Vendor Onboarding Trends in 2023: Prediction #1
Experts Weigh In On Vendor Management Trends in 2023. Part One of a Three-Part Series.
When it comes to vendor onboarding, I have a bold declaration for 2023: it will be the year of the perfect vendor file.
I know, I know. Perfection in anything is rarely possible, but hear me out.
The strategic importance of the vendor master file is no secret to professionals dealing with the relentless pace of vendor onboarding and maintenance needs every day.
But at PaymentWorks, we think it’s time to elevate their work and shout from the rooftops. We want your entire organization to appreciate and honor the importance–to every nook and cranny of your business–of the vendor master file.
Why? It’s simple. What comes out of your ERP and vendor file is only as good as what goes in. As a result, when you don’t respect the process around the inputs, you spend a lot of time paying for it with crappy outputs.
Our team ran the idea of the strategic importance of the vendor master file by several of our friends and partners. We wanted to find out what they feel is in store for vendor onboarding and management in 2023.
We asked them a couple of key questions. First, will perfection ever be achieved? Alternatively, is it enough to have the goal of perfection be your BHAG?
Several key themes emerged—enough for a three-part blog series. Below is the first blog–chock full of insights into vendor onboarding in 2023.
Yes, we mean vendor onboarding and maintenance.
Digital transformation for finance and procurement departments certainly isn’t new. Rather, invoice and disbursement automation have likely been in place at your organization for years.
But here’s the thing. The way data gets input into the ERP, and subsequently into those platforms is still likely largely manual.
What does this look like? For instance, it’s a person at your organization still collecting W9s, remit, and banking information via email, and typing that information into your ERP.
With this manual setup, the entire foundation of your P2P process is shaky, at best. 2023 is well past the time for automation to come to vendor onboarding.
Using an automated tool provides clean, accurate data. Additionally, automation in vendor onboarding also carries another level of importance to your organization: security.
Rahul Chaudhari from TCS commented. “Cloud technologies add more security to the process of vendor management. For companies struggling with handling security and controlling complexity, cloud based service delivery helps them as the number of vendors rise.”
Chaudhari added a good point. “Automation also ensures compliance processes are addressed, billing and tax forms are completed, and vendors are onboarded into payable processes, including with acceptable electronic payment options.”
If an organization hasn’t yet digitally modernized their vendor onboarding processes, it will be increasingly difficult to keep up with the pace of business.”
Brian Townsend, VP Vendor Enrollment at Corpay
Then, we spoke to PaymentWorks’ Product Strategist Gracie Mabie. Mabie concurs. “Far too many risks exist in manual onboarding processes. Fraud, compliance, and simple mistakes can all impact the integrity of your P2P machinery and find your organization on the wrong end of a compliance issue or fraud scam. Automation will become absolutely critical in 2023 for organizations tasked with locking down their processes to ensure audits are met with success.”
Chaudhari concluded, “By keeping data in sync across systems without human intervention creates a more robust business continuity plan which will strengthen your supply chain.”
But it’s not just security at stake here. It’s the actual productivity of your team. The headcount problem is real, but the business needs haven’t changed.
What does that mean? In a nutshell, it means your team will have to accomplish the same goals and do the same amount of work, just with fewer people.
Additionally, Brian Townsend, VP Vendor Enrollment at Corpay, makes the case for automation in 2023 by focusing on staffing.
He says, “Economic pressures will continue to mount in the coming year. Organizations will simply have to be more productive with less headcount. If an organization hasn’t yet digitally modernized their vendor onboarding processes, it will be increasingly difficult to keep up with the pace of business.”
Townsend isn’t alone in predicting a sharper shift when it comes to headcount in 2023. Next, let’s talk to Sean Neal, Business Development Executive for Digital Transformation & Technology at Withum.
Neal makes the case for automation a two-pronged argument. “Automation in place during a downward trend not only reduces the risk of fraud, but it has a direct impact on the bottom line without having to hire additional staff.”
With those smaller staffs, automation of repetitive and risky tasks will open the door for maximum productivity. Consequently, this should influence job satisfaction and retention.
In addition, automation will build business controls to keep your vendor master file locked down and clean.
To sum up, automation for vendor onboarding and maintenance will be prioritized by organizations of all sizes in 2023.
Moving to a digital vendor onboarding and maintenance process has many benefits for your organization.
First, automating your process improves your data security, which protects you from payments fraud and improves your regulatory compliance.
Second, it’s time for your human staff to stop doing the highly manual tasks of onboarding suppliers, updating supplier information, and more.
Instead, these tasks need to be automated. Organizations are cutting staffing budgets due to economic pressure. Vendor and accounts payable teams have to accomplish more with fewer resources. That’s where an automated tool will help.
In conclusion, the need for organizations to automate their vendor management processes is past due. 2023 will see more businesses implementing digital supplier onboarding tools. This will help secure their vendor data and ease the workload of their already overworked staff.
We have plenty of additional insight into where vendor management is going in 2023. Check out our additional blogs below.