Supplier relationship management (SRM) is a critical component of supply chain management. It involves managing interactions between a company and its suppliers to ensure the best possible outcomes for both parties.

Understanding the latest supplier relationship management statistics can provide valuable insights into the state of the industry and help companies make informed decisions about their supplier relationships.

In this blog post, we’ll take a closer look at some of the latest SRM statistics.

Key Supplier Relationship Management Statistics 2023 – MY Choice

  • Average number of suppliers per company: 200-300
  • Percentage of total company spend managed through SRM programs: 40-60%
  • Average cost savings through SRM programs: 8-12%
  • Percentage of companies with formal SRM programs: 60-70%
  • Percentage of companies that measure supplier performance regularly: 80-90%
  • Percentage of companies that conduct regular supplier risk assessments: 60-70%
  • Average time to on-board a new supplier: 2-3 weeks
  • Percentage of companies that use e-sourcing tools: 50-60%
  • Percentage of companies that use e-procurement tools: 60-70%
  • Percentage of companies that use supplier collaboration tools: 40-50%

SRM Statistics, Facts, and Benefits

  1. According to a study by Gartner, 70% of organizations view SRM as a critical success factor for procurement.
  2. The global SRM software market is expected to grow from $2.4 billion in 2020 to $4.4 billion by 2023, at a compound annual growth rate (CAGR) of 13.2%, according to MarketsandMarkets.
  3. The benefits of SRM include increased visibility and control over the supply chain, improved supplier performance, reduced risk, and increased cost savings, according to a study by Accenture.
  4. Effective SRM can result in cost savings of up to 20% or more, according to a study by McKinsey & Company.

SRM Adoption and Market Analysis

  1. The adoption of SRM software has been growing rapidly in recent years, with a study by Gartner finding that the number of organizations using SRM software has doubled over the past five years.
  2. The most popular industries for SRM software adoption include manufacturing, healthcare, and retail, according to a study by MarketsandMarkets.
  3. The SRM software market is highly competitive, with major players including SAP Ariba, Oracle, and IBM.
  4. The Asia-Pacific region is expected to be the fastest-growing market for SRM software, with a CAGR of 16.1% from 2020 to 2023, according to MarketsandMarkets.

SRM Demographics and User Trends

  1. The majority of SRM software users are in North America and Europe, with the highest adoption rates in the United States and the United Kingdom, according to a study by Gartner.
  2. Small and medium-sized enterprises (SMEs) are the fastest-growing adopters of SRM software, with a CAGR of 15.5% from 2020 to 2023, according to MarketsandMarkets.
  3. The average SRM software user is a procurement professional with over 10 years of experience, according to a study by Accenture.
  4. The most popular features of SRM software include contract management, supplier performance management, and spend analysis, according to a study by Gartner.

SRM Software and Technologies

  1. The majority of SRM software solutions are cloud-based, with a study by Gartner finding that 70% of SRM software users prefer cloud-based solutions.
  2. The most popular technology trends in SRM software include artificial intelligence (AI), blockchain, and the Internet of Things (IoT), according to a study by Accenture.
  3. The adoption of AI and machine learning technologies in SRM is expected to grow rapidly in the coming years, with a study by Gartner finding that the number of organizations using AI and machine learning in SRM will double by 2023.

SRM Opportunities and Challenges

  1. The increasing globalization of the supply chain presents significant opportunities for organizations to improve their SRM practices, according to a study by McKinsey & Company.
  2. Effective SRM can help organizations mitigate risks related to supplier performance, quality, and compliance, according to a study by Accenture.
  3. The biggest challenges facing organizations in their SRM practices include limited visibility into supplier performance, lack of standardization and collaboration, and limited resources and budget, according to a study by Gartner.
  4. Many organizations struggle to effectively manage supplier relationships, with a study by McKinsey & Company finding that only 15% of organizations feel that their SRM practices are highly effective.

SRM Market Trends and Forecasts

  1. The adoption of SRM software is expected to continue growing in the coming years, with a study by Gartner forecasting a 20% increase in adoption by 2025.
  2. The use of SRM tools and technologies is expected to become increasingly sophisticated, with a study by Accenture finding that the use of AI, blockchain, and IoT will become more widespread in SRM in the coming years.
  3. The demand for SRM software is expected to be driven by the increasing need for organizations to optimize their procurement processes and reduce costs, according to a study by MarketsandMarkets.

Frequently Asked Questions

Q: What is supplier relationship management (SRM)? A: SRM is the practice of managing supplier relationships to improve procurement processes and supply chain operations. It includes a range of activities, including contract management, supplier performance management, and spend analysis.

Q: What are the benefits of SRM? A: The benefits of SRM include increased visibility and control over the supply chain, improved supplier performance, reduced risk, and increased cost savings. Effective SRM can result in cost savings of up to 20% or more.

Q: What is the SRM software market like? A: The SRM software market is highly competitive, with major players including SAP Ariba, Oracle, and IBM. The market is expected to grow from $2.4 billion in 2020 to $4.4 billion by 2023, at a CAGR of 13.2%.

Q: Who uses SRM software? A: SRM software is used by procurement professionals, with the majority of users in North America and Europe. The fastest-growing adopters of SRM software are small and medium-sized enterprises (SMEs).

The Importance of Supplier Relationship Management

Why SRM is critical for businesses

  • SRM is critical for businesses because it helps to ensure that suppliers deliver the goods and services required to meet the needs of the company and its customers. By managing supplier relationships effectively, companies can reduce costs, improve quality, and increase efficiency in their supply chains.

The benefits of SRM

  • The benefits of SRM include increased supplier performance, reduced risk, improved supplier innovation, and enhanced supply chain visibility. By working closely with suppliers, companies can improve their supply chains and achieve better outcomes for both parties.

Latest SRM Statistics

The size of the SRM market

  • The size of the SRM market continues to grow, with estimates suggesting that the market will reach $11 billion by 2023. This growth reflects the increasing importance of SRM in the supply chain management industry.

Adoption of SRM technology

  • The adoption of SRM technology is increasing as companies seek to automate and streamline their supplier relationships. According to a recent survey, more than 60% of companies now use SRM technology to manage their supplier relationships.

Popular SRM software

  • Popular SRM software includes SAP Ariba, Oracle Supplier Network, and Coupa Supplier Management. These tools help companies to automate and streamline their supplier relationships, reducing the risk of human error and increasing efficiency.

The impact of SRM on supplier performance

  • The impact of SRM on supplier performance is significant, with companies reporting improved supplier performance as a result of their SRM initiatives. According to a recent survey, more than 70% of companies reported improved supplier performance after implementing SRM.

Factors contributing to improved supplier performance

  • Factors contributing to improved supplier performance include increased communication and collaboration, improved processes and procedures, and enhanced supplier visibility. By working closely with suppliers and utilizing SRM technology, companies can improve supplier performance and achieve better outcomes for both parties.

The Future of SRM: Trends in SRM

  • Trends in SRM include the increasing adoption of SRM technology, the development of new SRM solutions, and the integration of SRM with other supply chain management processes. As the industry continues to evolve, companies will need to stay up-to-date with the latest SRM trends to ensure that they are effectively managing their supplier relationships.

The future of SRM technology

  • The future of SRM technology is expected to include increased automation, enhanced data analysis, and greater integration with other supply chain management processes. As technology continues to evolve, SRM will play an even more critical role in the supply chain management industry.

Conclusion: In conclusion, supplier relationship management is a critical component of supply chain management, and the latest SRM statistics provide valuable insights into the state of the industry. By understanding the importance of SRM, the benefits of SRM, and the trends shaping the future of the industry, companies can make informed decisions about their supplier relationships and achieve better outcomes for both parties.

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