As the Supply Chain becomes more and more integrated through technological advances, faster communications infrastructure, increase of social media, and advances in data integration capabilities companies are continually looking at ways of integrating the various sources of data and systems available to them. Double keying this data is a thing of the past and companies are focused on getting to a fully integrated Supplier Relationship Management (SRM) Initiative.
Before we begin lets look at why we integrate data sources. The main reasons or business case is usually framed around 4 core concepts / questions:
- Data Effort – How much time would it take to re-key this data again into a system rather than integrate. How many people would this consume and what would the cost be V integration it. How long would the ROI be ?
- Data Accuracy – How accurate would the data be if we entered it manually and what would the cost be for data rework ? What would the cost of making a wrong decision based on inaccurate data.
- Data Timeliness – How much quicker would the data reach the appropriate decision makers if we had realtime integration?
- Data Value – What is the value of the data you are integrating to your initiative. Would the Initiative be as successful without this data. Would supply chain Risk Mitigation be improved by having this data?
There are many different data sources that have been successfully integrated with SRM systems including internal Management Information Systems, ERP Systems, Operations Systems, Contract Mgt Systems, P2P, HSSE systems, even direct integrations with systems outside the firewall including the Suppliers own systems; Sales Systems, CRM, Supplier’s HSSE System etc.
A few examples of these include;
- Integration with ERP systems for Financial, Purchasing, MRP, and Inventory Mgt – Why ask the supplier for financial data you already have internally.
- Integration with WellView or OpenWells for Well Header Information and Job data across a range of Drilling and Completions Operations.
- Integration with Contract Management Systems to ensure compliance with Contractual level KPIS.
It’s the integration with the supplier systems that it seems is providing the real value in terms of effort efficiency (avoids double keying data), and increased value add in terms of real-time informational value add.
More recently we have seen an increase of integration of SRM initiatives with Cloud based Third Party Information Providers (Supplier News, Risks, Financials, Market Risk etc) .
examples of third Party intelligence integration include:
- Integration with Stock Alerts / Company news for Public Traded Suppliers, Google Finance, Yahoo Finance etc.
- Integration with data from Drilling information providers such as Rushmore Reviews
- Integration with financial info providers such as data feeds from DnB, LexisNexis, Bloomberg, and Experian
- Integration with MI companies such as Mintel and Intelligentsia.
- Integration with Google Alerts on Supplier companies.
The next wave is most likely integration of SRM with Social media, (Linkedin, Facebook etc.) I see the value add here being from a social impact / personnel perspective. Imagine if we had up to date profiles on the Supplier Company, and their products at our fingertips including product references, likes, dislikes, comments. likewise for the profiles of the supplier personnel that we work with on a daily basis. I mean how many times have you gotten off a call with a supplier representative you have not met before only to find yourself doing a Google / Linkedin search on them 5 mins after the call, or even before the call. The same can be said for suppliers looking up operator personnel.
Another Scenario is getting updates that Joe Bloggs whom you have had a great working relationship with for the last 10 years has suddenly left one of your key suppliers. Often suppliers tend to hold back staff departure information (at least until they have a replacement up to speed). As they are often not known for proactively informing you of such change then Integration with social media could give you that heads-up on a timely basis.
No matter what the social media platform is there is real value on having this information at your finger tips in your SRM.
Where the main obstacle or challenge you are facing is one or more of these challenges then contact us today and you will see how the team at Outperform SRM can help you and your business overcome these challenges and deliver a successful SRM initiative.
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