Exportify is a B2B platform designed to facilitate international trade by connecting businesses with reliable and qualified suppliers. Its mission is to empower businesses to expand their global reach effortlessly.
Current Challenge:
The growing number of suppliers applying to join Exportify requires an efficient system to evaluate and approve them. The existing process is manual, slow, and not scalable, hindering operational efficiency.
Efficient supplier evaluation is critical to:
Ensuring only high-quality suppliers join Exportify.
Reducing bottlenecks and processing times.
Supporting Exportify’s scalability and reputation in the international trade ecosystem.
Internal
Exportify employees involved in supplier evaluation, such as managers and junior specialists.
External
Supplier applicants seeking approval and integration into Exportify’s network.
Technical
Developers, product managers, and UX/UI designers working on the tool.
I followed the Double Diamond design process to guide problem-solving and solution development. This iterative framework provided a user-centered approach while allowing flexibility throughout the project.
Discover:
Insight into the problem
Problem Statement:
Employees struggle with a manual, inefficient supplier evaluation process.
The current system is not scalable, impacting Exportify's ability to grow.
Tool Objectives:
Efficiency: Reduce manual tasks through automation and streamlined workflows.
Consistency: Standardize supplier evaluation criteria.
Scalability: Handle increasing application volumes without sacrificing quality.
Success Metrics:
Decreased processing time per supplier application.
Improved employee satisfaction with the tool.
Higher accuracy in selecting reliable, high-quality suppliers
What are the steps in the evaluation process?
Suppliers submit their application with details like company information, product offerings, certifications, and references.
Key Documents:
Business registration
Compliance certifications (e.g., ISO standards)
Financial records
To filter out unqualified suppliers before detailed evaluation.
Checks Include:
Document completeness and authenticity.
Compliance with basic eligibility criteria (e.g., industry alignment, geographic requirements).
Financial stability through credit reports or financial summaries.
Assessment Criteria:
Business Capabilities: Production capacity, experience, and scalability.
Compliance: Adherence to legal, environmental, and industry-specific standards.
Technical Expertise: Quality of products or services through samples, certifications, or technical specifications.
Operational Efficiency: Supply chain reliability, delivery timelines, and logistical capabilities.
Cost Competitiveness: Pricing structure, discounts, and value-added services.
Includes in-person or virtual inspection of facilities to verify capabilities, quality processes, and labor practices.
Optional for high-stakes suppliers or industries with stringent requirements.
Checks Include:
Financial health for long-term stability.
Past performance metrics and customer reviews.
Potential geopolitical, environmental, or market-related risks.
Final approval, rejection, or conditional approval.
Evaluators may provide feedback to suppliers for improvements or reapplication.
What tools are currently used, if any?
Scorecards are a widely used tool in supplier evaluation. They provide a structured way to assess suppliers across various criteria such as quality, cost, delivery, and customer service. Each supplier is rated on these factors, allowing businesses to objectively compare and rank suppliers. The scorecard also helps identify strengths and areas for improvement
A risk assessment matrix is used to evaluate potential risks associated with suppliers. This tool helps organizations prioritize risks based on their likelihood and impact. By categorizing risks as "acceptable," "manageable," or "unacceptable," companies can decide which suppliers to engage with, based on their risk profile
Many organizations use specialized software to automate and centralize supplier evaluations. Platforms like Prokuria and PLANERGY integrate data from various departments to provide real-time insights on supplier performance. These tools allow businesses to track, score, and monitor suppliers over time, facilitating more efficient evaluations
Although not a digital tool, conducting on-site audits or virtual visits is an essential part of the evaluation process. It helps verify claims made by suppliers and assess their operations first-hand. These audits are particularly useful for evaluating compliance, quality management systems, and overall operational capacity
Financial analysis tools are crucial to assess a supplier's financial stability. These tools analyze financial statements, credit ratings, and other key metrics to ensure that the supplier can sustain long-term business relationships without risking disruptions
To ensure that suppliers meet legal and industry standards, organizations often use compliance checklists. These can include industry certifications (like ISO 9001) or specific regulations such as environmental compliance. Tools and databases that track certifications and legal status are increasingly being integrated into supplier management systems
What are the bottlenecks or inefficiencies in the process?
Manual data entry and lack of automation in supplier evaluations are often cited as significant inefficiencies. These processes are time-consuming and prone to errors, which slow down decision-making and increase administrative costs. Companies that rely on traditional methods, such as spreadsheets, often struggle with the scalability of their supplier evaluations, especially when dealing with large volumes of supplier data
Inconsistencies in the evaluation criteria applied by different teams or regions can cause bottlenecks in the decision-making process. For example, when procurement, finance, and legal teams apply their own evaluation standards, it leads to confusion and delays. Standardizing criteria and ensuring cross-functional alignment is critical to minimizing delays and maintaining a consistent approach
Another significant bottleneck identified is the inadequacy of risk assessment tools, which leads to potential risks being overlooked. Companies often struggle to systematically evaluate the financial health, regulatory compliance, or geopolitical risks associated with their suppliers. This lack of comprehensive risk management can lead to unexpected disruptions down the line
Data fragmentation is another key issue. Supplier information is often scattered across various systems or departments, making it difficult to gain a holistic view of a supplier’s capabilities. This inefficiency is especially problematic when companies scale or have multiple teams involved in the evaluation process. Centralizing supplier data into a single platform can significantly reduce delays and improve data accessibility
The decision-making process is often delayed due to slow approval cycles and the need for multiple layers of sign-offs. In many organizations, different stakeholders (procurement, quality, legal, and finance teams) must review and approve supplier evaluations, which can extend the time it takes to finalize decisions
The supplier evaluation process often lacks structured feedback loops, which can delay the improvement of supplier performance. When suppliers do not receive timely and clear feedback, they cannot address issues effectively, leading to inefficiencies in future evaluations
When companies deal with a high volume of suppliers, the evaluation process becomes cumbersome. As the number of suppliers increases, maintaining a quality evaluation becomes a major challenge without sufficient tools to manage and prioritize suppliers efficiently
What tools do leading companies use for supplier management?
A cloud-based SRM solution that offers a unified platform for managing supplier information, performance, and contracts. It provides tools for onboarding, risk assessment, and performance tracking. SAP Ariba also integrates procurement and supply chain management to streamline supplier relationships and ensure compliance
Known for its integrated software suite, Ivalua supports supplier management across the lifecycle, including supplier onboarding, performance monitoring, and risk management. It enhances collaboration, helps mitigate risks, and encourages innovation
This platform integrates procurement and supply chain management and provides tools for supplier qualification, contract management, and performance evaluation. It also helps companies enhance supplier collaboration and streamline sourcing
A cloud-based SRM solution that includes modules for supplier information management, sourcing, procurement, and invoicing. It helps businesses manage their suppliers efficiently and ensure compliance
1. Supplier Discovery and Initial Screening
2. Supplier Qualification and Data Collection
3. Supplier Risk Management and Performance Evaluation
1. Supplier Discovery
2. Supplier Qualification
3. Supplier Risk Assessment
4. Supplier Performance Evaluation
5. Decision Making
6. Contract Negotiation & Review
7. Supplier Onboarding
8. Ongoing Supplier Monitoring
Define:
Finding the focus area
SAP Ariba is one of the most widely used procurement solutions. It offers a comprehensive suite of tools for supplier discovery, contract management, sourcing, and supplier performance evaluation.
Strengths:
Supplier Network: A large, pre-existing network of suppliers, making it easier to find and evaluate potential partners.
Integrated Procurement: End-to-end solution integrating sourcing, procurement, and supplier management, allowing seamless data transfer between stages.
Supplier Performance Management: Detailed supplier performance scorecards and feedback mechanisms for continuous monitoring.
Weaknesses:
Complexity: Its user interface can be overwhelming for new users, requiring training and onboarding.
High Cost: Suitable for large enterprises, but may be too expensive for smaller businesses or startups.
Coupa is a cloud-based procurement platform that focuses on spend management and supplier collaboration. It integrates procurement, supplier performance evaluation, and risk management.
Strengths:
Intuitive Interface: Known for its user-friendly interface, making it easier for procurement teams to manage suppliers and evaluate their performance.
Analytics and Insights: Strong data analytics capabilities, providing detailed insights into supplier performance, cost savings, and procurement optimization.
Risk Management: Coupa offers real-time risk monitoring and predictive analytics to anticipate potential supplier disruptions.
Weaknesses:
Limited Supplier Discovery: While it excels in managing and evaluating suppliers, Coupa doesn’t have as extensive a supplier network as other tools like SAP Ariba.
Implementation Challenges: While user-friendly, the system may require significant customization during implementation for larger organizations.
Ivalua provides a comprehensive suite for supplier management, from sourcing and contract management to supplier performance evaluation. It focuses heavily on supplier collaboration and performance monitoring.
Strengths:
Supplier Onboarding: Highly effective supplier onboarding system that ensures only qualified suppliers are added to the platform.
Collaboration Tools: Real-time collaboration tools to work directly with suppliers, providing a transparent evaluation process.
Risk Management: Integrates AI-powered risk management tools to assess financial stability, compliance, and potential disruptions.
Weaknesses:
Customization Needs: While flexible, the system requires significant customization to meet specific business needs, which can slow down implementation.
Steep Learning Curve: New users may need extensive training to fully utilize all of the platform’s capabilities.
Supplier Discovery: A robust supplier database or integration with existing platforms like SAP Ariba will be crucial for finding potential suppliers.
Performance Monitoring: Integrating AI and real-time data tracking (like Coupa and Ivalua) can help evaluate supplier performance continuously.
User Experience: An intuitive interface is essential for easy adoption. Features like Tradeshift’s real-time collaboration and Coupa’s simplicity could be valuable for Exportify Connect.
Risk Assessment: Leveraging AI for risk prediction (financial, delivery, compliance) could give Exportify Connect a competitive edge.
Step 1: Supplier Discovery and Registration
Step 2: Supplier Qualification
Step 3: Risk Assessment
Step 4: Performance Evaluation
Step 5: Decision-Making
Step 6: Contract Negotiation & Review
Step 7: Supplier Onboarding
Step 8: Ongoing Supplier Monitoring and Performance Review
Develop:
Exploring potential solutions
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