15
Figure 0.1. Primary focus of SRM – buy side
■ 2012 ■ 2013
What is SRM focusing on?
CONTRACT
Managing supplier contracts to ensure that negotiated terms and service levels are adhered to
20%
The first question asked in the survey is designed to help us understand where organisations are placing their efforts in their SRM programmes. This can be influ- enced by a number of factors including how they define SRM and also the ambition they have for the programme. The adjacent chart indicates a slight reduction in the proportion of companies that are prior- itising collaboration and the creation of incremental value.
25%
PERFORMANCE
Defining andmonitoring key performance indicators (KPIs) to ensure that suppliers deliver services as per the contract and that they also deliver continuous improvement Collaborating with key suppliers to jointly deliver value (cost reduction, risk reduction, innovation, etc.) that is beyond contractual obligations COLLABORATION
25%
27%
55%
48%
A comparison across industry sectors in figure 0.3 shows that the sectors most likely to be making collaboration and incremental value the primary focus of their SRM programmes are financial services and manufacturing. These are the only two sectors where more than 50% of respond- ents identified collaborationand incremental value as their primary focus. Supplier organisations’ experience of their customers’ SRM programmes support the findings above; that slightly fewer were about collaboration and more were concen- trating on performance management. We can conclude that only half the programmes and initiatives described as SRM prioritise collaboration and value creation.
Figure 0.2. Primary focus of SRM – industry sector
■ CONTRACTS ■ PERFORMANCE ■ COLLABORATION
FINANCIAL SERVICES
FMCG / CPG
IT / HIGH TECH
MANUFACTURING
OIL AND GAS
The six industry sectors with the largest number of responses have been used to cre- ate industry sector comparison throughout the report.
UTILITIES
0% 10% 20% 30% 40% 50% 60% 70% 80%
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