Skip to content
Search AI Powered

Latest Stories

Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Ivalua research finds a lack of digitization and focus on costs is hindering supplier collaboration

Significant opportunities to improve CSR performance, increase profitability and accelerate innovation linked to improving supplier collaboration

Ivalua research finds a lack of digitization and focus on costs is hindering supplier collaboration

Redwood City, CA. June 3, 2020 – Ivalua, a leading provider of global spend management cloud solutions, has announced the findings of a worldwide study of supply chain, procurement, sales and finance business leaders on the current state of collaboration in procurement. The study reveals that a lack of digitization and a focus on costs is hindering supplier collaboration, with 77% of respondents admitting that cost dominates supplier selection for most sourcing projects, and a further 80% acknowledging they need to accelerate their digitization of procurement.

The research, conducted by Forrester Consulting and commissioned by Ivalua, found improving collaboration was a priority for 77% of respondents. Respondents identified improving CSR (41%), increasing margins (38%) and accelerating the pace of innovation (36%) as the top opportunities to unlock greater value through supplier collaboration.


The majority of respondents say they have improved collaboration with most strategic suppliers (90%) and their broader supply base (91%) in the last two years. However, there are still a number of areas for improvement. This includes collaboration processes; there was no mechanism in place for many organizations to collaborate effectively with the broader supply base (42%), finance (41%), IT (40%), or their most strategic suppliers (39%).

The research highlighted notable geographic differences:
• 50% of German business had no processes to collaborate with strategic suppliers, compared to 45% in the US and a third (33%) in the UK
• 48% of US businesses and 44% of German businesses had no processes to collaborate with the broader supply base, compared to a third (33%) of UK businesses
• Just 38% of German business leaders believe that procurement is seen as a key business partner which contributes significant value, compared to 86% in the US and 82% in the UK

“Most procurement departments are taking steps to improve supplier collaboration, but supplier selection is still dominated by cost, and businesses are struggling to work strategically with suppliers,” explained Alex Saric, Smart Procurement Expert at Ivalua. “As firms increasingly rely on suppliers to help them keep up with the growing pace of innovation and to adapt during crises such as COVID-19, they need be building stronger relationships. If organizations don’t establish themselves as a customer of choice now, they will be at a significant competitive disadvantage as in-demand suppliers pick and choose who they work with and prioritize.”

According to the study, respondents believe the most effective ways to improve supplier collaboration are setting up performance goals and KPIs that place greater weight on collaboration (76%), and investing in technology that enables better information sharing with suppliers (63%). The study also surveyed suppliers, of which 88% stated that the main factor that is likely to increase their willingness to collaborate and share innovations with a specific customer was visibility into payments and their timeliness. Digitization is essential to enabling payment efficiency, transparency and control.

“It’s clear that companies need to digitize procurement processes to enable deeper collaboration across more of their supply base. Doing so will enable them to better unlock innovation from suppliers, ensure supply continuity and better address other strategic priorities,” concluded Saric.

The full study, Collaborate To Win, is available for download here.

The study results were shared by our guest speaker Duncan Jones, Vice President & Principal Analyst at Forrester, in a recorded webcast hosted by Ivalua on May 27 2020.

*The April 2020 study was conducted by Forrester Consulting on behalf of Ivalua and is based on a survey of 425 finance, procurement, sales and supply chain decision makers throughout North America and Europe, as well as several in depth interviews.

About Ivalua
Ivalua is a leading provider of cloud-based Spend Management solutions. Our complete, unified platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, lowering risk and improving employee productivity. Trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts, Ivalua maintains the industry’s leading 98%+ customer retention rate. Learn more at www.ivalua.com.

https://www.ivalua.com

Recent

More Stories

Hub International announces strategic partnership with Mas Seguros to expand transportation cross-border capabilities

Chicago, IL, October 1, 2024 - Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, announced today an exclusive referral and broker program partnership throughout the U.S., Canada and Mexico with MAS Seguros, the largest trucking insurance broker in Mexico. The partnership is a response to Mexico’s growing influence in the global economy and a reflection of HUB’s and MAS Seguros’ commitment to expanding its capabilities to better serve clients doing business throughout North America.

Due to changing global political relationships and policies*, there has been a significant move for manufacturing operations to Mexico, which comes with increased risk and insurance challenges when transporting goods cross-border. Organizations face regulatory compliance issues, crime, product damage, catastrophic weather events and accidents. Additionally, more transportation firms from Mexico are moving to the U.S. As a result, there is an emerging transportation and logistics need to manage risk and insure freight, property and assets while transporting goods into Mexico for manufacturing and then back to the U.S. and Canada.

Keep ReadingShow less

Featured

Hoptek Dispatch Engine

Xtreme Trucking selects HOPTEK’s Dispatch Engine® solution for real-time visibility and optimization of fleet operations

Charlotte NC, September 23, 2024 (McLeod User Conference ) – HOPTEK, a global leader in AI-driven trucking and fleet transportation solutions, has been selected by Xtreme Trucking of Wisconsin, one of the U.S.’s leading technology-first transportation and logistics providers, for its Dispatch Engine® solution, a digital platform providing instant visibility and access to the spot load market, while matching available carrier capacity across thousands of possible options. HOPTEK’s “digital twin” will provide real-time visibility and enable Xtreme to boost operational efficiency and fleet utilization, while reducing driver turnover and deadhead miles, resulting in material cost savings and profitability.

Started as a small independent operation in 2006, Xtreme Trucking was formally established in 2009 to become a quality diversified transportation provider, with a growing revenue profile and extensive coverage across the United States. Through HOPTEK’s Dispatch Engine®, Xtreme has leveraged real-time data visibility and dynamic decision-making to drive operational velocity to achieve up to a 20% increase in both Revenue per Hour and Weekly Revenue Miles per Driver – a clear competitive advantage.

Keep ReadingShow less
EP North America forklifts

EP North America Debuts New Lithium-Ion Battery Powered Forklifts

Fort Worth, TX – September 10, 2024 – EP North America, a fast-growing, lithium-ion focusedmaterial handling equipment provider offering innovative and competitive options to the market, today debuted two new forklifts. The CPD45F8/50F8 and EFLA251 help warehouse and DC managers provide powerful lithium-ion solutions that will upgrade any fleet of diesel and LPG warehouse vehicles and are available today via EP North America’s dealer network.

“EP North America continues to expand its portfolio to solve a wider range of material handling applications, leveraging our unparalleled strength in lithium-powered solutions,” said Jason Bratton, general manager, EP North America. “Whether leading occasional or multi-shift operations, these lithium-ion powered solutions provide exceptional value, quality and dependability that we believe our dealer network and their customers have been looking for.”

Keep ReadingShow less
GEODIS to Hire 3,700 Seasonal Workers for Peak Season

GEODIS to Hire 3,700 Seasonal Workers for Peak Season

GEODIS, a leading global logistics provider, today announced plans to hire 3,700 seasonal workers across its campuses in the U.S. and Canada to help manage the expected rise in volumes during peak season. This hiring initiative will bolster the company’s operational capacities in its warehouses and distribution centers in preparation for the holiday season, a time when consumer demand surges.

Keep ReadingShow less
Nulogy Announces ASCM Connect 2024 Session

Nulogy Announces ASCM Connect 2024 Session

Nulogy, a leading provider of supply chain collaboration solutions, is hosting a session during the Association of Supply Chain Management's ASCM Connect 2024. Nulogy, Kinaxis and Colgate-Palmolive executives will present “Orchestrating Digital Transformation: Nulogy & Kinaxis Empower Colgate-Palmolive’s External Network” on Monday, 9/9/2024, 3:45 - 4:45 p.m. CT in Ballroom E, Level 4.

In an era when digital transformation is paramount for sustainable growth, Colgate-Palmolive stands out as a leader in the consumer packaged goods space. With a strong digital transformation vision and strategic partners that tout the technical capabilities and expertise to bring it to life, Colgate and its extended supply network has been able to reap the benefits of digitally-infused agility, resilience and efficiency to outcompete in today’s marketplace.

Keep ReadingShow less