ABOUT SRM, STATE OF FLUX AND OUR RESEARCH
About SRM, State of Flux and our research
Feature
our resources and establish great working relationships no matter where in the world our clients are based. Like many organisations in 2020 we have had to step up to the challenge of changing our delivery model and have embraced remote working without any detrimental impact on the quality of the services we provide. Throughout this difficult period we have continued to invest and add talent to our team, expand our consulting services, enhance our people development and training offer and further develop our technology solution. We are confident that State of Flux remains at the leading edge of supplier management thinking and action-centred consulting.
About SRM
29% in the number of companies responding compared to 2019. In addition, the proportion of respondents at CPO/EVP level or equivalent has increased to over 50%. 2020 has been an extraordinary year for businesses and in particular for procurement and supply chain functions. In recognition of this we have included a number of questions exploring the impact of Covid-19 and what it could mean for the future of supplier management. Our analysis of the feedback can be found on pages 86 to 91.
Supplier Relationship Management (SRM) is part of a broad approach to supplier management that protects and enhances value that will often go beyond the contract. Based on the segmentation of suppliers according to their importance to the business, it encompasses engagement and treatment strategies that not only enable the effective management of contracts, performance and risk at the operational level, but uses this as the foundation to create a step change in key supplier relationships. This step change should result in better strategic alignment with common goals and objectives and drive additional value for both parties. There are multiple definitions of SRM but we’ve chosen to adopt that shown to the right as its key words provide a useful reminder of what SRM is all about.
2020 global SRM maturity
Leaders 71 Companies (17%) Followers 259 Companies (60%)
Fast followers 93 Companies (23%)
Maturity and benchmark analysis
29% INCREASE INCOMPANY RESPONSES 400+ BENCHMARKS REQUESTED >50% RESPONSESFROM CPO/EVPOREQUIVALENT
This research enables us to provide each participating company with a unique insight into their own SRM practices against those companies identified as leaders in the field as well as their industry peers and regional comparisons. Based on the State of Flux model for SRM best practice – ‘The Six Pillars of SRM’ – the maturity and benchmark analysis aligns to four levels of maturity. At the time of writing we had received over 400 requests for benchmarks globally. If you are interested in receiving an SRM maturity and benchmark analysis – even if you didn’t participate in the original research please contact enquiries@stateofflux.co.uk
About our research
As we approached the start of this project in early 2020 we believed that the State of Flux annual SRM research would follow a similar pattern in that we’d be addressing challenges made familiar by 11 years of research. Like everyone else we were unaware of the turmoil to come. However, despite the challenges faced we are delighted and grateful that so many companies have responded to our invitation to take part and maintain the research continuity. This year has seen an increase of
About State of Flux
State of Flux was founded in London in 2004 by Alan Day. Since then it has established its reputation as a specialist procurement and supply chain consultancy and grown with offices in Europe, the US and Australasia. With this global footprint and genuine subject matter expertise we are able to deploy
Value Engagement Governance People Technology Collaboration
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2020 GLOBAL SRM RESEARCH REPORT
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