STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
six pillars of SRM, benchmarking & maturity model explained 11
TTTTTTTTTTTTTTTTTTTTTTU STATE OF FLUX SIX PILLARS OF SRM, TTTTTTTTTTTTTTTTTTTTTTTTTTTTU BENCHMARKING & MATURITY MODEL EXPLAINED
VALUE
_1_ BUSINESS DRIVERS & VALUE
_2_ STAKEHOLDER ENGAGEMENT & SUPPORT
_3_ GOVERNANCE & PROCESS
_4_ PEOPLE & SKILLS
_5_ INFORMATION & TECHNOLOGY
Measures to develop supplier relationships to be more collaborative, innovative and mutually beneficial. _6_ RELATIONSHIP DEVELOPMENT & CULTURE
SRM value proposition
Effective and proactive stakeholder engagement
Creating an effective
Understanding of the required skills and capabilities, organisation structures, job profiles, and training solutions.
Optimised use of technology to enable connection, collaboration and value creation across the business and with suppliers.
clearly aligned to business drivers. Value captured and measured.
operating model, and governance and process methodologies and tools.
across executives, the business and suppliers.
© 2014 State of Flux
SIX PILLARS OF SRM
Our research and experience of working with companies to implement SRM makes us confident that the value and benefits derived from SRM will increase if the activities described in the six pillars are implemented effectively.
The State of Flux six pillars of SRM is a model for SRM excellence, developed and refined over the last ten years. It will be familiar to previous readers of this report and to those companies we have engaged with around SRM. For those unfamiliar with the model, it is explained here. Our initial SRM research identified key themes and activities that were common to more successful approaches to SRM. Progressively, we developed these into a model that defines the key elements of SRM and the range of practices that support these elements. Each element or ‘pillar’ is important in its own right, but it is the successful combination of activities that make for the most successful SRM outcomes.
10 years – the time taken to develop, refine and prove this model for SRM excellence. 6 pillars stand for key elements of SRM and the range of practices that support these elements. All You need to work on all six pillars to achieve sustainable progress.
You will find our research and report on SRM best practice is aligned to each of the above pillars.
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