STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
Sell SIde perspective 93
Figure F. Frequencywithwhich financial benefits from joint SRMactivities are sharedwith suppliers – sell side / buy side
50%
○ SELL SIDE ○ BUY SIDE
40%
30%
20%
10%
0%
ALWAYS
NEVER OCCASIONALLY OFTEN
DON’T KNOW
© 2014 State of Flux
Figure G. Types of benefits provided by the buy side to the sell side companies – sell side / buy side
OTHER (PLEASE SPECIFY) SHARING YOUR ENGINEERING / RESEARCH AND DEVELOPMENT RESOURCES ACCESS TO NEW BUSINESS IN ORGANISATIONS OTHER THAN YOURS IMPROVED MARGINS SHARING INVESTMENT / RISK IN JOINT PROJECTS TRANSFER OF SKILLS AND KNOWLEDGE FROM YOUR ORGANISATION ACCESS TO NEW MARKETS PRODUCTIVITY GAINS COST EFFICIENCIES FASTER / BETTER DECISION MAKING MARKETING OPPORTUNITIES USING YOU AS A CLIENT REFERENCE YOU ARE MORE OPEN AND RECEPTIVE TO IMPROVEMENT IDEAS AND INNOVATION ACCESS TO NEW BUSINESS WITHIN YOUR ORGANISATION SALES / REVENUE GROWTH
○ SELL SIDE ○ BUY SIDE
0% 10% 20% 30% 40% 50% 60%
© 2014 State of Flux
MUTUALITY
indicated by the feedback in figure G . Both sell and buy side acknowledge that winning new business, and sales and revenue growth have benefited the sell side. While the sell side confirm that SRM has made it easier to present innovation to the buy side, we still see conflicting feedback which leads us to again conclude that the area needs to be thoroughly investigated at a company level, and more effective strategies developed.
We mention elsewhere in this report that strong supplier relationships need to include a sense of mutuality and fairness. Feedback from both the buy and sell side suggests that fundamental aspects of mutuality and fairness are missing from many relationships. This includes sharing in success. Both parties acknowledge that less than a quarter of companies share the financial benefits of joint SRM activities with their suppliers ( figure F ). Benefiting from being involved in a buy side SRM programme is not always about purely financial gain. Other benefits are being realised as
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