The buyer-supplier relationship has undergone many changes in the past several decades. From the 1980s, when timely availability of products and services was the key buying criterion, the buyer-supplier relationship matured to focus on both spend and risk reduction in the 2000s. Today, the buyer-supplier relationship is reaching another inflection point where enterprises are finding little value in focusing only on spend and cost reduction and are demanding suppliers to co-innovate and engage with them in strategic partnerships, giving rise to the concept of supplier management. Supplier management entails a complete overhaul of each and every step in the supplier-buyer relationship, including the use of technology. The advantages of developing a supplier management strategy encompass multiple dimensions, including easier and much more productive relationship management with gains for both the parties. In this research, we highlight the challenges buyers and suppliers face in their relationships today and how supplier management can help to solve them. Some of the findings in this report are: The buyer-supplier relationship continues to be mired in myriad issues Whether it is payments, quality, or innovation, buyers and suppliers often have conflicting views Moreover, buyers’ expectations from suppliers are also moving beyond only cost and risk management, opening new confrontational fronts The solution to the majority of these buyer challenges is a comprehensive supplier management strategy Supplier segmentation and developing a strategic partnership is one of the key steps toward successful supplier management Role of technology gaining traction in supplier management due to increasing complexity of supplier relationships A successful supplier management strategy involves multiple stages and needs both capital and time investment from enterprises The successful implementation of the supplier management strategy can enable buyers in developing strategic partnerships with suppliers Membership(s) Procurement Outsourcing (PO)

The wave of digitalization in the supply chain domain is striking so aggressively that it is becoming difficult to assimilate and keep pace with. Disruptive technologies in the physical world – e.g., next-generation robotics and autonomous vehicles – now integrate with analytical technologies such as big data analytics, sensors, blockchain, and other virtual solutions to create a dynamic construct never witnessed in this space. However, relatively few companies have been able to unlock the full potential of digital technologies so far. Everest Group believes most of the disparity between the potential and actual gains from supply chain digitalization can be attributed primarily to technology gaps and management choices. This report explores the journey to supply chain digitalization excellence by highlighting key facts and insights on following key questions: Where do enterprises stand in their supply chain digitalization journey? What are the key dimensions of a digital supply chain? What kinds of technologies are enterprises adopting today? What are the digital investment preferences for enterprises? Invest directly or outsource to technology integrators / third-party service providers? Where are the hot areas of investment for enterprises in their journey of supply chain digitalization? What benefits do they expect to reap from these investments? How should an enterprise evaluate its supply chain maturity level? What should an enterprise do to avoid getting left behind in the digital supply chain race? What are the steps a service provider should adopt to effectively respond to the demand trends in supply chain digital transformation? The scope of the report Industry: Engineering Services (ES) ES segments: Software products Mechanical (automotive, aerospace, defence, and marine) Hi-tech (semiconductors, telecom, consumer electronics, and computing systems) Industrial, energy, chemicals, and natural resources Geography: Global Membership(s) Engineering Services