SUMMARY OF KEY FINDINGS
SUMMARY OF KEY FINDINGS
Summary of key findings
Each pillar reveals 3 big numbers that tell a story about SRMmaturity in 2018, showing that a lot of work remains to be done tomaximise value fromsupplier relationships.
Value
People
43% OF ORGANISATIONS SEE SUPPLIERS AS A VEHICLE TO DELIVER MORE INNOVATION AND IDENTIFY INNOVATION AS ONE OF THEIR TOP THREE BUSINESS DRIVERS.
6% APPRECIATION THAT IMPROVING SUSTAINABILITY IS A VALUE THAT SRM CAN HELP DELIVER IS LACKING: ONLY 6% OF COMPANIES RANKING IT AS ONE OF THEIR TOP THREE BUSINESS DRIVERS FOR SRM.
46% FINANCIAL GAINS FROM SRM ARE SIGNIFICANT WITH 46% OF LEADERS ACHIEVING BENEFITS OF MORE THAN 4% POST-CONTRACT.
43% ONLY 43% OF FIRMS WHO PARTICIPATED IN OUR RESEARCH HAVE IMPLEMENTED ANY SRM TRAINING.
15% THE SKILLS AND COMPETENCIES THAT COMPANIES HAVE IN PLACE ARE NOT FULLY UNDERSTOOD. WE FOUND ONLY 15% OF ORGANISATIONS CARRY OUT SKILLS AND COMPETENCY ASSESSMENTS.
27% OF FOLLOWERS HAVE DONE NOTHING TO PREPARE THEIR PEOPLE FOR THE INTRODUCTION OF SRM.
Technology 8% SUPPLIER INNOVATION IS AT THE BOTTOM OF THE LIST FOR TECHNOLOGY ENABLEMENT WITH JUST 8% OF ORGANISATIONS USING TECHNOLOGY TO TRACK AND NURTURE SUPPLIER INNOVATION.
Engagement
68% LEADERS HAVE MORE SUPPORT FROM SENIOR
50% ENGAGEMENT AND SUPPORT FROM SUPPLIERS REMAIN HIGH FOR LEADERS. WE FIND 50% DESCRIBE IT AS STRONG AND ACTIVE.
22% THE VALUE PROPOSITION IS
71% OF FIRMS FIND THE ENTERPRISE SYSTEMS THEY ATTEMPT TO USE IN THE SUPPLIER MANAGEMENT LIFECYCLE ARE DISPARATE AND NOT INTEGRATED. 55% SUPPLIER INITIATED INNOVATION IS GAINING GROUND, 55% OF SRM LEADERS NOW SEE IT AS AN INCREASING ELEMENT OF THEIR GROWTH STRATEGY.
7% THERIGHTTECHNOLOGYSOLUTION REMAINSACHALLENGEFORTHEVAST MAJORITYOFFIRMS.WEFOUNDONLY 7% OFCOMPANIESEXPRESSEDTOTAL SATISFACTIONWITHTHEWAYTHEIR IT SYSTEMSANDTECHNOLOGYSUPPORTTHE SUPPLIERMANAGEMENTLIFECYCLE. 3% FOLLOWERS HAVE YET TO ‘GET’ SUPPLIER INNOVATIONWITH ONLY 3% OF FOLLOWERS SEEING IT AS A KEY COMPONENT OF THEIR GROWTH STRATEGY.
IMPORTANT TO ENGAGEMENT: 22% OF SRM FOLLOWERS SAY THE VALUE PROPOSITION (OR A LACK OF ONE) HOLDS BACK ENGAGEMENT.
MANAGERS AND EXECUTIVES WITH 68% ENJOYING STRONG AND ACTIVE SUPPORT.
Governance
Collaboration
64% THE IMPORTANT ROLE OF GOOD GOVERNANCE IN SRM IS NOT FULLY
55% OF SRM LEADERS USE BUSINESS GROWTH CRITERIA SUCH AS SUPPLIER INNOVATION CAPABILITY TO SEGMENT SUPPLIERS.
62% AS A FOUNDATION FOR SRM RISK MANAGEMENT REMAINS AN AREA OF CONCERN: 62% OF SRM FOLLOWERS REPORT THEY DON’T YET HAVE IT EFFECTIVELY ESTABLISHED FOR THE MAJORITY OF THEIR KEY SUPPLIERS.
92% WEFOUND 92% OFFOLLOWERSDONOTHAVE JOINTACCOUNTPLANSFORMORETHANHALF THEIRCRITICALSUPPLIERS.
APPRECIATED BY 64% OF SRM FOLLOWERS WHO DO NOT HAVE IT IN PLACE FOR THE MAJORITY OF THEIR MOST CRITICAL AND STRATEGIC SUPPLIERS.
16
STATE OF FLUX
2018 GLOBAL SRM RESEARCH REPORT
17
Powered by FlippingBook