CURRENTSTATEOFSRM
STATEOFFLUXSRM INDEX The State of Flux SRM index is designed to make it easier for businesses to establish a baseline for their performance and set targets for improvement. The index score is calculated based on the responses received to specific questions within our 2016 SRM survey. These questions are selected to reflect what organisations are actually doing and experiencing, and are weighted to reflect their importance to an effective overall approach to SRM.
YOURSRM INDEX Participants in this year’s research have been able to view their SRM index when completing the survey. If you would like to discuss the factors that drove your SRM index calculation please contact: enquires@stateofflux.co.uk If you didn’t participate in this year’s research but would still be interested in receiving an SRM index rating, please contact: enquires@stateofflux.co.uk
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*Please note: the index can only be calculated if the survey was completed in full.
2016GLOBALSRMMATURITY
Fig 1. Assessment of 2016 global SRM maturity*
2016 SRM Index
Leader (+0.3) 29 companies (10.5%) Followers (+0.3) 101 companies (36.5%) Other (+0.2) 145 companies (52.7%)
Advanced
4.5
Established
3.1
Developing
1.6
Undeveloped
VALUE
ENGAGEMENT GOVERNANCE PEOPLE TECHNOLOGY COLLABORATION
*The model has four levels of maturity (undeveloped; developing; established; advanced). Maturity is assessed by examining responses to selected survey questions.
SRMPROGRESS While an improving SRM index score for both leaders and followers is encouraging it shouldn’t be allowed to mask the fact that progress for most companies in the pillars of value, people and technology remains off the pace. In particular technology where the specific SRM index for this pillar has remained static for leaders and for followers has actually reduced.
BUSINESSESWANTSRMTOFOCUS ONRELATIONSHIPMANAGEMENT ANDDEVELOPMENT Creating the correct focus for your SRM programme is imperative. While the majority of companies focus on working collaboratively with key suppliers to drive more value, 40% of them still see it predominantly as a contract and performance management activity (Fig 2) .
It’s difficult to say if this represents a lack of appetite to extend into genuine relationship management or simply a failure to appreciate what more they could achieve. In either case, it represents a missed opportunity.
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2016GLOBAL SRMRESEARCHREPORT
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