STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
GOVERNANCE & PROCESS 111
CONTRACT MANAGEMENT
Figure 3.10. The proportionof companies reporting that robust contract management is inplace for their key suppliers – all respondents 2013 / 2014
We asked respondents what proportion of key suppliers they would consider have *robust contract management in place. The results suggest a slight improvement compared to 2013, but still a picture that should be of concern to companies that are exposed to contractual and commercial loss and risk. Contrary to popular belief, SRM does not consign the contract to the desk drawer never to be looked at again. It should be a live document that creates andmaintains the framework for the relationship. Managing both parties’ obligations under the contract is a key aspect of good SRM. Only 53% of companies report having robust contract management in place for more than half of their key suppliers. The picture for the leaders makes slightly better reading in that eight in ten report having contract management in place for more than half of their key suppliers.
10% 15% 20% 25% 30%
○ 2014 ○ 2013
0% 5%
76% 100%
51% 75%
26% 50%
0 25%
DON’T KNOW
© 2014 State of Flux
Figure 3.11. The proportionof companies reporting that robust contract management is inplace for their key suppliers – leaders / fast followers / followers
0% 10% 20% 30% 40% 50% 60%
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
76% 100%
51% 75%
26% 50%
0 25%
DON’T KNOW
© 2014 State of Flux
PERFORMANCE MANAGEMENT
Figure 3.12. The proportionof companies reporting that robust performance management is inplace for their key suppliers – all respondents 2013 / 2014
We again asked respondents what proportion of key suppliers they would consider they have *robust performancemanagement in place. Results here also show a slight improvement compared to 2013, but still a picture that should be of concern to companies that are not only trying to roll out amore ‘relationship development’ focused SRM programme but also are exposed to operational risk. Only 40% of companies report having robust performancemanagement in place for more than half of their key suppliers. As expected, leaders fair better with seven in ten reporting good performancemanagement in place for more than 50% of their key suppliers.
10% 15% 20% 25% 30% 35%
○ 2014 ○ 2013
0% 5%
76% 100%
51% 75%
26% 50%
0 25%
DON’T KNOW
© 2014 State of Flux
Figure 3.13. The proportionof companies reporting that robust performance management is inplace for their key suppliers – leaders / fast followers / followers
50%
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
40%
30%
20%
10%
0%
76% 100%
51% 75%
26% 50%
0 25%
DON’T KNOW
© 2014 State of Flux
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