contact Information<br />