84 per cent of businesses have faced supplier failure in the past two to three years, according to research commissioned by the Tungsten Network.
According to the Network, the research demonstrates how supply chains are “not yet optimised to meet the demands of today’s customers, resulting in stunted business growth and increased risk levels.”
The research found that the most common impact of supplier failure identified in the research was financial, with 30 per cent of firms reporting a loss in revenue or business partners.
22 per cent of buyers identified higher insurance premiums, damaged reputation/loss of customer trust and significant legal/regulatory fines as problem areas.
According to the survey, only 23 per cent of buyers have achieved “mature” supplier-related processes, which involve monitoring and analysing suppliers with clear data.
“Today’s digital world affords buyers and sellers the opportunity to more effectively use their data and manage their interactions,” says Rick Hurwitz, Tungsten Network’s CEO. “It is vital that businesses are able to effectively use their data and manage their suppliers.
“Both buyer and suppliers in our study shared a host of challenges in meeting their company’s objectives, including increased cyber fraud, siloed customer data, insufficient cash for investment, and legacy technology systems.”