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Supplier file performance review
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If you’ve ever looked at your supplier master file and felt overwhelmed, you’re not alone. Over time, it’s all too easy for these files to grow into something messy and unmanageable as new suppliers are added and details are changed. And when audit season rolls around or a payment goes astray, that mess quickly becomes a major headache.
But it doesn’t have to be this way.
Supplier file cleansing means getting your supplier data in order – removing what’s no longer needed and fixing what’s wrong. With the right tools, it doesn’t need to be time-consuming or manual.
In this guide, we’ll walk you through the essentials of supplier cleansing, examining each step and how to make it as fast and thorough as possible, so you can reap the benefits and pay suppliers with confidence.
What is supplier file cleansing?
Over time, your supplier file fills with outdated contacts, incomplete entries, and the odd accidental (or potentially purposeful) duplicate. Supplier cleansing is the process of tidying the supplier master file by removing dormant suppliers, merging duplicates, and checking that everything is complete and up to date.
A clean file helps your team:
- Avoid payment errors and late payments.
- Reduce the risk of fraud.
- Meet audit requirements without stress.
- Maintain good relationships with suppliers.
What does ‘clean’ look like?
A clean supplier master file means:
- No duplicates or dormant entries.
- Up-to-date, complete, and validated supplier information.
- Confidence that your payments are accurate and secure.
How to cleanse your supplier master file
Step 1: Spot and eliminate duplicate suppliers
Duplicate records are one of the most common causes of overpayments and failed transactions. They’re often created when a supplier is entered slightly differently each time or under a different code or category of the supplier file if the file is set up this way.
For example, A supplier that is both a manufacturer and retailer may be under both of these sections in your supplier file with different listings. Or, the supplier could be names both ‘FISCAL Technologies Ltd’ and ‘FISCAL Technologies Limited’.
- When using filters to find duplicates, subtle variations like misspellings can be missed. With specialist software, you can find even the smallest discrepancy.
Step 2: Verify and update records for completeness
Missing or outdated information like bank details, tax numbers, or contact emails can delay payments and trigger compliance issues. This essential step ensures your team can correctly pay suppliers and contact them if the need arises.
Step 3: Maintain your file with ongoing monitoring
A supplier cleanse should not be a one-off task. Supplier data changes all the time, and if you’re relying on an ad hoc approach, it’s easy to miss risks and allow the data to get to the same state again.
We recommend scheduling regular checks on supplier data to keep on top of it. With that in mind, we recommend a continuous approach to your supplier risk monitoring, such as using specialised software. In this way, you can be alerted to new risks as soon as they happen and fix them quickly. Therefore, you will negate risks such as duplicate payments before they are likely to occur.
The benefits of automating supplier cleansing
Traditionally, supplier cleansing has meant hours gathering data, making backups, filtering spreadsheets, and cross-checking records. It’s tedious, slow, and prone to human error.
The FISCAL software automates finding the risks:
- The cleansing dashboard shows what needs your attention.
- You and your team make the change and reap the rewards.
- Audit prep becomes a routine task, not a last-minute scramble.
90% of organisations have experienced financial leakage from supplier file errors. Automation helps make sure yours isn’t one of them.
Take your supplier file from dirty and disordered to squeaky clean
Whether you’re trying to regain control or ensure you’re audit-ready, cleansing your supplier file is one of the most impactful actions you can take to increase payment accuracy, keep compliant, and avoid supplier problems. And with the right platform behind you, it becomes simple, stress-free, and sustainable.
Ready to take the first step?
Talk to the experts at FISCAL and see how we can help you transform your supplier file.
