BUSINESS DRIVERS & VALUE
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
62
PROFESSIONAL SERVICES
Figure 1.25. Business drivers versus benefits reported (as % of respondents) – professional services
Like a number of other sectors, professional services has cost and risk as its most important business drivers. 89% of respondents have cost reduction as a priority. In reality this seems to be happening for 61%. Risk reduction is important / very important to over eight in ten professional services companies; seven in ten are benefiting, which shows quite a good correlation between the business driver and benefit being delivered. Professional services also place importance on SRM delivering better contract compliance, with 72% prioritising it. In this case, 61% of respondents report that contract compliance has improved. Customer of choice – With the exception of supplier innovation, the professional service sector does not recognise customer of choice benefits as particularly important. Only 39% of respondents rate access to, and retention of the best supplier people as an important reason to invest in SRM. 47% of the professional services companies are included in our leader, fast follower and follower groups. AUTOMOTIVE The automotive sector has a clear focus on cost and risk as a first tier of important business drivers, followed by service, quality and supply chain efficiency improvement. 100% of respondents said cost reduction was important / very important. Another business driver recognised by almost 9 out of 10 respondents is the contribution they see suppliers making to improve their competitive edge. Automotive is amongst the industry sectors most likely to be receiving cost reduction and avoidance benefits, as reported by 82% and 76% of respondents respectively. However, risk reduction is a challenge area, as 94% recognise it as a business driver and only 53% are seeing benefits. Customer of choice – For the automotive industry, the highest customer of choice benefit is joint product and service development, followed by supplier innovation and access / retention of the best supplier people. While over half report supplier innovation as a direct benefit, fewer (at around a quarter) are reporting the other customer of choice benefits.
○ BUSINESS DRIVERS
○ BENEFITS REPORTED
0% 20% 40% 60% 80% 100%
© 2014 State of Flux
Figure 1.26. Business drivers versus benefits reported (as % of respondents) – automotive
○ BUSINESS DRIVERS
○ BENEFITS REPORTED
0% 20% 40% 60% 80% 100%
© 2014 State of Flux
64% of automotive companies are included in our leader, fast follower and follower groups.
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