Poor supplier data is causing a staggering number of critical issues for procurement organizations, including project delays, unhappy clients, and financial loss, among others, according to a survey from Big Data firm Tealbook, released Tuesday.
The 2020 Supplier Information Study revealed that companies are experiencing severe problems because of misinformation and outdated supplier records. The study polled 250 procurement and sourcing executives and was conducted for Tealbook by Wakefield Research.
Among the key findings, the report showed that 93% of procurement and supply chain leaders had experienced adverse effects due to misinformation about their suppliers, and nearly half (47%) said they experience such negative effects on a regular basis. The survey shines a light on the vital role supplier data is playing in organizations around the world, the authors said.
“Trusted supplier information is the most critical asset a procurement organization can possess. This information is the fuel that powers all procurement technology, it influences billions of dollars of business decisions, and without it, organizations lose the ability to be agile when supply chains become overrun,” Matt Palackdharry, vice president of sales and commercial strategy for Tealbook, said in a statement explaining the survey results.
Among the other survey findings:
- 81% of respondents said they are not completely confident in their supplier data.
- 60% of executives reporting outdated supplier information say that it took them four days to update that information, showing that even seemingly small hiccups can cause severe negative consequences, such as missed deadlines (51%), unhappy clients (42%) or even financial loss (40%).
- Both procurement organizations and suppliers are hurt by poor data: consequences include wasted time (63%), delays in projects (47%), and terminated supplier relationships.
- More than half of respondents (58%) who use a supplier portal say that they don’t trust their suppliers to always keep their information up-to-date.
“The need for trusted supplier information will only continue to increase over time,” Palackdharry added. “The whole world is feeling the effects of Covid-19, and geopolitical issues will force us to rethink regional economic structures. Without trusted supplier information, making informed decisions during this time is impossible.”
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