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Are you struggling to onboard suppliers, run audits, or manage supplier data effectively?

If so, you’re not alone.

Managing the supplier lifecycle involves overseeing multiple processes, from initial supplier discovery and selection to ongoing performance and risk monitoring.

Fortunately, supplier lifecycle management (SLM) software is designed to streamline these tasks.

By the end of this article, you’ll understand how SLM software can support your supplier lifecycle management and gain key insights for selecting the right solution for your business.

Let’s get started.

What is Supplier Lifecycle Management Software?

Supplier lifecycle management software helps procurement teams optimize all aspects of supplier engagement with their organization.

To understand this software better, let’s first define what supplier lifecycle management is.

SLM is an end-to-end process that provides organizations with greater control over supplier relationships, starting from the initial discovery or onboarding stages.

Its primary goal is to maximize value for both the organization and its suppliers, while also reducing costs and mitigating risks.

Sumeet Kaul, Managing Director at FTI Consulting, explains that SLM gained traction largely due to the major supply chain disruptions in recent years.

The traditional, surface-level approach to managing suppliers became ineffective, creating a demand for more robust tools and practices.

Illustration: Veridion / Quote: Deloitte US on Youtube 

Supplier lifecycle management software helped bring this shift in perception to life, and is now helping businesses build more resilient supply chains.

By leveraging SLM tools, organizations can move toward transparent and integrated supplier management, enabling them to scale effective supplier relationships.

While no solution is identical, here is the breakdown of key SLM features:

• Collaboration tools
• Automated onboarding
• Supplier risk assessment
• Centralized supplier information
• Performance monitoring and reporting

More specialized tools focus on one aspect of supplier lifecycle management and may include advanced segmentation or contract management tools, as well as integrations with ERP/CRM.        

In general, SLM software is used to collect and manage accurate supplier data from a single, user-friendly dashboard.

HICX’s supplier management solution offers an illustrative example.

Upcoming tasks and common actions, such as checking invoice status or making an inquiry, are easily accessible on the left side of the dashboard, while less frequently used options are on the right.

Source: HICX

The platform also offers an at-a-glance view of overall supplier performance.

To sum up, SLM software optimizes various supplier-related processes in one centralized solution, helping businesses manage supplier relationships more effectively and efficiently.

Benefits of Using Supplier Lifecycle Management Software

Solutions that enhance supplier management yield substantial benefits, from more resource-effective operations to risk mitigation.

One of the most important advantages is centralized data.

Fragmented or disorganized supplier data can lead to confusion at best and critical oversights at worst, but SLM software solves this by keeping all supplier information in one place.

Research shows how widespread data-related challenges are.

For instance, TealBook’s 2020 survey revealed that 93% of respondents experienced issues from making supplier decisions based on inaccurate or outdated data.

Illustration: Veridion / Data: TealBook 

The consequences, such as missed deadlines (51%), unhappy clients (42%), and financial loss (40%), were still there even after updating the data.

SLM software centralizes supplier data, moving organizations away from inefficient systems like email threads and spreadsheets.

Cloud content management platform Box partnered up with one such solution (Certa) for precisely this reason.

Wasting hours to track down misplaced supplier documentation simply wasn’t an option anymore—Box needed better spend visibility and real-time access to key supplier insights.

Linda Chuan, the company’s CPO, explains how adopting new supplier onboarding software got everyone on the same page and made her job easier.

Illustration: Veridion / Quote: Certa

What’s more, Certa’s Third-Party OS reduced onboarding cycle times by 78% and provided better control over procurement.

All in all, centralized data means better workflows, which quickly translates to enhanced operational efficiency.

Another key benefit is better supplier risk management.

Navigating the volatile risk landscape is one of the core challenges of modern procurement, and organizations need to be ready to make swift adjustments to supplier relationships.

Conrad Smith, the CEO of Graphite Connect,  explains:

“It’s important to understand the evolution of risk as the relationship grows over time. As you layer different levels of products and services or engagement, you have to expand the scope as it applies.”

However, research indicates that procurement professionals frequently lack insight into evolving risks, especially among sub-tier suppliers.

Namely, over 40% of Procurement Leader survey respondents can’t confidently identify which of their Tier-2 suppliers may pose a risk.

For Tier-3 suppliers, the percentage reaches an abysmal 70%.

Illustration: Veridion / Data: Procurement Leaders & GEP

Let’s put this into perspective with a simple example.

One of your Tier-2 suppliers used uncertified raw materials that violate safety regulations.

If this compliance issue were to halt production in their facility, when would you become aware of it?

Would it be after it has already caused a disruption, or that very same day?

Ideally, the incident wouldn’t even occur thanks to rigorous assessments powered by risk management tools.

Keeping the risks in check is much easier with solutions that help you log incidents and risk factors, track compliance, and compile business data, as shown below.

Source: SAP Ariba

SAP Ariba’s supplier risk module, for example, offers standard risk management features that make conducting regular supplier risk assessments easier.

Ultimately, this technology makes it easier to implement some of the best SLM practices, which will surely have a positive ripple effect across your whole organization.

Different Types of Software Used for Supplier Lifecycle Management

The illustration below shows different stages and processes in supplier lifecycle management:

Source: Veridion

Each one is complex in its own way, and SLM software solutions often align with specific parts of the lifecycle.

For example, if your focus isn’t on supplier development but on comprehensive qualification and selection instead, a specialized solution with a specific set of features is a better fit than one complex end-to-end software.

Here’s a quick breakdown of common features and how they correspond to distinct lifecycle stages:

SLM STAGE	FEATURES
Qualification	Supplier pre-screening, compliance check, document verification
Evaluation	Performance scoring, reference management, site audit integration
Selection	Automated bidding events, bid comparison tools, supplier approval workflows
Onboarding	Supplier portal, automated workflow setup, welcome kits
Performance management	KPI dashboards, feedback collection, performance alerts
Risk management	Risk monitoring tools, predictive analytics, contingency planning tools
Supplier development	Training programs, joint improvement plans, incentive mechanisms
Offboarding	Exit documentation, data archival, feedback loops

Keep in mind that these divisions are rarely clear-cut.

For instance, onboarding and development-oriented solutions both require robust risk management capabilities.

The best way to illustrate different types of software for SLM is by going through different stages of supplier lifecycle management.

For starters, accessing a vast network of suppliers is essential for the early stages.

AI-powered business data providers, such as Veridion, address this need effectively.

Veridion helps organizations across diverse industries unlock granular insights into over 120 million suppliers globally.

The best part?

Weekly updates ensure your supplier data is always relevant and up-to-date.

Source: Veridion

Unmatched global coverage and in-depth insights aren’t the only advantages.

Broad supplier management solutions tend to rely on proprietary portals which often come with integration challenges and make it difficult to onboard suppliers who operate outside of them.

As such, having direct access to supplier data offers greater flexibility and control.

Plus, you’re getting quality results fast.

Here’s how one Veridion search compares to traditional methods:

Source: Veridion

That’s more than double the number of candidates in a fraction of the time.

Moving further down the supplier lifecycle, platforms like Jaggaer offer comprehensive supplier management capabilities, consolidating key supplier information in one dashboard.

This allows for continuous supplier evaluation and monitoring, providing access to supplier profiles, RFQ statuses, performance checks, spend data, and more.

The active tab on the left, for example, focuses on due diligence and provides easy access to the most current list of risk profile questions, as well as third-party assessments and upcoming actions.

Source: Jaggaer

For businesses requiring more robust supplier performance management, solutions like the aforementioned HICX or Ivalua cover plenty of ground.

Supplier scorecards are a key feature of this type of software, helping organizations assess and track each supplier’s performance against a predefined set of criteria.

Moreover, you can quickly zoom in on a specific group of metrics.

For instance, Supplios provides quality-oriented scorecards that include a performance timeline and specific quality issues, making them particularly effective for manufacturers.

Source: Supplios

Industry-specific design is another important point to consider to ensure you’ve chosen the best supplier lifecycle management software for your business.

But more on that in the final section of this article.

How to Pick the Right Supplier Lifecycle Management Software

As with any new solution or technology, picking the right supplier lifecycle management software isn’t easy.

There are plenty of factors to consider, and with so many types of solutions on the table, the key is to narrow down your search as much as possible.

As noted by Snehaal Kulté, Head of Technology at the UAE-based Finance House, the quickest way to do that is to identify core business needs and pain points.

Illustration: Veridion / Quote: LinkedIn

This is general advice on software adoption, but it’s more than applicable here.

Highly specialized, industry-specific software is more likely to have the features you’ll find useful in your day-to-day operations.

But if it doesn’t tackle key issues, what’s the point?

Let’s say you’ve centralized all your supplier information, but you’re still struggling with supplier engagement—your partners simply aren’t using the systems you’ve implemented.

The root cause could be a poor user interface, complex workflows, or differing communication preferences that cause friction.

To avoid this, it’s important to choose a solution designed with the supplier experience in mind.

For instance, HICX’s new Supplier Experience Portal prioritizes frictionless experience for suppliers.

As shown in the video below, the portal simplifies navigation, streamlines data entry, and offers self-service options for updates and compliance tasks.

Source: HICX on Youtube

By improving the supplier’s perspective, you drive engagement, strengthen collaboration, and reduce delays related to onboarding and administrative tasks.

Another common pain point is risk identification.

While many solutions offer robust risk management tools that facilitate regular checks and support risk-based supplier segmentation, they fall short when you need to track evolving risks for thousands of suppliers across multiple regions.

In such cases, the only surefire protection is real-time data.

Veridion excels in this area thanks to its extensive Third-Party Risk Management (TPRM) data.

Real-time global coverage and advanced analytics deliver enriched company profiles based on custom-made risk factors while real-time alerts help you stay ahead of potential issues.

Source: Veridion

These features create the foundation for proactive risk management, empowering you to respond to threats before they can cause costly disruptions.

In the end, when choosing SLM software, you can rely on various criteria.

But to maximize value and impact, prioritize solutions that directly address your most pressing issues.

Conclusion

Supplier lifecycle management software does much more than improve workflows.

It’s a game-changer that helps you free up time across multiple departments while rounding up quality data that fuels strategic decisions.

From enhancing supplier collaboration to de-risking your business and driving cost efficiency, the benefits of this technology are immense.

The only catch is finding the right SLM solution for you.

Take the time to explore how different types of SLM software address your main pain points and drive long-term success.

Do that, and you’ll be managing all your supplier relationships with confidence in no time!