The Evolution of Supplier Management (Part 2)

by Gary Storr, General Manager

In Part 1, I talked about how this will be the first time your AI technology capability will – through Supplier Digital Identity, “put your organization ahead of future industry demands.”

I then emphasized the importance of “laying a universally consumable digital supplier identity foundation” today to achieve an unprecedented level of “supplier trust…and a single version of the truth.”

Let’s revisit the following graphic from the first post to understand the bridge or path to getting to trust and a single version of the truth.

If you take a step back to reflect on the above, it is hard to argue with the validity of the key points or theme. In short, moving to the “future state” that is Supplier Digital Identity sounds good.

But what does it mean, e.g., the future state of Supplier Digital Identity in the here and now? How do you leverage AI to get there? And what tangible benefits will it deliver? To put it another way, what good is my telling you about Eden and how great it is and then not showing you the way to get there?

It Isn’t About The Technology

As a service provider with what I believe is the most amazing technology in the industry, you will be surprised by what I am about to say.

Getting to that single version of truth and supplier insight is about something other than the technology. It is about the expertise behind that technology. To be clear, when I say expertise, I am not just talking about a deep understanding of how the technology works. I am talking about the knowledge and anticipation of the expected and unexpected external disruptions we face in a dynamic and complex world and how to leverage said technology to determine the appropriate response.

For example, the organizations with whom we work are consistently talking about:

• Concern about the supplier data they house being accurate and current to ensure they have the latest view on that, supplier’s qualifications, credentials, performance, et cetera.
• The flurry of the evolution of rules, standards, and requirements – that are much more diverse than they’ve ever been.
• Adoption, cycle time reduction, and administration are “hugely important.”
• Increasing awareness of the importance of “authoritative data.”

The above are only a few examples of where companies want and need to go to arrive at that future state of optimal supplier management capability. To reach this state of capability, you must look beyond the technology to assess your service provider’s ability to address these points and many others.

The Right Captain For The Right Vessel

You have to have a partner who will have the same vision as you do.

For example, if a partner is “established” in older technology, or if a partner doesn’t understand the regulatory compliance landscape worldwide, or doesn’t have some insights into particular industries that you’re in, you can be guided off course.

It’s a little bit like the analogy that there’s a difference between a sailboat and an oil tanker. You have to hire the right captain for the sailboat and hire a different captain for the oil tanker.

If you prefer something a little less nautical, In Good To Great, Jim Collins said – and I paraphrase “You have to have the right people in the right seats on the right bus.” What success ultimately comes down to is having the right service provider partner with the right expertise doing the right things!

If you do, you will successfully transition from the emerging standards of today to the necessary future state of Supplier Digital Identity and its competitive edge.