2023 GLOBAL SRM RESEARCH REPORT
SUMMARY OF KEY FINDINGS
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Research Roundup
Any summary of 2023 cannot fail to acknowledge the ongoing legacy of the COVID-19 pandemic and the subsequent geo- political and economic events that have combined to cause some of the most significant upheavals in society and commerce since WWII. While supplier management has been central to mitigating risk and addressing the challenges supply chains have faced, it is clear that for many companies, the investments in people, process and technology to embed sustainable good practice Many companies already have suppliers vital to their customer value proposition and should be considered part of an extended enterprise. However, the genuinely integrated supply chains that bring all suppliers and customers closer as part of an extended enterprise are remains a challenge. Extended enterprise
not currently being developed along with the intimate knowledge of each other, changed behaviours and trust. Increased scope The scope of activities that fall within the supplier management remit has increased significantly since we first conducted this research in 2009. The initial focus on performance management has expanded from
incorporating new risk categories, such as cyber security and data protection, along with dynamic risk assessments that reflect an ever-changing risk environment. Supplier relationships need to reflect more tailored treatment strategies that recognise the traditional segmentation model and all aspects of sustainability and supplier diversity.
Despite the rather gloomy assessment of progress, financial gains as a result of supplier management are reported at record levels
Satisfaction levels remain low In 2020 (reflecting feedback on 2019/20), two-thirds of companies reported overall satisfaction with the progress achieved by their supplier management programmes. Since then (2021 & 2022), satisfaction levels have been significantly lower. This year, that figure across all groups of suppliers is only one-third. Difficulties being encountered are familiar – competing and changing business priorities, lack of budget
simply reporting SLAs and KPIs to tracking performance trends and managing improvement plans. Contract management has developed from a simple repository for contract documents to proactive management of terms and conditions requiring more sophisticated processes and technology. Risk management has expanded from primarily a sourcing exercise to a full life cycle supply chain resilience approach,
“In 2020, two-thirds of companies reported overall satisfaction with the progress achieved by their supplier management programmes”
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