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DEVELOPING The value of SRM has been defined but is not neces- sary linked to business drivers. The importance of stakeholder engagement is under- stood and plans may be in place. A number of SRM practitioners have been identified. SRM roles are being defined. Skills and capabilities are understood but capability assessment and training are unlikely to have taken place. Data is being manually extracted from systems and manipulated on spreadsheets to support SRM. Tools and techniques are in development. SRM is being rolled out with a small group of suppliers and some early opportunities identified. Customer of choice status with key suppliers is under investigation.
UNDEVELOPED No clear policy or objectives have been set and activity remains ad hoc. Some good practice might exist but this is isolated and no consistent or cohesive approach has been developed.
LEADERS AND FOLLOWERS
The remaining 26% of respondents have not been used to create the ‘leaders’ or ‘followers’ groups, because either their SRM practices are undeveloped or they did not respond to a sufficient number of questions in the survey for an overall assessment to be completed. However, individual question responses are included in the overall summary.
The concept of leaders and followers as a means of comparing the maturity and effectiveness of SRM approaches has featured in our last few reports. We continue to evolve this method of benchmarking and this year the criteria to be described as a leader has become tougher than ever. We believe that as SRM develops we should ‘raise the bar’ so that organisa- tionswill continue to improve in order to be considered leaders in this field. In previous years we have defined the leaders as simply the survey respondents with the highest aggregate score according to our weighted control questions embedded in the survey (30 companies in 2012). This year we have set absolute parameters that a company will need to meet to be classified as a leader. Simply, a leading company will have a State of Flux SRM index score of at least 3.0 (SRM index explained overleaf) with no more than two pillars still in the developing level of the maturity model. This year we have identified 45 ‘leaders’ representing 14%of the respondents. The ‘followers’ group consists of 186 companies, which represents around 60% of all respondents. Followers will have a minimum SRM index score of at least 2.0 .
Leaders and followers
LEADERS 14% 45 COMPANIES
FOLLOWERS 60% 186 COMPANIES
OTHER 26% 83 COMPANIES
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