CURRENTSTATEOFSRM
ABOUTSRM, STATEOF FLUXANDOURRESEARCH
ABOUTSRM Supplier relationship management is a concept that combines a change to people (skills and behaviours), process and technology to develop better relationships with the ones we think are the most important. Procurement has developed many ways to look at suppliers – from aggregating and leveraging spend in category management, to figuring out supply chain risk. SRM is different. It examines every interaction that can affect the relationship with a supplier, from the transactional to the strategic and, arguably most important, behaviours.
ABOUTSTATEOFFLUX State of Flux is a specialist procurement and supply chain consultancy with global clients. Among themwe have prominent representatives from the FTSE100, 250 and Fortune500. Over the past 12 years we have combined our research findings and practical experience to develop a deep understanding of the subject and helped many large businesses to improve their supplier relationships. We understand it can be tough. With thousands of suppliers across hundreds of categories, it can be difficult know where to start. To help businesses navigate SRM we have created a six-pillar model to act as a road map to build improved SRM capability and achieve better outcomes.
ABOUTOURRESEARCH This research is now in its eighth year and this document shows how businesses are performing on each of our pillars. We also use our experience and expertise to say where and how businesses can do better. Case studies from global confectionery, food and pet care giant Mars, one of Ireland's biggest banks AIB, leading British gaming company Ladbrokes, and Australian telecoms leader Telstra add real-world experience. We can show you what these firms are achieving and how they are progressing on their SRM journey. We also have a guest article from Karen Blackett OBE, chairwoman of MediaCom, one of the world’s largest media agencies. She describes a supplier’s perspective on how customers can get more from them, if theymanage the relationship in the right way.
LEADERSANDFOLLOWERS
In our research, we break down the sample into leaders, followers and others according to how they performon key SRM criteria.
LEADERS Leaders are companies that we believe are implementing more successful SRM programmes. This year we have identified 29 companies as leaders. They represent 10.5% of the total respondents (Fig 1) .
FOLLOWERS Followers are in a group of 101 companies (36.7%) that in previous years might have been considered leaders. As SRM practice matures and the bar is raised, they don’t quite reach that level (Fig 1) . 101 Followers are in a group of 101 companies
29 This year we have identified 29 companies as leaders.
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