109
SRM tangible benefits – leaders / followers
■ LEADER ■ FOLLOWER
RISK REDUCTION COST AVOIDANCE COST REDUCTION
RISK REDUCTION COST AVOIDANCE COST REDUCTION
END CUSTOMER EXPERIENCE FASTER SPEED TO MARKET SUPPLY CHAIN EFFICIENCY IMPROVED PROFIT MARGINS SALES / REVENUE GROWTH INNOVATION
END CUSTOMER EXPERIENCE FASTER SPEED TO MARKET SUPPLY CHAIN EFFICIENCY IMPROVED PROFIT MARGINS SALES / REVENUE GROWTH INNOVATION
SUSTAINABILITY AND CSR COMPLIANCE TO CONTRACT PREFERRED ACCESS TO SCARCE CAPACITY / MATERIALS SERVICE LEVEL IMPROVEMENTS QUALITY IMPROVEMENTS
SUSTAINABILITY AND CSR COMPLIANCE TO CONTRACT PREFERRED ACCESS TO SCARCE CAPACITY / MATERIALS SERVICE LEVEL IMPROVEMENTS QUALITY IMPROVEMENTS
1
1
JOINT PRODUCT / SERVICE DEVELOPMENT ACCESS TO THE BEST SUPPLIER RESOURCE
JOINT PRODUCT / SERVICE DEVELOPMENT ACCESS TO THE BEST SUPPLIER RESOURCE
10% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80%
As yet, CSER as a business driver has not been fully translated into action, with our feedback on tangible benefits delivered revealing that CSER and sustainability are down the list with only 14%of all respondents reporting benefits. This figure becomes a littlemore encouraging when the responses are split by leaders and followers: leaders are almost twice as likely to be receiving CSER and sustainability benefits . A number of organisations are putting CSER and sustainability at the heart of their SRM programmes. Amongst these is Sainsbury’s, the major UK supermarket chain, whose case study is featured in this report. This case study showcases howSainsbury’s SRMprogramme has had a direct impact on corporate sustainability objectives. Conclusion CSER is still firmly on the business agenda with 58% of our respondents believing it is one of the reasons SRM will become more important over the next 12 months. For this to be trans- lated into action, it is important that SRM is linked to CSER business objectives, via the SRM value proposition used as a vehicle to engage key stakeholders. This has to be an opportunity to widen the perceptions of SRM value and resonate with a group of stakeholders that might not be traditionally engaged in the SRM debate. However, seeing the benefits of CSER as a way to support the case for SRM somewhat misses the point. CSER has genuine business value but it’s also simply the right thing to do. If SRM can be instrumental in making our companies more socially and environmentally responsible, we should all take pride in that.
Article by Amy Duffuor, Consultant and Chloe Jansen, Analyst at State of Flux. Call them on +44 (0)207 842 0600 or email them at enquiries@stateofflux.co.uk for more information on how SRM can support your CSER strategy.
Powered by FlippingBook