33% of organisations have an effective innovationmanagement process in place 57% of companies call out a lack of time and resource for poor innovation performance 50% have joint business plans with some key suppliers
COLLABORATION
SUMMARY
Successful SRM depends on businesses understanding and developing the relationships and culture they share with suppliers. Although progress has beenmade on these fronts, there is still room for improvement. Leading firms aremuchmore likely to develop relationships based on trust, openness, transparency andmutuality – on which they can build better outcomes, such as innovation and collaboration. Unfortunately, the bulk of businesses have not grasped what it means to be a customer of choice – an area where SRM leaders are well ahead of the pack and enjoying the competitive advantage that preferential treatment from suppliers can bring.
To move forward, you have to know where you are. In SRM, this means understanding how suppliers see their relationship with your business and how your people see the relationship with the supplier. We found that less than one third of companies have conducted a 360° relationship assessment involving their suppliers and internal stakeholders. This is less than last year and back to 2014 levels and it shows how far businesses have to go before they reap the benefits of SRM. It also shows the opportunity on offer to businesses to understand how strategically and culturally aligned they are with their key suppliers, and how relationships are perceived by both sides.
What makes a relationship work can seemmysterious and open to debate. In fact, businesses can define, measure and develop attributes that contribute to strong buy-side / sell-side relationships. Relationships work when: → organisations and their people are open and transparent with each other → good ideas and innovation flow freely → companies are aligned and share common goals → relationships are based on mutual trust → collaboration is business as usual → behaviours are mature and consistent Our questions in this section were designed to reveal the degree to which businesses understand and develop these attributes.
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