2014 Global SRM Research Report - Customer of choice

BUSINESS DRIVERS & VALUE

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

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Figure 1.3. SRM benefits reported (by % of respondents) – all respondents 2012 / 2013 / 2014

0% 10% 20% 30% 40% 50% 60% 70% 80%

○ 2014 ○ 2013 ○ 2012

© 2014 State of Flux

Figure 1.4. SRM benefits reported (by % of respondents) – leaders / fast followers / followers

10% 20% 30% 40% 50% 60% 70% 80%

○ LEADER ○ FAST FOLLOWER ○ FOLLOWER

© 2014 State of Flux

VALUE

Note: The numbers in all of the charts in this section represent the percentage of respondents who reported the business driver as being important or very important for SRM, and the percentage of respondents reporting value or benefits delivered. This latter figure does not reflect the scale of value or benefits.

LEADERS’ ADVANTAGE CONTINUES TO GROW

Figure 1.3 lists the areas of tangible value reported by all respondents over the last three years. While the overall trend is consistent, it is worth noting the increase in some benefit areas reported between 2012 and 2013 has been broadly maintained in 2014. These include cost reduction, cost avoidance, risk reduction, service level and quality improvements.

Leaders are consistently reporting they receive more benefits than both fast followers and followers ( figure 1.4 ). The gap is widest across critical benefit areas such as cost reduction, cost avoidance and supplier innovation. Customer of choice benefits are also more commonly reported by leaders, including supplier innovation and securing the best supplier resource. Leaders are almost twice as likely to be receiving this benefit even compared with fast followers.

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