The Why, What And How Of Supplier Management
- According to a recent Hackett Group 2013 study, 64% of the responding organizations cite Supplier Relationship Management as 'major' or 'critical'. Another 56% of the organizations cite Reducing Supply Risk as 'major' or 'critical'
- In a study conducted by Zycus among procurement professionals, 81% of Europe-based organizations and 78% of Asia - based organizations have invested or are planning to invest in supplier management solutions
The above statistics highlight the growing significance of supplier management solutions in strategic procurement.
Recently Peter Smith, Managing Director, Spend Matters, UK / Europe in his white paper Putting the Supplier at the Heart of Procurement Thinking suggested that, "the time may have come for procurement executives and organizations to put Supplier Management at the heart of their strategy"
Managing supplier information manually or with home-grown tools is a resource consuming process. Lack of information repository may result in duplication or loss of data. Additionally, lack of proper evaluation processes may result in working with incompetent suppliers, even when there are superior suppliers available.