Summary While supplier management technology remains an area where there is general under-investment, it is emerging as a strong Leader characteristic, with it being the second strongest of the six supplier management pillars after governance. However, more generally, we still see major challenges in moving away from reliance on desktop tools for basic supplier management activities such as performance and risk management and the adoption of technology to help manage relationships, innovation and sustainability. While contract management is the process benefiting most from the use of technology, with over 90% of companies reporting its use, risk and performance management lag behind (82% and 75%, respectively). Both of these also have a heavy reliance on desktop tools. The most important functionality being looked for in a technology solution is centred on capturing data in one place and the ability to monitor and report. Also considered important is the ability for any solution to be able to integrate with existing systems. Performance management is the supplier management activity currently reported and benefiting most from the introduction of technology.
of firms say they are totally satisfied with the way their IT systems support the supplier management lifecycle. 10% 35% of respondents say their technology is currently inadequate to meet their needs.
It is said that “information is power”, and this is no less true in supplier management than anywhere else. Technology is the key enabler when it comes to the management of information. Yet, our research has found that supplier management has failed to take full advantage of the benefits that it can provide. The proportion of companies fully satisfied with the technology available remains low. Undoubtedly, under investment in a technology solution to support supplier management is a barrier. This year, more than 1 in 4 organisations named a lack of IT functionality as one of their top three barriers to maintaining a successful supplier management programme. Fewer than 1 in 10 firms say they are satisfied with how their IT systems and technology support the supplier management lifecycle. At the same time, 35% say their technology is currently inadequate to support their
needs. Leaders have always looked to invest in technology more than the rest, but they too have reservations. Only 17% report being totally happy with their solution. Technology landscape Supplier management consists of a diverse set of activities, from initial onboarding of suppliers, through operational and strategic management to eventual exit processes. This is possibly one of the reasons why so few single solutions have been found adequate to support the needs of the entire lifecycle. To understand this landscape better, we asked companies to provide feedback on what technology they currently use to support key aspects of supplier management. Note: For the purposes of this analysis, we are classing Microsoft Excel, SharePoint and MS Teams etc. as technology, and we’ll refer to these as desktop tools.
TECHNOLOGY The last thirty years have seen a revolution in the use of
technology. Almost no aspect of how we function in our personal lives and in business are not in some way enabled by technology.
More than 1 in 4 organisations believe a lack of IT functionality is a significant barrier to successful supplier management.
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