ARTicle
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
164
BENEFITS DRIVEN BUSINESS CASE
For many companies, the articulation of benefits delivered through technology is key, since benefits are the first part in the construction of a business case to help gain funding for the investment in SRM technology. Our research showed that information management, sharing and reporting was the number one benefit (69%). This was closely followed by ‘one place to manage suppliers’ (68%) and supplier performance improvement (68%).
and supplier relationships. This results in higher levels of savings, innovation and an increase in the value of supplier contracts.” Global fast food company
In our experience, the main SRM technology benefits are in the following six areas: 1. Provides a hub for the SRMprogramme – everything is in one place, to facilitate greater adoptionof SRMwith the business and suppliers. 2. Drives consistency of supplier experience – embeds structure and best practice across the business. 3. Supports risk management and regulatory compliance requirements. 4. Technology, data and team integration enhances productivity – secure universal access anytime, anywhere, with anyone. 5. Progress and report with greater certainty and ease on all aspects of contract, risk and performance management – benefits can be tangibly measured. 6. Facilitates supplier innovation, from opportunity management and evaluation through to benefits tracking. supplier information gathering, and added a dashboard application to enable us to publish strategic supplier dashboards.” Global fast food company “The use of a contract management tool, which allows us to keep track of the progress of contracts and their expiration.” What is clear from our research is that as SRM programmes continue to mature, companies are in turn firming up and implementing their SRM technology roadmaps. The pace of change in SRM is accelerating, as are the technology solutions and options open to companies. This means that companies need to act quickly to implement functionally suitable solutions, while remaining flexible to allow incorporation of new capabilities over time.
Respondents to the research also described a number of benefits, including:
“The ease of managing a portfolio of suppliers with information that is readily accessible across the organisation.” Global bank “Often SRM is based, among others, on measuring and tracking performance to a number of criteria. Having objective, fact based data is a key component. Using technology will also enable SRM to be more efficient by
automating a number of steps.” Global entertainment company
“Automation and data gathering (metrics) provide insights to improved sourcing operation
THE SRM TECHNOLOGY JOURNEY
As can been seen by the SRM journeys of HP, Tesco Bank and KLA-Tencor, there are different building blocks and elements that need to be combined to build out your SRM technology roadmap. Other companies have shared elements of their technology roadmap and plans which highlight additional considerations. “We have hired a supplier management technology lead who will be developing a technology roadmap for a supplier lifecycle tool, which will incorporate a number of elements including an SRMmodule.” Global entertainment company “An internal survey is conducted bi-annually online for stakeholders to provide us with valuable feedback of our current incumbent suppliers.”
“Request suppliers to utilise the same systems as us.” Global bank
There are significant short-termbenefits to be gained from the rapid implementation of SRM technology.
“We added a spend visibility tool to help us analyse our spend and improve our strategic
Powered by FlippingBook