CURRENT STATE OF SRM
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
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Figure 0.5. Proportion of industry sector responding companies represented in the three benchmarking groups
OIL AND GAS AUTOMOTIVE
PUBLIC SECTOR MANUFACTURING HEALTHCARE FOOD AND BEVERAGE UTILITIES FINANCIAL SERVICES IT / HIGH TECH PROFESSIONAL SERVICES
0%
10%
20%
30%
40%
50%
60%
70%
© 2014 State of Flux
IS THERE AN INDUSTRY SECTOR THAT EXCELS?
The industry sector with the highest proportion of companies in the three benchmarking groups is automotive, with 64%. The industry sector with the lowest proportion of companies in our benchmarking groups is the public sector, with 22%. For a perspective on supplier management in the public sector, see the article on page 41 .
In the three years we have analysed our research results by industry sector, we have not previously seen an industry pattern emerge. This year with our larger sample, we have taken a closer look at our data to identify those industry sectors that are most represented in our three benchmarking groups of leaders, fast followers and followers. Altogether, these three groups make up 38% of the companies responding to our survey.
People and skills – It is really great news that the companies that make up our benchmarking groups are developing their SRM people and skills capabilities. However, the feedback from the majority of our respondents tells us this is an area that still needs considerable attention to give SRM the best possible chance to succeed. Information and technology – A key enabler for SRM, providing for effective information management and collaboration with suppliers. It remains one of the areas making the least progress despite the benefits associated with managing information in one place and providing a consistent view of the supplier relationships to be shared by all stakeholders.
Benefit sharing and mutuality – We need to ask how long a partner will remain committed to a relationship that only benefits one party. While it is important to develop a process, the more challenging first step is to gain the commitment of the business to the concept of benefit sharing and mutuality in the relationship. Innovation – Supplier innovation, for some the holy grail of SRM, still seems to be beyond the reach of many companies. Managing innovation is a challenge, with its multi-functional dimension and sometimes cultural issues to address, but it has to be a prize worth fighting for.
Measuring and reporting – As expected, measuring and reporting SRM benefits remains a challenge. A pragmatic approach is needed to ensure the business impact of SRM is recognised. Industry sector – The automotive sector leading on SRM practice may not be a surprise to many. What will be interesting, will be to examine later in the report where their particular areas of strength are. It will also be a sobering thought to appreciate that the transformation of supplier management practices in automotive has been part of a 30 year journey. However, this is where other industry sectors have the advantage of learning from previous experience and accelerating their own programmes.
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