Organization/Respondent Profile:
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1 Organization/Respondent Profile: Respondent s Job Function Respondent Seniority Revenue Split Number of ERP Systems Procurement Information Systems Operations Finance Other Vice-President Level Director Level Management Level Staff >$100B $50B-$100B $10B-$50B $1B-$10B $500M-$1B <$500M 1 ERP System 2 ERP Systems 3 ERP Systems 4 ERP Systems 5+ ERP Systems Unknown *174 organizations participated (18 government institutions, 156 companies) te: percentages rounded to nearest whole number. Does the organization employ a Center of Excellence to bridge the cross-functional supplier management needs?, 59%, 41%
2 te: The average significantly changes (21%) for those organizations under $1b in revenue, where, over $1b in revenue only slightly changes (12%). Under $1B, 2, 8 Over $1B, 53%, 47% Who has Responsibility for the Supplier Master? Supply Chain, 17% Accounts Payable, 31% Procurement, 52% te: There were no noticeable differences by industry;; however, without a Center of Excellence, there were no owners of the Supplier Master. Procurement Accounts Payable With Center of Excellence 33% 22% 10 Without Center of Excellence 78% 67% How many new suppliers are added/enrolled per year? % Respondent Did t Know 14% 8% 2% Under 5,000 Over 50,000 Between 5,000 and 50,000
3 Does your organization view the management of suppliers as a strategic advantage? te: For only those organizations that either Strongly Agree, or Agree, that their organization views their management of suppliers as a strategic advantage: 39% do not scorecard their suppliers 35% do not, or cannot, manage their suppliers at the relationship-level 22% only partially manage their suppliers at the relationship-level Is the organization able to enforce global standards, while enabling local flexibility, such as: standard corporate approvals, with local (e.g., country-specific, plant-specific, etc.) flexibility? 32% 39% te: An organization s revenue influences this result. For example, all organizations with over $10b in revenue either can fully, or partially, achieve this objective. 29% Under $10B Revenue 41% 36% 23% Over $10B Revenue 57% 43%
4 What are the most common 3rd-party data providers that respondents rely on? % % te: 78 of the 174 respondents had an answer to this question. Of the remaining, we can only assume that they do not leverage 3rd-party data providers. 2 1 Dun & Bradstreet 15% OFAC LexisNexis SEC/ Investor Inputs 3% 4% Other (eg customer input, Trackit, etc.) 8% ne What percentage of time is spent by employees searching for, or collecting, miscellaneous supplier information (e.g., W8/W9, Certificate of Insurance, Contracts, etc.)? te: When owns responsibility of the Supplier Master, the percentages of employee s time spent on these activities increases significantly. 0-25% of Time 26-5 of Time 51-75% of Time of Time Varies Average 45% 17% 1 3% 24% owns Supplier Master 17% 41% 18% 23% 1% Change -28% +24% +8% +21% -23% 5 45% 4 35% 3 25% 2 15% 1 5% 0-25% of Time 26-5 of Time 51-75% of Time of Time Varies Average
5 Is the organization able to track and manage suppliers at the relationship-level? 24% 37% te: Organizations without a Master Data Management solution are less able to track supplier at the relationship-level. 39% With MDM Without MDM Change 67% 25% 8% 18% 47% 35% -49% +22% +29% Does your organization scorecard their suppliers? 38% 62% tes: 1. Within those that do scorecard their suppliers 39% rely on manual processes to accomplish this task. The same 61% that utilize a system-driven approach to scorecarding, claim that their scorecarding (processes, data, etc.) is standardized across functions, where the same 39% that rely on manual processes acknowledge that their scorecarding is not standardized. 2. Only 38% of organizations leverage a standardized, system-driven scorecarding solution. Respondent s most pressing supplier risk concern: Weather / Incidents: 14% Financial /Economic: 8% Regulatory (e.g., Conflict Minerals, tax, etc.): 8% Social Responsibility: 7% concerns: 6% Reputational: 5% Turn-over: 3% t Sure: 52% Removing concerns and t sure Weather / Incidents: 36% Financial /Economic: 22% Regulatory (e.g., Conflict Minerals, tax, etc.): 2 Social Responsibility: 17% Reputational: 12% Turn-over: 3% Turn Over 2% Reputational 11% Social Responsibility 16% Regulatory 18% Weather 33% Financial/ Economy 2
6 Has the organization invested in a Master Data Management solution? : 41% : 59% te: Of those that have invested in Master Data Management solution, 92% incorporate supplier master data leaving 62% of organizations without a system to enforce supplier master data governance. What are organizations most likely to invest in within the next 12 months? Supplier Information Management (SIM): 34% Contract Management: 24% Master Data Management: 17% Compliance Management: 1 erfx / Reverse Auction: 7% thing: 7% te: Of those that are investing in systems, what an organization is planning to purchase correlates to the revenue (and perhaps the complexity and/or maturity) of the organization with SIM/SRM and MDM spanning the spectrum. Revenue SIM/SRM Contract MDM Compliance erfx <$1b 9% 77% 39% 63% $1b to $10b 45% 31% 19% 37% 10 $10b to $50b 27% 19% $50b to $100b 8% 3% >$100b 11% 19% As it relates to Supplier Information Management, what are organizations most wanting to see incorporated with a SIM solution (93% responded)? Risk and Performance Scorecarding 15% Mapping 19% Supplier Collaboration/Community 22% Commodity/Category Mapping 44% 5% 1 15% 2 25% 3 35% 4 45% 5
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