2016 Global SRM Research - Supplier relationships in tech

PEOPLE

SRMROLESAREMOSTOFTENCOMBINED WITHSOURCINGORCATEGORYMANAGEMENT

Most companiesdonot haveclear criteria for measuringpersonal SRMperformance.

Fig 21. What best describes the SRM resourcing and job design solution adopted for SRM by your company?

% of respondents

Other Follower Leader

50

40 40 40

34

25

23

15

10

2

0

0

Full time dedicated supplier managers responsible for more than one relationship

Full time dedicated supplier managers responsible for one relationship

Part time and combined with broader category management

Part time and combinedwith broader operations and /or service management responsibilities

and /or sourcing responsibilities

RESOURCINGANDJOBDESIGN Companies’ preferences for resourcing and designing SRM roles have reached the stage where most favour combining the job description with category or sourcing management. While this may be expedient, it should be approached with caution. Combining these roles is difficult without careful job design. In terms of popularity, this is followed by roles positioned alongside operations or service management responsibilities in the business, in line with the proportion of companies putting SRM in the business functions. The tendency reflected by feedback from around 50% of leaders is to increasingly create dedicated SRM roles, which are responsible for a portfolio of two or more suppliers (Fig 21) .

TEAMWORK SRM roles are important, but people from all over the organisation will become involved in managing suppliers at some point. Successful SRM relies on teamwork. We found 59% of all respondents are operating cross-functional SRM teams. For leaders, this figure is 95%. Not only do cross-functional teams help manage suppliers, they also raise the profile of SRM within the business.

Leadersarealmost twiceas likely tocreatea dedicatedSRMjobasboth followersandothers.

6 in10firmsusecross- functional teams to support SRM

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