PROACTIS - Warning: A Comprehensive Supplier Management Capability is Quickly Becoming Mandatory
November 23 2016 - 8:46AM
Business Wire
Regulatory Compliance and Risk Management
Requirements Driving Greater Adoption of Supplier Relationship
Management (SRM) Solutions
PROACTIS, a global Spend Control and eProcurement solution
provider, today announced growing indications that organisations in
most private, not-for-profit and public sector organisations are
recognising the imperative need to consistently maintain accurate,
up to date information for their entire supplier base.
They are seeing that, in addition to needing supplier
information to support purchasing and accounts payable activities,
it is critical to maintaining compliance with regulatory
requirements and effectively managing risk associated with supplier
non-performance and non-compliance. Further, PROACTIS is seeing an
increasing number of organisations adopting Supplier Relationship
Management (SRM) software solutions as the most cost-effective way
to enable the capabilities they need.
Supply Chain Becoming a Focus for Regulatory
Compliance
One example of a growing range of regulatory compliance
requirements is the “Transparency in Supply Chains” clause in the
UK Modern Slavery Act 2015.
In practical terms, compliance with this act and others like it
requires companies to implement a methodical approach to ensuring
their entire supplier base is also in compliance with the act. With
a supplier base of any significant size, that requires a robust,
largely automated series of integrated capabilities to:
- Collect and maintain accurate and
complete information for every supplier
- Gain a thorough qualification of each
supplier’s capabilities, certifications, policies and
procedures
- Monitor all of the possible changes,
required actions and actual performance KPIs for each supplier
A comprehensive supplier management process has many benefits to
the procurement process, of course, in that it enables the
organisation to be more effective in supplier selections and
appraisals, monitor changes to suppliers and screen suppliers
against sanction lists for financial compliance etc. And greatly
streamlines all kinds of supplier interaction and commerce. But it
is increasingly becoming a necessary component of regulatory
compliance as well.
Supplier Relationship Management (SRM) Technology Becoming a
Priority
The effect of this trend is clear – a growing number of
organisations are making deployment of a Supplier Relationship
Management (SRM) software solution a priority.
“Whether they refer to it as Supplier Relationship Management
(SRM) or Supplier Information Management (SIM), many organisations
are recognising that a methodical, comprehensive approach to
supplier interaction and monitoring is becoming virtually
mandatory,” said Simon Dadswell, Group Marketing Director at
PROACTIS. “I would add that those organisations that have already
deployed PROACTIS SRM tend to have high levels of satisfaction. It
is generally seen as a tool that delivers results and supports
Procurement’s goals for risk reduction, improved supplier
relationships and improved supplier communication. We think formal,
software-assisted SRM will become an almost universal part the
Procurement landscape over the next few years.”
About PROACTIS
PROACTIS is a global Spend Control and eProcurement solution
provider. Hundreds of organisations use PROACTIS software and
services for procurement, purchase-to-pay and accounts payable
processes to deliver greater bottom-line value.
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version on businesswire.com: http://www.businesswire.com/news/home/20161123005353/en/
PROACTISSimon Dadswell+44 (0)1937
545070Simon.dadswell@proactis.comproactis.com
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