2024 Global SRM Research - Return on Relationships

2024 GLOBAL SRM RESEARCH REPORT

ENGAGEMENT

50

51

Obtaining executive support can transform supplier management into a strategic advantage, setting the stage for collaboration and long-term success. Supplier management is not just another task on the business agenda; it is a critical lever for ensuring business continuity, driving innovation, and fostering long-term success. Without strong and sustained stakeholder engagement, particularly in understanding and embracing its value, organisations risk missing out on significant strategic advantages. If stakeholders, especially senior leaders, do not fully appreciate the benefits of a well-structured supplier management programme, it could be deprioritised, or worse overlooked in favour of other initiatives, leading to missed opportunities for competitive advantage. Aligning the entire organisation, from top executives to operational teams, around the value of supplier management for their organisation and their suppliers can unlock significant gains. By doing so, businesses can elevate their supplier management programmes from mere operational necessity to a strategic driver that enhances relationships, mitigates risks, and ultimately contributes to the company’s growth and strategic goals. The alignment not only strengthens the supplier ecosystem but creates a measurable return on relationships, ensuring long-term success in an increasingly complex supply landscape. Results indicate engagement levels are consistent with previous years. With engagement high, organisations need to capitalise and increase the effort to harness support for developing a leading supplier management programme. They can: • Strengthen cross-functional collaboration between procurement, operations, and senior leadership to align strategies and ensure a cohesive approach to supplier management. • Enhance communication and transparency by improving communication channels with all internal and external stakeholders to foster accountability, build trust and stronger, long-term partnerships. • Collect 360-degree feedback, gathering comprehensive insights from critical suppliers to gain an understanding of how the organisation is perceived, driving continuous improvement in supplier relationships. • Maximise return on relationship by building collaborative relationships that deliver mutual value, ensuring that strong engagement with suppliers translates into tangible benefits and long-term success for both parties.

“Defining, articulating and communicating the value and benefits of a well-structured supplier management programme is crucial to ensure buy-in, support and realisation of opportunities for competitive advantage.”

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