Supplier Network Integration

The major function of the buyer is to know its supplier base and keep on looking for new suppliers that can bring better cost and technology to the organization. With the large information available nowadays there are lots of suppliers that are being managed by a buyer and the organization. It is very important to manage these suppliers well. With e-procurement it is worthwhile to add suppliers to the overall supply chain in order to enhance the performance of the whole program.

This result in ensuring long lasting bond that can generate lower costs and quicker turnaround on sourcing and payment activities. The major benefits of Supplier Network Integration are:

1. Today Organizations are increasingly moving towards the process wherein suppliers can see the current and future programs of the Manufacturer thus building their own production and sales plans. This helps in clear and efficient communication between the supplier and manufacturer. Also suppliers can update and react immediately to any changes quickly.
2. Suppliers are being sent both RFQ (Request for Quote) and PO (Purchase Order) electronically through EDI or XML thus saving lots of money for the organization. This not only reduce the paper work done by the organization (good environmentally also) but also results in quick turnaround by the suppliers. This also reduces chances of having any manual error thus making the system more efficient and reliable.
3. Suppliers also can see their payment amount due and payment due date. Also if there are any issues with the invoice submitted or any reason in delay in payment. The quick sharing of information through the system helps in quick resolution of the issue.
4. The best benefit of all is for organizations as they can quickly see the spend under each supplier and can make their future strategies based on the data available.