A common challenge is the maintenance of supplier databases and the active verification and compliance of the underlying service providers i.e. how current and accurate are they? Large supplier databases require multiple records to be continually verified. The supplier documentation needs to be updated regularly (e.g. tax clearance) and can easily spiral out of control with thousands of documents being outdated. Current ERP systems do not address this challenge.
Most supplier databases are inaccurate and contain suppliers that are inactive or have outdated information, as well as suppliers that have changed their core business activities. These challenges pose increased risk to an organization and its clients.
SupplyBlock technology solves problems associated with supplier verification, categorization and active compliance through a combination of manual and automated verification processes. The system prompts suppliers into taking responsibility for updating their own records in order to maintain an ongoing and active, verified status.
This includes proactive warning notifications that alert suppliers of expiring documents, key cut-off dates and incomplete information – thereby enforcing ongoing verification and proactive self-compliance of suppliers.
Suppliers register on the platform and are categorized according to various parameters e.g. size of business, geographic territory, industry specific requirements, legislative requirements, etc.
The categorization of suppliers determines the verification process undertaken within the platform e.g. a small business may not have audited financials nor a VAT registration certificate and will therefore have a different verification process to that of a large business.
Suppliers are verified through the platform using a combination of automated (APIs) and manual verification processes to ensure authenticity of information entered into the system.
Automated system features encourage suppliers to maintain an ongoing and active verification status. In case of non-compliance the level of prompting is automatically escalated. Should suppliers not maintain their verified status, they run the risk of compromising their access to market and tender award, as tender originators generally choose to deal with verified suppliers.
Should more specific supplier information/certification be required pertaining to a particular tender, this will be requested in-system by the tender issuer at the time of bidding.
ONGOING SUPPLIER MAINTENANCE
Ensuring accuracy of supplier information is crucial for an active and effective supplier database. Data transactions and supplier documentation are stored on the blockchain thereby ensuring the security and integrity of supplier information. This saves many man hours as the documentation and data involved in the supplier verification process does not have to be printed every time the supplier bids on a tender (i.e. seamless data transition from one tender to the next), and the data/documentation is continually updated by the supplier in order to maintain their verified status.
The system, when used in conjunction with other SupplyBlock modules, rates supplier performance and risk. It also provides the supplier with the ability to ensure they have all their business information active in the system to ensure compliance aligned to their customer’s requirements for a continued successful business relationship.
This ensures not only verified and active suppliers, but a better quality of suppliers.
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SupplyBlock has real-world international application across multiple industry sectors, along with a developed platform and pipeline of new business.