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Know Your Supplier
Know Your Supplier
ECCMA’s Know Your Supplier (eKYS) program is a rapid, low-cost and future-proofed answer to supplier master data management. It minimizes problems with supplier identification in master data (unverified, duplicate or redundant records) and standardizes supplier master data for ISO 8000-116 and ISO 25500 compliance and AI-readiness.
ECCMA’s Know Your Supplier provides definitive supplier identification and verification to enhance the quality and reduce the cost of managing a company’s supplier master data, and so is a vital tool during product cataloging, product sourcing, supplier onboarding and procurement spend analysis.
Some of the world’s largest companies are already leveraging ECCMA’s Know Your Supplier program to cut the cost and ease the day-to-day management of their supplier master data. Read more in our case study here.
The problem with supplier identification
It is common to identify companies by their names without verifying that those names (or the spelling of the names) are correct. This leads to the creation of duplicate supplier or customer records and increased risk of fraud.
A typical supplier master will contain as many as 20% unidentifiable suppliers. This happens when the name in the master data record cannot be found in an official government registry.
Once the supplier’s legal name has been verified, it is common to find that there is a 30% duplication of records in the supplier master. It means that items are bought from the same supplier under different names and typically at different prices. It is problem when a company is conducting:
- procurement spend analysis
- supplier on-boarding programs
- due diligence/anti fraud measures.
Validating and verifying supplier identity
ECCMA members have access to over 81 million authoritative supplier records representing over 95% of world GDP. We use the International Business Registration Number (IBRN), Legal Name and date of origin of a company as key data, verified against its authoritative source.
The ECCMA Know Your Supplier program first unambiguously identifies and verifies the supplier, then verifies and standardizes the presentation of supplier qualities (such as certifications, industry, and product and services offerings), and finally enables suppliers to review and provide contact information to those interested in communicating with them.
To leverage ECCMA’s Know Your Supplier (eKYS) program you only need to add the IBRN to your supplier master data. Mapping your active supplier list to our managed supplier master is part of ECCMA members’ benefits. Once your active suppliers have been mapped you will start receiving status reports if a government business registration status changes from active to inactive, providing an invaluable tool to combat identity fraud and actively manage your supplier master data on a daily basis.
Our expert research team, using AI-assisted tools alongside proven computer assisted research methods, can also map and verify additional data items such as tax IDs or other regularly used identifiers.
What is an International Business Registration Number (IBRN)?
An International Business Registration Number (IBRN) is the international format of the Authoritative Legal Entity Identifier (ALEI), the registration or file number assigned by a government business register when a company is formed.
By adding an ISO 8000-116 prefix to the local ALEI it becomes an IBRN, a globally unique business registration number.
| ISO 8000-116 Prefix | + | ALEI | = | IBRN |
| US-DE.BER | + | 3031657 | = | US-DE.BER:3031657 |
The ISO 8000-116 prefix identifies the country, subdivision and registry, in the above example: US is the ISO code for the United States of America, the subdivision is DE for the State of Delaware, and the registry is the Delaware Business Entity Register (BER).
Locally issued business registration numbers are authoritative legal entity identifiers (ALEI). They have the force of law; they are backed by legal authority and in all countries registration and renewal is required by law.
Verification of an IBRN at its authoritative source, using the tools laid out in the ISO 25500 standards, supports interoperable, integrated, and sustainable supply chains.
International Business Registration Number (IBRN) Use Cases
click above images to view the corresponding use case
How to access ECCMA Know Your Supplier
The best way to explore the value of ECCMA’s Know Your Supplier for your own supplier master data management is to set up a call. We can discuss the process, your current supplier management activity, and the projects we’ve completed for others. Contact us and we’ll be happy to share our experience with you.
Verify and rationalize records
The best way to quickly identify potential duplicate supplier or corporate customer records is to match supplier or corporate customer names and addresses against ECCMA Know Your Supplier, and obtain their IBRN. This is an ECCMA full membership-inclusive benefit.
Supplier Alerts
ECCMA full members can request regular updates on any changes in their supplier or corporate customers records that have been matched to ECCMA Know Your Supplier. Supplier Alerts may warn ECCMA members of risks, for example when a company has a legal status change in the government business register from active to inactive.
Standardize master data
After full membership-inclusive matching, ECCMA offers a fee-based service to research and verify the IBRNs and other data in the relevant government business registers for those organizations for which matches were not found. Through API, bulk, or manual research, ECCMA can access government business register data on the majority of the world’s over 300 million legally registered businesses.
Enrich master data
ECCMA full members can request an estimate to research, verify, and standardize other data that helps them to know their suppliers. These may include tax identification number, CAGE Code, the relevant industry or product codes of the supplier, or certifications to do with ownership (minority-, woman-, veteran-, disability-owned), small business status, health and safety, environmental compliance, or human rights and labor standards, among other qualities.
Manage your Know Your Supplier footprint
Companies present in ECCMA’s Know Your Supplier (eKYS) can assign an eKYS Account Record Manager (ARM). The ARM serves as a contact point for his/her business and must be an employee of the company for which s/he is an ARM. ARMs may not alter data from government business registers that is approved and verified by the ECCMA team members. eKYS ARMs can add company contact information to their eKYS record, and control its distribution, making it easier for their suppliers or corporate customers to contact them as well as their potential trading partners.
Please contact us to apply to become an eKYS ARM.