2023 GLOBAL SRM RESEARCH REPORT
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How has feedback from critical & strategic suppliers been gathered in the last 12 months? (All respondents)
Challenges that impact supplier management support among operational stakeholders? (All respondents) 76% Other business priorities
Supplier engagement Closely linked to supplier support and engagement will be organisations’ efforts to communicate and understand their perspective. This requires open and honest conversations about how each party perceives the other. We have a lot of experience engaging suppliers on behalf of customers to determine how they are perceived and enable the start of a conversation to overcome barriers to working more effectively together. Only a small percentage (9%) of companies are adopting this approach. The evidence reveals that by far, communication and feedback take place on an ad hoc informal basis, with this approach being reported by 55% of respondents. Some formality and structure are provided by documenting conversations with stakeholders, as reported by 36%. Structured questionnaires to create data (e.g., common themes and issues) are used by a minority of respondents. These range from 360˚ surveys either conducted in-house or using a third party, simple one directional questionnaire, or a more structured and independent approach involving both a questionnaire and supplier interviews linked to an action plan. It is concerning that around 20% of companies do not gather any feedback from their critical or strategic suppliers.
Adhoc informal conversations with key stakeholders
55%
Documented conversations with key stakeholders
Insufficient awareness of the value proposition/ business case
36%
50%
27% 360 degree feedback - Internally run 20% No feedback gathered 19% One-directional questionnaires
They see it as slow to implement and deliver benefits Procurement and supply chain is not high enough on the corporate agenda
28%
26%
360 degree feedback - Externally run
16% Lack of executive support 7% No challenges Challenges that impact supplier management support among critical and strategic suppliers? (All respondents) 42% Other business priorities
13%
Engaged a third party to run an anonymous survey and interviews of our suppliers
9%
The evidence reveals that by far, communication and feedback take place on an ad hoc informal basis, with this approach being reported by 55% of respondents. Some formality and structure are provided by documenting conversations with stakeholders.
Historical issues clouding current relationship
32%
You are not considered a customer of choice
30%
Insufficient awareness of the value proposition/ business case
23%
They see it as slow to implement and deliver benefits Account manager uninterested in collaboration Involved in a previous supplier management initiative that didn’t go well
21%
15%
12%
22% No challenges
“The evidence reveals that by far, communication and feedback take place on an ad hoc informal basis, with this approach being reported by 55% of respondents.”
Strengthen supplier connections Many benefits flow from strong engagement with suppliers, including cost reduction, reduced risk and access to innovation.
Find out about a 360º feedback. https://www.stateofflux.co.uk/2023srmreport/ joint-account-plan
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