Supplier Relationship Management Statistics 2024 – 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 2024.

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

At its core, SRM is all about fostering strong supplier relationships and maximizing the value that suppliers can bring to a company. By working closely with suppliers, businesses can ensure that they have access to high-quality goods and services at competitive prices. This not only helps to reduce costs but also allows companies to improve the quality and efficiency of their own operations. Additionally, building strong relationships with suppliers can lead to more reliable and consistent supply chains, reducing the risk of disruptions and delays.

One of the key benefits of implementing effective SRM practices is the ability to leverage supplier expertise and innovation. Suppliers are often experts in their respective fields and can offer valuable insights and advice that can help businesses improve their operations and stay ahead of the competition. By collaborating with suppliers and involving them in the decision-making process, companies can tap into this wealth of knowledge and experience, leading to more innovative products, processes, and strategies.

Moreover, effective SRM can have a positive impact on a company’s reputation and brand image. By working with reputable and reliable suppliers, businesses can enhance their own reputation as a trustworthy and responsible partner. This can help to attract new customers and investors, as well as strengthen existing relationships with stakeholders. A strong supplier network can also increase a company’s ability to adapt to changing market conditions and meet evolving customer demands.

In today’s globalized economy, where supply chains are becoming increasingly complex and interconnected, the importance of effective supplier relationship management cannot be overstated. As businesses expand their operations to new markets and rely on a diverse range of suppliers to meet their needs, managing these relationships becomes even more critical. Companies that fail to prioritize SRM run the risk of facing disruptions, quality issues, and cost overruns that can have a detrimental impact on their business.

Overall, the benefits of implementing SRM practices are clear. From reducing costs and improving operational efficiency to fostering innovation and enhancing reputation, effective supplier relationship management can help businesses gain a competitive edge in today’s fast-paced business environment. By acknowledging the importance of strong supplier relationships and investing in the necessary resources and processes to nurture them, companies can position themselves for long-term success and growth.

In Conclusion

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