Assessing relevance of supply chain risk
An unusual event in my working life occurred in the early morning (7:30 a.m. to be exact) of Wednesday, November 25. I was genuinely pleased to be up, alert and in full work mode at that hour because my colleagues Adrian and Martyn were explaining the myriad benefits of SAP Qualtrics XM for Suppliers.
You can listen to the full recording here (passcode bO?7?3qV).
I’d like to share some additional thoughts on the benefits of Qualtrics Experience Management (XM).
Procurement Experience Management Reduces Risk in the Supply Chain
Given that supply chain risk management is so front and centre at the moment – to the point that one of my former university lecturers got a speaker slot on morning tv – I will start here. Deloitte’s 2020 CPO Flash Survey identified that 90% of organizations rated their visibility into their extended supply network as moderate to low. Qualtrics XM combined with SAP Ariba Risk Management can help increase your supply chain visibility and create actionable insights to help increase resilience.
The key to the SAP Ariba Supplier Risk solution is that it can consume data from third parties – including Qualtrics – and attach it to supplier records, making it actionable. An important feature of the solution is that the supplier records don’t have to be in your purchasing system, meaning it is a powerful repository of information on not just your tier 1 suppliers and potential suppliers but also your suppliers in tiers 2, 3 and so on.
Procurement Experience Management Accelerates Time to Value
You can accelerate the time to value of your procurement projects and initiatives through rapid insight-to-action. According to SAP research, buyers agree that benefits can be realized 25% faster when continuous improvement cycles are efficiently managed and feedback loops are compressed. With Qualtrics XM you get instant feedback, not just from as few stakeholders as you have the time to manage but as many as have a contribution to make. When you have thousands of suppliers, this is a lot of potential information, so at the moment you probably don’t make as much use of surveys as you could. To help you unlock that value, you need Qualtrics’ free-text analytics capability.
Include experience management in your success metrics. At Procurious’ Big Ideas Summit, Amy Fong offered her view and advice on measuring success: “Think along the lines of the service industry’s customer experience measurement.” Following that advice took me to Finland and the clever folks in VTT’s Quality of Experience domain. They do write lots of fascinating stuff but nothing on QoE in procurement … yet. Therefore, my suggestion is don’t just focus on making the KPIs green – ask how people feel about them. Maybe the green KPIs are diverting resources from other important work. Don’t you ask because you don’t want to know? Or don’t you ask because manually sifting through so many responses to find action points takes more time than is available?
What to Do Next
Contribute to this Qualtrics survey and offer your view on experience management in procurement. Participate and let me know who you are so I can send you a copy of the report I create. Don’t w