2023 GLOBAL SRM RESEARCH REPORT
VALUE
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The value of effective supplier management to organisations continues to grow as more scenarios reveal shortcomings in existing practices. The events of recent years have put a spotlight on supply chains and their management like never before. Important lessons must be learnt as global supply chains are still stretched. Supplier management must not be seen as a ‘nice to have’ with a few randomly selected suppliers. Instead, it must be accepted as a vital function to secure supply chains and drive value. To achieve this, procurement must examine why developing a progressive supplier management strategy appears so difficult in some companies. From our experience via this research and working with clients, it most often comes back to the value proposition. The value proposition for supplier management has received a tremendous boost from the events of the last few years. It can now feature challenges not previously high up on the executive agenda, namely supply chain resilience and continuity. In addition, the benefits of bringing selected suppliers closer to the organisation as part of an extended enterprise must form part of the business case. These benefits include shared goals and objectives, more risk/reward sharing, joint product, process and service development, improved communication and optimisation of resources and skills. The key opportunities to drive more value are: • Develop a compelling business case for supplier management that focuses on how it can address key business challenges and make the organisation more resilient in uncertain times. • Explore looking at suppliers as part of an extended enterprise to find value and efficiencies. • Be more creative in finding ways to capture and report value using technology to track direct and indirect financial benefits. • Align your supplier management outcomes to business drivers at a strategic level and engage both suppliers and the business to deliver. “Supplier management must not be seen as a ‘nice to have’ with a few randomly selected suppliers, rather it needs to be accepted as a vital function to secure supply chains and drive value.“
Value
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