First thing first. What is supplier onboarding? ….when asking Google following pop-up as top listed:

“Supplier onboarding is the process of collecting the information and data required to set up an organization as an approved supplier, or vendor. The purpose of this procedure is to enable your company to efficiently conduct business, purchase goods and services, and make payments to said supplier” (Source).

I do not folly agree to this definition but it is pretty good. Supplier onboarding is part of the Sourcing process. 

In step 7 supplier selection is completed and you are about to implement the new supply chain. You want to train the supplier staff in doing business with you.

Introducing onboarding

Supplier onboarding is a critical phase in the procurement process, encompassing a series of steps aimed at vetting, integrating, and educating new suppliers to ensure they meet an organization’s standards and requirements. The process extends from initial screening during the sourcing phase, through administrative setup in various procurement platforms (such as Enterprise Procurement Platforms (EPP) and Know Your Supplier (KYS) tools), to the final and crucial stage of educating supplier representatives. While the scope of onboarding can vary across organizations, a comprehensive approach ensures a smooth and efficient partnership between the buyer and the supplier.

Initial Screening and Setup

The onboarding process begins with the screening of suppliers, which involves assessing their financial stability, reputation, compliance with industry standards, and their ability to meet the organization’s needs. This early stage is crucial for mitigating risk and establishing a solid foundation for the partnership.

Following the screening, successful suppliers are set up in the organization’s procurement systems. This administrative step typically involves entering the supplier’s details into EPP and KYS tools, which helps in managing transactions, monitoring compliance, and ensuring transparency in the procurement process. This setup is fundamental for operational efficiency and regulatory compliance.

Educating Supplier Representatives: The Role of Online Courses

A unique and increasingly important aspect of supplier onboarding is the education of supplier representatives. Educating these key individuals goes beyond merely informing them about administrative procedures or product specifications; it involves comprehensive training on the buying organization’s policies, quality standards, ethical guidelines, and operational processes. This training ensures that suppliers are not just external entities but integrated partners aligned with the organization’s values and objectives.

Online courses have emerged as a pivotal tool in this educational aspect of onboarding. The advantages of using online courses for educating supplier representatives include:

• Accessibility: Online courses can be accessed by suppliers globally, removing geographical barriers and ensuring consistent training for all suppliers, regardless of their location.
• Scalability: As the number of suppliers grows, online courses can easily accommodate the increased demand for training without significant additional costs or resources.
• Customization: Courses can be tailored to address specific areas of interest or concern, ensuring that suppliers receive relevant and targeted information.
• Efficiency: Online training can be completed at the supplier’s pace, allowing for a more flexible integration process that can be balanced with their existing commitments.
• Tracking and Assessment: Online platforms typically allow for tracking progress and assessing the understanding of the supplier representatives, ensuring that the training objectives are met.

The content of these courses might cover a wide range of topics, including but not limited to, compliance with legal and regulatory requirements, sustainability practices, ethical conduct, quality control processes, and operational procedures specific to the buying organization. By investing in the education of supplier representatives, organizations can foster a more collaborative, transparent, and efficient supply chain.

Building the operational relation with new supplier

What do the std terms say, how should the supplier read your forecast, what are the opening hours of your goods receipt department, what are the process for managing traceability…. the list of information is sometime long when you start a new supplier relationship. 

Why not put all the information required in an online course which supplier representative can access anytime? You can even have supplier representative to read and confirm accept of you Code of Conduct. Maybe even “certify” the supplier representative with a quiz 😃.

The onboarding online course can be hosted at Learn How to Source and only accessible from a link from your supplier information site (Company homepage).

Content of an onboarding online course could be (example):

• Welcome speech from senior officer.
• Introduction of the buying company (latest news).
• Key operational instructions/documents the supplier must know and adapt.
• Other important information as for example Sustainability.
• Download, signature and upload of Code of Conduct.
• Ending word from senior officer
• Download – completion certificate.

By applying creativity and company specific conditions the content of the online course can be anything required. An extremely resource effective way of communication if you want to reach all parts of a global supply chain. 

Contact Learn How to Source if you want to explore the opportunity to host your Supplier Onboarding eLearning at Learn How to Source.

Supplier onboarding is a multifaceted process that lays the groundwork for successful and sustainable supplier relationships. By incorporating comprehensive education for supplier representatives through online courses, organizations can ensure that their suppliers are not only informed and compliant but also deeply aligned with their strategic goals and operational practices. This approach not only enhances the efficiency and effectiveness of the supply chain but also supports the development of long-term, mutually beneficial relationships with suppliers.

About Learn How to Source

Learn How to Source (LHTS) is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.

Note: Illustration to blogpost “Supplier onboarding with the help of eLearning” was created by Chat-GPT on February 29, 2024.