Earlier this week we started to describe the second most significant change to the upcoming Q2 Release of the Spend Matters Solution Map, and that is the introduction of a new common sourcing – supplier management section because you can’t do sourcing without suppliers and you don’t manage suppliers without the ultimate goal of doing business with them
This new section contains the following common sub-categories:
- Enhanced Information Management for discovery and onboarding
- Performance Management for tracking performance
- Relationship Management for managing the relationship
- Risk Management for keeping tabs on, and managing, the risk
- Enhanced Portal for information management and collaboration
Our first post explained why these sub-categories were relevant. In our last post we covered the first three sub-categories. Today we’re going to start discussing what’s important to consider in the remaining two categories.
So what are the key capabilities we’re looking for in the risk management and enhanced portal sub-categories?
- Assessment because if you can’t assess a risk, you can’t properly identify the magnitude of the risk and the need to monitor it
- Mitigation Planning because credible risks need to be planned for and mitigated
- Model Definition to allow you to quantify both the likelihood of the risk and the expected cost should the risk materialize
- Monitoring & Identification to allow for the events that could (potentially) materialize to be monitored for and detected
- Regulatory Compliance to quantify the extent to which the platform can track compliance requirements and a supplier’s ability to conform to them
- Supplier Risk Management to model overall supplier risk based on assessment, models, external monitoring, third party data, compliance, and performance
- Information Management to allow a supplier to maintain, or at least comment on, their data (and data related to them)
- Performance Management to allow a supplier to respond to their performance review’s and conduct 360-degree reviews on the buyer
- Relationship Management to allow the supplier to raise issues, respond to issues, and collaborate on corrective action plans
- Collaboration to allow full interaction and feedback
These are also all key capabilities for sourcing and for successful supplier management.