SUMMARY OF KEY FINDINGS
SUMMARY OF KEY FINDINGS
Summary of key findings Headline feedback for each of the Six Pillars of SRM
81% of supply chains were affected 1% believed their supplier management technology was a strength 63% of respondents reported that communication and information sharing worked well
47% of organisations said their risk management was insufficient 53% indicated their problems were beyond first tier suppliers’ 72% of companies believe they’ve been treated as a Customer of Choice
Covid-19 The emergence of Covid-19 in early 2020 and the measures that have had to be taken to protect people have had a profound impact on economies and revealed the strengths and weaknesses in global and domestic supply chains.
Value
Engagement Senior stakeholder support 69% Companies report that senior stakeholders are generally supportive of SRM in 69% of cases Leaders and senior stakeholder engagement 52% For 52% of Leaders senior stakeholder support is strong and active Support from the business 58% Support from business and operational teams is 58% overall Leaders and supplier feedback 75% ‘Voice of the Supplier’ type feedback has been gathered by 75% of Leaders
Governance Treatment strategies 69% Treatment strategies have been developed by 69% of companies that have segmented suppliers Behaviours 9 in 10 More than 9 in 10 Leaders have behaviours as part of their treatment strategies to manage suppliers
People
Technology Desktop tools 52% Desktop tools such as spreadsheets are predominantly used by 52% to manage suppliers
Collaboration
Risk as a business driver 58% Risk is a key business driver for SRM for 58% of respondents
Training 86%
Improved collaboration 98% Leaders are almost all benefitting from improved collaboration
An investment in training has been a priority for 86% of SRM Leaders
More innovation 44%
Role definitions 50% SRM roles have been defined by just over 50% of companies
Collaboration results 63%
Contract management 63%
Unlocking more supplier innovation is a target benefit for 44% of companies
Improved trust in relationships is reported by 63% of respondents
Contract management technology is available to 63% of respondents
Financial gains 49% Of SRM Leaders 49% report financial gains in excess of 4% Non-financial benefits 59% Reduced supply chain risk is a benefit reported by 59% of respondents
Skills framework 30%
Shared goals and objectives 53%
Technology dissatisfaction level 1 in 3 Around 1 in 3 respondents say their supplier management technology is inadequate Managing innovation 7% Just 7% of respondents have technology to help them manage supplier innovation
Governance models 90%
An SRM skills and competency framework has been developed by under 30%
Shared goals and objectives have been established by 53% of Leaders
Effective governance is at the heart of supplier relationships for 90% of Leaders
Customer of Choice 79%
Capability assessment 17%
Contract and performance 56%
Around of 79% Leaders estimate they are the Customer of Choice for more than half of their key suppliers
Just 17% of organisations have conducted an SRM capability assessment
Contract and performance management is a foundation of SRM for 56% of Leaders
18 STATE OF FLUX
2020 GLOBAL SRM RESEARCH REPORT
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