___________________________________________________________________________________________________ Supply chain
Safeguard data integrity
Getting this right also requires brands to control how changes to the data are managed . There is a simple analogy with removing plastic from the world ’ s oceans - it ’ s pointless cleaning what ’ s already there while neglecting to address future pollution . Rather , invest disproportionately in preventing future plastic from entering the water . The same is true with supplier data . A ‘ single front door ’ through which all new data and all changes to existing data must pass , is essential . That door has both a technical and a governance role : it disables any other systems from making changes and governs who can make changes and under what circumstances .
Smooth out communication friction
When supplier data is compromised , brands can ’ t communicate well with all their suppliers . Too often , they send long surveys to suppliers in order to receive information with which to manage risks and opportunities . And too often , the task is irrelevant to many of the recipients . For example , an initiative to determine how many product packaging suppliers in the USA comply with sustainability regulations might go to every packaging supplier in every country - including those who sell boxes for shipping . Each of these businesses would have to engage with the survey to determine whether it applies to them . This costs them time . Big brands might not directly feel the consequences , but logic dictates that it will be harder for these suppliers to give them quality information and work efficiently .
Thankfully , the reverse is also true . Brands that receive and store accurate supplier data - including contacts , plant-level , global and local data - properly and at the start of each new relationship can communicate better with their suppliers . This creates the perfect conditions in which to find cost-savings together while keeping sight of compliance risks and ways to innovate .
Don ’ t accept supplier friction
While it ’ s sensible for brands to steady these communication issues from the outset , suppliers face many other bugbears . Late payments , unrealistic expectations and confusing technology are just some of the challenges . Brands can invest in supplier relations by understanding the friction points that their people , processes and technology put on suppliers . And by adopting truly supplier-friendly mindsets and technologies through which to work with all suppliers - from day one .
It ’ s one thing to give a handful of strategic suppliers a helpful experience , but if brands do so across the network , they can successfully reach their goals at scale . Every supplier should be treated as a partner . Encouragingly , forward-thinking brands such as Mondelez , Unilever , Mars and more , are already collaborating with all their suppliers .
We need more manufacturers to join the ‘ supplier experience ’ movement . Because as we weather the cost-of-living crisis the route to staying profitable and competitive , is through mutual success . ■
For a list of the sources used in this article , please contact the editor .
Costas Xyloyiannis www . hicx . com
Costas Xyloyiannis is Co-founder and CEO of HICX , the leading supplier experience management solution . Costas founded HICX in 2012 to address the challenges of bad supplier data in the enterprise .
He strongly believes in the importance of data and supplier-centricity , as a foundation for digital transformation in business , and is a regular speaker and contributor on this topic .
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