Summary The Six Pillars of SRM are all aspects of good practice that, when combined, maximise the opportunity for organisations to benefit from supplier management. However, none of the pillars can be successfully implemented without people demonstrating the right skills, competencies and behaviours. Leaders are significantly more mature across most of the people development process elements and lead the way in the provision of training. But few organisations have all the components of good practice people development in place. The elements that require the most development are skills and competency frameworks, and assessments. There is also a significant gap between the skills and competencies that are considered the most important for supplier management and those that companies say most need improvement. Finally, we note that companies are slowly moving toward dedicated supplier management roles rather than combining them with other responsibilities.
of companies conduct specific supplier management skills and competency assessments. 19% of supplier management Leaders have developed a skills and competency framework. 77% 88% of Leaders are providing supplier management training.
People development The Six Pillars of Supplier Management are all aspects of good practice that, when combined, provide the opportunity for organisations to optimise the value they derive from their relationships with suppliers. However, if there is one pillar all the others depend on, its People. People development is a process that consists of logically arranged building blocks. Here we look at how organisations prepare themselves to develop their people and equip them
with the skills and competencies required to succeed. The model sets out the building blocks and the extent to which respondents to our survey have completed the requisite activities, contrasting the results from Leaders, Fast Followers and Followers. The aims and objectives referred to here represent those of the business for the supplier management programme, such as management of cost, supplier performance, supply chain risk, relationship management and so on. These aims and objectives →
PEOPLE Working in procurement and supply chain management has always been a challenging role. In the past two years, it has become more so and grown in importance. The dedication and resilience shown by those carrying that responsibility should not be underestimated.
People development process and responses
84%
55%
84%
Leaders Fast Followers Followers
25%
44%
22%
Training
62%
29%
75%
Personal development
7%
55%
77%
Skills & competencies assessment
25%
93%
42%
74%
73%
Job description
18%
59%
40%
33%
Skills & competencies framework
Supporting role definitions
Primary role definition
Aims & objectives
76
77
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