BUSINESS DRIVERS & VALUE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
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Figure 1.17. Business drivers versus benefits reported (as % of respondents) – financial services
FINANCIAL SERVICES
Financial services is one of only two industry sectors (the other being utilities) that identify risk as the most important business driver, closely followed by cost reduction and service level improvement. Other important business drivers are cost avoidance and better contract compliance. While the risk reduction benefits are being achieved, significantly fewer financial services companies report benefits that align to their other important business drivers. For example, only 53% of respondents report receiving cost reduction benefits against 78% who classed it as an important business driver. Customer of choice – Securing access to, and retaining the best supplier resource is financial services companies' most important customer of choice business driver. It is rated as important / very important by 62% of respondents. But only 14% report it as a benefit. 41% of financial services companies that participated in this study are in our leader, fast follower and follower groups.
○ BUSINESS DRIVERS
○ BENEFITS REPORTED
0% 20% 40% 60% 80% 100%
© 2014 State of Flux
Figure 1.18. Business drivers versus benefits reported (as % of respondents) – manufacturing
MANUFACTURING
The manufacturing sector considers a wide range of business drivers to be a good reason for investing in SRM. Their top four are cost reduction, risk reduction, supply chain efficiency and service level improvement; rated as important / very important by over 90% of respondents. Despite the recognition and prioritisation of these important drivers, our research shows the benefits are not flowing as freely as they should. Only around 50% of manufacturing respondents are reporting tangible benefits in these areas. Customer of choice – Manufacturing companies consider supplier innovation as their most important customer of choice opportunity, highlighted by 76% of respondents. However, this is a benefit being realised by only 38%.
○ BUSINESS DRIVERS
○ BENEFITS REPORTED
0% 20% 40% 60% 80% 100%
23% of manufacturing companies are included in our leader, fast follower and follower groups.
© 2014 State of Flux
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