21
Here we look at a number of other reasons why suppliers might not be fully engaged and supportive of SRM programmes. The analysis below shows that supplier uncertainty regarding the motives and commitment of the buy side is relatively high . It would appear that suppliers see benefits for them as less of a barrier than the buy side . Buy side organisations consider skills and senior executive commitment to be an issue , and also believe that suppliers have more conflicting priorities .
While this analysis is useful to identify and address these barriers, it should be remembered that only 13% of buy side companies identified a lack of supplier commit- ment as a barrier.
Figure 0.10. Reasons for suppliers not being engaged in SRM – sell side
■ BUY SIDE ■ SELL SIDE
1
2
27%
4
3
21%
21%
20%
20%
19% 17%
17%
17%
15%
15%
14%
12%
10%
Suppliers uncertain of motives
Suppliers not convinced of commitment
Corporate and cultural differences
Suppliers do not recognise any benefits for them
Suppliers lack requisite skills and competencies
Lack of senior executive support
Other more pressing priorities
In our experience, suppliers are very supportive of SRM initiatives. Procurement process and governance has developed significantly over recent years, to the point where most suppliers are aware the previous ‘divide and conquer’ strategies no longer work and they have a vested interest in working more collaboratively within a defined governance model. “I’ve never had a supplier say, ‘look this doesn’t add any value to me’ - in most cases suppliers would pay to get this level of information and engagement.” – CATHY KUTCH, DIRECTOR SUPPLIER RELATIONS AND DIVERSITY, KELLOGG’S
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