Simplifying Vendor Data at King Price Insurance

King Price Insurance began as a family business and quickly developed into a strong player in the South African insurance industry. In the early years, the owner made all procurement decisions, from selecting suppliers to managing data. As King Price expanded and acquired more companies, the company needed a better process and a system that would connect vendor data across multiple databases and departments. This case study examines how King Price Insurance worked with Transparent to streamline vendor data management, resulting in a more efficient and accurate system.

Many organizations fall into the trap of relying on “institutional memory” to manage vendor data. This informal approach, where “everyone just knows,” can work for a while. But as the business grows, this over-reliance can become a major obstacle. King Price faced exactly this challenge.

• No central vendor master file. Different departments maintained separate vendor lists, leading to inconsistencies and duplication.
• Incomplete vendor contact details. Limited information made communication and strategic decisions more difficult.
• Multiple sources of vendor information. Rapid growth and acquisitions led to fragmented data.
• No process for vendor onboarding and maintenance. The lack of a structured approach to vendor onboarding meant a polluted vendor master file.

To overcome these inefficiencies, King Price sought a system that could:

• provide quick and accurate data insights for informed decision-making
• free up resources by automating repetitive tasks
• provide clear visibility into vendor performance for optimizing supplier relationships
• streamline the process of identifying and selecting the best partners
• improve their Broad Based Black Economic Empowerment (BBBEE) rating

By partnering with Transparent, King Price sought to implement a comprehensive solution to centralize, clean and enhance their vendor data.

Updating vendor data is often a resource-intensive and detailed task, which is often too much for companies to handle internally. Imagine reviewing and enriching the data of 8,500 suppliers. That’s no easy task. This is exactly where Transparent was able to provide the perfect solution. Here’s how we helped King Price Insurance streamline the management of their vendor data.

1. Centralized master file: We consolidated fragmented vendor data, from multiple departments, into a single, unified database. This eliminated inconsistencies and created a central hub of reliable vendor information.
2. Data cleansing: We thoroughly cleansed the consolidated vendor data file by removing inactive vendors, duplicated vendors and spelling inconsistencies.
3. Accurate, enriched vendor details: We carefully reviewed and updated vendor contact information. This meant that we cross-checked and verified each vendor’s details to ensure that the communication channels were set up correctly and completely. The result: over 90% of vendor data fields were enriched and validated
4. Automation and visibility: We implemented an ERP-ready system to automate repetitive tasks and provide King Price with clear visibility into vendor performance. This empowered them to make strategic sourcing decisions and elevate their supplier relationships and overall vendor management.
5. Streamlined onboarding and maintenance: During the project, it became clear that the procedures for supplier onboarding and maintenance needed to be revised. Together with King Price, we developed and implemented new procedures to ensure long-term data quality and efficiency.

The brighter future

While this process was time consuming, it laid the foundation for a more efficient and accurate vendor data management system at King Price. Through our partnership, King Price was able to centralize and implement a clean vendor master file, streamline processes, reduce costs, and ultimately gain a better insight into strategic sourcing and vendor performance.

 “Transparent has made our supplier information crystal clear and complete.”

– Yvette Barkhuizen, Partner – Finance Optimisation

While King Price’s story is somewhat unique, the challenges we faced are fairly commonplace across all industries. With so many pressing tasks during a merger, it can be easy for vendor data maintenance to slip down the priority list. Gordon Reid, who led this project, reveals why and when you should pay special attention to cleansing, capturing, maintaining and onboarding the vendor master data.

1. Before any mergers and acquisitions

Mergers and acquisitions are difficult to manage at the best of times. Without prior consolidation and data cleansing of the vendor data of the parties involved, duplicates, inconsistencies and outdated information will arise. The last thing you want is to import corrupted data into a new system. This can lead to both operational and compliance issues. Correct and consistent vendor data is crucial for smoother processes, supplier relationships and better decision making.

2. When scaling quickly

Rapid growth is exciting, but it can quickly turn your vendor master file into a mess. Outdated, duplicate and fragmented vendor information can slow down procurement and cost you money. Regular data maintenance keeps things organized and efficient, so you can focus on your growth without the fear of poor vendor selection, maverick purchasing, late or wrong payments.

3. Upgrading or changing your ERP system

Switching or upgrading your ERP system is a big task. If your vendor data is full of errors and outdated information, you’re simply transferring these problems to the new system. This can disrupt operations and increase costs. Clean up your supplier data before the switch to ensure a smooth transition and optimal performance.

4. Improving ESG reporting

Solid ESG reporting depends on accurate vendor data. If your data is inaccurate, so are your reports.  This could lead to compliance and reputational issues that damage your credibility. Regular maintenance and validation of vendors ensures that your ESG reports are accurate and trustworthy, thereby minimizing reputational risk.

5. Routine check-ups

You should not wait for a big event to clean up your vendor data. Regular maintenance is required. Better data means better processes: your automation becomes more accurate, reporting more reliable and you can identify compliance issues faster. It also helps to maintain good supplier relationships.

Clean vendor data is not a luxury – it’s a necessity. It’s how companies maintain timely payments, great vendor relationships, and accurate automation. That’s where we come in.

Transparent’s vendor master data management services can enrich your data to improve its accuracy and generate better insights.

Our vendor master data services combine advanced technology and deep vendor expertise to drive these outcomes – all without adding to your team’s workload.

• Deduplication: Eliminate redundant data to streamline vendor management processes.
• Cleansing: Correct and update vendor information to gain more insight and control over your data.
• Enrichment: Streamline your processes and automation with complete data.
• Fraud Analysis: Identify potential fraud risks to safeguard your operations.
• Governance and Maintenance: Build governance frameworks and maintenance routines to maintain data quality.