Automated Supplier Network System for Approval Workflow
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Solution Overview
Problem
The process of approving new suppliers is often manual and time-consuming, requiring significant effort from supplier managers, especially for large companies that review thousands of new suppliers monthly, as they need to repeatedly request and verify information from suppliers.
Innovation Solution
A supplier network system automates the supplier activation process by determining buyer requirements, obtaining necessary information from new suppliers, sending reminders, notifying buyers, and making information available for review, thereby reducing manual effort and time spent on the approval process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual supplier approval process is used, then supplier manager can review and verify information, but the process becomes time-consuming and labor-intensive
Solution Approach 1:
The system performs preliminary actions by automatically collecting supplier information from multiple sources before the approval process begins. Supplier profiles are pre-populated with data from public databases, company websites, and other external sources, so that when a supplier needs approval, the information is already gathered and organized, eliminating the need for time-consuming manual data collection and verification calls.
Solution Approach 2:
The system enables self-service by allowing supplier information to be automatically gathered and verified through automated data collection from external sources. The system independently retrieves and validates supplier data without requiring manual intervention from supplier managers, thus maintaining verification reliability while dramatically reducing the time and effort required for the approval process.
2Loss of information
If manual information collection from suppliers is performed, then accurate supplier data can be obtained, but multiple follow-up calls and significant effort are required
Solution Approach 1:
The system applies universality by using a single automated information collection mechanism that serves multiple purposes: gathering supplier contact information, verifying business details, collecting documentation, and validating credentials all through one integrated process. This multi-functional approach retrieves complete supplier data without requiring separate manual efforts for each type of information collection.
Solution Approach 2:
The system introduces an intermediary automated information collection layer between the supplier manager and the supplier. This intermediary automatically retrieves supplier information from external databases and sources, acting as a mediator that obtains complete and accurate supplier data without requiring the supplier manager to make multiple follow-up calls or directly contact the supplier for each piece of information.
3Productivity
If thousands of new suppliers are reviewed monthly, then comprehensive supplier approval can be achieved, but the workload for supplier managers increases correspondingly
Solution Approach 1:
The system replaces the mechanical manual process with an automated electronic system. Instead of supplier managers manually collecting and verifying information through phone calls and emails, the system uses automated data collection, electronic profile creation, and systematic verification processes. This substitution enables the handling of thousands of suppliers monthly without proportionally increasing manual workload, as the automated system manages the complexity.
Solution Approach 2:
The system applies segmentation by dividing the supplier approval process into distinct automated stages: information collection from external sources, profile creation, verification, and approval. Each stage is handled independently by the automated system, allowing parallel processing of multiple suppliers simultaneously. This segmentation reduces process complexity by breaking down the overwhelming task of reviewing thousands of suppliers into manageable, automated steps that can be executed concurrently.
Data Source
AI summary
A supplier for commerce is approved of. In the event activity in a buyer operated application occurs, authorization of the supplier is initiated. Via a supplier network, information about the supplier with respect to a buyer is received. The received information includes a structured commerce profile for the supplier. The received information is made available to the buyer to make a decision regarding whether to approve of the supplier. The decision is received from the buyer. In the event the received decision is to approve of the supplier, an indication associated with adding the supplier to an approved supplier list in a buyer operated application is sent.