HICX Survey: Suppliers Seek Better Communication

The feedback from the 1,000 suppliers who spoke to HICX, who serve large multinationals, typically with more than US$1bn in revenue and operate in the consumer packaged goods, aerospace and defence, and energy sectors.

Respondents, who work directly with businesses in this category, were asked to relate the survey to their biggest customer.

This comes after HICX announced its Voice of the Supplier Survey 2024. The survey builds on its predecessor from 2021, which revealed that some of the world’s biggest businesses are making it hard for suppliers to do their best work.

HICX, the leading supplier experience platform, that helps Global 5000 companies take control of their supplier data, is also working with DitchCarbon to help companies meet the challenges of Scope 3 emissions by sharing more carbon data about their supply chain.

The current state of affairs

Keen to learn the state of affairs today, the supplier experience vendors set out to repeat the study.

“We found that supplier experience is still a problem,” says Costas Xyloyiannis, HICX's CEO.

“Presently, 59% of suppliers struggle to do their best for major customers, compared with 61% in the previous study. This very minor improvement is concerning. With supply chain resilience so critical to business success in today’s economy, it’s time this figure drops.”

The survey suggests that the issue originates with how businesses work with suppliers – specifically how they communicate. 98% of suppliers are looking for their biggest customers to communicate better.

“Not nearly enough leaders are working with suppliers in a modern and helpful way,” Costas adds.

“Rather, people are clinging to the idea of running supplier transactions, and then from this baseline, trying to manage suppliers. Don’t get me wrong, transacting is important. But in today’s landscape supplier collaboration is more important. It’s time, therefore, to shake up supplier management and put collaboration first."

Lost communication

With this relationship built on a bedrock of collaboration, suppliers are instead finding a fractious relationship.

Nearly half of the suppliers who took part in the survey find it hard to resolve queries with their customers – which suppliers say can also actually hinder the relationship. Many suppliers feel too stretched to volunteer new ideas and they find big customers 'unpleasant’ to work with.

HICX says that companies should take the snapshot seriously, adding that it found customers that were easier to work with saw suppliers do better work. Specifically, suppliers could send data faster, respond to requests more accurately, give more detailed feedback and even volunteer extra information.

“If staying resilient within an ever-changing world relies so heavily on supplier relationships, why aren’t we giving suppliers a more collaborative experience?” Costas adds.

“Why aren’t we communicating with them better? Unlocking their best? Those leaders who get this right will create the opportunity to make their businesses truly competitive.”

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