How an ERP supplier portal makes your business run more smoothly
Every business should aim to be easy to do business with. If one looks for that phrase online there are lots of examples related to selling and customer service. A supplier portal can help make your business easy to sell to. And don’t we all want happy suppliers who might give better service, lower prices, and better delivery?
Traditionally a supplier sends an invoice which is delivered in the mail. Someone in your business opens the mail and routes a document that looks like a supplier invoice to accounts payable in the finance department. Now another person enters an ERP transaction trying to link that document with a purchase order and a receipt of the goods or service. Using a portal, your suppliers could uplink their invoice directly to accounts payable and connect it with the purchase order and packing slip for you. The supplier knows the document is delivered where it needs to be and you saved time.
You desperately need something right now. You placed the order late and production is waiting to complete work that your customer wanted yesterday. You could call or email your supplier and ask if shipped yet. Or, you could simply look at your ERP supplier portal and see the supplier posted the shipment ID number, the method of shipment, and a tracking number with a link to the carrier’s site where the exact status of the shipment can be found. It was delivered two minutes ago. Send the forklift to the receiving dock and get that order on its way!
Some businesses choose to use ERP supplier portals to communicate planning data such as actual or forecasted demand to suppliers. This gives the supplier an opportunity to produce components or order sub-components ahead of a purchase order. When you and your supplier trust each other, the wheels are already greased.
You have a new product in design now. Send drawings and other documentation through your ERP supplier portal. Using a single channel for communications makes things easier for you and your supplier. The portal often is more secure than an email too, depending on the level of encryption offered by your ERP provider.
This works both ways. You have a simple repeat order so you enter that purchase order directly using the portal. Your supplier’s ERP creates a demand in their system that begins work to deliver what you want. Your supplier has shipped you an order so they enter a request for an E-payment into the portal which goes through pre-established approval channels and sends the money directly to their bank.
Using a supplier portal makes business easier on both sides of the table. There is no guarantee of lower prices or better service; you likely already get good prices and delivery, but every little bit helps.
Featured white papers
70 features to look for in your next ERP
A comprehensive guide to help you identify requirements for your ERP selectionDownload
ERP Software Pricing Guide
Get your comprehensive guide to the cost of ERP softwareDownload
60-Step ERP Selection Checklist
Get the comprehensive checklist for your ERP selection projectDownload
Five key ERP features for e-commerce businesses
Key ERP features for e-commerce companies to look for when selecting new software
A guide to ERP finance module features and what they do
ERP finance module features that will help you keep on top of your business's expenditure
ERP vs. CRM comparison
ERP vs CRM: what's the difference, and how to tell which system you need