Leaders When we look at feedback from Leaders, the picture is more
Contract management is the supplier management process that benefits most from using technology, with almost 90% of companies reporting its use. Of these, 25% are using desktop tools. Supplier onboarding and master data is supported by technology but perhaps not as much as would be expected. While more than 8 in 10 companies report using technology, the continued use of desktop tools by 18% of respondents is surprising, given that data integrity here is key to so many other processes. The increased emphasis on supply chain risk management may reveal shortcomings in capturing and managing risk data. Currently, 23% of companies have no system to support risk management, and a worrying 34% are still reliant on desktop tools. Risk management is also more likely to have information held in pockets across
the organisation, as indicated by 1 in 10 companies that manage risk using multiple data feeds.
Almost 50% of companies managing supplier performance rely on desktop tools such as Microsoft Excel.
encouraging but still a long way from where it needs to be if these companies continue developing supplier management to achieve its full potential. It’s worth noting that Leaders are far more likely to invest in 3rd party systems and solutions rather than developing in-house or using desktop tools. A note on desktop tools This analysis should not be seen as a criticism of the various desktop tools available. Indeed, their use has been invaluable as a means to develop thinking around the capture and reporting of supplier management data. However, since they are not specifically designed for supplier management, they lack key features dedicated systems provide including usability, transparency, auditability, and security.
Performance management is fundamental to good supplier
management as it both mitigates risk and drives improvement. However, it is heavily data dependent and yet not well supported by technology. More than 70% of companies use a technology solution to help manage performance. Amongst those that do, there is a heavy reliance on desktop tools, as reported by 47% of respondents. As we move through other aspects of supplier management, including relationship management, innovation and sustainability, we see a marked reduction in the use of technology as an enabler. Where technology is employed, it is mainly based on desktop tools.
What technology solutions are currently used for the primary supplier management activities? (all respondents)
Functionality When organisations seek technology solutions, anticipating the required functionality is often difficult. This analysis draws on our survey respondents’ input to collate their most common functionality requirements. The overriding requirement is that information key to managing suppliers is held in a central location rather than dispersed around the organisation and stored in different systems. Over half of the respondents prioritised this. Related to this, the next most important requirement is that any technology solution must be able to integrate with existing systems. Outputs from any system are clearly important as the ability to produce reports (via dashboards and/or Excel, PDF, Word or PowerPoint outputs) summarising key supplier information was ranked highly by 47% of respondents. Interestingly cost was only prioritised as an important factor by just 31% of respondents, although this might not be a view held by many Finance Directors.
Business benefits Despite its limited application in many companies, supplier management technology delivers tangible business benefits. Therefore, we asked respondents to select the top five benefits they believed their current supplier management technology was helping them deliver. The leading benefit is performance management, where 71% of respondents reported a positive impact. This is followed by risk management, reported by 58%. Other benefits also relate to effectiveness and efficiency, such as managing suppliers in one place and improved information management and sharing. Over half of the companies we contacted are now using technology to track and report value delivery, although this is via desktop tools in most cases.
Expected business benefits from supplier management technology (all respondents)
Supplier on-boarding/ master data
Risk management
Relationship management
Dedicated system/
solution
Supplier performance management and improvement 71%
Excel/ SharePoint/
13%
11%
14%
Teams
33%
No system is used Use of multiple risk
Risk identification and
22%
23%
49%
management 58%
feed tools (for risk management only)
One place to manage suppliers 53% Value capture and delivery 51%
36%
63%
34%
Information management,
sharing and reporting 51%
Performance management
Innovation management
CSR/Sustainability management
Contract management
7%
14%
11%
29%
24%
48%
25%
25%
35%
64%
68%
47%
94
95
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