Executive summary
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
6
VALUE
_1_ BUSINESS DRIVERS & VALUE
_2_ STAKEHOLDER ENGAGEMENT & SUPPORT
_3_ GOVERNANCE & PROCESS
_4_ PEOPLE & SKILLS
_5_ INFORMATION & TECHNOLOGY
_6_ RELATIONSHIP DEVELOPMENT & CULTURE
© 2014 State of Flux
KEY HIGHLIGHTS
Following are the key highlights from this year’s SRM study. These are divided across the six pillars of best practice, which is explained in more detail in the next section.
1. BUSINESS DRIVERS AND VALUE ö ö SRM leaders are aligning SRM more effectively to their key business drivers. ö ö Cost reduction is the most important business driver (88%), followed by risk (78%). ö ö Supplier innovation is regarded as an important business driver by 78% of respondents. ö ö A majority (64%) of leading companies have developed a clear value proposition to act as an SRM ‘sales pitch'. 2. STAKEHOLDER ENGAGEMENT AND SUPPORT ö ö Stakeholder support is far below its optimum level to make SRM work in most organisations. ö ö Leaders are twice as likely as followers to have strong and active senior stakeholder support. ö ö Strong and active support for SRM from business and operational areas is low, averaging less than 35%.
ö ö Leaders enjoy a financial advantage, with 46% reporting benefits equivalent to 4% or more of contract value. ö ö Of companies that have identified a business driver as important, only around 50% are receiving corresponding benefits. ö ö Customer of choice benefits are more commonly reported by leaders.
ö ö Fewer companies report supplier resistance as a barrier to SRM than in 2013. ö ö Around 60% of leaders have gathered feedback from suppliers on how they are perceived as a customer, compared to 43% overall. ö ö There is a lack of executives accountable for key supplier relationships in many companies.
ö ö 53% of respondents have stakeholder management plans in place for SRM, compared to 69% of leaders.
Powered by FlippingBook