Jaggaer released its annual comprehensive report on global trends in Supplier Relationship Management (SRM) practices.
A key finding in the report is a heightened awareness on the value of managing supplier relationships with a demonstrable uptick in activity across the board, compared to the 2017 findings.
The report provides up to date insights into the maturity of SRM in procurement organizations of all sizes and branches, focusing on the move to digitilization. The findings include:
- 60 percent of the companies surveyed said that they had already implemented SRM at a global level, increasing 17 percent from last year's results.
- Large companies with an annual revenue of more than 500 million euros are five times more likely to have an SRM solution in place than smaller companies.
- Mid-sized companies have also started to recognize that supplier management is a necessity and have begun investing time and resources into SRM.
- More than 57 percent of the companies surveyed already invest in supplier development, which represents an increase of 19 percent from last year.
- Companies that prioritized growth, innovation and risk management in their supplier relationships, instead of just price reductions, achieved savings that were 26 percent higher.
“The supplier relationship has changed, and the need to understand and work more closely with suppliers is a critical element in moving our supply chains into the future. Too many companies are still operating without a clear supplier management strategy in place. The use of digitalization technologies enable enterprises save resources, optimize best practices and uncover value,” explains Robert Bonavito, CEO of JAGGAER.
Download the entire report here.