Developing your Collaborative Commerce Compliance Policy

What it is and why it’s important

Your company’s Collaborative Commerce Compliance Policy governs how you’ll manage and encourage program participation among your suppliers and employees. It is the most significant factor in driving the adoption of new business processes between your company and its suppliers. In doing so, it determines the success or failure of your program.

A good compliance policy spells out expectations for participation as well as consequences for not participating. It is effectively communicated to all parties. Its components should include five elements that are represented by the easy-to-remember acronym EDICT:

  1. Expectation: Inform suppliers about your program and how you expect them to participate
  2. Deadline: Set a by-when date for them to participate
  3. Incentive:  Give them a good reason to participate
  4. Consequences: Tell them the downside of not participating
  5. Togetherness: Help them see how participation benefits them as well as you

Many suppliers will comply, some won’t. You’ll want to treat them all equitably while maintaining integrity in your policy and program. Start by reaching out to your customer engagement executive for help with developing consequences – and incentives – that feel comfortable to you. Then clearly communicate them to your suppliers and stick to them. For a sample communication that incorporates good EDICT practices, click here.

Consider these questions with sponsors, stakeholders, and teams while together you form your compliance policy:

  • Is participation in this program mandatory?
  • What’s our deadline for participation?
  • Should we offer incentives for participation?  If so, what are we comfortable offering?
  • What consequences for non-compliance are we comfortable with?
  • After a supplier joins Ariba Network, should we reject any paper invoices we get from them?
  • Can participation be a condition for the award or renewal of business with our company?
  • Are there suppliers that we cannot or don’t want to move to Ariba Network? 
  • Do we want to incorporate mass recruitment techniques?
  • Do we have a new supplier set-up process? How does it need to be modified to set-up suppliers on Ariba Network?
  • Should one-time vendors be required to register on Ariba Network?
  • What communication channels shall we use to communicate our policy to suppliers?
  • How shall we communicate our policy internally?
  • Do this policy and program have executive buy-in?



Communicating with and training suppliers