416: Uncover the Top Supplier Management Challenges of 2024, with Relish

Ryan Walicki & Matt Montgomery talk about supplier management - data challenges; complex tech; taking a proactive approach to risk; & the potential of AI.   IN THIS EPISODE WE DISCUSS: [06.43] Introductions to today’s guests and what they do. “I completely nerd out about supplier management and third-party risk!” [09.02] From collection and validation to ongoing maintenance, the current processes and challenges of supplier management. “You’d think it was simple… but, in reality, suppliers get asked by a lot of customers to provide data in any number of ways – portals, emails, forms – and if you’re a big supplier, it can be thousands of different ways that you’re transmitting that information, through lots of different people and functions.” “Big organizations use supplier information differently – in sourcing, contracting, supply chain, finance – and all of a sudden there’s multiple versions of this supplier that exists.” [15.26] A closer look at the DNA of a supplier profile, and the importance of having visibility over that data. [19.47] Supplier validation – the challenges of payments and banking, and finding the balance between security and maintaining speed and efficiency during the validation process. “Efficiency is coming, and AI will be a part of that, but it’s really difficult – getting valid information for a supplier is the biggest roadblock for the onboarding process.” [22.59] How Matt works with his suppliers, and the processes that help him find that balance. “We’ve watched this evolution. Originally we were really just focused on data – ‘How do I pay this company?’, and collected just enough for that. Now it’s much more than that. Now it’s ‘Are they compliant with regulations?’; ‘Do they have certain certification levels?’; ‘Are they in a particular region?’… It becomes much less about the accounts payable piece and much more about the supply chain piece.” [27.14] A case study exploring how Relish and SAP helped a shared client to prevent a case of fraud, worth a huge $2.1 million, and what we can all learn. [33.11] The risk inherent in supplier management, and how organizations should work to identify, assess and manage risk proactively. “Most companies are doing the assessment of risk… but the challenge is that it’s very reactive… You know there’s a risk, but what do you do with it? So how can technology help you to become more predictive?” [34.36] The role technology, specifically AI, plays in this space now – and its potential for the future. “AI is here… but without the context to answer the question properly, you’re going to get bad steering. The next evolution is how to put context to that data.” [39.36] The complexity of the current IT landscape; why we should all be looking to simplify; and how organizations can find the right solutions for their supplier management. “We’re going to stop thinking about supplier management as a module, and we’re going to start thinking about it the same way we think about user group management that goes across everything… Suppliers are so core to everything in procurement that you’re going to see it more as a horizontal rather than a vertical.” [44.46] All about solutions: what’s to come in episode 430, our upcoming collaboration with Relish.   RESOURCES AND LINKS MENTIONED:   Head over to Relish’s website now to find out more, and discover how they could help you too. You can also connect with Relish and keep up to date with the latest over on LinkedIn, YouTube and X (Twitter), or you can connect with Ryan or Matt on LinkedIn. If you enjoyed this episode and want to hear more from Relish, check out 408: Strategically Extend Your Enterprise Applications, with Relish.