2015_Global SRM Research Report - Supplier Relationships

Sometimes this is because soft benefits are hard to measure – less

than 8 % of respondents could quantify benefits such as

competitiveness , supply continuity and improved customer

experience in financial terms – which may explain why 42 % of

respondents do not know what post - contract benefit SRM activity

brings them .

One company that has seen a raft of tangible benefits since

implementing SRM is United Utilities . Its approach starts with how

contracts are agreed , says Mark Hopkinson , the water company ’ s

head of SRM . “ The benefits we have seen are significant ,” he says .

“ We can report improved service , reduced cost and improved

sustainability performance . We know it ’ s dificult to measure SRM

benefit on its own as it is intertwined with overall business and

supply - chain strategies but we haven ’ t let this stand in our way .

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“ We believe it ’ s more important to get on with the job than to haggle

over where savings are attributed . However , where we have made

specific interventions , we have achieved post - contract savings in the

region of £ 30 million , and contributed to much more .”

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