2014 Global SRM Research Report - Customer of choice

six pillars of SRM, benchmarking & maturity model explained

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

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Leaders, fast followers and followers as a proportion of all respondents

10% LEADERS 8% FAST FOLLOWERS 21% FOLLOWERS 61% OTHERS

© 2014 State of Flux

LEADERS, FAST FOLLOWERS AND FOLLOWERS

model – the fast followers. This group will represent those companies that in previous years would have been close to the top of the followers group. They are reporting some very positive SRM attributes, while not yet in the leader category. This year there are 32 companies that fit into the fast followers group. These represent 7% of the total respondents. The criteria applied to fast followers are: ö ö Achieving a State of Flux SRM index score of at least 3.25. ö ö No more than three of the six pillars of SRM still in the developing stage of the SRM maturity model.

The concept of leaders and followers, as a means of comparing the maturity and effectiveness of SRM approaches, has featured in our last few reports. We continue to evolve this method of benchmarking to give companies an even better idea of where they are on the journey towards SRM excellence compared to others.

LEADERS

The criteria to be described as a leader will continue to be tough. We believe that as SRM develops, we should maintain high standards in order that organisations will continue to improve and strive for excellence in this field. This year we have identified 46 companies that are regarded as leaders. These represent 10% of the total respondents. The criteria applied to leaders are: ö ö Achieving a State of Flux SRM index score of at least 3.75 (SRM index explained on the next page). ö ö No more than two of the six pillars of SRM still in the ‘developing’ stage of the SRM maturity model.

FOLLOWERS

The followers group consists of 96 companies, around 21% of all respondents. Followers will have a minimum SRM index score of at least 2.25, with no more than three pillars in the developing stage. The remaining 62% of respondents have reported SRM practices that are generally developing or undeveloped, or did not respond to sufficient survey questions for us to gain an overall understanding of their capability. These responses are used in the individual question analysis in the report but have not been used to create the leaders, fast followers or followers groups.

FAST FOLLOWERS

This year we have received more responses to our survey than ever. We have therefore introduced an additional category to the leaders and followers

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