Headline findings include:
- 6% of the panel will meet over 50 potential new suppliers per year though none will appoint this many.
- On average the panel talk to 18 potential suppliers over the course of a year. They then appoint on average 5 new suppliers per year – i.e. just over 1 in 4 (or 28%) of the companies they meet.
- The average number of suppliers that the panel employs over the course of a typical year is 28. This can be further broken down to 23 (82%) existing and 5 (18%) new.
- Only a minority of companies always employ a formal tender process or a short list system when appointing new suppliers.
- In terms of input from other departments during the appointing of new suppliers, procurement are most likely to be involved, finance and legal in some cases and HR less so.
- The 2 top ways of sourcing potential new suppliers are recommendations / word of mouth and through meeting at a conference.
- No surprise that in this day and age price is the number one factor the panel looks for when compiling a shortlist of suppliers. This is closely followed by product quality and flexibility.
- 82% of the panel have asked some of their suppliers to re-quote their prices over the last few years, with the average number they’ve asked being 30%.
- However the majority of the panel has not changed their payment terms
- Over half of the panel has brought work back previously outsourced work in house. Of those that have done so the average amount (they’ve brought back) is 13%.
- The majority of the panel is quite prepared to ask suppliers to re-quote in order to match a lower price, with only 6% saying they would never do so.
For full report http://revents.info/l/6qk