131
Innovative Our research has consistently revealed innovation to be the real dichotomy of SRM. In all of our previous surveys we have asked the question about how important supplier inno- vation is as a business driver and benefit of SRM. We consistently receive the same answer “one of the most important”. It is invariably highlighted as a key element of the SRM value proposition. When we discuss the topic of innovation with the sell side they are desperate to engage more effectively on innovation, even when this is qualified with a ‘no sales pitch’ warning. However, it seems these good intentions run into difficulties at the implementation stage, where the feedback we receive indicates the ability of buy side companies to capture and implement supplier innovation remains poor. While this isn’t entirely reflected by the data from the sell side; once you get past their politeness and reticence to criticise customers this is a view shared by many.
Figure 6.1. Ability to attract, evaluate and implement supplier innovation – buy side / sell side
4%
■ BUY SIDE ■ SELL SIDE
VERY GOOD
13%
35%
GOOD
55%
43%
POOR
25%
12%
VERY POOR
3%
6%
DON'T KNOW
5%
In last year’s report it was evident that both the buy and sell side understand the barriers to making innovation work and were in broad agreement. That pattern is repeated this year with organisational complexity again identified as the number one barrier, followed by a lack of time and resources.
Figure 6.2. Barriers to supplier innovation – buy side / sell side
■ BUY SIDE ■ SELL SIDE
49%
COMPLEXITY OF THE ORGANISATION
52%
45%
LACK OF TIME / RESOURCES
40%
45%
NO FORMAL PROCESS
30%
38%
LACK OF CLEAR OWNERSHIP
46%
32%
OTHER MORE PRESSING PRIORITIES
27%
29%
LACK OF INTERNAL COMMUNICATION / COORDINATION
44%
14%
UNWILLING TO CONSIDER EXTERNAL IDEAS
17%
5%
NO BARRIERS
0%
Powered by FlippingBook