Company Reports for Procurement
All procurement professionals, across different organizations, job functions, categories and sourcing stages, require trustworthy, accurate and up-to-date information to help identify, qualify and benchmark suppliers. While search engines may work as a starting point for data collection, the process of gathering supplier information in-house can be resource-intensive. Fortunately, there are tools procurement departments can use to collect company information more efficiently.
Company-specific reports, also called supplier profiles or vendor assessments, contain valuable supplier information that supports vendor management and guides decision making. This information will vary depending on the provider you work with, but almost always includes the following:
- An overview of the supplier’s operations
- The supplier’s registered name
- Year founded or incorporated
- Number of employees
- Headquarters location
In addition to this basic information, advanced company reports may cover:
- Comprehensive financial data
- Revenue trends
- Risk factors and ratings
- Top competitors
- Strengths and weaknesses
- Market position
Are company reports right for you?
Maybe your organization already has its own processes for evaluating suppliers, or maybe your procurement department is just getting started. Company-specific reports are not meant to replace established vendor qualification programs, RFIs or RFPs. However, these reports make supplier identification and qualification more efficient and can help procurement departments establish sturdy scoring criteria.
If you’re tired of issuing RFIs and RFPs to unqualified suppliers, pre-qualifying suppliers with company reports can help you connect with the right suppliers fast.
Four areas where company reports come in handy:
1. Supplier Identification
Search engine marketing has changed the way we audit Google results and those of other popular search platforms. Say you’re looking for a top provider of project management software. Your search engine returns a host of conflicting top 10 lists, peppered with paid ads for software solutions. But are these actually the top players? Determining the most prominent suppliers in the market can be frustrating as you slog through several pages of search results and dozens of supplier websites.
Fortunately, company reports can show you the who’s who in the market, listing out top players and their worthy competitors. Carefully curated reports will help you drown out the noise of search engine results and focus your time and energy on the most qualified providers in the market.
2. Supplier Benchmarking
Not sure how one prospective supplier stacks up to the next? Want to see if your supplier is still top of the game? Insight into a company’s competitive position can help you determine the pros and cons of working with one supplier versus another. Company reports that score suppliers and their competitors will help you better understand a company’s competitive position in the markets they operate.
Already using company data to benchmark suppliers? A good company report does more than just score companies or showcase numerical data—it should also include detailed analysis and key takeaways. These types of actionable insights will help you make meaning of suppliers’ financials with ease. Using reports that do the heavy lifting when it comes to company financials and other metrics will help you accurately benchmark suppliers without doing all the leg work. Choosing company reports that base their analysis on industry-standard key ratios will help you reduce the time spent crunching numbers.
By getting the scoop on suppliers in the early stages of your selection process, you can cut down on the number of RFPs and RFIs you issue to prospects. Stop waiting for replies from companies that miss the mark and spend more time and energy on pre-qualified suppliers.
3. Supply Chain Management
Supply chain risk mitigation has become more important than ever in light of the global pandemic and geopolitical risks brought on by the US-China trade war and Brexit. Maybe these events have exposed weak points in your supply chain, or maybe it’s business as usual for your organization. Whatever the case may be, your approach to mitigating supply chain risk likely involves a thorough vetting process, especially when it comes to critical tier-one suppliers.
To ensure prospective suppliers are trustworthy, procurement departments must gather as much information as possible. Is the supplier registered? Are they likely to go bankrupt in the near future? What are the potential risks? Company reports help answer these questions and more to paint a fuller picture of each prospective supplier.
Part of knowing your supplier is knowing the full scope of its operations. Can the supplier support your core business functions? Reports that list out markets in which the supplier operates can help you determine a supplier’s capabilities. Learning what other products and services the supplier offers is a great way to spot bundling opportunities and score healthy volume-based discounts. Giving repeat and additional business to well-performing vendors can boost your negotiation power and lead to faster delivery of goods and services.
4. Stakeholder Engagement
Many decision makers rely on previous experience and instincts to inform their thinking and planning. But this approach has its blind spots. Objective supplier data and analysis helps shed light on key details that could otherwise be missed, giving stakeholders the full picture.
Data and analysis that is presented in a clean, intuitive format will help put your stakeholders at ease. Easy access to the facts and figures supports a data-driven approach to decision making that can be applied across all spend categories within your organization. Backing up decisions with data helps you win on two fronts: it not only helps with stakeholder engagement, it also reduces the likelihood of your organization entering risky relationships with suppliers.
When procurement professionals are equipped with trustworthy, accurate and timely supplier information, they can make effective decisions and recommendations that mitigate risks and reduce costs for their organizations. We understand that finding the information you need can be overwhelming. That’s why ProcurementIQ will soon launch a brand new collection of company reports called SupplierIQ. With SupplierIQ, we take our existing supplier information to the next level and provide more granular details on public and private companies, including hard-to-find financial benchmarks.
Need quality supplier information in your toolbox? Get in touch with the SupplierIQ team for more info, updates and sneak peeks on SupplierIQ.
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