STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
INFORMATION & TECHNOLOGY 151
Figure 5.6. Number of areas enabled by technology
Figure 5.7. Adoption of supplier management technology by area
© 2014 State of Flux
22%
29%
12 AREAS 11 AREAS 10 AREAS 9 AREAS 8 AREAS 7 AREAS 6 AREAS 5 AREAS 4 AREAS 3 AREAS 2 AREAS 1 AREAS 0 AREA
41%
CATEGORY MANAGEMENT
PROGRAMME MANAGEMENT
28%
PERFORMANCE
RISK
58%
15%
23%
CSR / SUSTAINABILITY
27%
CONTRACTS
20%
QUALITY MANAGEMENT
6%
INTELLIGENCE
RELATIONSHIP
INNOVATION
9%
0% 5% 10% 15% 20% 25%
27%
36%
© 2014 State of Flux
© 2014 State of Flux
PRODUCT LIFECYCLE MANAGEMENT
BENEFITS
PLANNING & FORECASTING
HOW TECHNOLOGY IS CURRENTLY HELPING SUPPLIER MANAGEMENT
All of this points to the need for companies to strongly align their technology requirements to clear business goals or requirements, and invest in the right places and to the right levels. Almost six in ten respondents have some form of contract management system or database, albeit this is heavily influenced by the high adoption of contract management in the public sector. Only 20% have a system that helps themmanage supplier relationships and collaboration. Despite supplier innovation being perceived as an important business opportunity, innovationmanagement technology has only been implemented by 6% of respondents. Leaders and fast followers are three times more likely to have relationship management, innovation or CSR / sustainability management technology in place. Leaders are also more likely to have performance and forecasting and planning technology in place.
Supplier management has a number of facets that can be enabled and supported by technology.
For the purposes of our research, we identified 12 core areas where various technology solutions provide enablement: ö ö Contract management
ö ö Performance management ö ö Forecasting and planning ö ö Project management ö ö Risk management ö ö Benefits capture and reporting
ö ö Quality management ö ö Category management ö ö Relationship management and collaboration ö ö Corporate social responsibility (CSR) / sustainability management ö ö Product lifecycle management ö ö Innovation management Our research reveals that only 9% of respondents have six or more of these areas covered ( figure 5.6 ). Leaders and fast followers have on average four areas covered; followers have an average of three, while the rest have an average of two covered.
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