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These days, how you bring new suppliers into your ecosystem can make or break your company’s operational success.

That’s right: onboarding isn’t just another cumbersome, time-consuming part of the job.

When done right, it sets the stage for long-term collaboration, improved performance, and proactive risk management.

That’s why, in this article, we explore the key benefits of efficient supplier onboarding and show you exactly why a streamlined approach is an absolute must-have for modern organizations.

Increased Operational Efficiency

Streamlined supplier onboarding eliminates repetitive manual tasks and reduces errors, saving valuable time and enabling procurement teams to focus on high-impact, strategic work.

Elvire Boinet-Bondon, European Advisor of Business Development at Graphite Connect, a supplier information management platform, agrees that manual onboarding simply doesn’t cut it.

She explains why:

Illustration: Veridion / Quote: Supply Chain Digital

This is because manual onboarding is often plagued by back-and-forth emails, missing information, and redundant data entry.

However, with the right tools, companies can dramatically improve the process and transform their operations.

Especially powerful are systems that enable a smooth transition from vendor selection to onboarding and beyond.

That’s exactly why the eSourcing solution Market Dojo has recently partnered with Veridion, an AI-powered supplier discovery platform.

Thanks to this partnership, procurement professionals can now manage the whole sourcing process—from discovery to negotiation and more—within a single platform.

Riyaz Nakhooda, VP of Customer Solutions at Veridion, explains:

Source: Veridion

So, what exactly do these tools bring to the table?

Veridion leverages AI and machine learning to scan and structure vast amounts of company information from across the internet.

It maintains real-time, regularly updated data on over 120 million companies across 250+ geographies, covering everything from ESG performance to product specifications.

Source: Veridion

This ensures procurement teams always have access to the most accurate and up-to-date supplier insights.

When integrated with Market Dojo’s eSourcing platform, this intelligence becomes part of a fully connected sourcing workflow.

Market Dojo manages the rest of the journey—from RFIs and RFPs to eAuctions, onboarding, and contract management.

Here’s the overview of their onboarding process:

Source: Market Dojo

So, once a supplier is identified through Veridion, onboarding is seamless—no copy-pasting, no tool-switching, no data loss.

The result?

A unified system that delivers unmatched efficiency, visibility, and control across the entire sourcing lifecycle.

Better Data Quality

When you get your onboarding process right, your supplier data becomes much more accurate, complete, consistent, and up-to-date.

That’s because well-structured onboarding ensures that all key details are collected upfront, compiled in a standardized format, and properly verified.

Ultimately, this reduces manual data entry errors, prevents missing information, and significantly boosts overall data quality.

And in procurement, that kind of data reliability is mission-critical, says Matt Palackdharry, Founder of Kinetic Talents, a SaaS startup consultancy:

Illustration: Veridion / Quote: TealBook

According to him, this data fuels all procurement technologies, influences billions of dollars in business decisions, and enables organizational agility.

Without trustworthy vendor information, making sound decisions is practically impossible, particularly during volatile and uncertain times, Palackdharry maintains.

A TealBook survey confirms the significant impact of supplier data, too.

It shows that 93% of supply chain leaders have experienced negative consequences due to supplier misinformation.

Additionally, nearly half (47%) face these issues on a regular basis.

Illustration: Veridion / Data: TealBook

This is why it’s so important to optimize your onboarding process.

With standardized templates, structured forms, and validation rules, you can reduce inconsistencies and mistakes in your supplier master data from the get-go.

Take Coca-Cola Hellenic Bottling Company (CCHBC) as an example.

Their onboarding system shows just how serious they are about data integrity.

Once suppliers register on the CCHBC supplier platform, they are directed to complete a detailed registration questionnaire.

This form requires various kinds of mandatory information and relevant supporting documents, from company names and general contact details to bank information and certifications:

Source: Coca-Cola Hellenic Bottling Company

If any data is missing, incorrect, or unclear, the questionnaire is returned for revision or completion.

This rigorous approach allows them to gain a 360-degree view of their partners right from the start, laying the groundwork for strong partnerships and other perks we’ll explore in this article.

Improved Compliance

Onboarding suppliers is not just about introducing them to your systems and processes.

It’s also about ensuring they meet certain regulatory, legal, and ethical standards.

This means that, when done right, supplier onboarding can be a powerful tool for protecting your business.

It ensures your partners align with your values, meet compliance requirements, and follow your codes of conduct, minimizing the risk of regulatory violations and reputational damage.

However, as Chris Audet, Vice President and Chief of Research for GCs and CCOs at Gartner, points out, many organizations still fail to realize this:

Illustration: Veridion / Quote: Gartner

As a result, they expose themselves to various problems.

Take ESG compliance, for instance.

These days, regulators, investors, and customers all expect companies to work with partners who share their commitment to environmental and social responsibility.

Fall short, and the fallout can be severe.

Anthony Payne, Chief Marketing Officer at OneStock, a distributed order management platform, elaborates:

Illustration: Veridion / Quote: FinTech Strategy

Onboarding is your opportunity to get ahead of these issues.

It’s your moment to lay out exactly what compliance looks like and confirm your suppliers are on the same page.

Look at Unilever, for example.

As part of the onboarding process, suppliers must register for the Responsible Partner Program and complete a detailed questionnaire about all aspects of their ESG efforts:

Source: Unilever Supplier Portal on YouTube

This helps Unilever assess the suppliers’ performance and verify that they have the necessary policies and certifications in place to support responsible procurement.

By setting these expectations up front and verifying compliance early, Unilever builds a network of trusted and compliant suppliers, boosting its own reputation and minimizing risk.

And that’s what efficient onboarding is all about.

Reduced Maverick Spend

Formally onboarding approved suppliers into your procurement system significantly increases the likelihood that employees will purchase through authorized channels.

After all, a well-onboarded supplier is more likely to offer accurate product catalogs, competitive pricing, and reliable order fulfillment, making it easier for employees to buy from them.

According to a survey by SDI Inc., today, this is more than necessary.

As it turns out, 91% of procurement leaders agree that maverick spend is a significant challenge for them, with 87% reporting that the issue has increased in 2024 compared to 2023.

Illustration: Veridion / Data: SDI

Maverick spend indeed is a serious problem.

It doesn’t just cost more—it often means lower quality, project delays, and compliance risks.  

Helen Alder, Head of Knowledge and Learning Development at the Chartered Institute of Procurement and Supply (CIPS), explains:

Illustration: Veridion / Quote: RS

She adds that it’s not uncommon for employees to source parts online that turn out to be counterfeit or substandard, which can be disastrous.

Reducing the risk of maverick spend requires making the approved purchasing process as easy and appealing as possible.

That’s where streamlined supplier onboarding plays a significant role.

By leveraging procurement software like S2P and eSourcing platforms, you can quickly onboard vendors and host catalogs with pre-negotiated pricing and terms—all in one place.

Everything is easily searchable and very user-friendly.

And when employees can quickly find what they need from approved suppliers, they’re more likely to stay within the system, reducing the temptation for off-platform (maverick) spend.

Faster Time-to-Value for New Suppliers

This one’s pretty straightforward: the faster a supplier is integrated into your systems, the sooner your company can start gaining value, whether that’s through product delivery or innovation.

In other words, a streamlined onboarding process accelerates supplier readiness, reducing delays and ramp-up time.

This allows you to begin realizing cost efficiencies or product/service improvements sooner and unlock greater agility in responding to market demands.

Ionis Pharmaceuticals, Inc., a biotechnology company, understands this well.

By optimizing their supplier onboarding process, they sped up their operations and, consequently, supplier time-to-value.

After taking their subsidiary, Akcea, public, Ionis opened new offices in preparation for commercial operations.

This expansion brought immediate challenges for Accounts Payable and Purchasing, as they suddenly had to onboard twice as many suppliers.

Carrie Albrant, former Director of Accounting at Ionis, recalls:

Illustration: Veridion / Quote: Coupa

So, to address this, they eliminated manual processes and digitized as many of them as possible.

No more tedious data entry, slow verifications, or inefficient workflows.

According to David Mohr, Executive Director of Purchasing at Ionis, the impact was significant:

Illustration: Veridion / Quote: Coupa

As a result, the company significantly reduced errors and cut requisition cycle time from 19 days to just three—a sixfold improvement—while increasing ‘on-time’ payments to over 85%.

Now, Ionis onboards suppliers faster and gets value much sooner, unlocking smoother operations and a competitive edge in the process.

Improved Supplier Relationships

Efficient onboarding gives suppliers a smooth, professional experience from day one.

It creates a strong first impression and lays the foundation for trust, transparency, and long-term collaboration.

Michael Nemeroff, Co-founder & CEO of RushOrderTees, an American technology and custom apparel company, explains:

Illustration: Veridion / Quote: Softr

When you set clear expectations and offer strong support channels, suppliers feel valued and are more willing to engage.

That way, you build strong relationships that ultimately lead to better collaboration, improved performance, and even preferential treatment during shortages or crises.

Take The Meatery, for example, a San Diego butcher shop specializing in ultra-premium meats.

During beef shortages, they were completely unaffected thanks to their supplier relationships.

CEO Nicholas Fiorentino shares:

In unpredictable markets, those kinds of partnerships are gold, protecting you from unexpected disruptions.

But the benefits don’t stop there. Strong buyer-supplier relationships offer even more.

According to the 2024 State of Flux survey, companies that collaborate closely with key suppliers enjoy a whole range of advantages.

This includes increased trust, faster innovation, better financial outcomes, improved risk management, and so much more.

Illustration: Veridion / Data: State of Flux

All in all, in procurement, collaboration is fundamental.

It ensures not just the fulfillment of contract terms, but the realization of both expected and added value.

Even better?

You might just become a customer of choice—the one suppliers prioritize when things get tight, the one they bring new ideas to first, the one they go the extra mile for.

Conclusion

When done well, supplier onboarding creates ripple effects across your entire business: better data, stronger compliance, tighter control, and deeper supplier relationships.

In a world where agility and speed determine who leads and who lags, your onboarding process could be your quiet superpower.

So, if you’re still stuck with spreadsheets and email chains, it’s time to level up.

The benefits we just discussed prove it’s well worth the effort.