GOVERNANCE & PROCESS
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
108
Figure 3.7. Where SRMpractitioners sit inorganisations – all respondents 2013 / 2014
50%
○ 2014 ○ 2013
40%
30%
20%
10%
0%
IN THE PROCUREMENT FUNCTION AT CENTRAL / GROUP LEVEL
IN THE PROCUREMENT TEAM EMBEDDED IN A BUSINESS UNIT OR FUNCTION
IN ANOTHER CENTRAL OR GROUP FUNCTION
IN A BUSINESS UNIT
OTHER (PLEASE SPECIFY)
© 2014 State of Flux
Figure 3.8. Where SRMpractitioners sit inorganisations – leaders / fast followers / followers
0% 10% 20% 30% 40% 50% 60%
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
IN THE PROCUREMENT FUNCTION AT CENTRAL / GROUP LEVEL
IN THE PROCUREMENT TEAM EMBEDDED IN A BUSINESS UNIT OR FUNCTION
IN ANOTHER CENTRAL OR GROUP FUNCTION
IN A BUSINESS UNIT
OTHER (PLEASE SPECIFY)
© 2014 State of Flux
OPERATING MODEL
This pattern is not contradicted by the leaders, fast followers or followers who report a similar split ( figure 3.8 ). The industry sector analysis broadly follows the overall preference with just two exceptions. The financial services industry and public sector both seem to be split on their preferred operatingmodel ( figure 3.9 ). To illustrate the ongoing debate, the following comments from survey respondents indicate the number of different solutions being explored, with some indicating a hybridmodel.
The development of appropriate SRM operating models continues to make progress. Two years ago it was one of the areas making the least progress. This year, over 60% of respondents report that progress is being made. However, it still remains a challenging area for many. The debate about the most effective operating model essentially falls into two camps: those who believe it is fundamentally a procurement-led activity with involvement and support from other functions; and those who believe it is a business-led activity with procurement as a supporting function. What we see emerging is almost a steady state in terms of companies’ preferences ( figure 3.7 ). Almost 70% of companies opt for SRM as an activity led by procurement either as part of a central function or a procurement team embedded in the business.
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