Written by Marijn Overvest | Reviewed by Sjoerd Goedhart
Fact Checked by Ruud Emonds | Our editorial policy
Supplier Collaboration Software — What You Should Know?
Key take-aways
- A supplier collaboration software can assist in helping businesses collaborate with their suppliers.
- The benefits of supplier collaboration include cooperation, transparency, and innovation throughout the supply chain.
- Supplier collaboration refers to working with suppliers and partners to achieve goals and mutual benefits.
The usage of supplier collaboration software continues to rise as businesses grow and technology advances. However, what is it?
For this article, we will discuss what supplier collaboration is. We will define supplier collaboration and the benefits you can gain from it. Additionally, we will show you some of the best software to use for supplier collaboration.
After reading this article, you will know the importance of collaborating with your suppliers. Thus, creating a much stronger relationship with them.
I have created a free-to-download editable supplier relationship management scorecard template. It’s a PowerPoint file that can help you assess your supplier’s performance effectively. I even created a video where I’ll explain how you can use this template.
Defining Supplier Collaboration
Supplier collaboration refers to working with suppliers and partners to achieve shared goals and mutual benefits. It is a strategic method of managing suppliers, focusing on aligning suppliers and partners with your business strategy.
It aims to achieve important objectives and create shared value through collaboration. It involves establishing strong relationships, open communication channels, and a collaborative approach to decision-making and problem-solving.
Supplier collaboration goes beyond traditional buyer-supplier relationships by promoting cooperation, transparency, and innovation throughout the supply chain.
When implemented effectively, supplier collaboration allows an organization to maximize the value it receives from its extensive network of suppliers, leading to significant benefits for the business.
Supplier Collaboration Software: What is it?
Supplier collaboration software, also known as a supplier collaboration platform or solution, is a technology tool that facilitates and enhances collaboration and communication between organizations and their suppliers. To simplify, it is an online tool that helps businesses work together with their suppliers.
It provides a digital platform for managing various aspects of the supplier relationship, such as sharing information, coordinating activities, exchanging documents, tracking performance, and resolving issues.
The platform also helps track the performance of suppliers, manage contracts with them, and analyze how much money is spent on supplies.
The Benefits of Supplier Collaboration
Here are some of the benefits you can gain by collaborating with your suppliers:
1. Gain new perspective
Your understanding of the market might be restricted if you only focus on your own position within it.
By working together with a diverse range of suppliers who occupy different positions and possess unique expertise, you can broaden your perspective.
This expanded viewpoint will assist you in creating, marketing, and developing products that effectively meet the needs of both existing consumers and businesses.
2. Align strategies and goals
Working closely with your suppliers more often can lead to positive outcomes for both parties. If you rarely communicate and collaborate with your suppliers, it is easy to lose touch and not know about their goals and strategies.
Regular collaboration between buyers and suppliers helps align their goals and strategies, making sure that every interaction benefits both parties.
3. Strengthen relationship
Supplier collaboration strengthens relationships by building trust, improving communication, and fostering cooperation.
It promotes a sense of trust through open information sharing and aligned goals. Effective communication prevents misunderstandings and enables prompt issue resolution.
Collaboration encourages a cooperative mindset and leverages shared knowledge and expertise. Supplier collaboration also leads to long-term commitment as both parties recognize the value derived from collaboration.
4. Shared value creation
Supplier collaboration fosters shared value creation through enhanced innovation, improved operational efficiency, and supply chain resilience.
By leveraging the expertise of suppliers, organizations can drive innovation in product development and market strategies, resulting in mutually beneficial outcomes.
Collaborative efforts streamline processes, optimize supply chain operations, and identify cost-saving opportunities, leading to improved efficiency and shared cost optimization.
Furthermore, close collaboration with suppliers enables proactive risk mitigation, ensuring business continuity and reducing vulnerabilities.
By working together, organizations and suppliers gain valuable insights into customer needs, allowing for the development of customer-centric solutions that create shared value.
Best Supplier Collaboration Software
Here are some of the best supplier collaboration software you should know about!
1. GEP SMART
GEP SMART supplier collaboration software is an all-in-one platform that simplifies collecting, storing, sharing, and tracking supplier information.
It offers a range of tools to manage supplier relationships effectively, making it easier for vendors to provide data and manufacturers to collect it.
The software automates data capture and communication standardization, resulting in accurate information that promotes smooth collaboration between suppliers and manufacturers.
Additionally, GEP SMART provides vendor collaboration dashboards, allowing suppliers to manage their profiles, catalogs, and pricing.
This feature reduces workload and administrative tasks for procurement teams, enabling them to concentrate on essential supply chain operations.
With GEP SMART, businesses can streamline their supplier management processes and improve efficiency in their procurement operations.
2. SAP Ariba
SAP Ariba’s supplier collaboration platform is a comprehensive solution that optimizes supplier management and fosters collaboration between organizations and their suppliers.
The software offers a wide range of features and capabilities that enhance the supplier relationship lifecycle.
One key aspect of SAP Ariba’s supplier collaboration platform is supplier onboarding. It provides a smooth process for registering new suppliers, collecting valuable information, and managing supplier profiles.
This simplifies the onboarding process and ensures that all required data is captured accurately.
The software also includes tools for supplier performance tracking and management. Organizations can monitor and evaluate supplier performance based on predefined key performance indicators (KPIs) such as timeliness of delivery, product quality, and responsiveness.
3. Oracle Supplier Management
Oracle Supplier Management is a solution that empowers organizations to effectively manage their supplier relationships. The software enables streamlined supplier onboarding, robust performance tracking, efficient qualification management, and seamless collaboration on supplier contracts.
With Oracle Supplier Management, businesses can optimize supplier management processes, drive supplier excellence, and ensure effective supplier relationship management throughout the procurement lifecycle.
4. Coupa Supplier Collaboration
Coupa Supplier Collaboration is a cloud-based platform that helps buyers and suppliers work together more effectively. It simplifies tasks like adding new suppliers, managing orders, collaborating on invoices, and tracking supplier performance.
With Coupa Supplier Collaboration, organizations can communicate easily, reduce administrative work, and improve their relationship with suppliers. The platform makes supplier management easier and promotes smooth teamwork for better efficiency and success.
5. Ivalua Supplier Collaboration
Ivalua Supplier Collaboration is a robust platform that enables seamless collaboration between organizations and their suppliers.
It simplifies supplier management by providing a user-friendly interface for tasks such as onboarding, contract management, and performance tracking.
The platform facilitates efficient communication and information sharing, allowing both parties to work together smoothly.
With Ivalua Supplier Collaboration, organizations can strengthen their supplier relationships, drive innovation, and achieve supply chain excellence.
Conclusion
Supplier collaboration and the use of dedicated software play a crucial role in fostering strong relationships between organizations and their suppliers. The focus is on aligning suppliers and partners with business strategy, promoting cooperation, transparency, and innovation throughout the supply chain.
The introduction of supplier collaboration software further enhances this process by providing digital platforms for effective communication, information sharing, and collaborative decision-making. The benefits of supplier collaboration, including gaining new perspectives, aligning strategies, strengthening relationships, and creating shared value, underscore its significance in modern business practices.
Additionally, the article introduces some of the best supplier collaboration software options available in the market, such as GEP SMART, SAP Ariba, Oracle Supplier Management, Coupa Supplier Collaboration, and Ivalua Supplier Collaboration.
These software solutions offer comprehensive features for managing supplier relationships, streamlining processes, and optimizing collaboration, contributing to more efficient and successful procurement operations.
Frequentlyasked questions
What is supplier collaboration?
It is a strategic method of managing suppliers, where the focus is on aligning suppliers and partners with your business strategy.
What is supplier collaboration software?
It is a technology tool that facilitates and enhances collaboration and communication between organizations and their suppliers.
Why is supplier collaboration software important?
It is important because it helps businesses to promote stronger relationships with suppliers, improves communication and transparency, streamlines processes, enhances efficiency, and drives mutual value creation.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.