The Benefits of Focusing on Supplier Centricity and Supplier Experience
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Voice of the Supplier Survey 2024
Building strong supplier relationships is more crucial than ever in today’s competitive business environment. However, our 2024 Voice of the Supplier Survey uncovered some critical insights that revealed that, rather than being set up for success, suppliers often feel too stretched to innovate, as they explain what they feel would make for better communication and more effective processes.
This article explores the benefits of prioritizing supplier engagement, and why supplier centricity is needed to foster long-term, mutually beneficial relationships.
This article covers:
- How supplier centricity translates into real benefits
- What measurable outcomes can be achieved?
- What does ‘customer-of-choice’ actually mean to suppliers?
How will supplier centricity translate into real benefits?
The Voice of the Supplier Survey 2024 revealed that 44% of suppliers feel that they’re too stretched to offer new ideas, a clear indicator of how poor relationships, inefficient processes, redundant data requests, and bad communication can really hurt collaboration in real terms.
As Anthony Payne, CMO at HICX, puts it, “We cannot be successful without our suppliers, and in order to have the best results, we need to build strong supplier relationships.” To improve this situation, we need to focus on what’s needed to build lasting partnerships that create mutual value.
By prioritizing supplier centricity, and by using techniques like segmentation and supplier marketing, buyers can show they’re serious about long-term, win-win partnerships. Through targeted communication and engagement efforts, buyers can create an environment where suppliers feel valued, respected, and empowered to share their expertise and insights.
It’s a winning formula for improving critical data that’s needed by the organization as well. When suppliers were asked how their performance would change if their customers were easier to work with, the top responses indicated a significant improvement in data quality:
- 54% said they could reply to requests more accurately
- 54% said they could provide more detailed feedback
- 53% said they could respond faster to data and information requests
- 53% said they would be happy to volunteer extra information
As Adam Hubbard, Supply Chain Governance and Performance Manager at EDF, points out, “The measure of supplier engagement is their willingness to update information.”
What measurable outcomes can be achieved?
Focusing on supplier centricity and supplier marketing can lead to measurable benefits, such as:
- Better adoption of tools by suppliers
- Improved response rates and supplier engagement
- Faster response times
- More accurate, more frequently updated data
- Fewer manual interventions or workarounds
- Greater efficiency
- Fewer inquiries
- Lower costs to serve
Remember, any segmentation you carry out of your suppliers also requires ongoing updates founded on continuous data gathering and analysis to keep communication and initiatives relevant.
However, the effort is worth it. The survey results show that segmentation can foster a sense of partnership and collaboration between buyers and suppliers, making the buyer the preferred customer, or the ‘customer-of-choice.’ This is the coveted status every brand wants to achieve with their supplier base.
What does ‘Customer-of-Choice’ mean to suppliers?
When asked, almost 40% of suppliers used terms like communication, relationships, or partner to describe what ‘customer-of-choice’ means to them.
So, as organizations navigate the complexities of supplier management, they need to understand the crucial role of supplier marketing and ongoing lifecycle management in building strong partnerships, driving innovation, and achieving strategic goals.
The research shows that suppliers are more likely to engage deeply with buyers who genuinely understand their needs and preferences, leading to more meaningful relationships. By focusing on supplier centricity and creating a great supplier experience, businesses can unlock numerous benefits that enhance overall performance and create a thriving, collaborative ecosystem.
Embracing Supplier Centricity and Supplier Marketing
Embracing a supplier-centric approach is key to unlocking the full potential of supplier relationships. By prioritizing engagement, communication, and collaboration, businesses can foster an environment where suppliers feel valued and empowered to contribute their best ideas and efforts. Ultimately, companies that invest in programs such as supplier marketing and relationship management not only achieve strategic advantages but also become the preferred partners for their suppliers. This mutually beneficial dynamic drives innovation and positions businesses to thrive in a competitive landscape.
