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Important relationship attributes are increasingly understood and being developed, but truly innovative relationships are still more of an aspiration than reality.
We have characterised successful relationships as being open and trans- parent, innovative, strategically and culturally aligned, trusting, collaborative and behaviourally mature. Fundamental to openness and transparency is the willingness to share information. The type of information being most commonly shared is oper- ational. There is also a noticeable reduction in the proportion of buy side respondents sharing strategic information as compared to 2012. Innovation is still a real dichotomy. It is consistently identified as one of the most important elements of the SRM value proposition. However, difficul- ties at the implementation stage remain. This view of slow progress in making relationships truly innovative is broadly confirmed by the sell side - although three quarters of themsay that being part of an SRMprogramme has helped them present innovative ideas. For relationships to function well it’s important that sufficient strategic and cultural alignment is achieved. Less than one in five buy side companies are using a 360 degree relationship assessment tool to baseline and develop more strategic and cultural alignment. Collaboration has become almost the watchword of SRM. Around 40% of buy side companies report that they collaborate with suppliers on a regular basis. With half of these claiming that it is ‘business as usual’.
Highlights Sharing of all types of stra- tegic information shows a decline since 2012. Over half of all buy side re- spondents describe themselves as poor or very poor at attract- ing, evaluating and imple- menting supplier innovation. The major barrier to innovation identified by over half of both buy and sell side respondents is organisational complexity. Less than one in five buy side organisations have used a 360 relationship assessment tool. Manufacturing and IT / high tech companies are the most likely to be collaborating with supplier regularly.
Relationship development and culture best practice › › Corporate strategies of both organisa- tions have been shared and discussed at executive level.
› › A voice of the supplier survey has been conducted to understand how the customer is perceived across a representative supplier sample including how they compare to competitors or peer companies. › › A 360 degree relationship health check has been completed to establish a baseline and a relationship development plan forms part of the strategic supplier jointly agreed account plan. The plan is being implemented. › › The relationship has the look and feel of being: open and transparent; innovative; strategically and culturally aligned; trusting; collaborative; and behaviourally mature.
› › Information sharing is a key feature of the relationship, including joint medium to long term strategy, product and service roadmaps, investment plans etc. › › Collaborative working is business as usual. › › Trust and openness are now considered a key element in this relationship, both parties trust and are trustworthy. › › A ‘customer of choice’ strategy has been developed. The strategy is being implemented.
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