PROGRESS INTHEFACEOF ACHALLENGINGECONOMIC ANDBUSINESSENVIRONMENT Our measure of SRMmaturity matches with how businesses view their own performance. This year, 85% of respondents reportedmaking progress, and 22% described it as significant. Only around 4% of respondents report some decline in their SRM activity (Fig 3) .
REDUCINGCOSTANDRISK REMAINPRIMARYDRIVERSFORSRM
EIGHTOUTOFTENBUSINESSES REPORTSRMPROGRESS
Fig 3. Overall, what change have you seen in your SRM programme in the past 12 months?
Fig 2. What is the primary focus of SRM in your organisation?
15 %
22 %
Significant progress
25 %
60 %
63 %
Some progress
Managing key supplier relationships to deliver value that may go beyond contractual obligations Managing key performance indicators (KPIs) to ensure suppliers deliver products and services as per the contract Managing supplier contractual obligations to ensure negotiated terms are adhered to
10 %
No progress
Some decline 3 % Significant decline 1 %
Note: due to rounding, percentages do not sum to 100.
BARRIERSREMAIN
1. 2. 3. 4. 5.
Barriers to SRMmight be consistent but they are not immovable. Each of the following six sectionswill explore progress, trends, and developments on each of the Six Pillars of SRM and suggest howbusinesses canmake significant progress.
The research shows where businesses struggle to get value from SRM and where the barriers remain. These barriers have stayed stubbornly consistent over the years. The top three barriers remain the same as in 2015, with around the same proportion of respondents reporting them.
RESOURCE Lack of budget and resources available to support SRM activities CHANGE Organisational, senior management and changes to business priorities SKILLS Shortage of people with the required skills and competencies
TECHNOLOGY Perceived poor functionality of IT systems
METRICS Inability to measure benefits
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