Executive Briefings

Supplier Relationship Management: Survey Highlights

In the fourth quarter of 2010, APQC, the Council of Supply Chain Management Professionals, and Supply Chain Visions disseminated a survey on the use of supplier relationship management. The survey revealed the following about the use of supplier relationship management.

Many organizations do not have formal supplier relationship management programs, although the amount of implementation varies depending on the type of supplier.

Half of responding organizations conduct no formal reviews of their transactional or outcome-based suppliers. Organizations vary in the frequency of formal reviews of their strategic alliance suppliers and preferred suppliers.

Despite the variances in how they collaborate with suppliers, organizations receive most of their purchase orders complete, and the majority of their orders pass inspection on receipt. However, the supplier on-time delivery rate and the percentage of orders delivered within the quoted lead time could be improved.

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In the fourth quarter of 2010, APQC, the Council of Supply Chain Management Professionals, and Supply Chain Visions disseminated a survey on the use of supplier relationship management. The survey revealed the following about the use of supplier relationship management.

Many organizations do not have formal supplier relationship management programs, although the amount of implementation varies depending on the type of supplier.

Half of responding organizations conduct no formal reviews of their transactional or outcome-based suppliers. Organizations vary in the frequency of formal reviews of their strategic alliance suppliers and preferred suppliers.

Despite the variances in how they collaborate with suppliers, organizations receive most of their purchase orders complete, and the majority of their orders pass inspection on receipt. However, the supplier on-time delivery rate and the percentage of orders delivered within the quoted lead time could be improved.

Read More