STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
CURRENT STATE OF SRM 31
Figure 0.6. Barriers to SRM progress – all respondents
CHANGING BUSINESS PRIORITIES LACK OF BUDGET / RESOURCES SHORTAGE OF PEOPLE WITH THE REQUIRED SKILLS / COMPETENCIES
LACK OF CROSS FUNCTIONAL BUSINESS SUPPORT INABILITY TO QUANTIFY AND MEASURE BENEFITS POOR FUNCTIONALITY AND USE OF IT SYSTEMS ORGANISATIONAL CHANGE, E.G. BUSINESS OWNERSHIP
OTHER (PLEASE SPECIFY) LACK OF SUPPLIER SUPPORT LACK OF TOP MANAGEMENT SUPPORT
0%
10%
20%
30%
40%
50%
60%
© 2014 State of Flux
BARRIERS STILL REMAIN
It is evident from the areas where progress is still a major challenge, that significant barriers remain. These barriers have remained stubbornly consistent over the years. The top three barriers remain the same as in 2013, with around the same proportion of respondents reporting them. 1. Shortage of people with the required skills and competencies
Lack of proper governance between business units. Senior Commercial Manager – large Scandinavian telecoms company Lack of trust between both parties. Contracts Engineer – Middle Eastern oil and gas exploration company The organisation sees value in SRM but this does not necessarily translate to resources and $. Governance, Process & Compliance Manager – leading international mining company Competing priorities within the business for time and resources. Director, Global Contract Manufacturing – US food giant Lack of understanding of SRMbenefits. Head of Sourcing & Procurement – New Zealand financial services company Short term focus on cost. Head of Business Operations – German global IT services company
2. Lack of budget / resources 3. Changing business priorities
Some of the barriers described by respondents:
A lack of skills and knowledge relating to supplier and contract management. SRMSpecialist – NewZealandpublicsector company
Global scope presents challenges. Category Manager – $30 billion US conglomerate
Difficulty in creating standardisation across sites. Procurement Manager – US automotive company
Overall resistance to change. Vice President, SRM& Sustainability – international pharmaceutical company
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