2020 Global SRM Research Report - SM at speed

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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