One final challenge to note when it comes to SRM is lack of a board -
level champion . It is rare for CPOs to have a seat at the main board ,
with many reporting through the COO or CFO – or even a level
below that . This does not necessarily mean that the CPO must
become a more senior role , but it is vital for members of the senior
leadership to have an understanding of , and commitment to , SRM .
Best practice : Alan Day , chairman and founder of State of Flux
More than 11 years of working with leading companies and seven
years of industry - leading research reveal that the business case for
SRM remains one of the perennial challenges for procurement and
SRM leaders .
For many , SRM simply feels like the right thing to be doing . But it is
much more than that . Defining the value proposition and business
case for SRM allows business leaders to focus on real value
opportunities . We suggest that leaders do this by focusing on the
four drivers of value :
• post - contract benefits • sustained sourcing savings • contribution to profits • customer - of - choice ( soft ) benefits
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