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Finding the right suppliers at scale is one of the biggest challenges enterprise procurement teams face.

Slow searches, inaccurate data, and limited visibility make it difficult to identify reliable, compliant, and competitive suppliers.

In today’s volatile market, procurement teams need faster, data-driven ways to discover, evaluate, and onboard the right partners.

In this article, we’ll break down the key challenges in enterprise supplier discovery—and how Veridion’s AI-powered insights can solve them.

Key Challenges in Enterprise Supplier Discovery

Procurement teams face more than just lengthy spreadsheets and endless supplier lists.

The real pain points?

Slow processes, unreliable data, and the increasing difficulty of meeting sustainability requirements.

Let’s take a closer look.

Lengthy and Inefficient Supplier Search Processes

You’ve probably been there—spending weeks, even months, searching for the right supplier.

Internal spreadsheets, supplier databases, and even Google searches become routine, yet the process remains painfully inefficient.

In fact, McKinsey reports that traditional supplier searches can take up to three months, with procurement professionals spending over 40 hours evaluating just a handful of options.

Illustration: Veridion / Data: McKinsey

But time is a luxury procurement teams don’t have—especially when supply chain disruptions hit without warning.

And disruptions are frequent.

A 2022 Interos survey of 1,500 global decision-makers found that 43% of companies experienced three to four supply chain disruptions in a single year, while 20% faced five or more.

Illustration: Veridion / Data: Interos

The average annual cost of supply chain disruptions per organization was a staggering $182 million.

One reason companies struggle during disruptions is the inability to quickly discover alternative suppliers.

When geopolitical shifts, market volatility, or natural disasters hit, procurement teams often rely on slow, manual searches that take weeks—losing valuable time and increasing risk.

Maggie Brommer, Head of Procurement at Unilever’s Prestige Products, explains how it should be instead:

Illustration: Veridion / Quote: HBR

But how can you respond quickly if your supplier discovery process is slow and manual?

Ultimately, every extra hour spent searching increases risks, drives up costs, and erodes customer trust.

Risks from Outdated and Unreliable Supplier Data

Even after weeks of supplier research, how confident are you that your data is accurate?

The problem isn’t just in outdated or siloed internal databases—the problem is that some supplier discovery tools often rely on inaccurate, self-reported supplier data.

And that leads to severe consequences for many organizations.

A TealBook survey found that 93% of procurement and supply chain leaders have faced negative consequences due to inaccurate supplier data.

At the same time, nearly half of them encounter these problems regularly.

Illustration: Veridion / Data: TealBook

On top of that, 81% of procurement leaders admit they aren’t fully confident in the information they’re using.

What does that mean in practice?

• Compliance risks due to unverified certifications
• Operational delays when a supplier isn’t as capable as they claimed
• Reputational damage when unethical supplier practices come to light

Take Hims & Hers Health, for example.

The company saw its stock price drop by 12% after reports surfaced that it had sourced weight-loss drugs from a questionable supplier.

Source: Fast Company

The report raised concerns over the supplier’s history, potential regulatory loopholes, and the company’s vetting process.

The fallout?

Regulatory concerns, negative media coverage, and a loss of investor confidence, resulting in the said drop in stock price.

A single oversight in supplier vetting led to a crisis that could have been avoided with better supplier data right from the start, i.e., during the discovery stage.

Yet, Omera Khan, professor of supply chain management at Royal Holloway, University of London, warns that too few organizations realize how costly poor supplier data is:

Illustration: Veridion / Quote: HICX

Unfortunately, too many procurement teams still operate in the dark, relying on outdated supplier data and manual discovery processes that leave them vulnerable.

Insufficient Data Granularity

Another challenge procurement teams face is data that lacks sufficient detail.

It’s not enough to know a supplier’s name, location, and basic capabilities—procurement teams need deep, granular insights to make informed decisions.

Does the supplier have the right ISO certifications?

Do they meet ESG criteria?

What about diversity metrics, compliance records, and industry-specific classifications?

Without this level of detail, procurement teams risk selecting suppliers that seem like a good fit but ultimately fail to meet critical business requirements.

For example, you may unknowingly onboard a supplier that doesn’t meet your compliance standards.

Additionally, you can miss out on better, more qualified suppliers simply because they weren’t visible in your search.

Here are the reasons why this happens:

• Manual research can’t provide this depth at scale
• Even supplier discovery tools often fall short, offering broad databases without the necessary granularity

A massive supplier database is useless if it doesn’t provide the right level of detail to make informed decisions, as Bill Schmarzo, a leading expert in Big Data, puts it:

“In Big Data, it isn’t the volume of data that’s interesting, it’s the granularity; it’s the ability to build detailed analytic or behavioral profiles on every human and every device that ultimately drives monetization.”

While Schmarzo refers to consumer data, the same principle applies to procurement.

Without granular insights, businesses risk compliance failures, sustainability blind spots, and missed opportunities to optimize their supply base.

Difficulties in Identifying Sustainable Suppliers

More than ever, procurement teams are under pressure to ensure their supply chains comply with regulatory standards and meet growing customer and stakeholder expectations.

In fact, the latest statistics show that 92% of B2B buyers conduct research to confirm that products meet sustainability requirements.

Illustration: Veridion / Data: Sana

To maintain customer trust, companies must partner with suppliers who align with their sustainability goals.

Apparently, that’s easier said than done.

According to Amazon, 85% of companies struggle to accurately identify sustainable suppliers.

Illustration: Veridion / Data: Amazon

Often, the challenge isn’t a lack of intent—it’s a lack of reliable data on supplier sustainability practices.

And the cost of getting it wrong?

Massive.

According to the above-mentioned Interos study, ESG-related supply chain disruptions—such as human rights violations, environmental fines, or unethical labor practices—cost companies an average of $35 million per year.

Beyond financial losses, companies that work with unethical suppliers risk reputational damage and public backlash.

Take the Giorgio Armani Operations case.

In April 2024, the industrial arm of the Armani Group was placed under special administration after it was discovered that subcontracted firms were exploiting workers.

 Source: AP News

Although Armani claimed they were unaware, the reputational damage was done.

Social media platforms like TikTok amplified the backlash, with customers calling for boycotts.

@ericasgirlyworld

Armani bags being made by exploited Chinese workers! Luxury fashion news #ericasgirlyworld #luxury #luxurytiktok #fashion #fashionnews #armani #bagtok #italy #italyfactory #howbagsaremade

♬ original sound – Erica – Luxury Fashion

Source: TikTok

If a global luxury brand like Armani, with vast resources and established procedures, can falter, how can smaller enterprises expect to navigate these complexities without robust tools?

It’s undeniably clear:

Without comprehensive, real-time insights into supplier practices, businesses risk regulatory penalties, reputational harm, and loss of customer trust.

So, it all starts with supplier discovery—if you can accurately assess a supplier’s sustainability practices at the initial stage, you’re far more likely to build a responsible and resilient supply chain.

How Veridion Solves These Challenges

Veridion, our AI-powered data engine, delivers precisely the kind of supplier data enterprise procurement teams need—fast, reliable, and detailed.

Let’s see how it solves all the challenges we discussed today.

Speeds Up Supplier Discovery with AI

McKinsey estimates that AI tools can cut supplier discovery time by 90% or more—and Veridion proves this in practice.

An internal case study with a Veridion data customer showed that in traditional procurement workflows, professionals spent an average of 7.3 hours just to identify one suitable supplier.

By using Veridion’s data services, that time was reduced to just 0.14 hours per supplier event—saving procurement professionals 7.16 hours per supplier found.

Source: Veridion

But speed isn’t the only advantage.

With Veridion’s AI-driven data, procurement teams don’t just find suppliers faster—they also find more of them.

The case study found that more than twice as many qualified suppliers were uncovered through Veridion compared to manual searches.

Now, how can you access Veridion data?

Veridion’s APIs integrate directly with existing procurement systems, allowing teams to search using natural language and filter supplier data seamlessly—without switching between platforms.

Source: Veridion

And Scout, our search engine (currently in beta), enables procurement teams to search for suppliers in any web environment, making the process even more intuitive, efficient, and—faster.

Delivers Fresh and Reliable Supplier Data

Finding suppliers is one thing—knowing you can trust the data is another.

Instead of relying on static databases or supplier-provided claims, Veridion’s AI-powered data engine scrapes petabytes of information every week.

It pulls data from news sources, regulatory filings, government databases, social media, and other digital records.

Covering over 120 million companies across 200+ countries, Veridion ensures that procurement teams always have the latest, verified supplier information.

Source: Veridion

After all, this was Veridion’s goal from the start, as CEO, Florin Tufan, says:

“The data needs to be fresh, granular, easy to work with, and integrateable across a wide array of processes. This has been our focus from the beginning.”

Unlike traditional databases that quickly become outdated, Veridion’s data is AI-curated and updated weekly.

This ensures your procurement teams are never making decisions based on stale or inaccurate information.

Provides Granular Supplier Insights

Veridion delivers deep, multi-dimensional supplier intelligence.

Instead of just listing suppliers, Veridion provides over 60+ data points for each company, including:

• Firmographics (location, size, industry classification)
• ESG policies (sustainability initiatives, ethical sourcing)
• Certifications (ISO, safety standards, compliance records)
• Diversity criteria (minority/women-owned business classifications)
• Product and service specializations

Procurement teams can easily search, filter, and analyze supplier data based on precise criteria and Veridion will surface the best-matched suppliers.

If you are interested in how granular Veridion data is, download one of the data samples.

Source: Veridion

This way, you will get a firsthand insight into Veridion’s capabilities.

Enables Sustainable Sourcing

With access to millions of suppliers and the ability to filter them by ESG criteria, Veridion helps procurement teams make informed and sustainable sourcing decisions.

The platform allows companies to screen suppliers based on diversified ownership, ESG policies, and ESG controversies, ensuring they align with ethical and regulatory standards.

This means your team can access detailed insights into corrupt and unethical transactions, wage disparity, animal testing, child exploitation, human trafficking, and many other data points.

Source: Veridion

Because Veridion is also a third-party risk management solution, it provides real-time alerts when a supplier’s ESG status changes—whether due to a lost certification, unethical behavior, or involvement in a sustainability-related scandal.

But ESG is just one piece of the puzzle.

Veridion also delivers comprehensive risk intelligence, monitoring geopolitical risks, ownership risks, product risks, and other critical supplier vulnerabilities.

With always-updated data, procurement teams can stay ahead of risks, protect their supply chains, and make confident, responsible sourcing decisions—all with one data engine.

Who Benefits from Veridion’s Supplier Discovery Solutions?

Veridion transforms enterprise supplier discovery by providing fast, accurate, and data-driven insights.

Procurement teams struggling with slow, manual searches can leverage Veridion to identify, evaluate, and onboard suppliers more efficiently.

For large enterprises, Veridion accelerates the process of finding qualified suppliers, reducing research time and improving decision-making.

Companies like PepsiCo use Veridion to quickly source new suppliers, assess potential risks, and ensure compliance with sustainability standards—all within a single platform.

Source: CPO Strategy

Veridion is also valuable for companies facing supply shortages, where finding alternatives quickly is essential.

A clear example is the global chip shortage, which created major challenges for the automotive industry.

Source: RDN

Sourcing ADAS chips became difficult, as they are critical for features like parking sensors and emergency braking.

Veridion was able to identify 30 alternative manufacturers instantly, which would have otherwise taken weeks or months through traditional searches.

Beyond individual businesses, Veridion integrates with eSourcing platforms like Market Dojo, making supplier intelligence even more accessible.

As Nick Drewe, COO at Market Dojo, explains, this integration gives users real-time access to accurate supplier data without switching between systems.

“Veridion’s innovative approach to supplier data ensures our users gain access to accurate, real-time insights, enabling smarter, faster, and more informed sourcing decisions—all within a single, seamless platform.”

At the enterprise level, supplier networks are large and complex, making scalable and reliable supplier intelligence essential.

Veridion combines real-time data, deep supplier insights, and seamless integration with existing systems.

This allows businesses to streamline sourcing, reduce risk, and maintain supply chain resilience, no matter the industry or market conditions.

Conclusion

The way enterprise procurement teams discover and evaluate suppliers defines their success.

Traditional supplier discovery is slow, inefficient, and filled with data gaps, leading to higher costs and increased risks.

Veridion changes that by delivering real-time, AI-powered supplier intelligence—helping procurement teams find the right partners faster, with more confidence.

Don’t let outdated search methods slow you down—modernize supplier discovery with Veridion and stay ahead in procurement.