Key suppliers chosen as strategic partners

27 March 2009

27 March 2009

Buyers are investing in key supply partners and sourcing more from companies they see as "stable", in a bid to avoid trouble in the recession, results of a study released exclusively to SM suggest.

Recruiters Edbury Daley surveyed 244 supply professionals online in the first two months of this year about the fallout from the downturn on procurement.

About 40 per cent of respondents believed they were more powerful in their organisations in the credit crunch and almost half were thriving on the new challenges.

"This tells us that this is a real opportunity for the profession to build on the great strides it has taken, particularly in the last 10 years," said Andrew Daley, report author and Edbury Daley director.

When asked what steps were being taken to protect against suppliers going under or their supply chains failing, the most common answer was investing in key strategic partners - given by 35 per cent of respondents.

The type of investments could include financial support for suppliers, working more closely with them or favourably altering supply terms.

Twenty-four per cent said they moved to more stable suppliers and 18 per cent had diversified by increasing their numbers of vendors. Fifteen per cent sought to access better information, with financial reports becoming out-of-date quickly in the downturn, to assess risk or protect their intellectual property.

Seven per cent said they had shortened supplier payment terms.

SMmar2009

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