STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
BUSINESS DRIVERS & VALUE 53
Figure 1.11. Customer of choice benefits received in the last 12 months – all respondents
NONE FIRST REFUSAL ON INNOVATIONS PRIORITY ACCESS TO SCARCE MATERIALS AND / OR MANUFACTURING CAPACITY IMPROVED ACCESS TO MARKET INTELLIGENCE PRIORITY ACCESS TO THE BEST PEOPLE AND RESOURCES INCREASED WILLINGNESS TO INVEST INCREASED WILLINGNESS TO ACCEPT AND MANAGE RISK GENERAL INCREASED COMMITMENT ('GOING THE EXTRA MILE') PREFERENTIAL PRICING COLLABORATIVE PROBLEM SOLVING PROACTIVE IDEAS FOR CONTINUOUS IMPROVEMENT SENIOR SUPPLIER MANAGEMENT COMMITMENT / SUPPORT IMPROVED ACCOUNT MANAGEMENT
0%
10%
20%
30%
40%
50%
© 2014 State of Flux
Figure 1.12. Customer of choice benefits received in the last 12 months – leaders / fast followers / followers
○ LEADER ○ FAST FOLLOWER ○ FOLLOWER
FIRST REFUSAL ON INNOVATIONS IMPROVED ACCESS TO MARKET INTELLIGENCE PRIORITY ACCESS TO SCARCE MATERIALS AND / OR MANUFACTURING CAPACITY INCREASED WILLINGNESS TO INVEST INCREASED WILLINGNESS TO ACCEPT AND MANAGE RISK PRIORITY ACCESS TO THE BEST PEOPLE AND RESOURCES PREFERENTIAL PRICING GENERAL INCREASED COMMITMENT ('GOING THE EXTRA MILE') IMPROVED ACCOUNT MANAGEMENT COLLABORATIVE PROBLEM SOLVING SENIOR SUPPLIER MANAGEMENT COMMITMENT / SUPPORT PROACTIVE IDEAS FOR CONTINUOUS IMPROVEMENT
0% 10% 20% 30% 40% 50% 60% 70% 80% NONE
© 2014 State of Flux
CUSTOMER OF CHOICE BENEFITS
More proactive ideas for continuous improvement and collaborative problem solving were also regarded as benefits by almost half. The least frequent benefit reported was first refusal on the supplier’s innovations. When we look at leaders, fast followers and followers, we see a difference in the level of customer of choice benefits being reported ( Figure 1.2 ). Leaders have a significant advantage over the others in terms of ideas for continuous improvement and innovation, priority access to the best supplier people, collaborative problem solving, and general commitment or ‘going the extra mile’. For more on customer of choice, see the article 'the journey to customer of choice' on page 63.
An increased understanding of the customer of choice concept is leading to a recognition of benefits that previously might have gone unnoticed or simply have been taken for granted. We asked respondents what type of customer of choice benefits they believed they were receiving as a result of SRM programmes ( Figure 1.11 ). The most frequent benefit is the quality of account management provided by the supplier. Half reported that the management of their account had improved as a result of SRM, and almost half experienced improved commitment and support from their supplier's senior management.
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