Routine reliance on an extended global supplier network has resulted in a more complex and lengthy procurement process. Emails, phone calls and faxes simply don’t support the collaboration between buyers and suppliers that is required for successful global trade.

Purchasers face these challenges when trying to source product and manage suppliers across their network

  • Efficiently placing orders and receiving confirmation that the orders can be filled in the required time frame
  • Avoiding the errors and misunderstandings that can come from re keying data, multiple phone calls and emails
  • Approving the creation of shipments and receiving advance shipment notifications (ASN)
  • Matching invoices to purchase orders to ensure accurate payment
  • Creating and distributing required documentation to all of the relevant parties
  • Preserving an audit trail of conversations pertaining to each purchase order.

Many organizations have turned to supplier portal software to manage all facets of the purchase order (PO) process including order acceptance, shipment creation and document generation. A supplier portal that’s integrated with a global trade management (GTM) solution can ensure that a PO is compliant with applicable regulations, provide full visibility and event tracking from PO creation through invoice reconciliation and payment.

Beginning with purchase order creation, procurement professionals utilize a GTM solution to verify purchased products for admissibility and regulatory compliance based on comprehensive and current global trade content, determine preferential trade agreement eligibility and calculate landed cost.

Using the supplier portal, suppliers will confirm whether they can fulfill the order within the requested time frame, create and upload all of the additional required documentation and automate the distribution of the documentation to the appropriate parties. A GTM system with an integrated portal provides tracking of each purchase order line item through to delivery to invoice – creating that closed loop.The PO, commercial invoice and ship notice all provide crucial information required for Customs and security filings. Having that information integrated and validated through a single portal ensures that information is standardized and complete prior to reaching key milestones.These transactions also require numerous trade documents to be distributed to multiple parties for filing and other official purposes. Ultimately, these documents need to be stored with the transaction for audit and reference purposes. Important features that enable partners to work collaboratively include automatic document determination, generation, verification and distribution.

Final Thoughts

Choose a GTM solution that provides the level of integration that you need to work most efficiently with your suppliers. One that provides closed loop processes for purchase orders will ensure high levels of visibility and accuracy in your supplier relationships.

Courtesy :

Leave a Reply