Software-as-a-solution (Saas) platforms are now gaining more traction in supply chain management. Supply chains don’t function alone. Instead, they work with a well-connected & closely-knit network of internal stakeholders and external vendors. Various service providers like transporters, raw material suppliers, warehousing companies, etc. connect at different stages of the supply chain to provide the necessary services for the required duration. The complexity of the supply chain operations makes it difficult to maintain transparency and clear communication with all stakeholders. This is where the Saas vendor management platform comes in to play a crucial role in running successful supply chains.
Benefits of having an efficient Saas vendor management system
Softwares essentially create, store, and manage databases for all transactions in the logistics & supply chain ecosystem. Intelligent Saas platforms run algorithms on this data to get insightful information for defining the vendor management strategy for the business. Some key benefits of integrating Saas vendor management systems in supply chains are as follows:
Seamless integration & communication
Depending on the size of the company, there might be few to many vendors offering multiple services at various levels of the supply chain. In either case, one cannot rely on manual communication of information from one party to another. Saas platform consolidates data from all sources, customizes alerts for updates/deviations, and gets automated reports, as and when needed. API integration through the Saas platform eliminates the need to manage multiple client portals by collating & representing the right information on one single dashboard.
Constant Vendor Performance evaluation
A lot of performance parameters and deliverables are finalized while getting into long-term vendor contracts. It becomes a tedious task to evaluate the KPIs & SLAs for each vendor daily. Hence, the need for an agile and efficient vendor management system in the supply chain. The acceptable performance range for various parameters like booking acceptance rate, non-compliant incidents, timely completed deliveries, etc., can be predefined in the systems. The system then sends instant alerts in case of any shortcomings. This information is simultaneously conveyed to both parties to assert transparency in communication and thus sustain long-term mutually beneficial relationships. Vendors can check their detailed performance reports and take immediate corrective actions to maintain their association with the company.
Supply chain costs regulation
One-fifth of supply chain costs often go unidentified because of a lack of visibility in supply chains. It’s only when you dig deep to analyze every single operational spend, you identify the areas where expenses could have been avoided. It can be due to situations like an above-the-market vendor rate, fines due to the expiry of e-way bills, vehicle underutilization, fuel theft, etc. Saas-based, integrated vendor management platform captures the minutest of the data and prompts accurately when spending exceeds a predetermined limit. This further helps in proper cost regulations for supply chain processes.
Reduced data risk in supply chains
Supply chains are one of the most data-rich divisions in any company. The nature of its operations keeps on expanding with its interaction with every external vendor. Hence, an increased risk of maintaining data security in vendor management. With a Saas vendor management platform, the vendor-supplier association can be accomplished on a safe platform with proof of mutual consensus on the terms and conditions. The level of information access to be given to the vendors can then be decided & finalized. The communication flow is always driven through the Saas platform hence, making the environment safe for conversations.
Vendor data management
Saas vendor management platforms are centralized data management systems with all vendor-specific information. They contain a master database of all basic vendor information. They also have a vendor’s past and current performance reports, payment schedules, billing history, compliance ratio, etc. And all this information is available to you in one single click. This feature of extensive data management particularly comes in handy in situations like contract renewals, payment settlements, and budget analysis.
Backup plan in case of emergency
Supply chain professionals have understood the importance of having resilient supply chains, post-covid-19. A Saas vendor management platform stores all vendor information, and market rates, which can be retrieved at any point in the future for transactions. For example, Company A works with suppliers from China, Malaysia & Singapore. Its system has data on all vendors and their offer prices and information. In a situation where say China stops trading with the company due to external circumstances, company C can coordinate & manage its supplies from Malaysia & Singapore to ensure the smooth functioning of its supply chain. Such emergency situations are dealt with well when a systematic software system is in place.
Elixia’s end-to-end supply chain management platform stores all relevant supply chain data and analyze it in real-time. It then provides actionable business insights to make informed decisions. Its Allocation platform stores all logistics vendors’ data and regularly analyzes it to generate reports to track and monitor their performance. Elixia’s Billing module manages vendor bills by retrieving vendor data from different modules of Elixia’s Saas platform and sending timely alerts for balance payments.
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