Top companies 'share more with suppliers'

14 June 2007
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15 June 2007 | Paul Snell

High-performing companies are most likely to share information and data with their suppliers, according to a new survey.

Aberdeen Group, which published the study on 'supplier enablement' - the sharing of information between buyers and suppliers - found that 'best-in-class' companies were 25 per cent more likely to share information with suppliers than other firms.

The report also found procurement departments in the best firms controlled 1.5 times more spend than in other organisations. The spend is therefore more visible and easier to analyse.

Just under half of the firms were considering more automation as a means of cutting procurement operating costs, and 39 per cent wanted to do more e-commerce with suppliers. The survey found that top firms were able to reduce costs by 71 per cent after enabling their suppliers.

Aberdeen recommended that firms wanting to increase supplier enablement standardise their processes and share management information more freely. Firms should also expand their definition of supplier enablement beyond the traditional transactional approach.

SMjun2007

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