According to the research findings, three quarters of businesses communicate more openly with suppliers about business strategy. Additionally, seven in ten corporates are looking for longer-term supplier relationships than five years ago. 65% of business are now more concerned about the reputational damage caused by late supplier payments.
Almost half (48%) of procurement teams contact preferred suppliers at least once a week. However, there is still more to be done; when looking at how procurement professionals could improve their supplier relationships, the number one response was for businesses and suppliers to ensure they understand each other’s strategic priorities (32%).
The research found that six in ten (61%) businesses are more concerned about paying suppliers on time than they were five years ago, which could be as a response to increasing pressure from government to pay smaller suppliers within their agreed payment terms.
Respondents said that they currently pay suppliers on schedule 73% of the time, on average. When asked why they might not meet the agreed payment terms, three in ten (30%) cited slow internal processes as one of the main reasons. The same proportion (30%) said that they would like to simplify their procurement processes to ensure suppliers are paid more quickly, in order to improve supplier relationships.
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