Streamlining Supplier Change Management with Automation

01 Jun 2024
Streamlining Supplier Change Management with Automation
Client Background: Our client, a leading manufacturing firm, faced significant challenges in managing supplier changes and justifying price adjustments to higher management. The complexity of these tasks necessitated a robust, automated solution to streamline processes and ensure accuracy in financial implications.
Challenges
  • Price Implications:
    The client required a form to calculate the financial impact (addition, reduction, or no impact) of switching suppliers.
  • Detailed Information:
    The form needed to capture reasons for the change, type of change, effective date, expiry date, and details of both the new and old suppliers via an autocomplete dropdown.
  • Approval Workflow:
    A hierarchical approval system was necessary, with different levels of approval based on the price impact and its dollar value.
  • Verification:
    Inclusion of verifier emails for physical on-site verification of the supplier exchange.
  • Automation and Integration:
    The need for seamless integration with existing enterprise systems and automated workflows for efficiency.
Solution: Vendor Transition System To address these challenges, we designed and implemented the Vendor Transition System, leveraging Microsoft O365 services. Key components of the solution included:
Dynamic Form Development
  • Developed a dynamic form using SharePoint Online for data storage and site creation.
  • Customizations were made using the SharePoint Framework with React and Material-UI (MUI).
  • The form included fields for calculating price implications, reasons for change, type of change, effective and expiry dates, and autocomplete dropdowns for supplier details.
Automated Approval Workflow
  • Implemented a multi-level approval process using Microsoft Power Automate.
  • Depending on the price impact and the amount, the form was assigned to different approval levels.
  • Approvals were conducted serially, with the form moving to the next approver only after the previous one had approved.
  • If any approver rejected the form, it returned to draft status with comments for rectification and resubmission.
Email Notifications and Verification
  • Integrated email notifications for each approval stage and physical verification by on-site verifiers.
  • Ensured that verifiers could review and approve changes, maintaining a clear audit trail.
Tracking and Reporting
  • Enabled tracking of all changes over time.
  • Generated detailed reports on the impact of supplier changes and maintained a history for auditing purposes.
Technologies Used
  • Microsoft SharePoint Online:
    For site creation and data storage.
  • SharePoint Framework (SPFx):
    With React and Material-UI for form customization.
  • Microsoft Power Automate:
    For email and approval workflow automation.
  • SharePoint Online REST APIs:
    For seamless data integration and operations.
Results The implementation of the Vendor Transition System resulted in:
  • Enhanced Efficiency:
    Automated workflows significantly reduced manual processing time.
  • Improved Accuracy:
    Dynamic calculations and hierarchical approvals ensured precise financial implications.
  • Streamlined Approvals:
    The multi-level approval process provided clear accountability and faster decision-making.
  • Robust Tracking:
    Comprehensive tracking and reporting features enabled effective auditing and historical analysis.