Bring Third Parties Onboard Quickly
Third party supplier onboarding includes registering new third parties, gathering relevant documents and data and performing due diligence according to company policies and procedures so that approved suppliers can be set up for payments. As part of the onboarding process, leading companies assess third party risk in addition to a supplier’s capabilities and pricing. Companies that collect more information at the outset facilitate greater efficiency throughout the supplier relationship lifecycle and enable compliance requirements to be consistently met.
5 Supplier Onboarding Best Practices
With third parties growing in strategic value, it’s important to develop strong supplier relationships through a strategic and efficient supplier onboarding process. Here are five best practices for excellent supplier onboarding.
- Consistency is key. Use the same supplier onboarding process across all of a company’s locations. Internal standards and checklists prevent supplier data from becoming inconsistent, allowing a company to easily understand and manage supplier relationships.
- Make the onboarding process as simple as possible for suppliers. The onboarding process shouldn’t be frustrating for suppliers. Aim to gather all the information needed with the least number of questions and forms to complete.
- Ensure access to complete and validated data. Correct and up-to-date contact information is crucial for managing the supplier relationship, compliance and any potential risks.
- Use supplier onboarding as an opportunity to reduce risk. During onboarding, companies should clearly communicate their risk management standards and requirements to suppliers so they know what is expected of them. By prequalifying suppliers, companies can catch financial instability, fraud, corruption, information security, business continuity and other risks at the beginning of the relationship.
- Make clear why onboarding is important. Suppliers may not be aware of the benefits of a complete onboarding process. Explain your objectives early on so they stay engaged to the end.
OUR SUPPLIER ONBOARDING SOFTWARE LEADS TO AN 88% REDUCTION IN ONBOARDING COSTS
Hiperos 3PM Supplier Onboarding Software
Hiperos 3PMTM Onboarding enables customers to automate the onboarding process and, together with other Hiperos 3PM risk management programs, dramatically reduce the time necessary to have the third party fully assessed and operationally engaged.
- Accelerate & simplify onboarding
- Minimize inconsistencies & manual errors
- Process more third parties with fewer resources
- Reduce costs