Supplier onboarding: in control and connected

Onboarding suppliers sounds simple: collect data, validate it and enter it into the system. But in practice, it turns out to be a process full of pitfalls. Incomplete information, manual entry and fragmented communication make it slow and error-prone. 

"Procurement and Finance often work with different versions of the same information," explains Dirk Jan Leppers. "Without structure, this leads to duplicate records, unclear responsibilities and risks during audits."

Compliance also becomes a challenge. Company information, tax data and bank account numbers must be checked. Without automated checks, this takes a lot of time and it is difficult to rule out errors or fraud. In addition, supplier data quickly becomes outdated: research shows that 30% of supplier data is no longer current within a year. Without control, unnecessary risks arise.

Vendor Management streamlines supplier onboarding and makes it a controllable process. It starts with an internal request: employees can nominate a new supplier using a form. They provide information such as the expected order volume, whether it is a one-off supplier and which alternatives have already been considered. 

"Based on this request, Procurement can quickly determine whether the supplier is necessary and suitable," says Dirk Jan. "If a suitable party already exists, this prevents unnecessary new registrations."

This first step lays the foundation for data-driven decision-making. Because employees also provide a purchasing category and contact details, the request is automatically sent to the appropriate person in charge, such as a category manager or regional purchaser. This not only speeds up the process, but also creates clear ownership. 

Once approved, the supplier automatically receives an invitation to the supplier portal. There, they fill in all the necessary details and upload documents such as certificates, codes of conduct or NDAs. Optionally, questionnaires can be completed on topics such as sustainability, e-invoicing onboarding or quality management. 

The portal also allows suppliers to view the status of their requests and invoices. This means they need to contact Procurement or Finance less often. This reduces the number of recurring questions and lowers the administrative workload, while processes run faster and more efficiently. 

All actions and approvals are traceable and fully logged. This creates a comprehensive audit trail that meets internal and external control requirements. 

Supplier onboarding at ISPnext consists of a number of fixed components: 

• Supplier onboarding: request and communicate with new suppliers.
• Self-service portal: suppliers can update documents and data themselves.
• Supplier compliance: submit documents and data in accordance with policies.
• Supplier questions: status queries about invoices, payments and deliveries.
• Supplier data: one source of truth, linked to your ERP.
• Supplier questionnaires: questionnaires about ESG and e-invoicing, among other things. 

An organisation in the manufacturing industry works with many specialised suppliers, ranging from raw materials to logistics partners. Previously, supplier onboarding was done manually. New suppliers were registered via email and data was transferred to ERP. Certificates were often missing or bank details turned out to be incorrect. 

Since switching to ISPnext's Vendor Management, the process has been automated. Each department can request a supplier via the internal form. Once approved, the supplier is invited via the portal. Within a few days, all data is correctly supplied, including documents such as ISO certificates and declarations of origin. Thanks to automatic validations and logging, the organisation now demonstrably meets compliance requirements, even for suppliers in high-risk countries. 

This has greatly improved the collaboration between Finance and Procurement. Both teams work with the same data and monitor the status of onboarding in real time. There is less noise, more transparency and a shared responsibility for supplier quality. 

Supplier onboarding affects not only Vendor Management, but also AP Automation. Good data ensures fewer errors in invoice processing and faster payments. "We see that customers who combine both solutions need far fewer correction rounds," says Dirk Jan.

In addition, cooperation between departments improves. Because all data is available centrally, Finance and Procurement work on the basis of the same information. The turnaround time is also significantly reduced. Whereas onboarding used to take weeks, the process is now often completed within a few days. You can also set different expiry dates for documents such as certificates or contracts. This keeps you up to date and prevents surprises during reassessments or contract renewals.  

Supplier onboarding is not just an operational step. It largely determines how securely, efficiently and compliantly your organisation works with suppliers. By standardising and digitising this process, you lay the foundation for sustainable growth and better decision-making. 

An additional advantage is the ability to anticipate audits, certifications or changing regulations. In sectors such as manufacturing, food & beverage or healthcare, demonstrating supplier quality is often a requirement. With a solution such as ISPnext, you lay the right foundation to meet these requirements as well.

Would you like to know how your organisation can professionalise supplier onboarding? Schedule a no-obligation demo with one of our experts.