Supplier Relationship Management Software Statistics 2024


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Navigating the increasingly complex web of global business demands a strategic approach to supplier relationships. Supplier relationship management (SRM) software has emerged as a cornerstone for maintaining robust, efficient, and dynamic supply chains. As we approach 2024, understanding the latest trends and statistics in SRM software is crucial for businesses aiming to stay competitive and resilient. These statistics not only illuminate the current state of supplier relationships but also help predict and shape future business strategies, making them indispensable for anyone in the commercial sphere.

Key stakeholders, including procurement managers, supply chain analysts, and C-suite executives, will find this data particularly valuable. Procurement managers can leverage these insights to enhance their negotiation tactics and supplier evaluation processes. Supply chain analysts can utilize the data to streamline operations and mitigate risks. Meanwhile, C-suite executives can make informed strategic decisions that align with the overarching goals of the organization. Furthermore, the trends discussed will significantly impact various industries, from manufacturing to retail, underscoring their broad relevance and applicability.

Ultimately, the statistics presented in this article serve as a beacon for guiding decision-making and strategy formulation in the dynamic landscape of SRM. As we delve deeper into the specifics, you’ll see how this data can address current challenges, uncover opportunities, and drive future growth and innovation within your organization. Stay tuned to arm yourself with the knowledge necessary to outperform in the evolving world of supplier relationship management.

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Top Supplier Relationship Management Software Statistics 2024

☰ Use “CTRL+F” to quickly find Supplier Relationship Management Software facts. There are total 69 Supplier Relationship Management Software Statistics on this page 🙂


Supplier Identification And Selection

  • AI-powered solutions can reduce the time required to identify suitable suppliers by up to 90% or more. [?]
  • 76% of respondents diversified their supplier geography in the past year, up from 50% in the previous year. [1]
  • 55% of EU-based businesses are increasing domestic or regional sourcing. [1]
  • 43% of small businesses use outdated inventory tracking methods, like pen and paper (14%) and spreadsheets like Excel (21%). [3]
  • 8% of small businesses do not track their inventory at all. [3]
  • Only 33% of small businesses use inventory management software or do the inventory directly in their accounting software. [3]
  • 24% of small businesses don’t have inventory. [3]
  • 42% of businesses are increasing outsourcing in engineering due to a shortage in mechanical engineering talent. [3]
  • 71% of manufacturers want to increase US-based manufacturing, an increase from 65% of respondents the previous year. [3]
  • 51% of manufacturers want to engage in near-shoring to keep manufacturing on the North American continent. [3]

Impact And Adoption Of Ai And Digital Technologies

  • 85% of leaders in engineering, supply chain, manufacturing, and product development plan to or have adopted AI. [3]
  • AI will have the most impact on quality control inspections, according to 60% of engineering leaders. [3]
  • 47% of respondents in non-engineering roles expect AI to play a part in product design. [3]
  • 51% of non-engineering leaders see uses for AI in supply chain management. [3]
  • Companies using digital procurement tools can achieve a 30% higher policy compliance rate. [7]
  • Companies incorporating automation in procurement processes can expect cost reductions of up to 60% in certain operations. [7]

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Trends And Priorities In Procurement

  • Improving supply chain visibility is the top priority for 55% of manufacturing-related businesses. [3]
  • For smaller organizations with fewer than 2,500 employees, improving customer experience (52%) and reducing operational inefficiencies (45%) are the main priorities. [3]
  • Increasing the speed of new product innovation is the second-highest priority for companies overall, with 49% listing this as a priority. [3]
  • 56% of supply chain leaders list sourcing for low-volume builds as the biggest barrier to innovation. [3]
  • 78% are looking into technology solutions to increase operational efficiency for new product development. [3]

Economic And Market Conditions

  • After the drastic market fluctuations of 2020 to 2022, there is an over 60% likelihood of recession in 2023. [2]
  • The global supply chain has experienced severe disruptions due to the COVID-19 pandemic, political changes, wars in Ukraine and Israel, and an evolving business landscape. [3]
  • Increased cost of working is the leading consequence of supply chain disruptions, at 84.6%. [3]
  • Adverse weather affects logistics costs for 62% of respondents. [3]
  • Cybercrime is more likely to cause financial (70%) and reputational (60%) damage. [3]

Supplier Relationship Management (srm) Software Market

  • The Global Supplier Relationship Management (SRM) Software Market, valued at USD 12.2 billion in 2022, is experiencing a growth at a CAGR of 11.3% during the forecast period. [4]
  • By 2028, the market is expected to reach USD 23.4 billion. [4]
  • 90% of SRM programs fail due to poor performance, limited scope, price-related focus, or lack of visible results. [5]
  • 80% of invoices in some companies result from maverick spending. [6]

Supply Chain And Procurement Statistics

  • 48% of companies face pressure to improve sustainability in the supply chain. [3]
  • The global supply chain management market will increase from $25.7 billion in 2022 to $72.1 billion in 2032. [3]
  • The biggest challenges facing supply chain operations are hiring and retaining talent (57%), talent shortages (56%), disruptions (54%), running out of stock (52%), and consumer demands (52%). [3]
  • 52% of engineers spend 6 or more hours on supply chain-related work per week. [3]

Nearshoring And Geopolitical Impact

  • Businesses are moving towards nearshoring, especially after disruptions caused by the COVID-19 pandemic. [1]
  • Gap Inc. plans to increase sourcing in Central America, investing $150 million by 2025. [1]
  • Brexit has caused 28% of businesses to lose revenue, with an estimated revenue drop of 18%. [3]
  • 83% of UK businesses say supply chain disruptions caused by Brexit will get worse. [3]
  • 75% of companies on the supply chain are changing practices based on lessons learned from the pandemic. [3]

Sustainability And Environmental Impact

  • 78% of consumers prefer buying products labeled as environmentally friendly. [1]
  • Three main challenges in meeting sustainability goals are limited control over supplier standards (54%), difficulty scaling initiatives (40%), and lack of funding (36%). [3]
  • Sustainability initiatives focus on electrification (40%), natural resource management (29%), and renewable energy (27%). [3]

Technological Advancements And Digital Transformation

  • Companies leveraging digital platforms for supplier relationship management experienced up to a 35% faster supplier response time and a 20% increase in supplier collaboration. [7]
  • Advanced analytics for inventory management can reduce carrying costs by up to 20% while improving service levels by 10%. [7]
  • Companies with digital procurement solutions can achieve cost savings of up to 40%. [7]
  • Digital adoption can free up as much as 25% of procurement professionals’ time for strategic activities. [7]

Organizational And Strategic Changes

  • 40-80% of a company’s total cost is wrapped up in external spend with suppliers. [2]
  • 97% of supply chain leaders expect a growing shortage of talent fit for mechanical engineering roles. [3]
  • Companies are reskilling and upskilling workers (41%) and hiring new workers with future-facing skill sets (34%) to address supply chain challenges. [3]
  • 56% of supply chain leaders list sourcing for low-volume builds as a big barrier to innovation, a 30% increase over the last two years. [3]

Investment And Financials

  • The global supplier relationship management software market size was valued at USD 14.1 billion in 2023 and is expected to reach USD 35.1 billion by 2032, growing at a CAGR of 10.7%. [8]
  • Digital transformation within the supply chain sector has the potential to unlock USD 1.5 trillion in value by 2025. [8]
  • Companies equipped with advanced supply chain capabilities attain 50% higher revenue growth and 20% higher profitability. [8]
  • The cloud-based deployment segment held the largest market share in the supplier relationship management software market in 2023. [8]

Risk Management And Resilience

  • 56% of supply chain leaders list sourcing for low-volume builds as the biggest barrier to innovation, a 30% increase over the last two years. [3]
  • 78% are looking into technology solutions to increase operational efficiency for new product development. [3]

Consumer Behavior And Market Demands

  • 78% of consumers prefer buying products labeled as environmentally friendly. [1]
  • 83% of UK businesses say supply chain disruptions caused by Brexit will get worse. [3]
  • 75% of companies on the supply chain are changing practices based on lessons learned from the pandemic. [3]

Data And Analytics

  • Companies using digital procurement tools can achieve a 30% higher policy compliance rate. [7]
  • Companies incorporating automation in procurement processes can expect cost reductions of up to 60% in certain operations. [7]

Implementation And Efficiency

  • Companies leveraging digital platforms for supplier relationship management experienced up to a 35% faster supplier response time and a 20% increase in supplier collaboration. [7]
  • Advanced analytics for inventory management can reduce carrying costs by up to 20% while improving service levels by 10%. [7]

Workforce And Talent Management

  • 97% of supply chain leaders expect a growing shortage of talent fit for mechanical engineering roles. [3]
  • 42% of businesses are increasing outsourcing in engineering due to a shortage in mechanical engineering talent. [3]

Financial Impact

  • The global supply chain management market will increase from $25.7 billion in 2022 to $72.1 billion in 2032. [3]
  • The biggest challenges facing supply chain operations are hiring and retaining talent (57%), talent shortages (56%), disruptions (54%), running out of stock (52%), and consumer demands (52%). [3]

Environmental And Sustainability Goals

  • 48% of companies face pressure to improve sustainability in the supply chain. [3]
  • Sustainability initiatives focus on electrification (40%), natural resource management (29%), and renewable energy (27%). [3]

Also Read

Sources

  1. veridion – https://veridion.com/blog-posts/global-procurement-trends/
  2. order – https://www.order.co/blog/procurement/procurement-trends/
  3. fictiv – https://www.fictiv.com/articles/supply-chain-statistics-you-need-to-know
  4. globenewswire – https://www.globenewswire.com/en/news-release/2023/11/06/2773955/28124/en/Global-Supplier-Relationship-Management-SRM-Software-Market-Analysis-2023-2028-Redefining-Collaboration-and-Cost-Optimization.html
  5. vizibl – https://www.vizibl.co/blog/the-true-cost-of-one-way-supplier-relationship-management
  6. vendr – https://www.vendr.com/blog/supplier-relationship-management-software
  7. apty – https://www.apty.io/blog/from-procurement-to-profit-digital-adoptions-impact-on-supply-chain-efficiency/
  8. globenewswire – https://www.globenewswire.com/en/news-release/2024/05/10/2879475/0/en/Supplier-Relationship-Management-Software-Market-To-Reach-USD-35-1-Billion-By-2032-DataHorizzon-Research.html

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