ECCMA Shared Organization Master (eSOM)
An ISO 8000-120 compliant database of verified legal names used to reduce the cost of onboarding suppliers and maintaining supplier master data.
Every supplier has an ALEI (Authoritative Legal Entity Identifier) which is used to verify the legal name of a company and its status as well as when it was formed. Today, it is common to identify companies by their names without checking 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.
An Authoritative Legal Entity Identifier (ALEI) is issued by a government register when a company is formed.
ISO 8000-116 is the international standard for formatting a “globally unique” ALEI.
It is an application of the ISO 8000-115 quality identifier standard that requires the addition of a prefix to identify the issuer of the identifier.
ALEI Key Facts
- The ALEI is an “Authoritative Identifier.”
- It is issued by a government authority and provides a single, unique identifier for each legal entity in that jurisdiction.
- ISO 8000-116 is the international standard for formatting a “globally unique” ALEI.
- It is an application of the ISO 8000-115 quality identifier standard that requires the addition of a prefix to identify the issuer of the identifier.
There are a number of benefits associated with using the ALEI to check the legal names, date of incorporation, status, and jurisdiction where a company was formed. Some of these benefits are:
- Positive identification of trading partners through authoritative data source
- Faster onboarding of new trading partners
- Mitigation of risk of trading with unknown or unverified entities (see How Corporate Identity Fraud Works)
- Identification of duplicated entities in customer and supplier master data records (30% duplication in customer or supplier master data is common)
- Allowing the creation of organization relationship models (who owns whom)
Do you need better supplier onboarding?
- Validate trading partners through authoritative source.
- Faster onboarding.
- Identification of duplicate entries in supplier and customer master.
- Complies with ISO 8000-116.