STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
GOVERNANCE & PROCESS 109
Figure 3.9. Where SRMpractitioners sit inorganisations – industry sectors
80%
○ 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)
70%
60%
50%
40%
30%
20%
10%
0%
FINANCIAL SERVICES
MANUFACT URING
OIL & GAS
FOOD & BEVERAGES
UTILITIES IT / HIGH TECH
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
A cross organisation mix from central procurement through to key stakeholders in business units. UK charity Some are in the business unit and some are in the procurement team. Australian financial services company Central SRMexpertisewithin the procurement and supplier management business area, with designated suppliermanagers for each key supplier for eachbusiness area. European financial services company Flexible operating model across procurement and business resource applying a common reportable framework. UK insurance firm Group procurement for all business units except IT, where IT has its own SRM function. UK retail chain
Mix of central leadership and accountability with SRM managers hosted in divisions but working globally and cross-divisionally. International pharmaceutical company Combination of procurement for the key suppliers and in the business unit for other suppliers / partners. UK building society Currently in business unit, but in process of moving to procurement function at group level. Global financial services company
Some are in a central procurement team and others in business units. Australian energy company Mix of procurement function and for our IT suppliers we have a dedicated group of supplier programme managers in the IT CIO office. International oil and gas company A hybrid model of both main practitioners in a central group function and other relationship managers in business units. Global insurance company Procurement function at central / group level but only since March 2014... a new team has just been recruited to manage all suppliers in a centralised function using the standard framework developed. Global financial services company
Only the IT function has a dedicated vendor management team; SRM (basic) is done within procurement
in the other spend categories. International beverage company
Centrally lead, geographically split. International mining company
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