2023 GLOBAL SRM RESEARCH REPORT
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Benefits of using technology While it might not be as widespread as desired, the use of technology in support of supplier management clearly delivers some tangible business benefits. We asked respondents to select the top five benefits they believed their current supplier management technology is helping them deliver. The leading benefit is performance management, where 76% of respondents reported a positive impact. This is followed by risk management, where 62% report that investment in technology is helping them reduce and mitigate risk. Other benefits relating to effectiveness and efficiency, such as managing suppliers in one place, improved information management and sharing are also seen as key benefits. What benefits do companies derive from using supplier management technology? (All respondents) 76% Supplier performance management and improvement 62% Risk identification and management 51% Value capture and delivery 49% One place to manage suppliers 45% Information management, sharing and reporting 44% Supplier management oversight 42% Compliance and regulatory 30% Manage sustainability and CSR in the supply chain 26% Identify, capture and deliver supplier innovation
Third-party risk data The use of technology is not restricted to dedicated systems or applications, but also extends to the increasing number of third-party data sources. These are particularly useful when it comes to risk management when a wide range of information is required on a real-time basis to enable dynamic risk management. The chart below indicates that with the exception of financial data that has long been obtained externally, the other sources of information are underutilised. In addition, the feedback on risk management also suggests that almost half of companies are manually gathering and processing risk data from suppliers without taking advantage of automation and workflow technology. What risk data is being obtained from third-party sources? (All respondents) 77% Financial data (i.e. Dun & Bradstreet) 43% Legal & Compliance (i.e. Companies House or World- Check) 41% ESG (i.e. Ecovadis, S&P Sustainable1) 38% Cyber Security (i.e. Bitsight, Security Scorecard) 19% Geopolitical (i.e. Resilinc) 16% Aggregator service that provides more than one data type 14% None Companies are still searching for technology solutions to business problems.
held in a central location rather than in different systems. Closely related to this, the next most critical need is that any technology solution must be able to integrate with existing systems. 47% of companies emphasise the importance of data-driven decisions, relying on system outputs like reports, dashboards, and various formats (e.g., Excel, PDF, Word, PowerPoint) to summarise vital supplier information. What business problems are companies looking to technology for help with?? (All respondents) 62% The ability to collate key supplier information in a centralised location 57% Integration with existing internal systems 48% The ability to produce reports (via dashboards and/or Excel, 43% The ability to manage performance 39% The ability to support automated workflows 39% The ability to manage risk 36% The ability to manage contracts 35% The ability to manage relationships 34% Overall implementation costs 16% Integration with third party programmes 15% The ability to send out, and collect feedback from, supplier questionnaires 10% The ability to deliver, and acquire feedback on, innovation ideas 7% The availability of post implementation platform support 4% Monitor and report information on rebates PDF, Word or PowerPoint outputs) summarising key supplier information
18% Team productivity 4% Virtual team working A search for solutions
Discover your potential with supplier management tech Tired of drowning in supplier data? Say goodbye to missed opportunities, data chaos, and risky decisions. Imagine being able to effortlessly track performance, maintain up-to-date records, and collaborate seamlessly with suppliers?
Companies are still searching for technology solutions to business problems. When asked what solutions they are looking for, 62% of respondents report that their top requirement is that information is
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