This understanding must be paired with a board - level commitment
to investing in the technology and training that underpin successful
SRM and to creating an organisational culture in which all
employees understand the part that they play in SRM , and the part
that it can play in meeting their own needs . Novartis ’ s Chris Holmes
offers a particularly good example of this on page 17 .
As in previous years , we have asked questions and analysed
answers around the six pillars of SRM :
1. Business drivers and value : this covers the SRM value
proposition – both the bottom - line benefits , such as the cost
reductions reported by 60 % of respondents ,
as well as less tangible advantages such as innovation and
preferential access to scarce resources .
2. Stakeholder engagement and support : this is often thought of
as something that concerns external stakeholders but , as our
research around the low levels of senior executive
engagement indicates , it is just as important to consider
internal stakeholders .
3. Governance and process : 80 % of respondents say that they do
not have robust risk management in place for more than three
quarters of their suppliers , despite the very real chance of
reputational , financial and even criminal damage when
governance fails .
4. People and skills : responses make clear that training people in
communication and other skills needed to deliver effective
SRM is not a organisational priority for many – 40 % have not
spent much on SRM - specific training , while more than a quarter
have invested nothing at all .
5. Information and technology : this has the potential to make
every other pillar easier to manage in a more effective manner .
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