Managing Ecommerce Vendors

Supply Chain Sustainability Maturity Model 🌎 Supply chains represent a significant portion of environmental, social, and governance impacts. Addressing sustainability across the value chain is essential to meeting regulatory expectations, reducing risk exposure, and improving overall business resilience. The model developed by ERM provides a clear framework to assess and improve supply chain sustainability. It outlines five stages of maturity—Know, Evaluate, Improve, Perform, and Evolve—across four dimensions: sustainability issues, supplier relationships, ESG performance, and Scope 3 emissions. Each stage reflects a progression in strategic integration, from initial inventorying and self-assessment to risk-based audits, supplier collaboration, and embedded circular practices. Sustainability issues move from being understood to actively prioritized and incorporated into product design, packaging, and operations. Supplier relationships evolve from basic mapping to structured partnerships aligned with corporate goals. The model also highlights the importance of incorporating ESG performance into commercial decisions, not only for key suppliers but across the entire supply base, supported by scorecards and auditing mechanisms. Effective Scope 3 management is positioned as a core driver of performance, progressing from measurement to targeted reductions and full supply chain optimization. ERM’s model offers a comprehensive pathway for aligning procurement and operations with sustainability priorities—supporting impact delivery, operational continuity, and long-term value creation. #sustainability #sustainable #business #esg

As you know, I am passionate about ensuring minority-owned small businesses succeed and are able to scale. Part of doing so is taking advantage of opportunities provided for you! Here are 4 available benefits I commonly see minority and women-owned SMBs leaving on the table: 1. Special Grant and Loan Programs: Have you tapped into all relevant minority small business funds and support programs in your region? If not, devote some time (or delegate to a VA) to see what is available. 2. Contracting opportunities with Corporations: Large corporations are incentivized to work with minority-owned businesses! Register for supplier diversity and procurement programs unlocking partnerships with big companies. Some common programs are Supplier Gateway and the National Minority Supplier Development Council. 3. Contracting opportunities with regional and federal government organizations: join the local chamber of commerce and other regional commercial nonprofits for referral-based bidding and contracting processes. 4. University Supplier Registries: Many colleges/universities are huge employers and maintain minority & women-owned business portals that enable certified businesses to get prioritized for local contracts. Get registered to access privileged bidding processes and university spending. Subscribe to my free newsletter for more resources for Small Business Owners: What other overlooked opportunities or resources exist that more diverse SMB leaders should leverage?

Procure to Pay (P2P): The Engine Behind Smart Spending While R2R ensures accurate reporting, P2P is where every financial journey begins — with how we spend, approve, and control costs. Here are the core P2P concepts every finance pro should master: 1. Purchase Requisition (PR) – The starting point of a formal purchase process. 2. Purchase Order (PO) – The official contract with vendors. 3. Goods Receipt (GR) – Recording that goods/services were received. 4. Invoice Verification – Matching invoice to PO and GR for approval (3-way match). 5. Vendor Master Data – Accurate supplier records = fewer errors. 6. Payment Processing – Paying vendors on time while managing cash flow. 7. TDS/VAT Handling – Ensuring compliance in every invoice. 8. GR/IR Clearing – Reconciling what was received vs. what was invoiced. 9. Aging Analysis – Monitoring outstanding payables. 10. Vendor Reconciliation – Matching vendor statements with internal ledgers. 11. Controls & Approvals – Avoiding fraud and overspending. 12. ERP Workflow Integration – Automating approvals, tracking, and compliance. P2P isn’t just procurement—it’s strategy, compliance, and financial control in action. Understanding P2P means reducing leakages, strengthening supplier relationships, and maximizing working capital. What’s your biggest challenge or success in managing the P2P cycle? #P2P #Finance #ProcuretoPay #AccountingLife #ERP #VendorManagement #FinancialControls #SAP #Oracle #FinanceTransformation

Understanding the SAP MM Procure to Pay Process! The procure-to-pay (P2P) process in SAP MM is integral to efficient procurement and payment management. It seamlessly integrates multiple critical business functions, from requisitioning to payment processing, ensuring streamlined operations and smooth transactions. Here's an in-depth look at the P2P process: Requisitioning: The process begins with a requisition, a formal request for goods or services. This document details the specific items or services needed, their quantities, and the required delivery date. Requisitions can be created manually or automatically based on MRP (Material Requirements Planning) outputs, making it easier to keep track of requirements across the organization. Sourcing: Once a requisition is approved, the sourcing process begins. This involves identifying and evaluating potential suppliers. Supplier selection is critical and can be supported by SAP's vendor evaluation functionalities, which help in comparing supplier performance and reliability. Effective sourcing ensures that the best suppliers are chosen based on quality, cost, and delivery performance. Purchase Order Creation: After selecting a supplier, a purchase order (PO) is created. The PO is a formal document sent to the supplier, detailing the agreed terms and conditions, such as quantities, prices, and delivery dates. SAP MM allows for the easy creation and management of POs, ensuring that all necessary information is accurately captured and communicated. Goods Receipt: When the ordered goods arrive, the goods receipt process involves checking the received items against the purchase order. This step ensures that the correct items in the correct quantities have been delivered. Any discrepancies are recorded and managed, ensuring accurate inventory records and preventing payment for incorrect deliveries. Invoice Verification: The supplier sends an invoice based on the delivered goods or services. The invoice verification process involves matching the invoice with the purchase order and goods receipt. This three-way match is crucial for ensuring that payments are only made for received and correctly invoiced goods and services. Payment Processing: After successful invoice verification, the payment process is initiated according to the agreed payment terms. This final step completes the procurement cycle, ensuring timely and accurate payments to suppliers, which helps maintain good supplier relationships and credit terms. #SAPMM #ProcureToPay #SupplyChain #Procurement #BusinessProcess Follow NagaSindhuja Methuku

Accounts payable (AP) management refers to the process of managing a company’s outstanding bills and payments to suppliers, vendors, or creditors. Effective accounts payable management ensures that a company maintains good relationships with its suppliers, avoids late payment fees, and optimizes cash flow. Below are key components of AP management: 1. Invoice Processing • Receiving and reviewing invoices: Ensure all invoices are accurate, complete, and match the corresponding purchase orders or contracts. • Approval workflows: Establish a process for department heads or authorized personnel to approve invoices before payment. 2. Payment Scheduling • Tracking payment terms: Manage due dates based on terms such as net 30, net 60, or early payment discounts. • Payment methods: Use various payment methods, such as bank transfers, checks, or digital platforms like ACH or credit cards, depending on vendor preferences. 3. Cash Flow Management • Optimizing cash flow: Balance paying invoices on time while keeping sufficient cash on hand for other business needs. • Early payment discounts: Take advantage of any early payment discounts when possible to reduce expenses. 4. Vendor Relationship Management • Building relationships: Keep communication channels open with vendors to avoid disputes and ensure smooth business operations. • Negotiating terms: Where applicable, negotiate favorable payment terms and discounts to improve cash flow. 5. Record Keeping and Documentation • Maintaining accurate records: Keep detailed records of all AP transactions for future reference, tax purposes, and audits. • Reconciliation: Regularly reconcile accounts payable with financial records to ensure that the company’s general ledger is accurate. 6. Automation and Technology • Using AP software: Implement accounting software or enterprise resource planning (ERP) systems to streamline AP processes, reduce human error, and increase efficiency. • Automated workflows: Automate invoice approvals, reminders for payments, and reporting to save time and reduce manual work. 7. Compliance and Internal Controls • Adhering to regulations: Ensure AP processes comply with financial regulations and tax laws. • Internal audits: Regularly conduct audits to prevent fraud, identify inefficiencies, and improve the AP process. By focusing on these areas, companies can effectively manage accounts payable, strengthen vendor relationships, optimize cash flow, and improve overall financial health.

Tech vendors and resellers, your half-baked RFP responses on sustainability are quietly wrecking your margins, guaranteeing you'll miss your targets. You might still win deals, but you will end up doing it by slashing prices because you’re tanking on the sustainability questions. It’s not just fluff anymore, #sustainability questions in tenders are starting to carry real commercial impact. Here’s a real example from a recent major procurement: - Sustainability weighting: 18% - Commercial weighting: 35% - Technical weighting: 35% - Other: 12% Two shortlisted vendors were neck and neck on technical and “other” (within 0.5% of each other). The big swing factor was Sustainability alongside price. 1) Vendor A (a new challenger) scored 16% on sustainability - they provided LCAs, backed up claims with a credible methodology, and clearly answered every question. But they were the significantly more expensive bid. 2) Vendor B (the incumbent) scored 2% - they dumped in generic SharePoint waffle, ignored most of the questions, and didn’t provide a single metric or methodology statement (even suggested cost as a proxy!!). Both made the shortlist. But because of the sustainability gap, the only way for Vendor B to stay in the game was to cut their price by more than 30%, taking it well below margin thresholds just to scrape through. If you are wondering, the lost profit to them was approx £3.9m, yes £3.9m given away for no reason. Lesson for sales and bid teams: Sustainability is now a commercial lever. If you keep recycling vague, nonsense filled marketing copy, you’ll win less often, and only by selling your soul on price. At the very least… tell your team to search and replace “Customer_Name”. 😃 #greenops #scope3 Oh, and procurement people, this is a real chance to apply real commercial pain, whilst doing your bit to save the planet.

Why do so many legal technology implementations fail to deliver their promised value? Too often, legal teams rush to adopt the latest tools without first understanding their actual pain points. Here are the critical steps that separate successful implementations from costly failures: 📊 Start with Discovery, Not Solutions Map your current workflows meticulously. Track how long tasks take, where errors occur, and what frustrates your team most. 🎯 Set Measurable Goals Replace vague aspirations like "improve efficiency" with concrete targets: -Reduce contract turnaround by 30% -Eliminate 50% of manual compliance errors -Increase client intake capacity by 25% These specific metrics give you clear success criteria and help demonstrate ROI to stakeholders. 👥 Embrace Change Management Technology fails when people resist it. Appoint enthusiastic "technology champions" who can provide peer support and bridge the gap between IT and daily users. Their grassroots advocacy often proves more effective than top-down mandates. 🔄 Pilot, Learn, Iterate Test solutions with a small group for 6-8 weeks before full rollout. That same legal department reduced their NDA processing time to 1.5 hours and cut errors by 80% during their pilot. These wins built momentum for broader adoption. Remember: legal technology adoption is about solving real problems, not chasing innovation for its own sake. #legaltech #innovation #law #business #learning

There is a crisis on the horizon. The potential bankruptcy of it giant Atos. This happens every now and then but why is it such a problem for certain organizations? For the users of the CATS CM® methodology it is clear that #contractmanagement is about being proactive…. To prevent the impact of insolvency or bankruptcy of an IT supplier, proactive contract management plays a critical role. Here's how it could have helped avoid such issues if it was proactive rather than reactive. Proactive benefits: Proactive contract management involves regular monitoring of the supplier's financial stability and performance, allowing early identification of potential challenges like insolvency. By being proactive, contract managers can establish effective risk mitigation strategies in contracts, such as financial guarantees or contingency plans, to address supplier insolvency. Proactive management enables the identification and qualification of alternative suppliers in advance, facilitating a smoother transition in case of supplier bankruptcy. Keeping contracts up-to-date with legal and regulatory requirements, including #Dora regulations, ensures compliance and minimizes the risk of legal issues post-insolvency. Let’s explore a few base elements. Implement periodic financial health checks of suppliers to monitor their stability and ensure they meet financial obligations. Include clauses in contracts for renegotiation in case of financial distress, ensuring a fair resolution for both parties. Define clear performance metrics to track supplier performance regularly and address any deviations promptly. Establish escalation procedures that outline steps to take in case of financial instability or non-compliance with contract terms. Develop and maintain contingency plans that outline steps to be taken in the event of supplier insolvency to minimize disruption to IT services. These are just a few measures that should be there and be executed by #contractmanagers. The Pavlovian response from lawmakers will probably “more rules” whilst in effect there is enough in place but it is usually not well executed upon. It also reflects why #procurement #risk #legal #contractmanagement and #business should work hand in hand during the entire contract lifecycle, from pre award to post award. Don’t take big risk. Don’t trust “it is too big to fail”. There was this boat once……

Insightful Procure-to-Pay (P2P) Process The P2P process is a streamlined workflow that covers the steps from identifying requirements to making payments. It consists of three main stages: Pre-Purchase, Purchase, and Post-Purchase. 1. Pre-Purchase Process a. Define Requirements End-User Department: Identifies the need for goods or services and documents the specifics. Purchase Requisition (PR): An internal document used to get approval for purchases. Includes: Product specifics, Quantity, Required date, and Budget. b. Approval Process PR is approved by relevant stakeholders such as a supervisor, Head of Department (HOD), or budget holder. c. Submission to Purchase Department Approved PR is forwarded to the Purchase Department. d. Vendor Identification Vendors are identified through online research, trade directories, offline markets, or advertisements. e. Technical and Commercial Evaluation Negotiations cover Price, Payment terms, Quality, Lead time, Warranty, Replacement terms, Delivery terms, and INCOTERMS. f. Request for Quotation (RFQ) Quotation requests are sent to vendors to validate product quality and pricing. g. Vendor Finalization The best vendor is selected after evaluating RFQ responses. Vendor Master Data Setup: Includes Name, Address, Tax ID, Bank details, Payment terms, Lead time, Warranty terms, and Contact details. 2. Purchase Process a. Processing the Purchase Requisition (PR) The Purchase Department converts the PR into a Purchase Order (PO). b. Purchase Order (PO) A formal document sent to the selected vendor containing agreed-upon terms. c. Acceptance of the PO The vendor confirms acceptance through email, letter, or Sales Order. 3. Post-Purchase Process a. Receiving Goods Goods are received and documented using a Goods Received Note (GRN), which serves as evidence of receipt. GRN: Contains details like product name, quantity, and date of receipt. b. Invoice Verification The invoice is matched with other supporting documents to verify its accuracy: 2-Way Matching: PO & Invoice 3-Way Matching: PO, GRN & Invoice 4-Way Matching: PO, GRN, Invoice & Inspection Slip c. Query Resolution If there is a mismatch (e.g., damaged goods, or incorrect quantity), the invoice is placed on hold until resolved. d. Proof of Delivery (POD) POD Includes documents like GRN, Bill of Lading, and Delivery Challan, confirming delivery details. e. Invoice Processing and Payment Once verified, the hold is removed, and payment is processed on the due date. Contents of an Invoice A valid invoice should include: Name and address of both buyer and seller Tax Identification Numbers (TIN) Invoice date and unique invoice number Purchase Order (PO) reference Bill-to and Ship-to addresses Contact details of both parties Product Description (name, quantity, unit price, total price)

Accounts Payable (AP) Process in a Company 1. Invoice Receipt Description: The company receives invoices from vendors for goods or services provided. Sources: Invoices may come via email, post, or an Accounts Payable automation system. Key Activities: Ensure the invoice is addressed to the company. Confirm that all necessary information is present (vendor details, invoice number, amount, etc.). 2. Invoice Verification Description: Ensure the invoice details match supporting documents to confirm its validity. Steps to Follow: Perform a 3-way match: Compare the invoice, purchase order (PO), and goods receipt. Check: Vendor name and details. Invoice amount and quantity. Tax amounts (GST, VAT, etc.). Payment terms. Tools: Use accounting or ERP software for automated matching. 3. Approval Workflow Description: Send invoices to the relevant departments for review and approval. Steps to Follow: Route invoices to authorized personnel for approval. Ensure all approvals are documented (digitally or physically). Objective: Prevent fraudulent payments and ensure compliance with company policies. 4. Recording the Invoice Description: Once approved, invoices are recorded in the company’s accounting or ERP system. Steps to Follow: Enter vendor details, invoice number, date, and amount. Code the invoice to the correct general ledger (GL) accounts (e.g., expenses, cost of goods sold). Mark the invoice as "pending payment." Goal: Accurately record liabilities to maintain proper financial statements. 5. Payment Scheduling Description: Plan and prioritize invoice payments. Steps to Follow: Review the invoice due dates and payment terms (e.g., Net 30, Net 45). Take advantage of early payment discounts, if available. Ensure sufficient funds are available in the company’s bank accounts. 6. Payment Processing Description: Issue payments to vendors. Steps to Follow: Process payments through checks, wire transfers, ACH (Automated Clearing House), or other methods. Communicate the payment details to the vendor (e.g., remittance advice). Goal: Make payments on time to maintain vendor relationships and avoid late fees. 7. Reconciliation Description: Compare company records with vendor statements to ensure accuracy. Steps to Follow: Reconcile vendor accounts by matching payments with invoices. Identify and resolve discrepancies, such as overpayments or outstanding invoices. Tools: Use bank reconciliation software or manual reconciliation. 8. Reporting and Record-Keeping Description: Maintain accurate and up-to-date records for compliance and auditing purposes. Steps to Follow: Generate reports (e.g., aging reports, vendor payment summaries). File invoices and payment records digitally or physically. Comply with tax regulations and audits by keeping records for a specified duration.