Companies want longer and more strategic relationships with their suppliers, according to new research.
Six in ten procurement decision-makers in the study said that their current contracts with suppliers last at least two years and that 69% are now looking for longer-term relationships with their suppliers than five years ago.
The study for Barclaycard polled 512 UK senior procurement decision-makers in companies with at least 250 employees and who have a turnover of at least £6.5million.
The key findings of the study are shown in this week's chart.
Marc Pettican, CEO of Barclaycard Commercial Payments, said: "It's encouraging to see that UK businesses are looking to develop longer-term and more collaborative supplier relationships, built on trust and transparency."
Barclaycard revealed the research findings as it launched Precisionpay Hub, a new service to streamline the process for B2B payments using a combination of virtual cards and bank payments. Suppliers using the service can reduce DSO (Days Sales Outstanding) by requesting early payment from the buyer in exchange for a discount. Buyers will also gain from faster invoice processing. Suppliers can also manage risk more effectively by gaining greater visibility of overdue payments.
The Barclaycard research cuts across all procurement categories but there are pointers for those procuring business travel. Buyers with large, mature travel programmes already tell us that they are engaging more with their suppliers in order to move beyond the headline savings. It may be time to stop beating up suppliers to get the lowest fees and the biggest discounts but rather think of them as longer-term partners who can help deliver business strategy.