ABOUT SRM, STATE OF FLUX AND THE RESEARCH
ABOUT SRM, STATE OF FLUX AND THE RESEARCH
The Supplier Management Roadmap
...SCALE AND GROW THE VALUE
About State of Flux
ABOUT SUPPLIER MANAGEMENT, STATE
Achieve ROI
State of Flux is a global procurement and supply chain consultancy with European, US and Australasian offices, and was founded in 2004. With an approach rooted in the Six Pillars of Supplier Management model for excellence, subject matter expertise and investment in talent and technology, we provide our clients with supplier management and procurement consulting support, as well as offering training solutions and supplier management-specific technology through our SupplierBase platform. By establishing great working relationships, we draw on our practical experience and supplier management research findings to support organisations across geographies, industries, and sectors to help them to achieve maximum value.
Deliver Supplier Management at Speed ...SET UP AND RUN
Deliver measurable value release Increase supplier commitment and access customer of choice benefits Demonstrate the case for scaling and evolve to BAU
ENGAGE IN VALUE RELEASE External focus - supplier engagement and collaboration
...CREATE THE BUSINESS CASE
360 relationship reviews
Joint business plans and collaborative working
Quick win delivery and SM programme management
Client-specific SM value proposition development Defined and validated value objectives SM Value Proposition Development
WE HELP OUR CLIENTS TO...
BUILD FOR LONGEVITY Internal focus - people, process, and technology
VALUE
...EXPLORE THE OPPORTUNITY
SM policy, process, operations, and governance models
Segmentation and treatment strategies
Team capabilities / responsibilities
OF FLUX AND OUR RESEARCH
ENGAGEMENT
Six Pillars benchmark exercise Business strategy/value alignment assessment/ internal review Spend data and opportunity analysis SM Value Opportunity Diagnostic
GOVERNANCE
Business case for change
PEOPLE
Roadmap and action plan
TECHNOLOGY
Value proposition elevator pitch
COLLABORATION
About our research
State of Flux’s global supplier management research is now in its 13th year. Over that time we have gathered and analysed more insight and data about global supplier management than anyone else in the field. In addition to providing insight across the six pillars of supplier management, each year’s report examines a specific theme. This year’s study has a particular focus on value – in all its many forms. The 2021 survey includes insight from 478 respondents representing 348 companies across continents and from more than a dozen global industries. This year’s question set not only enables a direct comparison with previous years to investigate trends, it also incorporated some new questions pertinent to contemporary issues facing the discipline of supplier management and those within it. Complementing the report's analysis are features exploring different elements of value, expert interviews and case studies from organisations in the US, Europe and Australasia, including Electrolux, Skanska, Yondr, Intuit, AMP Capital and AIB.
Voice of the Supplier research
As well as presenting our findings here, we offer respondents an unparalleled look at their supplier management practices. We can provide them not only with a summary of their responses to the questions posed across the six pillars, but also offer unique insight into how their performance compares to those identified as Leaders, their industry peers, and other regional comparisons.
After the business case is created we set up the programme and get it running. In our ‘Supplier management at speed’ approach, this is achieved through two parallel work streams: 1. Engaging the pilot suppliers in a process grounded in collaborative working. This is at the core of the value accelerator approach. This work stream puts the emphasis on relationship reviews, joint account planning and value delivery. 2. Building for longevity means putting in place policy, processes, tools and training that can deliver repeatable results for the suppliers that follow in the footsteps of the pilot. The last step in the roadmap is to formally capture and document the business value that has been created. This is a crucial element because it proves evidence of success and enables organisations to expand their programmes to deliver further and faster value. If you are interested in finding out more or receiving a supplier management maturity and benchmark analysis – even if you didn’t participate in the original research – contact enquiries@stateofflux.co.uk
QUICK FACT: THE 2021 SURVEY INCLUDES INSIGHT REPRESENTING 348 COMPANIES ACROSS CONTINENTS AND FROM MORE THAN A DOZEN GLOBAL INDUSTRIES.
The Supplier Management Roadmap
The supplier management roadmap, which is illustrated above, is designed to deliver value quickly. This ‘value accelerator’ approach starts with a diagnosis of the scale and scope of the value opportunity. We help organisations to find and validate the value-release potential for a select number of suppliers (around six or so) that can be used in a supplier management pilot. The data gathered at this stage is the raw material for a broader supplier management value proposition. And this value proposition is more than just a formalised forecast of the return on investment that can be delivered through the pilot suppliers – it’s a business case. It provides the basis of an internal sales pitch to build support and commitment for supplier management and sets out the action plan that should be followed, going from a hypothesis to the actual delivery of value.
About supplier management
Maturity and benchmark analysis
The foundations of supplier management are the management of contracts, performance and risk. It is important to have these elements in place with all suppliers to ensure that contracted value is achieved. However, to fully embrace the opportunities supplier management can provide – through collaboration and identifying value-add opportunities for both parties – it is important to correctly segment your supply base and to identify those suppliers that are key and strategic. The development of a differentiated approach for these critical suppliers can enable organisations to devote the right time, effort, and resources to develop relationships with them, and to work together to meet shared strategic objectives and deliver value.
In addition to providing an overall view from survey respondents, we also differentiate between three levels of maturity to provide an additional layer of insight. Leaders are those companies that we believe, based on our insight and their responses to the questions posed, have developed more mature and successful supplier management programmes. Fast Followers are those who have shown strong evidence of supplier management development, and Followers are those organisations who have either limited supplier management ambition and/or are simply at the start of their supplier management journey.
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STATE OF FLUX
2021 GLOBAL SRM RESEARCH REPORT
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