In procurement and supply chain management, two critical processes are often mentioned: Supplier Enablement and Supplier Onboarding. While they may sound similar or may seem interchangeable at first glance, these processes serve distinct purposes and are fundamentally different in their approach and execution. Supplier Enablement is a project-based initiative that drives existing active suppliers to adopt new processes or technologies. On the other hand, Supplier Onboarding is a Business-as-Usual (BAU) process, focusing on setting up new suppliers in a system.

In this blog, let’s dive deeper into what sets Supplier Onboarding and Supplier Enablement apart and how each plays different roles in an organisation.

Supplier Enablement 

Supplier Enablement focuses on transforming how your existing suppliers operate within your system. These suppliers are already part of your supply chain, so there’s no need for additional supplier due diligence or contract negotiations. Instead, the goal is to transition them to the new ways of working, such as through a new digital Source-to-Pay system. 

Moreover, this process is typically time-bound and occurs as part of a larger strategic project, often connected to a broader digital transformation. Supplier Enablement requires a significant investment of resources, including dedicated project teams, as well as involving large-scale supplier engagement, migration, or transformation efforts. It also includes detailed change management strategies and comprehensive training to ensure all internal business users and suppliers can seamlessly transition to the new system. 

Key Components of Supplier Enablement

• Technology Integration: Ensuring that supplier data is loaded into your digital procurement systems, such as Coupa, SAP Ariba, etc.
• Process Automation: Streamlining processes like e-invoicing, procurement orders, and payment methods.
• Supplier Training and Support: Providing resources and training to ensure suppliers understand new systems, processes, and expectations.

Supplier Onboarding

Supplier Onboarding, by contrast, deals with the setup of new suppliers in the system post-digital transformation. It is a routine, operational process that includes supplier due diligence, risk assessment, and approval via a new digital system — some of the processes a company follows to start a new business relationship with a supplier. This is often managed by procurement or supplier management teams, and involves standardised, repeatable tasks. 

While less resource-intensive than Supplier Enablement, Supplier Onboarding plays a vital role in ensuring that new suppliers meet the organisation’s criteria for risk, compliance, and operational efficiency before being fully integrated into the organisation and procurement processes. 

Key Components of Supplier Onboarding

• Supplier Information: Collecting supplier information such as tax forms, business certifications, financial stability reports, etc. 
• Compliance Checks: Verifying legal and ethical standards are met. 
• Data Entry: Registering the supplier in the company’s procurement or ERP systems (manual creation or self-service by a supplier). 
• Basic Training: Providing suppliers with instructions on how to interact with the company’s procurement platform.
  

Why the Difference Matters 

Understanding the difference between Supplier Onboarding and Supplier Enablement is important to ensure that each process is executed effectively. Supplier Onboarding ensures that the supplier meets all the necessary criteria to begin a relationship with the company, whereas Supplier Enablement ensures they are part of the long-term digital strategy, helping to future-proof the relationship. 

As organisations undergo digital transformations, they need suppliers to be active participants. Supplier Enablement ensures that their existing suppliers are not just moved to the new system but are effectively using the new systems and tools.

In summary, Supplier Onboarding and Supplier Enablement are two sides of the same coin — both essential, yet distinct in purpose and execution. Supplier onboarding gets suppliers into the door; supplier enablement ensures they thrive and contribute to ongoing business success. Organisations that clearly understand the differences can create more effective supplier strategies and unlock greater value from their supplier relationships.