5 Factors for Estimating Effort to Enable Suppliers

So you're a supplier enablement team member, you're looking at a list of suppliers to enable/migrate, and you're trying to determine what your forseeable future will look like. You're trying to estimate the effort to enable (tactical and emotional).

You see some recognizable names in the list for MRO, office supplies, and IT giants like Grainger/MSC/VWR, OfficeMax/OfficeDepot/Staples, Dell/IBM/HP as well as a mixture of small/medium sized businesses, and some obvious local mom n' pops. You add a column to the far right of your spreadsheet called "Estimated Effort".

What factors do you consider when filling in that column with a 3-High, 2-Med, or 1-Low?

These are some potential factors to consider when estimating enablement effort and my personal recommended weight level:

1. Supplier Size (1-Low)

2. Assumed Experience (1-Low)

3. Enablement Type/Method (2-Med)

4. Flexibility/Ability (3-High)

5. Willingness (3-High)

1. Supplier Size (1-Low)

Bigger does not always mean better when it comes to enabling suppliers. Some of the big boys/girls can be enabled quickly and easily, but some are a nightmare because they lack flexibility to cater to your needs and/or willingness to work with you.

I know some large suppliers have said to VERY large buyers, "Sorry, we have a backlog of enablement requests and we can't even talk to you for three months!", i.e. they lacked willingness. BTW One call from a well placed exec changed their tune. :)

The other factors below are more relevant than mere size of the supplier.

2. Assumed Experience (1-Low)

Some suppliers might be recognizable as having eProcurement experience. Maybe you or other team members have enabled them elsewhere. Maybe you've seen their booths at tradeshows like AribaLIVE or ISM. Or maybe you're using a supplier network that has searchable supplier profiles and you see they have lots of buyer connections.

Experience is definately a good thing, but even if they've been doing this for 10 years, it could still be a challenging enablement.

3. Enablement Type/Method (2-Med)

This is something more tangible that you should be able to estimate relatively early and easily.

Let's look at two potential extremes:

Low Effort Enablement Type/Method Example

• Catalog = relatively small number of items, mostly simple products (widgets), updated yearly (or even non-catalog only)

• POs = email is fine

• Invoices = good ole PO flip via portal with no unique business scenarios

High Effort Enablement Type/Method Example

• Catalog = millions of items, highly complex products and/or services, frequently updated, complicated purchasing scenarios (maybe services or bundles with products AND services)

• POs = old school EDI 850 via a VAN

• Invoices = old school EDI 810 via a VAN with messed up business scenarios

Of course there are numerous scenarios in the middle of these two and the criteria will depend on your enablement scope and options, but you can estimate this effort factor easily.

4. Flexibility/Ability (3-High)

This is a big factor that you'll quickly get a sense of just after engaging the supplier. Regardless of size, the ability for a supplier to say "Yes, we can do that no problem" is huge.

I've worked with some suppliers that were willing and able to do whatever we needed them to do, while others could/would only do things one way. Which brings me to the most important factor...

5. Willingness (3-High)

The willingness to succeed is the most powerful factor and the one that is purely a state of mind of each person on the supplier-side team. Beyond creating great requirements and providing a delightful menu of enablement options, you'll want to invest in doing all that you can to encourage a supplier from the very first communication to come to the table an enthusiastic participant.

Some ways to influence a supplier's willingness:

• Get executive sponsorship - have your execs call the supplier's execs (and have the supplier exec give a clear directive to the supplier team members).

• Communicate a strong value prop - every communication (especially the earliest ones) should clearly state/remind the benefits to the supplier.

• Show your appreciation - even though you're the all-powerful buyer, don't be a jerk. Express your gratitude to the supplier-side team members, and often.

Consider these factors when estimating your supplier enablement effort, and you'll be able to better plan your supplier enablement project. You may elect to go for the easy ones first, or get the hard ones out of the way, or a balanced combination (my personal recommendation). You may want to give the harder ones a longer timeline or have backup suppliers in the same category (if possible) just in case.

#buyers #bestpractices