MAKING THE CASE
SRM can deliver significant gains across a business .
Articulatingthe benefits is key to getting board - level buy - in
Higher profits , lower costs , more innovation and improved
competitiveness : organisations that get SRM right can benefit across
the board . More than 40 % of respondents have achieved a positive ,
quantifiable post - contract benefit from their SRM activities , with 31 %
reporting a benefit of 4 % or more . Meanwhile , 60 % report cost
reductions , 52 % cost avoidance and 39 % preferential pricing . Nearly
a fifth ( 18 %) claim to be more profitable as a direct result of their SRM
programme .
view large image
To put this in context , research by Dr John Henke , who writes on
page 10 , suggests that good SRM contributes to as much as 70 % of
a company ’ s gross profit – far more than any other business function
can claim .
But the full business case for SRM is even richer and more nuanced
Powered by FlippingBook