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Process Details

  • Inputs: Supplier registration forms and submitted documents (tax certificates, bank letters, insurance, certifications).
  • Outputs: Risk assessment reports and compliance check summaries.,Notifications to suppliers and internal stakeholders.
  • Systems: ERP Systems (SAP S/4HANA, Oracle Cloud ERP, Microsoft Dynamics 365)

Supplier Registration, Validation, and Risk Assessment

Agnostic

Use Case Overview

An AI agent streamlines the supplier onboarding process by automating data collection from potential suppliers, performing initial validation of submitted information (e.g., tax IDs, bank details), conducting preliminary risk assessments by checking against third-party databases, and routing information for necessary internal approvals before creating/updating supplier master records.

Challenges

  • High potential for costly errors from manual data handling.
  • Significant time and resources are spent on repetitive, low-value work.
  • The manual process is difficult to scale without increasing headcount.
  • Process bottlenecks lead to delays and missed deadlines.

Solution

This use case solution follows these general steps at a high level:

  1. Supplier Self-Registration & Data CollectionProspective suppliers to submit their information (company details, contacts, addresses, tax IDs, banking information, diversity certifications, compliance questionnaires).
  2. Data Extraction & ValidationExtracts data from submitted forms and attached documents (e.g., tax certificates, insurance certificates). Performs validation checks: a) Verifies format and checksums of Tax IDs (e.g., VAT numbers, EINs) using predefined rules. b) Checks bank account details for structural validity (e.g., IBAN validation). c) Identifies missing mandatory information.
  3. Internal Review & ApprovalBased on the validation results, routes the supplier onboarding request through a predefined workflow, highlighting red flags or areas requiring closer scrutiny.
  4. Supplier Master Data Creation/UpdateUpon final approval, automatically create or update the supplier record in the Supplier Master File within the ERP System

Primary Benefits

  • Increase EfficiencyDramatically reduce the time and manual effort required to complete the process.
  • Enhance AccuracyEliminate human error to ensure data integrity and reduce financial risk.
  • Empower EmployeesFree your team from monotonous tasks, allowing them to focus on strategic work that requires their expertise.
  • Improve ScalabilityHandle growing volumes of work without a proportional increase in operational costs.
  • Ensure TransparencyMaintain a complete, auditable trail of every action the AI agent takes, described in plain English.

Related Use Cases

FAQ

How is sensitive supplier data (bank info, tax IDs) protected during this process? +

The agent operates within a secure ecosystem. Once submitted, all data is encrypted at rest. Access to this information within the workflow is governed by strict Role-Based Access Controls (RBAC), ensuring that only authorized personnel can view or approve it.

What does a typical implementation process look like? +

Customization and configuration are a structured process that tailors the agent to your specific controls and systems, typically taking 3-4 weeks. It involves:
Discovery: Mapping your current supplier data requirements and approval workflows.
Configuration and Customization: Customizing the self-registration, validation rules, and approval routing logic.
Integration: Setting up the secure API connections to your ERP and any third-party risk assessment data sources.
Testing & Go-Live: Running test cases through the system before rolling it out to your business users and suppliers.

What kind of preliminary risk assessments does the agent conduct? +

Beyond validating the submitted data itself, the agent can be configured to perform initial due diligence by connecting to third-party data providers via API. This allows it to automatically check if a potential supplier is:
On any government sanctions or watchlist (e.g., OFAC).
A legitimate, registered business entity.
Associated with adverse media or high-risk indicators.

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