HICX Unveils 2024 Voice of the Supplier Survey

HICX has released its 2024 Voice of the Supplier Survey, building upon its 2021 predecessor, which revealed significant challenges faced by suppliers in working with some of the world’s largest businesses. Seeking to understand the current landscape, HICX conducted a new study to gauge the state of supplier experience today.

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The survey included responses from 1,000 suppliers serving large multinationals, typically with revenues exceeding $1 billion, operating in sectors such as consumer-packaged goods, aerospace and defense, and energy. Respondents, who interact directly with businesses in these categories, provided insights based on their experiences with their largest customers.

HICX CEO Costas Xyloyiannis highlighted the persistence of supplier experience issues, noting that 59% of suppliers still struggle to deliver their best work for major customers, a minor improvement from 61% in the previous study. “With supply chain resilience being critical to business success in today’s economy, it’s time to see a significant improvement in this figure,” Xyloyiannis emphasized.

The survey findings point to communication as a key issue, with an overwhelming 98% of suppliers expressing a desire for better communication from their largest customers. Xyloyiannis noted, “Many leaders are still stuck in a transactional mindset, trying to manage suppliers from this baseline. While transactions are important, in today’s landscape, collaboration is crucial. It’s time to prioritize supplier collaboration over mere management.”

Despite the importance of collaboration, suppliers report experiencing strained relationships. Nearly half of the surveyed suppliers struggle to resolve queries with their customers, who they say often hinder the relationship. Many suppliers feel too stretched to propose new ideas and find large customers difficult to work with.

The survey clearly indicates that improved communication and collaboration with suppliers would lead to better performance. Suppliers could provide data more quickly, respond to requests more accurately, offer detailed feedback, and even volunteer additional information if their customers were easier to work with.

Xyloyiannis concluded, “In a world where resilience relies heavily on supplier relationships, why aren’t we offering a more collaborative experience? Why aren’t we communicating better and unlocking their potential? Leaders who understand this will create a significant competitive advantage for their businesses.”