2014 Global SRM Research Report - Customer of choice

Stakeholder Engagement & Support

STATE OF FLUX

2014 GLOBAL SRM RESEARCH REPORT

74

Figure 2.0. The current level of internal executive and senior management stakeholder engagement and support for SRM – all respondents 2013 / 2014

Figure 2.1. The current level of internal executive and senior management stakeholder engagement and support for SRM – leaders / fast followers / followers

50%

60%

○ 2014 ○ 2013

○ LEADER ○ FAST FOLLOWER ○ FOLLOWER

50%

40%

40%

30%

30%

20%

20%

10%

10%

0%

0%

STRONG& ACTIVE ENGAGEMENT & SUPPORT

MODERATE ENGAGEMENT

NEUTRAL

SOME RESISTANCE

STRONG RESISTANCE

STRONG & ACTIVE ENGAGEMENT & SUPPORT

MODERATE ENGAGEMENT

NEUTRAL

SOME RESISTANCE

STRONG RESISTANCE

© 2014 State of Flux

© 2014 State of Flux

Figure 2.2. The current level of business and operational stakeholder engagement and support for SRM – industry sector

○ STRONG & ACTIVE ENGAGEMENT & SUPPORT ○ MODERATE ENGAGEMENT ○ NEUTRAL ○ SOME RESISTANCE ○ STRONG RESISTANCE

60%

50%

40%

30%

20%

10%

0%

FINANCIAL SERVICES

MANUFACT URING

OIL AND GAS

FOOD AND BEVERAGES

IT / HIGH TECH

UTILITIES

PUBLIC SECTOR

HEALTH CARE

PROFESSIONAL SERVICES

AUTO MOTIVE

© 2014 State of Flux

SENIOR MANAGEMENT AND EXECUTIVE STAKEHOLDERS

while the level of engagement for leaders is higher, just 45% reported strong and active support from senior management. This is cause for some concern, particularly as it is down from 69% in 2013. More encouraging is that the number of companies encountering resistance to SRM at the senior management and executive level is much reduced. When looking at senior management and executive engagement and support from an industry perspective ( figure 2.2 ), we can see that the automotive sector has the highest level of engagement. This may be another indication of the maturity of supplier management in this sector. The industry sectors with the toughest challenge to gain more stakeholder support are food and beverage, and public sector.

This group of stakeholders essentially hold the ‘go / no go’ decision on SRM in their hands. No amount of policy dictates or central mandates will enable SRM unless the key decision makers, influencers and budget holders in the business are convinced it can help them achieve their objectives. Despite the indication in the previous section that senior stakeholder engagement and support was making good progress, the responses to these specific questions about engagement with the three key stakeholder groups indicates the overall the level of support to be about the same as in 2013. Only 73% of respondents are receiving even moderate stakeholder support and this represents a real challenge.

When we look at the feedback from leaders, fast followers and followers in figure 2.1 we can see that

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