18
Where is progress happening? We have found in previous studies that progress does not take place at the same pace across all activities important to delivering effective SRM. This table highlights the top five areas of SRM activity that are making the most progress, and conversely the bottom five areas making the least progress
Figure 0.6. SRM activity progress – buy side
■ SIGNIFICANT PROGRESS ■ SOME PROGRESS ■ NO CHANGE ■ MODERATE DECLINE ■ SIGNIFICANT DECLINE
SHARING BENEFITS WITH SUPPLIERS SUPPLIER INNOVATION MEETING EFFICIENCY (OUTPUTS AND RETURN ON TIME INVESTED) FUNCTIONALITY AND USE OF IT SYSTEMS INVESTMENT IN TRAINING PEOPLE'S SKILLS AND COMPETENCIES DIRECT FINANCIAL BENEFITS DELIVERED OPERATING MODEL TRUST AND COLLABORATIVE WORKING INDIRECT BENEFITS DELIVERED QUALITY OF SUPPLIER RELATIONSHIPS NUMBER OF SUPPLIERS INVOLVED SRM MEASUREMENT AND KPIS AVAILABILITY AND USE OF TEMPLATES AND OTHER TOOLS EFFECTIVE PROCESSES DEVELOPMENT OF EFFECTIVE GOVERNANCE MODELS INTERNAL STAKEHOLDER ENGAGEMENT SENIOR EXECUTIVE SPONSORSHIP / SUPPORT
TOP 5MAKINGPROGRESS Internal stakeholder engagement Quality of relationships Senior executive sponsorship Number of suppliers involved Trust and collaboration
BOTTOM5 MAKING LITTLE PROGRESS Meeting efficiency Innovation Sharing benefits Investment in training IT systems
0% 20% 40% 60% 80% 100%
Both lists have changed little from last year, although the top five do indicate more progress for the outputs from SRM such as trust and collaboration, and the quality of relationships. The bottom five indicates, as in previous years, that investment in IT and training remains a challenge.
The key elements of SRM, as represented by the six pillars model, all require effort and investment to build and maintain an effective approach. The lack of investment in IT and training is clearly linked to most organisations, including leaders and followers scoring low for maturity in the information and technology, and people and skills pillars.
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