2014 Global SRM Research Report - Customer of choice

PEOPLE & SKILLS

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

126

We’re changing our view of what we need when recruiting for SRM; before it was about managing risk and we felt we could recruit internally. We have to recognise that people with the ‘softer’ skills are at a premium and we won’t satisfy 100% of our needs this way. So nowwe’re considering external recruitment and specifying a different skill set. You have to get the balance right. SRM Principle – global insurance company

Figure 4.4. Resourcing / organisational design model for SRM – all respondents

0% 10% 20% 30% 40% 50%

FULL TIME DEDICATED MANAGING ONE SUPPLIER RELATIONSHIP

FULL TIME DEDICATED MANAGING MULTIPLE SUPPLIER RELATIONSHIPS

PART OF A BROADER CATEGORY MANAGEMENT / SOURCING ROLE

PART OF A BROADER OPERATIONS /SERVICE MANAGEMENT ROLE

OTHER (PLEASE SPECIFY)

Figure 4.5. Resourcing / organisational design model for SRM – leaders / fast followers / followers

0% 10% 20% 30% 40% 50% 60%

○ LEADER ○ FAST FOLLOWER ○ FOLLOWER

FULL TIME DEDICATED MANAGING ONE SUPPLIER RELATIONSHIP

FULL TIME DEDICATED MANAGING MULTIPLE SUPPLIER RELATIONSHIPS

PART OF A BROADER CATEGORY MANAGEMENT/ SOURCING ROLE

PART OF A BROADER OPERATIONS /SERVICE MANAGEMENT ROLE

RESOURCING AND JOB DESIGN

The next most popular option (27%) is for the role to be performed as part of a dedicated job responsible for a portfolio of two or more suppliers. This is followed by the role positioned alongside operations or service management responsibilities in the business. This reflects the proportion of companies that have positioned SRM in the business functions. An interesting observation from the leaders, fast followers and followers analysis is that leaders and fast followers are almost twice as likely to be creating a dedicated SRM job as both followers and others ( figure 4.5 ).

The optimum approach to executing the SRM role is a source of constant debate. Similarly, to the operating model itself, the research findings suggest we have settled into a steady state in terms of the resourcing and job design options being favoured by companies. The most favoured option adopted by 43% of companies is to combine the role with that of the category or sourcing manager ( figure 4.4 ). While this appears expedient, especially as the majority of organisations position SRM within the procurement function, it should also be approached with caution. In truth, this has probably been the most popular solution since SRM was first conceived, but in practice it often runs into problems. The problems appear mostly from a failure to fully understand the SRM role, together with a lack of proper job design. The combination of SRM and category or sourcing roles can be successful, but only if the new consolidated job is designed to create the right balance between the responsibilities – including clear deliverables, objectives and performance management.