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Information and technology as a key enabler for SRM remains a concern, with dissatisfaction levels increasing.
Highlights Less thanone third of respondents aremaking any real use of exist- ing technology to support SRM. Of those using existing informa- tion and technology, one in three report it is adequate for their needs. Over 50% of respondents believe current systems lack function- ality and are not sufficiently integrated. 56% of buy side respondents do not believe they have good visibility of what is happening in their SRMprogrammes.
The use of information and technology systems, software or applications to support SRM, has not increased from the low level reported in 2011. For those companies making use of existing information and technology, the majority report it to be poor or very poor in meeting the needs of SRM. The criticisms have remained broadly the same over that period also. These focus on a lack of required functionality; information having to be gathered from different systems; and no access to systems for stakeholders or suppliers. More than eight out of ten companies rely on Excel spreadsheets to produce scorecards and reports. The proportion of respondents reporting that information and technology supports SRM ‘very poorly’ has increased from 4% in 2012 to 20% in 2013. Three quarters of sell side respondents report that less than half of their customers with SRM programmes have an effective system, enabling any form of collaboration. There is a clear opportunity for procurement to embrace information and technology best practices to connect, collaborate and create value across the enterprise through SRM.
Information and technology best practice › › Clear vision and strategy for the enable- ment of supplier management through information and technology that is aligned to the business needs. › › All areas of supplier management including risk, contract, performance, innovation and relationship management are enabled by information and technology. › › Supplier management technology solu- tions provide information management, collaboration (internal / external), reporting, programme management and compliance oversight capability. › › Usage levels are high and SRM activity is conducted within the solution by suppliers, the business, procurement and subject matter experts.
› › Solution capabilities include:
› › Single repository for SRM information providing ‘one version of the truth’ › › Supplier and stakeholder collaboration › › Real time, analytics and reporting and market intelligence › › Virtual integration with other systems › › Metrics are in place to measure the effi- ciency (process) and effectiveness (results) of the programme, individual supplier performance and relationships. › › Investments in information and technology are future-proofed for further procure- ment and market evolution.
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