STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
GOVERNANCE & PROCESS 113
Figure 3.17. The proportion of companies reporting that robust performance management is in place for their key suppliers – industry sectors
○ 76% 100% ○ 51% 75% ○ 26% 50% ○ 0 25% ○ DON’T KNOW
0% 10% 20% 30% 40% 50% 60%
FINANCIAL SERVICES
MANUFACT URING
OIL AND GAS
FOOD AND BEVERAGES
IT / HIGH TECH
UTILITIES
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
Figure 3.18. The proportion of companies reporting that robust risk management is in place for their key suppliers – industry sectors
○ 76% 100% ○ 51% 75% ○ 26% 50% ○ 0 25% ○ DON’T KNOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
FINANCIAL SERVICES
MANUFACT URING
OIL AND GAS
FOOD AND BEVERAGES
IT / HIGH TECH
UTILITIES
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
CONTRACT MANAGEMENT
more often present in the direct supplies side of the manufacturing and food and beverage sector are not replicated on the indirect side. It should also be noted that automotive lead again, with 65% reporting robust performance management in place for over half of their key suppliers.
Feedback on contract management by industry sector reveals a relatively consistent pattern across sectors, with the exception of better performance reported in the automotive and oil and gas sectors ( figure 3.16 ). The other industry sector observation is the high proportion of ‘don’t knows’ in health care, IT / high tech, and food and beverages.
RISK MANAGEMENT
Looking at risk management across industry sectors again highlights the fact that post contract supply chain risk management is not an embedded business discipline for many companies ( figure 3.18 ). Only automotive and to some extent financial services are reporting they have robust risk management in place for more than 75% of their key suppliers. The stand out sectors in terms of a proportion reporting good risk management in place for less than 25% of their key suppliers are manufacturing, utilities and the public sector. Another sector worth looking at is oil and gas, where despite risk being a critical business driver only 13% has robust risk management in place for more than 75% of their key suppliers.
PERFORMANCE MANAGEMENT
The industry sector analysis for performance management reveals a picture heavily biased towards feedback suggesting that effective performance management is in place for less than 25% of key suppliers across a number of sectors ( figure 3.17 ). Perhaps most surprising is the feedback from the manufacturing and food and beverage sectors, where the proportion reporting performance management in place for less than 25% of key suppliers is 43% and 44% respectively. From this we draw the conclusion that the performance management disciplines
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