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Like an iceberg – 90% of SRM potential remains hidden, waiting for enlightened management, good people and eective processes and technology to unlock it.
INFORMATION AND TECHNOLOGY Technology as a key enabler for SRM remains a serious concern with dissatisfaction levels increasing. To make SRM work for you with impact and scale, be it number of suppliers, geographic locations or number of stakeholders, an information and technology solution that enables connection, collaboration and value creation is essential. STRATEGIC AND CULTURAL ALIGNMENT 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 360 degree relationship assess- ment tools to baseline and develop more strategic and cultural alignment. Gain a better understanding of your strategic relationships by using a 360 degree relationship assessment tool to understand supplier and internal stakeholder perceptions of key relationships. More importantly – act on the findings. OPENNESS, TRANSPARENCY AND TRUST Fundamental to openness and transparency is the willingness to share information. The type of information being most commonly shared is operational. There is also a noticeable reduction in the proportion of buy side respondents sharing more strategic information as compared to 2012. Be prepared to share more information with suppliers and in return create mutual trust as a key component of relationship development. COLLABORATION Collaboration has become almost the watchword of SRM. Around 40% of buy side companies report they collaborate with suppliers on a regular basis. This is a key tenant of SRM and is the power source for creating value. Search for opportunities and projects with suppliers to collaborate. This will double the resource and brain power addressing issues, create trust and improve cultural alignment. INNOVATION Important relationship attributes are increasingly understood and being developed, but truly innovative relationships are still more of an aspiration than reality. Innovation is still a real dichotomy. It is consistently identified as one of the most important elements of the SRM value proposition. However, there are still difficulties at the implementation stage. This remains a huge missed opportunity and risks undermining SRM as a way of delivering genuine new value. Clarify with stakeholders your innovation strategy and develop a transparent innovation process. Consider how technology can help with this.
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