A wider reaching global supply chain exposes the products we consume—and those companies within the supply chain—to increased risk. A robust Supplier Management Program that leverages software, standardized tools, and data management practices can help organizations to more effectively audit, monitor, and manage supplier performance and program implementation and help ensure high-quality, safe, and consistent products.

We recently sat down with KTL’s Power Platform Team to talk about how organizations can leverage Microsoft 365 and the Power Platform to effectively manage supplier data and performance to improve overall operations. 

Q: What does a Supplier Management System do? What capabilities does it have?

Supplier management is about keeping vendors and suppliers organized and ensuring they meet organizational (i.e., internal), regulatory, and applicable third-party certification expectations. Supplier management may include supplier selection and approval, qualification review, contract negotiation, periodic evaluations, and documentation and records management.

KTL’s Supplier Management System is a custom tool built using Microsoft 365 and the Power Platform that streamlines how an organization approves and manages suppliers, helps control costs and reduce risk, and supports compliance with internal requirements and regulations (e.g., Food Safety Modernization Act (FSMA) Foreign Supplier Verification Program (FSVP) Rule).

KTL’s Supplier Management Systems:

• Provide a checklist to ensure all vendors and suppliers meet required criteria (e.g., certifications, licenses, performance history).
• Manage vendor and supplier-specific requirements.
• Store and organize supplier documents and records; suppliers can upload their own documents in a secure folder (if external user access is allowed).
• Enable facilities to conduct and manage supplier evaluations.
• Provide verification procedures that close out evaluations and generate PDF reports.
• Send email notifications of supplier-related compliance deadlines.

Q: What is KTL’s approach for designing and implementing a Supplier Management System? How do you work with clients?

We design every Supplier Management System with ease of use, compliance risk, and operational impact in mind, while being mindful of the organization’s pace and budget tolerance. We understand that every company works a little differently; as such, it is important that any Supplier Management System we design reflects how the organization operates in practice. Our goal is to create a system that fits the organization, fosters user adoption once implemented, and avoids the rigidity of one‑size‑fits‑all software.

KTL’s approach to building a Supplier Management System generally follows three main phases:

• Planning: Our first step is to get a complete understanding of how the organization currently manages suppliers. We meet with key stakeholders to understand what’s working, what’s not, and what’s required to develop a robust Supplier Management System that meets organizational and compliance needs. Our team evaluates existing systems (if developed) and related processes, documents, and tools to identify gaps, understand needs, and establish priorities. Based on our initial assessment and evaluation, we work with the client to create a clear, customized roadmap for a Supplier Management System that will work within the context of the organization.
• Development, Review, and Rework: Based on the priorities identified in the planning stage, our team establishes development milestones and timelines. We then begin building the system in stages, reviewing each milestone with the client as it is completed. This helps to ensure the Supplier Management System meets defined requirements, functions as desired, effectively supports supplier processes, and delivers organizational value every step along the way (e.g., improved efficiency, reduced risks, and enhanced compliance).
• Turnover and Continued Support: Once KTL completes the development phase, we work closely with the client to coordinate the launch date and provide training to staff who will be using the system regularly to ensure they are comfortable with its functionality. We can also provide advanced user training to create internal “power users”, if desired. Importantly, our team remains available post-launch to provide ongoing support and to implement adjustments based on real‑world use. We are always available to expand the scope of development based on changing organizational needs to ensure the Supplier Management System remains a valuable tool.

Q: What are some of the most common integration challenges associated with a Supplier Management System and how do you address them?

For many companies, the biggest challenge is simply recognizing they need to develop, upgrade, or integrate a more robust Supplier Management System to meet organizational needs. Once that initial decision is made and development begins, there are several common integration challenges we encounter in the development process:

• For many companies, the biggest challenge is simply recognizing they need to develop, upgrade, or integrate a more robust Supplier Management System to meet organizational needs. Once that initial decision is made and development begins, there are several common integration challenges we encounter in the development process:
• Fragmented Inputs: The most common issue involves working with existing systems, data, and processes that are messy and don’t always align across the organization. This might include different teams in the same company using different, custom-built tools—none of which communicate with each other. These fragmented inputs create challenges figuring out how to combine various data sources and generate consolidated reports.  KTL’s data management professionals help evaluate these systems and processes to ensure they can be streamlined and integrated into a Supplier Management System.
• Document and Evidence Management: Supplier Management Systems need to document, maintain, and store evidence of compliance. We find that many organizations do not have a common system for this documentation; rather, this evidence tends to “live” in different repositories without consistent version control or standards. Identifying the various repositories, determining the correct/most current versions of documents, and bringing everything together into a central repository can be challenging depending on past management practices. We support this process by helping organizations assess documentation gaps and establish structured document control frameworks within the Supplier Management System.
• Compliance and Standards Mapping: Many organizations use their Supplier Management System as part of overall compliance programs to manage regulatory (e.g., Environmental Protection Agency (EPA), Food and Drug Administration (FDA), Occupational Safety and Health Administration (OSHA)) and/or third‑party certification (e.g., International Standards Organization (ISO), Global Food Safety Initiative (GFSI)) requirements. Translating these requirements into usable data fields, workflows, and reports can be complex—and can carry significant compliance consequences if done incorrectly. The challenge becomes even greater when the system must accommodate multiple regulations or standards at once. KTL’s environmental, health, and safety (EHS); food safety; and quality professionals provide technical insights to help ensure our Supplier Management Systems effectively meet compliance and certification requirements.

Q: How do you integrate the Supplier Management System with a company’s overall management system (e.g., food safety, quality, EHS)?

One of the things that differentiates KTL as an information technology (IT) solutions provider is that we aren’t a software vendor. Rather, we are a team of consultants who use our expertise in compliance management systems to build powerful, compliance‑ready solutions using Microsoft 365 and the Power Platform. We blend deep EHS, quality, and food safety experience with practical IT know‑how to build systems that function according to our clients’ operations and regulatory/certification requirements using the software most organizations already have (i.e., Microsoft 365).

Because of our team’s broader expertise, we’re able to effectively integrate Supplier Management Systems directly into organizational food safety, quality, and EHS programs. Supplier qualification, onboarding, audits, corrective actions, and reevaluations all flow seamlessly into existing management systems. Compliance and certification requirements are incorporated into every step in the supplier management process—from initial risk scoring through ongoing monitoring. The result is a Supplier Management System that is a natural extension of the overall management system, with connected workflows, shared data, increased consistency, reduced duplication of effort, and strengthened compliance across the organization.