SOURCE: HICX Solutions, Ltd.
LONDON, UNITED KINGDOM--(Marketwired - Apr 24, 2014) - HICX Solutions Ltd., the world leader in Supplier Information Management solutions, has just released the results of their third annual Supplier Management Survey. The survey was completed by 174 respondents comprising 18 government organizations and 156 companies across industries including energy, finance, pharma, manufacturing, and mining, with no one industry representing more than 18% of the total respondents.
One of the big takeaways from this year's survey is that 80% of respondents agreed or strongly agreed that effective management of suppliers represents a strategic advantage for their organization. However, the survey reveals that organizations are also lacking some of the most important components of an effective supplier management program.
- 39% do not scorecard their suppliers.
- 57% do not, or only partially, manage their suppliers at the relationship-level.
Doug Markle, HICX Solutions' Executive Vice-President said, "The vast majority of respondents said that their organization had not yet invested in a Master Data Management solution. That leaves organizations without a system to enforce supplier master data governance and places them at a strategic disadvantage to their peers who have already taken this step."
The survey showed that supplier management programs vary based on the size of an organization. Only 10% of companies in the $500mm to $1bn revenue bracket reported they have an MDM solution -- and over 80% do not leverage a "Center of Excellence" to bridge their cross-functional supplier management needs.
On a positive note, the survey revealed that when Procurement or Accounts Payable are in charge of the Supplier Master, far less of the employee's time is spent searching for, or collecting, miscellaneous supplier information (e.g., W8/W9 forms, Certificates of Insurance, and Contracts) than when the Supply Chain organization has governance over the Supplier Master.
Predictions for the future? HICX Solutions asked what organizations are most likely to invest in within the next 12 months, Supplier Information Management (SIM) was the most frequent response with close to 35%, followed by contract management (24%), and Master Data Management (17%).
Grant Watling, Principal of Global Consulting Services commented, "The good news is that organizations are recognising the value of enterprise level supplier information management. The challenge they face is aligning global/local requirements and having the experience, resource, and methodology necessary to deliver the right balance."
The full results of the survey are available by contacting HICX Solutions on their website (www.hicxsolutions.com). HICX Solutions would be happy to discuss any inquiries about the survey. Please direct all questions to the North American offices by calling (630) 560-3640.
About HICX Solutions Ltd
Founded in London in 2004, HICX is the global leader in providing Supply Base Management (SBM) technology and Business Process as a Service (BPaaS) solutions that help customers, across the globe, reduce costs and mitigate risks. Our integrated suite of technology solutions for Supplier Onboarding, Supplier Information Management, Supplier Master Data Management, Supplier Risk and Performance Scorecarding, Supplier Compliance, and Supply Chain Mapping are successfully used by organizations across a wide range of industries. HICX Solutions maintains regional headquarters in London, Chicago, and Dubai. For more information, visit http://www.hicxsolutions.com.