Leading software and services provider State of Flux has released its annual SRM research report, revealing more than half of customer experience is now delivered by suppliers, yet just six percent of organisations demonstrate mature SRM capability.
Titled ‘From Customer of Choice to Customer Delight’, the report – which is now in its 17th year – examines how the world’s most successful organisations are evolving their supplier strategies to focus on customer experience, resilience and long-term value.
Over 480 senior procurement and supply chain professionals from 330 global organisations took part in the research, with Vodafone, U.S. Steel, Auckland Transport, Air Canada and Currys providing case studies.
Nearly three-quarters of respondents (70 percent) said they feel stronger supplier communication is the key to unlocking customer delight, yet less than 10 percent share customer feedback with suppliers.
Elsewhere, just one-third of organisations say they implement SRM training, 58 percent consider themselves a customer of choice with less than 50 percent of their supplier base, and 62 percent state enhanced engagement as the most significant benefit of collaborating with suppliers.
When it comes to technology, 90 percent of Leaders say sharing company strategy with suppliers is critical to customer value, while just 10 percent have the tools to prioritise value and innovation creation.
The report also examines a number of key issues including why great procurement leaders are still struggling to embed SRM, while covering the six pillars of SRM, rethinking supplier relationships and raising resilience.
Alan Day, Chairman and Founder of State of Flux, said suppliers are now an extension of the customer experience.
“The organisations that recognise this are building supplier relationships that deliver trust, innovation and measurable business advantage.
“Procurement teams must reframe the conversation. We need to put on our selling shoes, change the narrative from procurement efficiency to enterprise value, and show CEOs why supplier management is no longer a procurement discipline; it is a business imperative.”
