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Supplier data management is the practice a business uses to maintain, organize, and track records of its supplier relationships.
When a business maintains a relationship with a supplier, they need to keep track of its inventory processes, procurement history, contracts, purchasing data, and more.
For businesses with multiple suppliers, these records can quickly become unwieldy. A supplier data management system consolidates, organizes, and houses all of these records in one central location, giving the business a single bird’s-eye view of all its current and historical supplier data.
Most systems include data governance features so that various departments or individuals get the right access to the right information at the right time. Many supplier data management systems provide streamlined tools for managing supplier relationships, so they can also bring efficiency to the supplier onboarding and offboarding processes.
Some systems are designed to break down operational silos, enable different parties to collaborate in one central place, and help businesses scale their supplier relationships up or down as needed.