STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
GOVERNANCE & PROCESS 103
HIGHLIGHTS
80 percent of leading
companies have a single SRMprocessowner inplace.
More than 8 in 10 companies complete
formal supplier segmentation. only 25
percent of companies have a definedRACI as part of their governancemodel. 80 percent of companies conduct periodic strategic reviews with key suppliers. 38 percent of companies have robust risk management in place. Just 40% of companies have robust performance management in place. 6 in 10 companies use a performance scorecard, while 3 in 10 use a relationship scorecard.
SRM essentials
ö ö Create a RACI as part of the governance model for all key relationships. ö ö Keep an open mind regarding the operating model – select the approach that works in view of the organisation’s culture, skills, capacity, etc.
ö ö Establish robust contract, performance and risk management governance and process. ö ö Review your segmentation approach to ensure it takes more than just spend and risk dimensions into account. ö ö Ensure strategic reviews have an 80/20 agenda (80% looking forward / 20% looking back).
<1 in 3 companies are
conducting regular risk reviews with suppliers.
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