2024 GLOBAL SRM RESEARCH REPORT
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“Encouragingly, almost three quarters of respondents indicate that executives and senior management at their organisation are supportive of supplier management.”
To capitalise on these opportunities, organisations must not only maintain but enhance their engagement strategies, ensuring that suppliers are active participants in the journey towards mutual growth and success. Engagement of critical and strategic suppliers Leaders Fast Followers Followers Strong and Active Engagement 63% 33% 14% Supportive 34% 61% 58% Neutral 3% 5% 25% Some Opposition
How have you gathered feedback from your critical and strategic suppliers? Leaders Fast Followers Followers Ad hoc informal conversations with key stakeholders 68% 48% 41% Documented conversations with key stakeholders 66% 45% 16% 360-degree feedback – Internally run 61% 43% 14% 360-degree feedback – Externally run 29% 17% 6% One-directional questionnaires 21% 16% 17% Engaged a third party to run an anonymous survey and interviews of our suppliers to measure what is important to them, how we compare versus other key customers 16% 7% 3% No feedback gathered 5% 10% 35%
However, a concerning 41% of Followers continue to rely on informal or ad hoc communication, missing opportunities to gain valuable insights. Structured feedback, such as 360-degree surveys, remains the most effective tool, with 89% of Leaders utilising this method to capture a comprehensive view of their supplier relationships. Additionally, feedback from these structured approaches has proven instrumental in identifying areas for improvement and ensuring organisations are seen as a customer of choice by their key suppliers. The continued emphasis on structured, two-way communication not only validates and celebrates success, but also provides the critical data needed to advocate for further investment in supplier management programmes. To truly excel, organisations must prioritise and formalise their feedback processes, ensuring they remain aligned with their suppliers’ needs and expectations.
0% 0%
3% Strongly Opposed/Resisting 0% 1% 0% Supplier Communication
Effective supplier engagement hinges on robust communication and a genuine understanding of how each party perceives the other. This year’s findings reveal that while many organisations recognise the importance of gathering feedback from critical and strategic suppliers, there is still significant room for improvement. 66% of Leaders and 45% of Fast Followers have implemented formal, structured feedback mechanisms, reinforcing the importance of this approach in strengthening supplier relationships.
Become a Customer of Choice Are your suppliers putting you first? Imagine getting preferential pricing, and priority access to their best resources. Our research shows that effective supplier engagement leads to these benefits and more.
“Organisations need to clearly showcase the tangible benefits of supplier management and deeply embed it into their strategic priorities to enhance engagement across all stakeholder groups, including key and strategic suppliers.”
https://srm.stateofflux.co.uk/the-voice-of-the- supplier-2023
Learn how. https://srm.stateofflux.co.uk/vos
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