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INTRODUCTION
2011 We identified a new market dynamic in the form of the ‘customer of choice’ concept. The understanding and appreciation of this concept has grown and the term ‘customer of choice’ has entered the lexicon of SRM value. 2012 More programmes than ever were delivering value and the gap between leaders and followers had grown - being more defined by benefits than previous years. However, a number of important challenges remained to be addressed, including investment in training and development, and suitable technology to support SRM. This year’s report containsmore analysis and key trends extracted from our analysis and comparisons between leaders and followers, buy and sell side, industry sectors and yearly trends. In addition, you will find case studies from some of the world’s leading companies, alongside State of Flux best practice tips and opinion articles. The focus of our research and this report is on SRM defined as: “A discipline of working collaboratively with those suppliers that are vital to the success of the organisa- tion, to build trust and maximise the mutual value of those relationships.” However, this definition must always be considered within the wider context of good practice – procurement lifecycle management for example, which incorporates category management, strategic sourcing, risk management, contract and performance management. These important activities effectively underpin SRM.
Since we started this research in 2009, we have seen steady and sustained progress in the development and implementation of SRM strategies. This progress has been achieved against a very challenging economic background. It is only in the last fewmonths that some of the key indicators seem to be pointing towards a recovery, and even this is predicted to be long and slow. This year we have expanded both our geographic reach and industry sector representation to provide even more insights into how SRM is being addressed. We have increased the number of respondents by over 25% and have over 20 different industry sectors represented in the results. We have retained and expanded suppliers’ views to provide more validation 2009 The key theme was identifying the value and ROI that SRM could deliver. This remains a challenge to many organisations and is again addressed in this report, in the analysis of business drivers and value. 2010 There was an increase in SRM activity. This was the first year that we identified leaders and followers to begin aligning good practice to good outcomes. Our view of leader and follower trends this year is supported by more analysis of responses and better defined ‘leader ‘criteria. and insight into the buy side feedback. A brief reflection on previous reports:
*PROCUREMENT LIFE CYCLE MANAGEMENT
*PROCUREMENT LIFE CYCLE MANAGEMENT “The integrated disciplines of managing all aspects of the procurement lifecycle.” STATE OF FLUX SRM GLOBAL RESEARCH REPORT 2013 *SRM “A discipline of working collaboratively with those suppliers that are vital to the success of the organisation, to build trust and maximise the mutual value of those relationships.” STATE OF FLUX SRM GLOBAL RESEARCH REPORT 2012
NEW VALUE
SRM*
ENHANCE VALUE
PERFORMANCE MANAGEMENT
RENEW RE TENDER EXIT
ASSURE VALUE
CONTRACT MANAGEMENT
SECURE VALUE
RISK MANAGEMENT
CAPTURE VALUE
STRATEGIC SOURCING
IDENTIFY VALUE
CATEGORY MANAGEMENT
PRE AWARD
POST AWARD
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