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As mentioned previously, organisations and industry sectors have different needs and reasons for investing time and effort in SRM, and expect to achieve different kinds of benefits. Here we examine the business drivers in the six industry sectors most repre- sented in our survey.
FINANCIAL SERVICES Making up 14% of the survey sample, financial services are the most represented industry sector. By ranking the business driver as important or very important, our financial services respondents identified risk reduction as the most important business driver for them, followed closely by cost reduction and service improvement . The busi- ness driver they are relatively less concerned about is the need to secure preferred access to scarce materials or capacity . OIL AND GAS With 8% of the sample, the oil and gas industry has the second largest number of responses in the survey. The most important business driver for this sector is contract compliance . This is followed by risk reduction , although undoubtedly a different type of risk to that concerning the financial services sector. Third is securing access to the best supplier resource . The area of least concern is the need to work with suppliers on joint product and service development . MANUFACTURING The third sector, manufacturing, makes up 7% of survey responses. Cost reduction is the manufacturing industry’s key driver, followed by risk reduction , supply chain efficiency and increasing profit margins all as equal second. Relative to other opportunities for value creation, manufacturing believes SRM will make less of an impact on CSER and sustainability . UTILITIES Also with 7% of responses, the utilities sector believes risk reduction is its primary driver for SRM, followed by three drivers considered equally important: cost avoidance , supply chain efficiency and quality . They are less concerned about SRM contributing to speed to market . FMCG Responses from FMCG companies make up 6% of our sample. Risk reduction is ranked by respondents as the main business driver that SRM is required to address. This is followed by cost reduction and then jointly by supply chain efficiency and need to drive improved profit margins . Relative to other business drivers, securing access to scarce materials or capacity is not so much of a priority for the FMCG sector SRM efforts. IT / HIGH TECH The final sector examined is IT / high tech, which make up 6% of respondents. This is the only sector to rank innovation as the most important business driver for SRM. This is followed by the need to improve profit margins and reduce cost . Relative to other oppor- tunities for value creation, IT / high tech companies believe SRM will make less of an impact on CSER and sustainability .
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