The most common factors for evaluating suppliers are based on economic and ethical considerations. 60% of respondents cite ‘value for money’ and 54% call out ‘cost savings’ as their top criteria.
Nine in ten of the 779 business executives interviewed for the report believe a culture of transparency is essential to increase employee engagement and simplify processes. The majority (59%) expect their finance and accounting arms to drive that culture of transparency. 40% of companies are keen to do more to ensure ethical best practice amongst suppliers.
Many organisations lack transparency in their supply chains with the majority of those surveyed (60%) warning that poor visibility of who they do business with is a significant source of risk. Nearly a quarter (24%) admit they fail to effectively evaluate supplier business practices, with 45% percent citing manual processes that lead to incomplete data entry as a key cause.
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