RELATIONSHIP DEVELOPMENT & CULTURE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
186
CUSTOMER OF CHOICE
COLLABORATION
Many companies are still a long way from really understanding customer of choice. The feedback (that is probably overstated) is that just over half the companies believe they are a customer of choice for more than 50% of their key suppliers. This really is a ‘glass half full / glass half empty’ analysis as its just as easy to report that for nearly half the companies they are not the customer of choice for more than 50% of their key suppliers. While we recognise that it is impossible to be a customer of choice for all key suppliers, where a company is not they are exposed to risk. Risk that must be accepted or an alternative strategy developed.
Effective collaboration is vital to the success of SRM and the delivery of real business value. Without collaboration, SRM is little more than governance. The evidence here suggests there is much more scope for effective collaboration. Achieving effective collaboration requires more than simply throwing people together in joint teams. It needs to be done with clear aims and objectives, defined roles and responsibilities and above all changed behaviours.
BEHAVIOURS
Behavioural change is an essential part of effective SRM and the delivery of sustained change and business benefit. If seeking more consistent behaviours across the organisation, it needs to start at an individual level, While it is recognised that each individual has a different journey to undertake, it has to be the goal to support individuals to make changes, or ultimately make more significant changes in order to achieve improved and more consistent behaviours across the organisation. 77% of respondents believe that consistent behaviours are an important aspect of SRM.
SRM essentials
ö ö Recognise the importance of behavioural change and support the development of people but also make tough decisions. ö ö Have a joint account plan and relationship charter in place with suppliers. ö ö Improve your understanding of the impact of customer choice and take affirmative action to secure that status with as many key suppliers as possible.
ö ö Review what information can be shared with suppliers and how it can benefit both parties. ö ö Develop a supplier innovation strategy and supporting process. ö ö Conduct regular 360° relationship assessments with key suppliers. ö ö Be more proactive to harness collaboration as the preferred option to solve problems and develop opportunities.
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