Unclear supplier management processes and fragmented data are holding back firms. Research released by Tungsten Network showed that bottom lines were hit the hardest as 30 percent reported a loss of revenue or business partners.
Over a fifth of buyers blamed supplier failure for higher insurance premiums, damaged reputation, loss of customer trust and significant regulatory fines.
The challenges for businesses posed by cyber fraud, siloed data and insufficient cash distract from important priorities, said the report. Customer service, product quality and operational agility suffer as a result, quickly followed by profits.
Most buyers’ approach to due diligence with suppliers exposes them to risks. A lack of defined relationships, aggregation of information and methods of measuring expenditure led to poor sourcing decisions, said the report.
“Today's digital world affords buyers and sellers the opportunity to more effectively use their data and manage their interactions,” said Rick Hurwitz, Tungsten Network’s CEO. “It is vital that businesses are able to effectively use their data and manage their suppliers.”
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