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OUTPUTS AND ENABLERS Areas showing the most improvement are now more related to outputs such as trust and collaboration. The areas making the least progress still include some of the key enablers for successful SRM such as investment in training, and information and technology. Delivery of benefits will accelerate with appropriate investment in people development and technology. STAKEHOLDER ENGAGEMENT AND SUPPORT Respondents have consistently reported good progress in achieving stakeholder engagement and support, but the evidence suggests there is still a lot of work to do. Develop effective stakeholder engagement and management strategies for executives and senior managers, business and functional operational teams, and suppliers. Base these on an SRM value proposition that resonates with them. OPERATING MODEL Development of appropriate SRM operating models is making progress. Last year this was one of the areas making the least progress. This year over 50% of respondents report that progress is being made. However, it still remains a problematic area for many. Too many organisations are still attempting to get by with roles assigned informally to people who are already busy. Move more rapidly to define the operating model, that will help define job roles, and in turn indicate skills and capability training requirements. SEGMENTATION Segmentation of the supplier base is now common practice for most organisations. More than eight out of ten respondents say they formally segment their suppliers. The variation in approach is now more to do with the criteria that are used and the number of segmentation tiers that are thought to be appropriate. Review and consider broadening the criteria used for segmentation, to reflect more potential benefit and growth opportunities, as well as current spend and risk. Ensure the segmentation criteria are applied as part of the category management and sourcing process to support appropriate supplier selection. PERFORMANCE AND CONTRACT MANAGEMENT Results indicate a serious lack of robust contract management and performance management in place for a large proportion of suppliers that would be regarded as critical to the business. Use the segmentation output to prioritise a review of contract and performance management processes, including fundamentals such as contracts available and still valid, terms and milestones being monitored, scorecards created. Create a controlled closed loop approach using process and technology. RISK This year risk has been identified as the most important business driver for investment in SRM. While cost reduction and cost avoidance remain priorities, customer of choice related business drivers have also gained in importance. Look at supply chain risk more holistically and improve risk management processes to become more transparent, collaborative and enabled by technology. TRAINING Investment in training and the development of an end to end talent and organisational effec- tiveness approach is still a major challenge. The skills required to deliver effective SRM and real business value are now more fully understood. However, what this reveals is a significant gap between demand (for training in important skills) and supply (the provision of that training). Don’t look at training in isolation as a tactical solution to an individual need. Look at the end to end people development process from job design, through skills and capability assessment, to training solutions and performance management.
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