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. 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 communicated effectively 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.

Reach out to your customer engagement executive for help developing consequences – and incentives – that feel comfortable to you. Communicate those things to your suppliers clearly and stick to them.

For a sample communication that incorporates good EDICT practices, click here.

Consider these questions with sponsors, stakeholders, and teams when working together to 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 noncompliance 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 setup process? How does it need to be modified to set up suppliers on Ariba Network?

  • Should onetime vendors be required to register on Ariba Network?

  • What channels shall we use to communicate our policy to suppliers?

  • How should we communicate our policy internally?

  • Do the policy and program have executive buy-in?

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