Strategic supplier management is Procurement's next innovation frontier, says research

MANCHESTER, U.K. - July 11, 2016 - PRLog -- Suppliers and supplier relationships are the key focus for procurement innovation in 2016 and beyond, according to Wax Digital's Procurement Innovation Pathway research.

The research, conducted by Morar Consulting and surveying 100 UK senior procurement professionals, put supplier relationship management (SRM) as procurement's top current innovation area, with sourcing new suppliers for product innovation second. Reducing supplier risk was also a top five innovation, suggesting that the supply base is under serious scrutiny as purchasing professionals seek to drive change.

Over half (57%) of respondents cited SRM as a priority while 49% are addressing supplier sourcing for improved innovation. Managing supplier relationships remains the top priority into 2017 and improving supplier sourcing practices also comes into the top five, suggesting that a focus on enhancing the supply base will remain central to procurement's drivers for some time.

Compared to a number of other broad business innovation objectives, manging supplier relationships also featured as a key focus for the survey respondents. 84% said they were currently involved in supply chain collaboration, 40% said that they were currently leading it, and 50% expect to be leading in this innovation area in the future.

The picture is mirrored when it comes to procurement technology investment. The two technologies most commonly in use today are heavily supplier focused, with supplier information management top at 51% and contract management second at 49%, whilst SRM tools are among the most common technology investments planned for the coming 12 months.

Daniel Ball, director at Wax Digital, says: "Building better relationships with the right suppliers, whether existing or new, is clearly uppermost in the mind of procurement professionals. Many of the more transactional and process quick wins have already been achieved, so it is natural that we see more and more companies looking to strategic supplier management as the next frontier to conquer."

About Wax Digital

Wax Digital is Europe's leading provider of on-demand Purchase to Pay and eSourcing solutions.

For more information, visit: www.waxdigital.com

About the research

The Innovation 2016 research was conducted by Morar Consulting in March 2016, involving 100 interviews to canvass the opinions of UK senior procurement professionals working in small to large UK enterprises.