In a recent survey conducted by HICX, a leading Supplier Experience vendor, it was revealed that a significant number of suppliers serving large multinational corporations are struggling to deliver their best work due to communication issues. The survey, which builds on a similar study conducted in 2021, aimed to understand the current state of supplier experience.
Survey Methodology and Findings
HICX surveyed 1,000 suppliers that cater to large multinational corporations, typically those with revenues exceeding $1 billion. These corporations operate in sectors such as consumer-packaged goods, aerospace and defense, and energy. The respondents, who directly engage with businesses in these categories, were asked to relate the survey to their largest customer.
The survey results indicate that supplier experience remains a significant issue. Costas Xyloyiannis, CEO of HICX, noted that 59% of suppliers are struggling to deliver their best work for their major customers, a slight improvement from the 61% reported in the previous study. This minor improvement is concerning, especially considering the critical role of supply chain resilience in today’s economy.
Communication: The Root of the Problem
The survey suggests that the root of the problem lies in how businesses communicate with their suppliers. An overwhelming 98% of suppliers expressed a desire for improved communication with their largest customers. Instead of experiencing a collaborative relationship, nearly half of the suppliers reported difficulties in resolving queries with their customers. This fractious relationship often results in suppliers feeling stretched and finding their large customers challenging to work with.
The Impact of Improved Customer Relationships
The survey also highlighted the potential benefits of improved customer relationships. If customers were easier to work with, most suppliers reported that they would be able to deliver better work. This could include faster data delivery, more accurate responses to requests, more detailed feedback, and even the provision of additional information.
In conclusion, the survey underscores the need for businesses to improve their communication and relationships with their suppliers, as this could significantly enhance the supplier experience and overall business performance.
