Supplier Relationship Management: why does it matter?
P2P process costs account for an average of 60% of turnover for most companies. On one hand, it highlights the considerable extent of savings that can be derived by optimizing this function. On the other hand, it underlines the overriding influence of supplier relationship management on business performance, largely setting the conditions for companies’ ability to face exacerbated levels of competition while continuing to meet the ever-growing demands of their own clients.
According to CIPS, "Supplier relationship management is the relationship formed between a buyer and supplier, subject to the criticality of the goods or services being purchased and supplied into your organisation, determines the type of working relationship that you should look to form with your suppliers".
It is estimated that “in the UK alone, around £13bn is owed to small businesses in overdue refunds and up to 50,000 businesses are at risk of insolvency every year because they lack the reserves of larger organisations to cover such delays”.
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