2014 Global SRM Research Report - Customer of choice

PEOPLE & SKILLS

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

128

TEAMWORK

Figure 4.7. Use of cross-functional supplier management teams – leaders / fast followers / followers

80%

While most organisations make the supplier relationship manager the focal point of the supplier relationship, the majority also realise that effective SRM is about teamwork. We asked to what extent organisations are using cross- functional teams as part of their operating and governance model. The question relates to formally constituted teams of named individuals with defined roles and responsibilities, as opposed to informal ad hoc arrangements. Our research revealed that 56% of all respondents are operating cross-functional teams, with this chart indicating it is a standard feature of SRM for nearly 80% of leaders.

○ LEADER ○ FAST FOLLOWER ○ FOLLOWER

70%

60%

50%

40%

30%

20%

10%

YES

DON'T KNOW

SRM essentials

Buy side

Sell side

STRATEGIC

Accountable Executive

RELATIONSHIP

HR, Legal, Finance etc.

OPERATIONAL

SERVICE MANAGEMENT

SERVICE DELIVERY

R&D

CROSS-FUNCTIONAL TEAMS

governance model, and individuals from both parties should be identified and given the necessary roles, responsibilities and training. This involvement (particularly in the buy side organisation) will help SRM become part of the organisation’s culture and, where SRM leadership sits within the function, can be an ideal opportunity to broaden the reach, impact and overall business value brought by procurement.

The scale and complexity of most strategic supplier relationships make the use of a cross-functional team, consisting of the necessary skills and specialist knowledge, an essential element of SRM. We maintain that while these teams are not full-time or dedicated to a single relationship, they should be set up in a more structured way, rather than coming together in an ad hoc fashion when an issue or incident needs to be addressed. They should form part of the