Supplier Relationship Management Statistics 2023 – Everything You Need to Know

• For example, Boeing experienced supplier delivery failure of two critical parts with an estimated loss to the company of $2.6 billion. ^[0]

Supplier Relationship Management Latest Statistics

• On boarding and profile management for 100% of your suppliers. ^[2]
• Fact “42.7% of all statistics are made on the spot.”. ^[2]
• The bottom quartile of companies spend 60% of their category manager’s time compiling data, where the top quartile spend less than 30%. ^[2]
• Roughly 85% of companies experience supply chain disruptions – and. ^[2]
• the leading cause of these disruptions are adverse weather (51%). ^[2]
• Insolvency, on the other hand, caused only 11% of disruptions. ^[2]
• The real number of business bankruptcies is closer to 15% or 16%, versus the “official” 2.3% as reported by the federal bankruptcy courts. ^[2]
• Future ongoing costs of complying with RoHS are conservatively estimated to be 0.4% of annual revenues, or €273 per employee per year, with costs to SMEs considerably higher. ^[2]
• The estimated cost of Conflict Minerals Reporting compliance will range between $2 – $3 billion, and the annual continuing cost of compliance will be $206 – $609 million. ^[2]
• Though the proof of the pudding is in the eating, the statistics present a very compelling case for action The average hard dollar cost savings achieved upon implementing a supplier management initiative is 12%. ^[2]
• The Supplier Management Software Market has a projected CAGR of 14% over the period 2021. ^[3]
• This is way above the overall 8,6% projected growth the entire segment, Enterprise Software, is forecasted to see. ^[3]
• 42% of the growth will come from North America. ^[3]
• BCI’s Supply Chain Resilience Report 2021 said that only 56% of Procurement Teams use Technology to follow up on Supplier Performance that can cause Supply Chain Disruptions. ^[3]
• 44% of procurement teams still don’t have any solutions in place to manage supplier performance. ^[3]
• Out of 348 companies asked 65% said Supplier Relationship Management was the most effective aspect in mitigating the effects of covid. ^[3]
• and found a mean abnormal return of nearly 40 percent, along with significant increases in equity risk.8. ^[0]
• A troubling statistic is that only between 5 and 25 percent of Fortune 500 companies are estimated to be prepared to handle a major supply chain crisis or disruption. ^[0]
• Available to download in PNG, PDF, XLS format 33% off until Jun 30th. ^[1]
• Earn a Degree Breakthrough pricing on 100% online degrees designed to fit into your life. ^[4]
• Breakthrough pricing on 100% online degrees designed to fit into your life. ^[4]
• 65% of procurement leaders have limited or no visibility beyond their tier. ^[5]
• ( Deloitte 76% of CFOs agree that without “one version of the truth,” their organization will struggle to meet its business objectives. ^[5]
• 93% of CPOs rate cost reduction as a priority for their organization in the next 12 months. ^[5]
• ( Deloitte 60% of CPOs cite poor master data quality, standardization, and governance as the biggest 5 challenges to procurement. ^[5]
• 68% of CPOs cite improving and automating procurement processes as a top priority for their organization. ^[5]
• ( Bain & Company 60% of companies use no tools or are relying on improvised MS Office tools for workflow assignment and supplier relationship management. ^[5]
• Fact 93% of CPOs rated risk reduction as a top priority for their organization. ^[5]
• 99% of CEOs believe sustainability will be important to the future success of their business. ^[5]
• ( Accenture 63% of consumers refuse to buy products and services from companies they do not trust, as supply chain traceability is a key criterion for them. ^[5]
• The fact of the matter is that supplier relationship management is no longer a new concept withnearly 31% of CPOs. ^[6]
• The supplier you select may not be the cheapest, but if he guarantees 100% ontime delivery with a money back offering that is more valuable to your business. ^[6]
• In a recent Tech Pro Research survey, 57 percent of respondents said they spend more time working with vendors than they did two years ago. ^[7]
• When ZDNet’s sister site, Tech Pro Research, polled IT professionals on vendor relationships in April and May, most respondents said their company works with at least one vendor, and 47percent said their company uses more than 10. ^[7]
• Only 9 percent of respondents listed it as a pain point of working with vendors. ^[7]
• When we introduce closeness and betweenness into the SVM model to predict consumer–supplier relationships, the predictive accuracy of our model, which combines EAs with NCs, is significantly improved by 5.63% (from 76.41% to 80.71%). ^[8]
• After introducing the NCs with EAs, the predictive accuracy of the original community is improved by 5.63%, and the predictive accuracy level of each sub community are improved by 7.18%, 9.01%, 8.15% and 9.39%, respectively. ^[8]
• According to the results listed in Table 5, the RBF kernel presents better predictive capacities than the others, and the highest accuracy level is obtained at. ^[8]
• Kernel Type Linear Polynomial RBF Parameter – 2 3 4 5 0.2 0.4 0.6 0.8 1.0 Accuracy (%). ^[8]
• The predictive accuracy level increases from 76.41% to 80.71%, and the predictive precision level increases from 74.71% to 77.94%. ^[8]
• Additionally, in this case, the highest recall and F value values of 85.65% and 81.61%, respectively, are achieved. ^[8]
• Estimations of predicted customer–supplier relationships in M3. ^[8]
• When introducing NC variables with EA variables, the predictive accuracy for each sub community is improved by 7.18% , 9.01% , 8.15% and 9.39%. ^[8]
• While the F value of case 3 for the SME–LE group is slightly worse than of case 2, it is still dramatically improved over case 1 by 17.90%. ^[8]
• Positive Precision (%). ^[8]
• As much as 50% of a company’s value can depend on its supplier relationship. ^[9]
• Today, an estimated 40% of supply chain disruptions occur among Tier 2 to Tier 10 suppliers, yet most supply chain professionals collaborate primarily with only their Tier 1 suppliers. ^[9]
• Southwire relies on a global business network to expand its network of local freight partners, process invoices 40% faster and strengthen supplier relationships. ^[9]

I know you want to use Supplier Relationship Management Software, thus we made this list of best Supplier Relationship Management Software. We also wrote about how to learn Supplier Relationship Management Software and how to install Supplier Relationship Management Software. Recently we wrote how to uninstall Supplier Relationship Management Software for newbie users. Don’t forgot to check latest Supplier Relationship Management statistics of 2023.

Reference

1. ncsu – https://scm.ncsu.edu/scm-articles/article/behind-the-numbers-of-the-scrc-supply-management-index.
2. statista – https://www.statista.com/statistics/972598/crm-applications-vendors-market-share-worldwide/.
3. hicx – https://www.hicx.com/blog/fact-42-7-of-all-statistics-are-made-on-the-spot/.
4. kodiakhub – https://www.kodiakhub.com/blog/top-10-stats-supplier-relationship-management-software-market.
5. coursera – https://www.coursera.org/courses?query=supply%20chain.
6. informatica – https://www.informatica.com/blogs/5-ways-you-can-benefit-from-supplier-relationship-management.html.
7. prokuria – https://www.prokuria.com/post/supplier-relationship-management-platform-benefits.
8. zdnet – https://www.zdnet.com/article/infographic-time-spent-managing-vendor-relationships-is-on-the-rise/.
9. sciencedirect – https://www.sciencedirect.com/science/article/pii/S2405844015303364.
10. ibm – https://www.ibm.com/topics/supplier-management.

How Useful is Supplier Relationship Management

In today’s globalized and interconnected world, effective supplier management has become increasingly crucial for businesses of all sizes and industries. By focusing on fostering positive relationships with suppliers, companies can enhance their overall competitiveness by ensuring a reliable and efficient supply chain. SRM enables businesses to align their procurement strategies with the long-term goals of their organization, leading to improved performance and productivity.

One of the significant advantages of SRM lies in the improved communication and collaboration it enables between organizations and their suppliers. By establishing clear lines of communication, both parties can discuss and address issues, negotiate terms, and develop mutually beneficial agreements. This creates a more transparent and agile supplier network. Furthermore, by involving suppliers in the decision-making process, companies can tap into their expertise and gain valuable insights that can lead to innovation and cost savings.

Another essential aspect of SRM is its ability to reduce risks associated with the supplier relationship. Through continuous monitoring and assessment of suppliers, companies can better understand their strengths and weaknesses. This allows businesses to identify potential risks and develop effective contingency plans. By proactively addressing risks, companies can mitigate the possibility of disruptions in the supply chain and ensure uninterrupted operations. In an unpredictable and often volatile business environment, such risk management becomes imperative.

Moreover, SRM plays a vital role in driving sustainable business practices. Businesses are increasingly expected to adhere to ethical, environmental, and social responsibility standards. By closely collaborating with suppliers, companies can ensure that their suppliers share and uphold these principles. This collaboration can enable companies to monitor the quality and integrity of their supply chains, leading to reduced environmental impact and improved social accountability.

Effective supplier relationship management also promotes long-term partnerships and loyalty between companies and their suppliers. By nurturing these beneficial relationships, businesses can secure competitive advantages such as preferential pricing, access to scarce resources, and greater flexibility in the face of changing market conditions. This can prove to be invaluable, especially in industries characterized by intense competition.

It’s important to acknowledge that implementing SRM is a complex process that requires significant effort, resources, and cultural shifts within organizations. Successfully applying SRM strategies often entails regular supplier performance evaluations, feedback mechanisms, and continuous improvement efforts. However, investing in SRM can yield substantial payoffs in terms of increased efficiency, risk reduction, innovation, and sustainability.

In conclusion, SRM shouldn’t be underestimated; it is an essential practice that underpins successful supplier engagement. By promoting clear communication, collaboration, and risk management, SRM enables companies to build robust supplier networks. It serves as a strategic approach that places emphasis on long-term relationships, ultimately benefiting all parties involved. Therefore, it is imperative for businesses to embrace and invest in effective SRM strategies to thrive in a globally competitive landscape.

In Conclusion

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