Businesses with global supply chains depend heavily on partnerships with local and regional vendors and suppliers to provide products and services to meet customer demands efficiently. All these external partners help businesses access markets that would be challenging to establish presence via internal logistics alone.
From order fulfillment to service quality to operational efficiency, your partners can help you with all this while allowing businesses to control costs and improve ROI. You can maximize the value of your business network by building strong relationships with your partners. And this foundation should be constructed on impactful partner onboarding.
According to a survey conducted by Ovum, around 40% of businesses need at least a month to onboard a new partner. Now, if your business has hundreds or thousands of partners, it can be challenging to build individual workflows and data pipelines through manual coding. On the other hand, the survey also highlights that if you have a consolidated partner onboarding approach, you can decrease complexity, allowing you to onboard vendors and suppliers more quickly to see a positive impact on your business performance.
In this article, we will discuss what partner onboarding is, its common challenges, and some best practices that can benefit your business.
What is Partner Onboarding?
Partner onboarding is the process of gathering, validating, and consolidating data and documentation that you need to integrate an external partner into your existing enterprise data ecosystem to and begin a business relationship with a vendor or supplier. When implemented correctly, it can help you competently carry out business operations with that company. Both parties need to establish an effective way of data exchange and communication, ensuring a time-sensitive collaboration and seamless administration of the co-related tasks and projects.
Having a robust partner onboarding process in place helps avoid fraudulent vendors by ensuring that all your partners are in compliance with your quality standards. This alleviates risk by setting up data governance, compliance, and validation processes.
Benefits of Partner Onboarding
As per CSO Insights, around 63.5% of businesses believe their partners contribute to their yearly revenue. To achieve your anticipated partnership performance levels, you will have to implement a well-structured onboarding program to gather and analyze partner data needed to achieve your business goals.
Yet, many companies ignore the importance of a structured partner onboarding process as they underestimate its advantages. However, in reality, it can constructively influence your company’s performance as it:
Ensures Governance and Compliance
Partner onboarding ensures your partner complies with all internal policies and external protocols. When onboarding a new partner via an automated data integration tool, you don’t have to worry about tons of paperwork. You can quickly perform automated checks against third-party databases to further authenticate the vendor exists and is genuine.
Reduces Transactional Burden
A partner onboarding solution reduces the transactional workload on your in-house teams. Your internal users no longer have to worry about data collection and data entry. Partners can utilize a data integration platform that is able to extract from those sources, align formatting with your in-house systems, and consolidate the data without feeds through an automated process.
Enhances Productivity and Collaborative Efforts
Using a partner onboarding solution, you can quickly request, obtain, corroborate, and accept data from your potential partners. This is because it eliminates manually coding individual data pipelines for each vendor, and there’s no longer the need for a dedicated IT person to maintain and fix broken pipelines. As a result, you can accelerate, systematize, and simplify your onboarding procedures by collecting and managing partner information and files in a streamlined data management framework.
Challenges Associated with Partner Onboarding
According to IBM, over 70% of businesses report that their IT workforce struggles to support the volume of vendors their company has to onboard and handle.
Effective onboarding can help develop partner engagement, increase revenue, and decrease attrition. However, failure to embark on the right foot with new partners can cause many to depart soon, wasting your efforts, time, and resources.
Some key challenges associated with partner onboarding are:
Manually Onboarding Partners
Many companies develop manual onboarding processes that are inefficient and burden IT teams. That’s because your IT team has to create manual procedures for extracting, validating, and standardizing the partner data. These processes are prone to break if the partner changes how they format inputs or switch to a different platform. Issues can also occur when data validation checks fail due to variances in incoming data.
Complicated Legacy Infrastructure
As their partner network expands, many enterprises usually add customizations and manual processes on top of their legacy systems. In essence, legacy systems are not suited for connecting with disparate sources and mostly require middleware to integrate data, in addition to significant coding efforts. This creates a needlessly complex environment, which requires IT intermediation to manage incoming data and monitor key metrics for vendor performance evaluation.
When vendors make alternations to the source data, like partner contracts, contact info, rights, roles, or connectivity requirements, it usually results in broken dataflows because the source formatting has been changed. The dataflow will need to be fixed manually and adjusted to new source formatting. Also, identifying where the breaks occur is a time-intensive task. Your staff has to call and email IT, questioning why it’s taking so long, which slows the process even further. As this chain of issues begins, it creates onboarding backlogs that disrupts the ongoing exchange of information, leading to delays in processing orders and subpar customer experience.
Best Practices for Partner Onboarding
An organized approach to partner onboarding helps businesses decrease complexity in workflows, onboard partners quickly, and achieve better business outcomes. Some of the best practices for partner onboarding are:
Automate the partner onboarding process
To tackle the challenges of manual onboarding, enterprises use a purpose-built data integration tool to build data pipelines to ingest, validate, and manage all of the incoming vendor data and files.
With an end-to-end data integration platform, businesses can build an automated partner onboarding data framework that can integrate all the new vendors and suppliers without writing long SQL scripts. This saves the company from challenging and diverse integrations, thanks to the native connectivity to data sources.
Caption: Centerprise reduces partner onboarding time to hours instead of weeks.
In addition, these tools help create self-operating and self-regulatory onboarding processes. It delivers well-timed insights for a favorable collaboration while reducing onboarding times to hours rather than days and weeks.
Increase Visibility & Transparency
Visibility is essential in the partner onboarding process as it lays the foundation of data insight that’ll drive your efficiency for years ahead. You should have a high level of transparency throughout the onboarding process if you want to maintain healthy and successful relationships with your partners.
For instance, data visibility that’s provided through monitoring, reporting, and alert notifications is a great way to keep all key stakeholders in the loop. A data integration tool provides near real-time visibility via self-service vendor portals, allowing for instantaneous monitoring and reporting on the shipment status, payment cycles, inventory information, and production schedules.
Using an enterprise-grade data integration tool, your IT team can integrate different partner systems, such as cloud databases, web applications, and other online platforms, into the business using APIs. You no longer have to establish manual connections for each vendor, which eventually results in faster time to revenue.
According to Ovum, you can use automated solutions to decrease partner onboarding time by 75%. This results in one significant advantage: your business can get accurate, timely insights from partner data collected across the enterprise, enhancing cash flow, and producing more working capital swiftly.
Automate Partner Onboarding with Astera Centerprise
Onboarding new partners quickly and efficiently is an important ability that portrays your company as a business with which they can build a strong partnership. Using a robust data integration tool can help you interact with your key partners faster than your competitors.
Astera Centerprise is an end-to-end data integration platform that provides a complete toolset to extract, transform, and integrate partner data through automation. With native connectivity to popular data sources and process orchestration capabilities, it enables businesses to build repeatable, customized partner onboarding processes in a matter of hours through its easy-to-use, powerful drag-and-drop environment. As a result, your company can easily tackle onboarding challenges, accelerate time-to-insights, and get higher return on investment (ROI).