STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
INFORMATION & TECHNOLOGY 155
Figure 5.13. SRM programme benefits delivered by technology
MANAGE SUSTAINABILITY AND CSR IN THE SUPPLY CHAIN VIRTUAL TEAMWORKING IDENTIFY, CAPTURE AND DELIVER SUPPLIER INNOVATION TEAM PRODUCTIVITY COMPLIANCE AND REGULATORY RISK IDENTIFICATION AND MANAGEMENT VALUE CAPTURE AND DELIVERY SUPPLIER MANAGEMENT OVERSIGHT ONE PLACE TO MANAGE SUPPLIERS SUPPLIER PERFORMANCE IMPROVEMENT INFORMATIONMANAGEMENT, SHARING AND REPORTING
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© 2014 State of Flux
BUSINESS CASE AND SRM PROGRAMME BENEFITS
2. Do I believe that using technology will make SRM easier and more effective? 3. Do I believe technology will accelerate and increase the likely benefits I’ll get through SRM? 4. Do I believe acceleration and increase of those benefits will justify an investment in technology? If the answer to those four questions is ‘yes’, then it’s clear there is a case to be made for investing in technology. We have analysed the research data to explore the correlation between the deployment of technology and the level of SRM benefits reported. Where any form of supplier management technology has been implemented, the majority of participants are reporting SRM benefits of between 2.1% and 4%. The majority of respondents that indicated they had technology in place, delivered greater post contract benefits: ö ö Risk management: 2.1 – 6% ö ö Innovation: 6.1 – 8% ö ö Relationship and collaboration: >8% Overall, from this analysis we can hypothesise a relationship between deploying technology and the level of post-contract benefits and SRM programme benefits achieved.
In order to gain investment in technology to support SRM, it is important to create the business case. Key to the business case is a robust understanding of the potential SRM programme benefits. The top three benefits from participants of the survey were: 1. Improved information management, sharing and reporting – the role of technology in collaboration is well understood. 2. Supplier performance improvement – highlighting the importance of core business outcomes. 3. One place to manage suppliers – for ease of management and certainty with regards to information integrity. These were closely followed by supplier management oversight, value capture and delivery, and risk management. Innovation and managing sustainability / CSR are seen as lower in priority, but the inclusion of these areas highlights the range of technology enabled benefits companies are looking to deliver. The question of whether the use of technology correlates to the delivery of SRM benefits requires an organisation to ask itself four simple questions: 1. Do I believe SRM delivers business value and benefits?
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