SRM : the backbone of Procurement Process efficiency
Ivalua announces the results of its Trending In Procurement survey on supplier relationship management and the benefits of SRM tools. Controlling supplier risk and standardizing processes are the main goals when deploying a supplier relationship management system.
From June to September 2014, Ivalua questioned purchasing professionals from major international groups to gather their feedback on supplier relationship management (SRM) inside their companies, from software installation to results obtained, by way of daily relationship management.
A total of 283 responses were collected and analyzed, corresponding to forty percent of respondents located in North America (Canada and the U.S.) and sixty percent in Europe.
According to the Trending in Procurement survey, having full, trustworthy and up-to-date supplier data enables not only improving communication between purchasers and suppliers, but optimizing the purchasing processes and controlling risk as well.
The main information from the survey was:
- For a majority of respondents, the main goal of SRM system implementation is to control supplier risk
- There is a significant difference in the way supplier relationships are managed by companies in Europe as compared to North American companies
- The main challenge encountered when deploying an SRM tool is creating a unique purchasing segmentation that can be applied globally
- Among the benefits noted following deployment of an SRM e-Purchasing tool are the creation of a sole supplier folder, improved analysis of expenditures and the integration of supplier data from external sources (legal and administrative documents).
“This new Trending in Procurement survey shows that efficient management of supplier information enhances Purchasing Department performance in a number of ways. At the operational level, it decreases the workload for purchasers, while it improves decision-making and risk control at the strategic level,” states Gérard Dahan, Ivalua’s General Manager EMEA.
“By proposing unique and integrated supplier relationship management, Ivalua Buyer fully meets this goal and enables users to consolidate and cross any type of purchasing data used by the system (pertaining to e-Procurement, e-Sourcing, contracts, invoices, performance evaluation, risk, etc.) to create reliable, 360° analyses,”he concludes.