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You’ve heard about companies securing great discounts from suppliers, staying ahead of supply chain disruptions, and generally saving a lot of money through procurement.

But how do they do it?

Procurement is supposed to be about spending money on goods and services—not about unlocking strategic value, right?

Not necessarily.

With a well-maintained supplier database and the right supplier data, you stand to gain far more than you might have previously believed.

Want to learn more? Keep reading.

Why You Need a Well-Maintained Supplier Database

In the world of complex supply chains and volatile markets, the saying “knowledge is power” has never been more true.

But, let’s see what specific benefits you stand to gain from your supplier data.

Better Risk Control

An effective supplier database provides valuable insights into suppliers’ capabilities, reliability, and potential vulnerabilities, like non-compliance or poor performance.

Having easy access to this data allows you to take proactive measures to mitigate risks before they escalate, ensuring resilience and agility for your company.

Sayan Debroy, Associate VP at The Smart Cube, a global provider of sector-specific research and analytics solutions, puts it best:

Illustration: Veridion / Quote: Supply Chain Digital

For example, if you have access to a vendor’s financial info, you can spot red flags—like signs of financial strain or potential bankruptcy—before it’s too late.

That gives you time to prepare, explore alternative suppliers, and avoid costly disruptions.

A 2023 WTW survey confirms the growing recognition of supplier data’s role in risk mitigation.

When asked which measures would have the greatest impact on managing risks, 59% of companies cited developing a detailed understanding of their supplier networks.

Another 43% pointed to improving data quality and sharing.

Illustration: Veridion / Data: WTW

In other words, modern businesses are well aware of how powerful the right data can be.

Daimler Truck, one of the world’s largest commercial vehicle manufacturers, also relies on vendor data for risk control.

According to Marion Gillich, their Head of Supplier Risk Management, they keep tabs on their suppliers’ financial health, geopolitical and natural risks, as well as regulatory risks.

You can learn more in the video below:

Source: Automotive Logistics on YouTube

All in all, you can’t prevent disruptions without the right information.

This is where a well-maintained supplier database comes in, serving as your gateway to all the crucial insights you need to make well-informed, timely decisions.

Increased Cost Savings

Offering a clear view of your supplier landscape, a supplier database shows you exactly where your money goes.

In turn, this enables you to easily compare prices, negotiate stronger deals, and identify opportunities for bulk purchases or long-term contracts, which often come with discounts.

In short, a well-managed database helps you optimize every dollar spent and unlock significant cost savings.

Yet, many companies lack this level of visibility, says Nicolas Olague, Senior Manager at Amazon:

Illustration: Veridion / Quote: Independent

That’s a huge blind spot—one that could be costing your business a lot of money in the long run.

You just need reliable supplier insights to develop smart, data-driven cost-cutting strategies, warns Olague:

“By using data to find out how much organizations spend with such suppliers, it’s possible to start putting in more processes and policies around such activity.”

Whether that means setting spend limits, consolidating vendors, or directing purchases through preferred suppliers, better financial control begins with the right information.

And in today’s economy, control over spending is more vital than ever.  

According to the 2024 Economist Impact survey, monetary uncertainty is a top priority for 49% of procurement professionals—more than twice the percentage reported in 2023.

Illustration: Veridion / Data: Economist Impact

The pressure to maximize savings is real, and the best way to start is with accurate, up-to-date supplier data.

So, ask yourself: Does your supplier database give you the visibility you require to stay ahead and navigate these modern challenges?

Improved Supplier Relationships

A well-organized supplier database is the foundation of strong, long-term supplier-buyer relationships.

By consolidating key details like performance metrics, product offerings, and contract terms, it enables more efficient communication, clear expectations, and strategic value creation.

It also keeps everyone accountable: suppliers deliver quality products or services, and you make timely payments.

Dean Lee, E-commerce Director at Supreme PLC, one of the UK’s leading battery and lighting distributors, explains why the latter is so important:

Illustration: Veridion / Quote: Shopify

And these strong supplier relationships are invaluable.

When they know they can trust you, suppliers are more likely to support you during times of uncertainty.

In fact, the 2024 State of Flux survey found that 70% of organizations plan to shift from transactional to strategic supplier relationships.

Why?

Because they know real partnerships unlock massive benefits, from cost savings to innovation and risk mitigation.

Illustration: Veridion / Data: State of Flux

FleetPride, a leading independent distributor of heavy-duty truck and trailer parts in the U.S., knows this very well, too.

Candice Bolivar, their Category Manager, explains how a trusted vendor can make all the difference:

Illustration: Veridion / Quote: Fleet Equipment

And to think, it all starts with a well-maintained supplier database.

When expectations and responsibilities are crystal clear, everybody delivers on their promises, trust flourishes, and partnerships thrive.

Key Features of Reliable Supplier Data

We’ve talked a lot about reliable data in previous sections, but what does that actually mean?

Before you can build a better supplier database, you need to know what “reliable” really looks like.

There are five key factors that determine the quality of your supplier data:

Source: Veridion

Let’s break them down.

Accuracy refers to the correctness and precision of the data. No errors, no outdated info, just a true reflection of reality.

Completeness means the dataset includes all necessary information without missing values or gaps. Reliable data should be detailed and thorough, covering all relevant areas.

Consistency ensures that data remains logically coherent and aligned across different datasets.

If one report says a supplier is active and another says they’re not, you’ve got a problem.

Accessibility is about making sure data is easy to find and use. Even the most accurate data is useless if no one can get to it when they need it.

Finally, usefulness determines how relevant and practical the data is for its intended purpose.

Reliable data should be structured in a way that makes it easy to interpret and apply effectively.

So, why does all this matter?

Mitch Zink, Senior Manager at Atrium, the leading consulting firm in the Salesforce and Snowflake ecosystems, sums it up perfectly:

“Data quality is the foundation for better decision-making. With the explosion of data and advent of AI in the last few years, it’s become clear that data drives better [decisions], but only if your data is good.”

In other words, bad data leads to bad decisions.

In supplier management, that can mean wasted money, missed opportunities, disruptions, and more.

So, the next time you review your supplier database, assess it against these criteria. If it falls short, it may be time for some improvements.

Common Supplier Database Management Mistakes

Now, if your database doesn’t meet the necessary criteria for reliability, you may be making some common mistakes.

Let’s explore them and see how to correct them.

Failing to Establish Data Governance Standards

If you don’t have solid data governance standards in place, your supplier database is bound to be unreliable.

But what exactly is data governance, and why does it matter?

Mike Edmunds, CEO of Trade Interchange Ltd, a supplier management software provider, breaks it down:

Illustration: Veridion / Quote: LinkedIn

In essence, governance standards ensure that your data is stored, updated, used, and removed appropriately.

If you don’t have a framework like this, it’s definitely time to look into establishing one—built on these four key pillars:

People	The organizational structure, roles, and responsibilities of those involved in data governance, including data owners, collectors, managers, and users.
Policies	Guidelines for consistent and compliant data usage, protection, and management.
Process	Procedures for communication, collaboration, and data management, including collection, storage, security, and usage.
Technology	The tools and systems that support data governance, such as data management platforms and security solutions.

And if you’re unsure where to start, consider downloading a data governance checklist by Nicola Askham, a data governance coach.

The checklist provides a list of the activities you need to complete in order to successfully design and implement such a framework.

Below, you can see the outline of the process.

Source: NicolaAskham

For even more insights, you can check out her YouTube channel, where she shares practical tips to help you get started with data governance.

Relying Too Much on Manual Processes

With the increasing complexity of supply chain data, managing your supplier database using only spreadsheets and paper is one of the biggest mistakes you can make.

It’s time-consuming, labor-intensive, and, most importantly, highly susceptible to human error.

Alex Saric, Chief Marketing Officer at Ivalua, a leading provider of cloud-based spend management solutions, agrees:

Illustration: Veridion / Quote: Procurement Magazine

When your supplier database can’t keep up, your company is exposed to all kinds of inefficiencies—from delays in decision-making to acting on inaccurate or incomplete info.

This, ultimately, exposes you to significant risk.

In fact, a TealBook survey found that 93% of procurement and supply chain leaders have faced negative consequences due to misinformation about their suppliers.

What’s more, nearly half (47%) regularly deal with such issues.

Illustration: Veridion / Data: TealBook

So, how can you address this challenge?

The answer is simple: automate wherever possible.

For example, instead of manually updating all your supplier records, consider using Veridion’s data enrichment services.

Veridion is an AI-powered supplier intelligence platform with a global database containing over 100 million companies.

Source: Veridion

Our Data Enrichment Service taps into this vast database, utilizing advanced algorithms to match and enrich existing supplier records.

This service supplements current data, assesses potential risks, eliminates duplicates, and updates outdated information.

As a result, you get a more comprehensive, insightful dataset that supports advanced analytics and downstream analysis.

And with Veridion’s weekly updates to supplier profiles, you’ll always have near-real-time insights so that your decisions aren’t just well-informed, but timely as well.

Source: Veridion

That’s certainly something no manual process can compete with.

Scattering Supplier Data

Supplier data is often scattered across multiple systems like ERPs, S2Ps, contract management platforms, Excel sheets, Word documents, and more.

As a result, this critical information is siloed and spread across departments and locations, leading to:

• Duplicate and inconsistent supplier records
• Lack of visibility
• Operational disruptions
• Increased risk

Obviously, this isn’t the best approach to building an effective supplier database. Yet, it’s a common mistake.

A Medius survey found that only 33% of procurement professionals have a highly effective process for storing and managing supplier contracts in a centralized database.

On top of that, 86% report that late payments happen due to missing information or errors, and 22% have had suppliers refuse to work with them due to delayed payments.

Illustration: Veridion / Data: Medius

Clearly, the lack of integration between supplier data sources is a risk businesses can’t afford to ignore.

To fix this, you have two options.

Firstly, you can establish a central data repository through solutions like cloud-based supplier management software.

This kind of tool integrates your payables and procurement processes, giving you a single source of truth for supplier information, lifecycle, performance, and risk.

You can see an example of one such solution below:

Source: Medius

No separate systems, no miscommunication, and no lost data.

This is the best long-term solution.

However, if a new system isn’t feasible at the moment, consider integrating your current tools.

Some common methods for system integration include:

APIs	these code-based instructions that enable different software components to communicate are the easiest and most common integration method
Middleware	third-party software that connects and enables communication between two or more applications
Webhooks	real-time event-driven messages that trigger updates between systems
EDI (Electronic Data Interchange)	replaces paper documents with a standardized electronic format for data transmission

The bottom line?

Don’t leave your supplier database fragmented.

Even the most accurate and rich data won’t do you much good if it isn’t centralized and easily accessible.

Conclusion

Hopefully, you now see just how powerful an effective supplier database can be.

It’s not just about compiling useless info or even about cutting costs.

It’s about building resilience, agility, and a competitive edge that sets your company apart.

That’s certainly something worth considering.

So, take a good look at your current supplier data. Are there gaps? Opportunities for improvement?

If so, don’t wait—take action now. The payoff will be well worth it.