RELATIONSHIP DEVELOPMENT & CULTURE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
176
Figure 6.1. Ability to attract, evaluate and implement innovations from your key suppliers – all respondents 2012 / 2013 / 2014
Figure 6.2. Ability to attract, evaluate and implement innovations from your key suppliers – leaders / fast followers / followers
○ 2014 ○ 2013 ○ 2012
0% 10% 20% 30% 40% 50% 60%
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
50%
40%
30%
20%
10%
0%
VERY GOOD
GOOD
POOR
DON'T KNOW VERY POOR
VERY GOOD
GOOD
POOR
DON'T KNOW VERY POOR
© 2014 State of Flux
© 2014 State of Flux
Figure 6.3. Ability to attract, evaluate and implement innovations from your key suppliers – industry sectors
○ VERY GOOD ○ GOOD ○ POOR ○ VERY POOR ○ DON’T KNOW
0% 10% 20% 30% 40% 50% 60% 70% 80%
FINANCIAL SERVICES
MANUFACT URING
OIL AND GAS
FOOD AND BEVERAGES
IT / HIGH TECH
UTILITIES
PUBLIC SECTOR
HEALTH CARE
PROFESSIONAL SERVICES
AUTO MOTIVE
© 2014 State of Flux
INNOVATION
We can see that leaders and fast followers are a little more accomplished in this area ( figure 6.2 ). But with over 30% reporting they are poor at attracting, evaluating and implementing supplier innovation, they too have a lot of work to do. WHAT ARE THE MOST INNOVATIVE INDUSTRY SECTORS? It doesn’t necessarily follow that the industry sectors recognised for their innovative products are also the best at harnessing supplier innovation. If this were the case, we might expect the IT / high tech and possibly the food and beverage sectors to be leading. However, this is not the case according to our research. Over 50% of food and beverage, and 40% of IT / high tech sector companies rate themselves as poor at supplier innovation. The leading sector is automotive where 71% rated themselves as good or very good.
In good supplier relationships, good ideas and innovation should flow freely. We know from our research with sell side organisations that many are desperate to engage on innovation. As in previous years, the relationship between supplier generated innovation as an important business driver for SRM and an apparent inability to make it work in practice is revealed here. Harnessing more supplier innovation is considered important or very important by 69% of overall respondents and 81% of leaders. While we see a slight increase in the number of companies reporting they are good or very good at attracting, evaluating and implementing supplier innovation, at less than half this still represents huge room for improvement, not to mention a missed opportunity.
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