SUMMARY
SUMMARYAND CALLTOACTION
SRM faces tough competition from other business priorities when it seeks backing and funding. To stay ahead of the pack, it must exploit the latest technology, attract support from senior management and demonstrate its contribution to innovation.
Concern over technological support for SRM is reflected in the comments respondents made in our report. One risk and control manager at a large UK bank told us: “IT systems are poor and lack functionality, and more ability to manipulate data is required.” Meanwhile, Joanne King, responsible for vendor management at Allstate Investments, said: “We are making great progress but could do more with SRM technology and resources to support us.” In this year’s report we have discussed how businesses can take advantage of advances in technology platforms and software development to ‘level up’ SRM capability across the six pillars and allow the broader strategy to get back on track. But it is not only technology impeding the development of SRM. A head of contracts and procurement at an Australian power company sums up the problems businesses can still face. “The level of SRM, ownership, execution and visibility is not consistent across the organisation. [Our supply chain team] has embedded resources across divisions of the company, with functional reporting to the contracts and procurement [team]. 5 AREASOFSRMMAKING THELEASTPROGRESS → Functionality and use of IT → Capturing and reporting benefits → Supplier innovation → Senior stakeholder support → Developing skills and competencies
Any projects to better understand suppliers and improve relationships with the most critical must demonstrate value in order to fight for budget against competing priorities. Yet businesses agree SRM is moving up the agenda. Our 2016 study found that companies continue to say SRM will become more important to their businesses over the next 12 months. But, despite agreement on the increasing importance of supplier relationships to the business, progress on SRM remains patchy. Overall, the activities advancing at the fastest rate include supplier segmentation and creating governance models. Those areas lagging behind include the ability to capture and report financial and non-financial benefits, innovation and the functionality and use of technology.
77% of businesses say SRMwill become more important in the next 12months 45% of respondents report no progress or worsening IT support for SRM
5 AREASOFSRMMAKING THEMOSTPROGRESS → Supplier segmentation
→ Developing supplier relationships → Developing supplier governance → Supplier engagement and support → Business and operational stakeholder support
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