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CONCLUSIONS AND CALL TO ACTION
From our analysis of this year’s research findings and conversations with numerous companies, we conclude that SRM continues to grow in importance as a means to drive more value from key supplier relationships. The vast majority of companies are reporting progress in developing, embedding and gaining benefit from their SRM programmes. However, some serious challenges remain and in this conclusion we will position these with a call to action. DEFINITION OF SRM The focus of SRM remains split between programmes that put more emphasis on contract and performance management, and programmes that build on these foundations but are looking for more collaboration with suppliers to create new value. Define SRM as part of a holistic procurement management lifecycle, as a set of activities that are additional and complimentary to contract and performance management. ALIGNMENT There are clear indications that SRM will become more important in the next 12 months and beyond, with it making a more important contribution to key strategic objectives. Identify how SRM contributes to your more strategic agenda, and ensure this is built into the value proposition and socialised with key stakeholders. BENEFITS Around 25%of respondents (34%of leaders) report post contract SRM related benefits to be worth 6% ormore of the contract value. However, capturing and reporting benefits remains a challengewith 32% of respondents not knowing what the benefits are. The validation of benefits will remain a challenge. Define what types of value and benefits will be attributable to SRM, and develop methodologies to capture both financial and non financial benefits simply and efficiently. LEADERS AND FOLLOWERS The two groups are increasingly defined by the value and benefits they are achieving. This is the clearest possible indicator that the return on investment in best practice SRM is real and tangible. If followers aspire to achieve the level of benefits reported by leaders, they will need to re-evaluate their current approach to SRM. They will need to create strategies to close the gap by developing best practice approaches to process, people and technology. CUSTOMER OF CHOICE Customer of choice discretion is certainly exercised by suppliers as evidenced by the descrip- tions of the benefits received on the buy side and provided by the sell side. If you’re not a customer of choice for your key suppliers this represents a genuine business risk. Take the necessary steps to identify your customer of choice status with your key suppliers using a voice of the supplier approach. Ensure customer of choice is considered as part of supply chain risk assessment. Develop a customer of choice strategy to mitigate risk and attract more value.
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