Supplier Enablement

Supplier Enablement - the best and the worst

In my previous blog I discussed what the ‘best’ achieve for supplier enablement, follow http://supplierenablement.blogspot.com/2006/05/supplier-enablement-takes-how-long.html

So, what do the ‘worst’ achieve?

The evidence suggested that the ‘best’ achieve supplier enablement of a new supplier within 15 – 60 days.

I know of worst cases where supplier enablement has taken 200+ days. That is quite a disparity between the best and worst.

Why is there such a disparity?

Let’s look at two scenarios for supplier enablement:

Scenario 1. Supplier has to create an electronic catalogue and receive XML Purchase Orders. What does a supplier have to do?

Compile a product catalogue listing all products and prices. This should exist and an allocation of 1 working day is given to this task.

Classify the products using UNSPSC. This is optional and your buyer will normally indicate if they require you to use UNSPSC. Well, this could be a major task. I have experience of coding to item level 15,000 product line items and that took 8 working days. Allocation of time is either 0 or in the case I refer to 8 working days.

Publish the catalogue in the required format and send to the buyer. With the right tools this is a negligible allocation of time.

Wait for buyer to approve catalogue for use. Say, 2 working days.

Supplier has to prepare to receive XML Purchase Orders. Let’s assume they have no experience with XML so decide to use the IMPAQ Supplier Portal. This can be set up in a matter of minutes but we allocate 1 working day.

That is everything as far as meeting the meeting the requirement although it does not look at how the supplier use the XML Purchase Order to streamline how they process the order. Some activities can happen in parallel so the whole activity could be completed inside 4 working days ( 8 – 12 days elapsed) or where UNSPSC was required 12 working days ( 24 – 36 days elapsed). This is right up with the best case.

Scenario 2. Supplier has to create an electronic catalogue and receive XML Purchase Orders. In this case the supplier has eCommerce web site that supports punch-out. Let’s assume that is cXML punch-out. What does a supplier have to do?

Let’s assume the web site supports ring fencing so that the buyer sees only those products and prices that are applicable to them. That being the case let’s allocate 1 working day to confirm that.

Now the buyer needs to be able to reach the web site and go ‘shopping’ and retrieve the contents of the shopping basket so they can construct their requisitions/orders. We have assumed the use of cXML punch out to minimize compatibility issues but even so we have to test the process end to end so an allocation of 2 working days is proposed.

Supplier has to prepare to receive XML Purchase Orders. Let’s assume they have no experience with XML so decide to use the IMPAQ Supplier Portal. This can be set up in a matter of minutes but we allocate 1 working day.

On the face of it there are less steps for the supplier of an eCommerce web site to take to meet the requirement but there is a higher level of technical competence required. Even so, 4 working days is achievable, say 8 – 12 elapsed.

Why then has it taken some 200+ days?

In my earlier blog the best case was achieved by buyers that were well organized and I add to that motivated.

It is my experience that suppliers take a lead from buyers.

Buyers that are strong and take charge of supplier enablement get results.

Those that are disorganized and/or lack commitment do not succeed.

Get help from an organization that understands supplier enablement and be prepared to take advice that will help you succeed.

More at http://www.impaq.co.uk/

posted by FrankB @ Wednesday, May 31, 2006