Internal Supplier Search

Supplier Discovery (Internal Supplier Search)

Requests for goods or services can originate from the organization to fulfill day-to-day needs or in preparation for contract expirations. In both scenarios, procurement teams must identify suitable suppliers for their RFx.

Companies often initiate an internal or pre-existing supplier search to leverage established relationships, streamline processes, ensure supply chain continuity, and negotiate better terms. This approach minimizes risks, saves time and resources, and capitalizes on prior collaborations, making it a strategic and cost-effective choice for procurement.

Current Process:

All companies have a list of approved suppliers for different products or services they procure called preferred suppliers or tier 1 and tier 2 suppliers (the nomenclature can vary based on companies).

Companies also have a list of suppliers who have participated in similar RFx in the past and the reason for not being awarded or, in some cases, non-qualification. Procurement teams go back through these lists of suppliers to engage with them and identify which of these suppliers can qualify to participate in the RFx.

The Challenge:

• You may not fully realize all your suppliers' capabilities, services, or products.
• Retrieving information from past RFx processes can be time-consuming and cumbersome, often resulting in stale information.

AI Supplier Discovery using Veridion:

Veridion can help you identify if your existing suppliers have overlapping or new products, capabilities, etc., which may otherwise remain undiscovered. For example, you might find that a company classified in one category excels in another, offering a broader spectrum of products and services.

Benefits:

• Enhanced consolidation of spend which can lead to cost savings and improved supplier relationships.
• Significant savings on onboarding costs mean reduced overhead.
• Minimizing potential risks ensures a more stable and secure procurement process.
• Reducing maverick spend, leads to better control over procurement expenses and adherence to organizational procurement policies.