The case for closely managing supplier relationships is clear—Council research suggests that without active supplier management, significant expected value may fail to reach the bottom line (upward of 75% of negotiated sourcing savings). However, on average, procurement organizations spend 60% of their supplier facing time on strategic sourcing activities and less than 20% of their time actively managing supplier value. What’s more, companies face more supply risk than ever (e.g., price volatility, capacity constraints, extended supply chain risks such as human rights and environmental violations), putting more pressure on supplier management practices to deliver value and protect the enterprise from critical exposures.

Contributors: Various
Categories: SIG U Resource, Whitepaper
SRC Type: Contract Management, Evaluation and Selection, Performance Management, Risk Management, Risk Management Outsourcing (RMO), Sourcing, Sourcing Management