#Ariba has co-sponsored a research report by #AberdeenGroup.   You can download it at:

http://www.ariba.com/resourcelibrary/views/resource_library_asset_brief.cfm?asset_id=872

 

Some key findings:

  • 76% of respondents indicate that identifying new suppliers and market opportunities is the main reason for their use of supplier networks
  • Supplier networks are providing organizations with an opportunity to establish stronger supplier relationships by demonstrating:
    • 33% higher rate of suppliers meeting capability/performance thresholds
    • 12% higher rate of on-time delivery than those not using them.
  • Respondents indicate the pressure to enable supplier networks include (note respondents could select multiple answers):
    • 45% said, "Need to enable more B2B e-commerce with suppliers"
    • 42% said, "Need to reduce procurement operating costs"
  • What is really really interesting to me is that 32% of respondents did not know what their top barriers were to adopting supplier networks.  This really points out to me a huge opportunity for savvy supplier partners to go in and really partner with buying organizations to help them identify and overcome barriers to adoption.
  • Beyond simply "transacting" or wanting more "transparency throughout the source-to-pay cycle," respondents wanted to optimize supplier collaboration!  One area of collaboration that really sticks out to me from this report is the opportunity to improve contract and purchasing compliance.  From a buyer perspective, it's about making sure their organization is utilizing their strategic contract suppliers with negotiated pricing, while from a supplier perspective, it's about getting 100% of the spend from the customer that you negotiated prices based on expected volume!
  • Finally, from benefits perspective, the top two benefits still remain
    • Reduce Supply Chain Costs (48% of BIC)
    • Reduction of Manual Process (41% of BIC)
    • These haven't changed since I started doing this in 1996, but what has changes is that Best-in-Class (BIC) companies are really looking to "improve supplier collaboration (38% of BIC)."  This was the third highest response for BIC while all others (non-BIC) rated "reduced procurement costs (33% non-BIC)" as their third highest. 
  • So for those suppliers really willing to improve collaboration with their buyers, those BIC buying organizations are out there ready and willing to work with you!!!