A winning Supplier Enablement Strategy is like crafting a perfect dish—it requires the right blend of elements to achieve success. You cannot expect your Source-to-Pay (S2P) digital transformation to work out easily without a strategy. Just as the right spices can make or break a dish, the ingredients of your Supplier Enablement process can determine the success of your overall digital transformation. The ingredients should be carefully considered to create a cohesive and effective strategy to achieve overall success.

Denova has written down the ingredients for a successful Supplier Enablement process. Review these essential components that make up the perfect Supplier Enablement Strategy recipe. 

The 7 Key Ingredients of a Successful Supplier Enablement Strategy 

1. Data Collection and Analysis

Supplier and spend data collection and analysis form the backbone of your Supplier Enablement strategy. It is important to determine all internal sources of the data – gathering data from various legacy systems can be challenging, time consuming and might require involvement of various stakeholders. However, it helps the organisation to understand the real “condition” of the supplier data. Another challenging part of this process is data analysis and Supplier record “cleaning”, that’s why you need to have an agreed criteria on what data objects and fields are needed for Supplier Enablement activity.

2. Supplier Segmentation and Scope

Supplier segmentation (also known as grouping) is a strategic approach that categorises suppliers based on factors like strategic importance, invoice volume/value, and spend type. Moreover, it helps the organisation confirm which suppliers are in-scope or out-of-scope of Procurement digital transformation and Supplier Enablement activity. As a result, supplier segmentation allows more efficient Supplier transition and helps you tailor your Supplier Enablement Strategy to focus on key supplier groups. Once grouped, confirm the final list of suppliers within the scope of Supplier Enablement.

3. Data Enrichment Approach

After collecting and assessing the data quality, the next step in your Supplier Enablement Strategy is data enrichment—like adding healthy sides to your dish. This involves collecting additional information such as supplier contact names and email addresses, PO transmission and remittance advice email addresses to ensure your data is complete and actionable.

However, data enrichment is not merely about adding supplier information; it involves updating all inaccuracies and inconsistencies, and completing any missing details needed for your Supplier Enablement activities. Furthermore, it involves having a clear, agreed-upon approach that outlines how data will be enriched. Along with which specific data points will be used, and who will be responsible for collecting the data and tracking the progress.

4. Supplier Enablement Tracker

An exquisite dish involves monitoring to safeguard its perfection; hence, having a tracker keeps your Supplier Enablement activities on course. A Supplier Enablement Tracker is your go-to tool for understanding “where we are at” and what still needs to be done. It enables you to keep a detailed list of all your suppliers. As well as their data cleansing/enrichment progress and “enablement” status, including any additional information you’ve gathered about them. Moreover, it shows the response and bounce back rates across various communication rounds, helping you stay on top of whether things are moving smoothly or if there are any bumps along the way.

The tracker helps to keep an eye on the real-time insights of Supplier Enablement progress and compliance. Furthermore, it provides a space for status updates, action items, and feedback, making it easier to manage supplier relationships and keep everyone aligned.

5. Key Stakeholders (Internal and External)

A lack of accountability will lead to failures or missed deadlines—kitchen mess! This is why it is important for you to identify the key stakeholders involved in Supplier Enablement activities. It includes internal departments like procurement, finance, and IT, as well as external partners like suppliers. As they have different roles (personas), it is great to document their roles and responsibilities to clearly determine who will be responsible for each aspect of the activity.

It is necessary to have an agreement of Who needs to be involved Where. Similarly, who will be responsible for escalating non-compliance, who will be rejecting non-compliant Invoices back to Suppliers, who in the organisation will be running supplier enablement Post-GoLive, who will be the main contact person for any supplier escalations and etc. Likewise, the main purpose of identifying key stakeholder groups is to tailor your organisation’s communication and training approach to their unique roles in the process.

6. Communication Strategy (Internal and External)

Effective communication is the lifeblood of a successful Supplier Enablement strategy. Engaging all key internal and external stakeholders through a clear, consistent, and strong communication strategy ensures that all stakeholders are informed, actively participating, and aligned. Also, consider the language, channels, time zones, and frequency of communication to manage expectations and maintain momentum in your Supplier Enablement.

7. Training Strategy

Even with the best ingredients and instructions, your dish might fall flat without the right seasoning—training. Before proceeding with training, agree on the training strategy. It should include the method of training to be provided to key stakeholders, scheduling considerations of the training based on time zones, sessions tailored to different supplier groups, and methods for maintaining engagement.

Moreover, it’s beneficial to translate training materials into different languages and carefully consider the webinar tools and channels that will be used to deliver the training, ensuring they are tailored to the participants’ needs. An efficient training strategy ensures that suppliers adapt to changes effectively, leading to satisfaction for both businesses.

Crafting a Winning Supplier Enablement Strategy

Performing Supplier Enablement activities without a well-crafted Supplier Enablement strategy will reduce the benefits of Source-to-Pay digital transformation and may result in a longer return on investment (ROI). Our goal at Denova is to help companies achieve their S2P goals through our comprehensive range of services and resources, including offering cost-effective, expert Supplier Enablement guidance.

Connect with our Source-to-Pay specialists who can share more about Denova’s services that are tailored to your organisational needs!

We start by collaborating with internal stakeholders to design the company’s winning Supplier Enablement Strategy tailored to its unique strategic goals. Our S2P Specialists can lead data transformation activities and spearhead the creation of comprehensive communication and training plans. But we won’t stop at Supplier Enablement strategy creation!

By being involved throughout implementation and setting up for Continuous Improvement, companies make the most of their S2P Digital Platform and unlock lasting, scalable S2P efficiencies.

Your Supplier Enablement strategy and approach must be thoughtfully crafted and balanced to align with your business objectives. Remember, the “7 Ingredients” are essential components to create a well-prepared Supplier Enablement strategy. When executed correctly, your Supplier Enablement will make your S2P digital transformation a resounding success—one worth savoring!