2014 Global SRM Research Report - Customer of choice

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT 

BUSINESS DRIVERS & VALUE 59

 OIL AND GAS

Figure 1.19. Business drivers versus benefits reported (as % of respondents) – oil and gas

The oil and gas sector is firmly focused on cost, risk reduction and service level improvement. These business drivers are priorities of around 90% of oil and gas respondents; however benefits are being reported by just over 60%. Interestingly the desire to get more suppliers to support the oil and gas sector CSR and sustainability agenda is highlighted as business driver by less than 50% of respondents with only 13% reporting benefits in this area. Customer of choice – The most important customer of choice benefit for oil and gas is preferred access to scarce materials and capacity when needed. This is a requirement of 72% of respondents but is only a benefit to 32%. 52% of oil and gas participating companies are included in the leader, fast follower and follower groups.

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

© 2014 State of Flux

 FOOD AND BEVERAGES

Figure 1.20. Business drivers versus benefits reported (as % of respondents) – food and beverages

Food and beverage was the only sector that reported supplier innovation amongst its most important business drivers. Reported important / very important by 93% of respondents, it sits alongside cost and service level improvement as key business drivers. 58% of respondents report supplier innovation as a benefit received. This is the highest proportion of any the ten industry sectors we have featured in this analysis. 72% of participating companies benefit from cost reduction and 67% from reduced risk. Customer of choice – Apart from supplier innovation the next most important customer of choice business driver for the food and beverage sector is joint product and service development. Over 70% say it’s important but only 37% are benefiting from it.

○ BUSINESS DRIVERS

○ BENEFITS REPORTED

0% 20% 40% 60% 80% 100%

36% of food and beverage companies are included in our leader, fast follower and follower groups.

© 2014 State of Flux

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