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We maintain that effective SRM can only thrive within the wider context of good supplier management, including contract and performance management. However, the incremental value of SRM is realised through changing the nature of relationships with key strategic suppliers through more effective governance, collaboration and changed behaviours. It is therefore essential that a definition of SRM is agreed, which makes it distinct from, but complimentary to, contract and performance management, and that all three feature in the overall supplier management approach.
Is progress being maintained? Despite the last few years being a bleak business environment, our respondents continue to report that progress is being maintained. From our direct experience we believe this momentum is being driven in some cases by organisations looking to seriously address SRM for the first time and others re-evaluating their programmes, seeking a new direc- tion or simply to accelerate benefits. Compared to 2012 and 2011, the proportion of respondents reporting either moderate or significant progress has remained constant.
Figure 0.3. Assessment of SRM progress – buy side
■ 2013 ■ 2012 ■ 2011
61%
57%
54%
21% 24% 24%
20%
15% 13%
3% 3% 2% 0% 1% 0%
SIGNIFICANT PROGRESS
SOME PROGRESS
NO CHANGE
MODERATE DECLINE
SIGNIFICANT DECLINE
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