Good quality vendor master data is at the heart of any high performing supply chain operation.
- Without good data, it’s impossible to capture the full benefits of automation technology, and the risk of fraud is high.
- With good data, you can analyze the performance of your suppliers, leverage spend and reduce your cost base.
Sunstream’s Vendor Master Data Services enable organizations to optimize your supplier base by taking a perspective across systems, locations, and geographies.
Any process improvement in supply chain is not complete without gaining control over the supplier master. Supply chain programs like strategic sourcing, inventory reduction, spend analytics, cost reduction and supplier on boarding require Vendor Master to be accurate with sufficient information.
Using its proprietary processes and proficiency in technology; Sunstream extracts, transforms and loads the supplier data back into systems to show measurable business results. Setting up a clean vendor database starts with extracting data on the vendors from multiple sources and formats within the organization.
This is followed by standardization and unification, which would also involve web research, direct sourcing to collect information that may be missing in internal repositories. This data would then be cross-referenced to the customer’s SRM, ERP and other systems.
Sunstream also acts as a vendor on-boarding partner to ensure that any new vendors introduced are validated for integrity of supplier information and profile including legal data, contact data, location data, product data and compliance data. All the new vendor information is integrated into the system and the workflow is standardized. The Work flow addresses all approval and change control processes. The updated Vendor Master record or New vendor master record – is used for procurement and Accounts Payable purposes which is integrated and presented in customer needed format or platform.
Sunstream’s Vendor Master Creation services include:
- Vendor data extraction and normalization
- Data validation and standardization
- Vendor data enrichment
- Vendor on-boarding services
- Vendor rationalization
- Analytics services
- Low Cost Country (LCC) supplier identification
- New supplier due diligence management
- Maintenance of Vendor Master Database
The Key challenges are:
- It is not easy to access all the documents related to a vendor record (W-9, Certificate of Insurance, diversity certification, etc.)
- Setting up a vendor takes too long
- Setting up a vendor requires too many departments/ touchpoints
- Reduction in 25% vendor record creation. Reducing the number of vendors not used recently or with inaccurate information can improve efficiency of payable operations.
- 25% reduction in Cost of Operations for organization wide vendor master.
- Duplicate vendors are the leading cause of duplicate payments. Failing to resolve the duplicate vendors in your Vendor Master File can result in the same duplicate payment scenario occurring over and over again. While detecting duplicate payments is important, it can be even more important to stop the cause of the duplicate payments from recurring by eliminating any vendors that are duplicated in the vendor master file.
- Accounts payable fraud often starts with the creation of an imaginary vendor in the vendor master file. As reported in a recent Association of Certified Fraud Examiner’s study, this scheme was one of the top methods that people employed to steal money from companies (depending on the country & industry).