Strategic Initiatives for Supplier Management

Strategic Initiatives for Supplier Management

Developing supplier partnerships with a focus on technology and process innovation to meet organization goals

Developing a resilient procurement system in a time of shifting supply-market dynamics, new ways of working, and an accelerated pace of business, requires organizations to recalibrate what it means to be both efficient and agile. As procurement continues to be impacted by significant disruption, returning to “normal” should not necessarily mean returning to the status quo. This report looks beyond adapting procurement in response to disruption and cost management, and explores how existing tools and strategies are helping procurement leaders meet suppler management initiatives.

In this commissioned report, the Worldwide Business Research (WBR) Insights research team surveyed procurement leaders representing a span of industries with almost half (49%) coming from organizations that have over $500 million in spend management. This spend represents a lever for procurement leaders to position themselves as a key player within the organization. A study of procurement professionals found that 66% of procurement professionals faced lack of buy-in over how much influence their group should have (1). Developing a network of innovative, resilient, and high-performing suppliers is just the first step to growing procurement’s influence and relationships with key business stakeholders.

 

Key report takeaways

  • Over 50% of procurement leaders rate the performance of their current procurement technology as above average or better. Within this same group however, 27% of respondents rate their technology as “below average” and “worst” when it comes to supplier selection and diversity.
  • At it’s current state, 87% of respondents are satisfied with their network’s current levels of supplier diversity. Despite this, as supplier diversity increases in importance and organizations begin implementing internal supplier diversity benchmarks, 61% of respondents say it’s become more challenging to meet these benchmarks over the last 6 months.
  • Pursuing long-term partnership with suppliers on technology or process innovation is a growing priority, with 52% of organizations already doing so and 48% planning to pursue or develop these relationships within the next 12 months. Organizations face significant barriers in establishing these long-term partnerships, such as lack of suitable options, budgetary constraints, and commitment challenges.

Download the “Procurement Supplier Innovation in 2021” report to learn how to utilize next-gen strategies and tools for stronger supplier management and diversity.

Explore more resources on supplier management

Learn more about how you can maximize value from suppliers through technological innovation and supplier diversity. Effectively channel procurement spend and increase your group’s impact as a key partner in meeting organization-wide socially responsible goals.

 

Source:
(1) ProcureCon, Procurement in the Driver Seat