It is also worth bearing in mind the knock - on benefits that the right
system can have on other areas , including in the support it can offer
to senior leaders who are committed to championing SRM . At the
moment , most companies – 60 % – manage information about key
supplier relationships using documents on a shared drive , while 79 %
rely on reports created manually in Excel . Only 6 % use an SRM
system to produce customised reports .
But with a dedicated SRM system a chief procurement or finance
oficer put on the spot by their chief executive could quickly and
easily create a report that included the information requested
without any clutter . And , should that chief executive later find
themselves preparing to meet with their chairman , or indeed their
counterpart at a key supplier , they could pull out their smartphone
and use the Statess technology to get a snapshot of the
relationship ’ s status while being driven to the meeting . The end
result ? Better use of the CEO ’ s time and a better , more informed ,
discussion .
Best practice : Alan Day , founder and chairman of State of Flux
When evaluating SRM technology it should cover five key elements :
relationships , performance , contracts , risk and innovation .
The benefits are clear : our research shows an effective SRM
programme , supported by SRM technology , can deliver 2 – 4 % post -
contract gain . In addition , technology can also be a catalyst for
change in the organisation , providing a mechanism for a seamless
and consistent approach .
If companies care about providing a more consistent supplier
experience , technology will help achieve this . Currently supplier
management is the only business process that has so much value at
stake that is not supported by good technology .
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