2024 GLOBAL SRM RESEARCH REPORT
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What were your main priorities when selecting a supplier management technology solution? Leader Fast Follower Follower
Ease of integration with existing internal systems 55% 61% 49% Collate key supplier information in a centralised location 45% 41% 38% Support end to end process with automated workflows 42% 46% 38% The ability to produce reports summarising key supplier information 39% 30% 31% Overall implementation costs 32% 48% 35% Manage performance 29% 37% 43% On average, 56% of all respondents selected ‘Don’t know’ across all supplier management activities. This further illustrates the point made earlier that focus is largely on the core functionality that supports supplier management activities. Therefore, priority should only be placed on stipulating additional functionality, if it is deemed of use, as this research shows the majority of respondents do not use or rate them. capabilities for sourcing, supplier data management, and contract lifecycle management. Furthermore, nearly a third of all respondents possess systems that include collaboration/chat features for sourcing, supplier governance, relationship management, contract negotiation and authoring, and project/action management. Approximately one in five respondents has systems equipped with automation
Manage relationships 29% 27% 34% Manage contracts 26% 25% 22% Manage risk 26% 24% 28% Ease of integration with third party programmes 13% 27% 14% Deliver and acquire feedback on innovation ideas 11% 2% 4% Monitor and report information on rebates 11% 3% 4%
Provide information sets (external data) that is not available in business 11% 6% 8% Send out and collect feedback from supplier questionnaires 11% 17% 18% Ease of extracting and normalising data via AI 6% The availability of post implementation platform support 5% 5% 5%
8% 8% Other (please specify) 18% 11% 12%
External data feeds were less likely to be embedded into supporting supplier management technology, with the highest proportion of respondents (23%) using this feature for their risk and compliance software. Furthermore, out of additional capabilities, generative AI was the least cited, on average 2% of all respondents had this feature included in their supplier management technology. Advantage to having effective supplier management technology The findings regarding the primary benefits of effective supplier management technology are enlightening. The primary advantage, as identified by 77% of respondents, is its support in managing and improving supplier performance. This is followed by risk identification and management, noted by 59% of respondents, and the consolidation of supplier management into a single system, highlighted by 58%.
Encouragingly, 57% of all respondents selected value capture and delivery as a key benefit of supplier management technology. For 58% of Leaders, it was in their top three; recognition of the importance of tracking and delivering value in supplier relationships. What are the main advantages to having effective supplier management technology? 77% Supplier performance management and improvement 59% Risk identification and management 58% One place to manage suppliers 57% Value capture and delivery 52% Supplier management oversight 36% Compliance and regulatory 32% Team productivity 29% Identify, capture and deliver supplier innovation 22% Manage sustainability and CSR in the supply chain 8% Virtual team working 3% Other (please specify)
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“Organisations recognise the benefits of dedicated technologies for performance, risk management, and centralised supplier oversight, but have yet to unify their tech stacks to create a collaborative environment for supplier data. This leaves significant value untapped.”
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