Big Businesses Use Supplier Registration Portals
Big businesses source vendors through directory-type databases known as supplier registration portals and vendor registration portals. These portals, which among the recommended Strategic Sourcing Best Practices, are a part of larger procurement management systems that pull supplier data from a variety of sources. The sheer number of suppliers big businesses use, combined with the complexities of doing business on an international scale, requires a network of collaborative digital efforts to scale and manage vendor information.
Multi-unit companies typically have an online supplier registration process on a company website and utilize third-party supply chain platforms to widen the scope of a supplier search. For instance, Coupa’s Supplier Diversity Management Tools help match up businesses as big as McDonalds and Coca-Cola with diverse suppliers. For suppliers, registering on the Coupa Open Business Network saves significant working time. It’s much easier to sign up once with Coupa than to visit every website for every potential buyer. A supplier can quickly magnify their exposure to known and unknown buyers by becoming a member of the Coupa Open Business Network.
Big businesses need to have access to available suppliers to reduce company risk and act in the best interest of stakeholders. McDonald’s, Coca-Cola, Macy’s and Dell are at the top of the Fortune 500 list. Walmart has over 100,000 suppliers to manage, and CVS has suppliers for over 9,000 stores. Losing one supplier does not pose much risk to big-box retailers because there are swaths of suppliers available. When a pallet of pencils is not available from one supplier, they merely check a database for another supplier. That supplier might be you—if you’re registered in the Coupa Open Business Network.
Suppliers Can Be Risky Business
Big businesses such as Cummins and Brown Forman are highly dependent upon specific international suppliers for certain raw supplies, similarly, Coca-Cola depends on region-specific citrus suppliers. Losing a supplier for a key ingredient in a product chain poses a big risk. Companies taking that risk must always keep an eye out for new suppliers that may be able to help optimize supplier risk management.
Big businesses benefit from having access to supplier information because, on any given day, a current supplier could cease to perform because of external factors or internal company mismanagement. With Coupa Supplier Insights, suppliers can show buyers their proven history of finances and other values contributing to buyers’ decisions in awarding contracts. Large businesses also require new suppliers when introducing new products, implementing new technology, and moving forward with new marketing strategies. Suppliers registered in the Coupa Open Business Network will be viewed by procurement agents for last-minute and thought-out supplier opportunities.
Big Businesses Require Supplier Diversity
Top Fortune 500 public corporations have made it clear in public statements and reports that supplier diversity is a crucial component of overarching Environmental, Social, and Governance (ESG) goals. Supplier diversity is not a goal that just a few companies are striving for, it is a goal that many successful big businesses take seriously.
From Macy’s 2017 Social Responsibility Report:
We believe that access to a supplier base that reflects our diverse customer base is a competitive advantage because it enables us to source distinctive merchandise. It also allows us to support businesses that contribute to the economic health of our local communities. Coupa Supplier Diversity Management helps us identify and support emerging minority- and women-owned businesses. In 2016, our company’s purchases from minority- and women-owned business enterprises totaled more than $1 billion.
The Coca-Cola Company’s global diversity mission is to mirror the rich diversity of the marketplace we serve and be recognized for our leadership in Diversity, Inclusion and Fairness in all aspects of our business.
Dell is committed to responsible business practices and to high standards of ethical behavior. This includes holding our suppliers to high standards of excellence as defined in governing laws, recognized international standards and conventions, and global best practices. Meeting the Dell Supplier Principles is a condition of doing business with Dell.
Big businesses intentionally seek out suppliers that are certified as a minority, women, LGBT, disabled or Veteran-owned businesses. Coupa knows the value of business certification, and its supplier database provides the opportunity for suppliers to post their certifications so that big businesses can promote them as part of their Diversity and Inclusion initiatives.