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BUSINESS DRIVERS
Businesses are very different and so too are their drivers for committing themselves to an SRM programme. In our previous studies, cost reduction has consistently been iden- tified as the primary business driver for SRM. However, this year for the first time it is risk reduction that is considered, albeit narrowly, to be the most important driver . The top six most important drivers remain largely operational and in addition to risk include cost reduction and avoidance, service and quality improvement, and supply chain effi- ciency. These are followed by the less tangible and more strategic drivers such as securing access to the supplier’s best resource and innovation.
Figure 1.0. Importance of business drivers for the creation and deployment of SRM – buy side
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The feedback from sell side organisations on what they think are the most important business drivers for customers SRM programmes, indicates a very similar pattern to the buy side. This shows that there is a shared understanding of the reasons for SRM, providing a good starting point for collaboration and joint planning.
Figure 1.1. Importance of business drivers for the creation and deployment of SRM – sell side
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