The supplier hierarchy in Spend Visibility contains five levels.  The lowest level represents the ERP Supplier that was originally loaded into Spend Visibility.  For enriched suppliers, the remaining levels are the Supplier, Intermediate Parent, Domestic Ultimate Parent, and Global Ultimate Parent.  How these levels are related depends on the percentage of financial and legal responsibility between them.  In some cases there is no "linkage" or relationship between these levels because the supplier is a stand-alone business entity.  In other cases the suppliers are linked by majority ownership (>50% stock), either as a Subsidiary to Parent linkage or as a Branch / Division to Headquarter linkage.

 

The different types of suppliers are described below:

 

  • Parent - a corporation that owns more than 50% of another corporation's capital stock.
  • Subsidiary - a corporation whose capital stock is more than 50% owned by another corporation and has a different legal business name from its owning parent.
  • Headquarters - a business establishment that has branches or divisions reporting to it, and is financially responsible for those branches or divisions.
  • Branch (or division) - a secondary location of a business.  It is not a separate corporation, and therefore, has no legal responsibility for its debts.  A branch has the same legal business name as its headquarters, but usually operates under a different trade style.  A branch may be located at the same headquarters if it has a unique trade style and unique operations.  A division has a specific divisional name and operates like a separate, unique entity.
  • Stand-alone - a business entity that doesn't have any linkage relationships, it is the only location.

 

By examining the Location Status Code and Subsidiary Indicator on the enriched supplier, you can tell which type of supplier you have, as well as its relationship to other suppliers in the corporate hierarchy.

 

Location Source Code

Subsidiary IndicatorSupplier Type
Single LocationNoStand-alone.  The only location of the business.  No linkage upward or downward.
Single LocationYesSingle location subsidiary.  Stock is held upward by a parent.  No downward linkage.
HeadquarterNoGlobal Ultimate.  No linkage upward.  Linkage downward can be either branches or subsidiaries.
HeadquarterYesHeadquarters.  Stock is held upward by a parent.  Linkage downward can be either branches or subsidiaries.
BranchNoBranch / Division.  Secondary location of a headquarters.  Upward linkage to a headquarters.  No downward linkage.

 

If the enriched supplier is a stand-alone entity, then the remaining levels in the hierarchy will be populated with the supplier itself, otherwise they will be populated according to the supplier type as follows:

 

  • Intermediate Parent - the immediate entity above the supplier.  If the supplier is a subsidiary, then this is a parent.  If the supplier is a branch or division, then this is a headquarters.
  • Domestic Ultimate - the highest member of the corporate family within the same country as the supplier.
  • Global Ultimate - the highest member of the entire corporate family.

 

Although not directly related to linkage, there are some additional indicators that provide insight into the supplier's legal structure:

 

  • Legal Status Code - indicates the legal structure of the business as registered with government authorities.  Sole Proprietor, Partnership, Corporation, or Unknown.
  • Public Owned ID - indicates whether the establishment is a publicly held corporation or not.