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Operating model Developing appropriate SRM operating models appears to be making progress. Last year this was one of the areas making the least progress. This year, over 50% of respond- ents report that progress is being made. However, it still remains a problematic area for many. We have gathered two sets of data that illustrate the current background against which this debate is taking place. This seems to have two main themes: firstly, where in the organisation is it most appropriate and beneficial for SRM to be executed; and secondly, should the role be dedicated or part of a wider set of responsibilities? To shed light on this, we used our survey to ask where SRM practitioners are located in the organisation. Overall, 69% of respondents report that SRM practitioners are in the procurement function, either located centrally or, in the majority of cases, procurement embedded in the business unit or function. The variations by industry sector are shown below: › › Financial services, IT / high tech and utilities companies are more likely than others to have SRM in a centralised procurement function . › › Well over 50% of IT / high tech companies, along with FMCG and manufacturing, have SRM in a de-centralised procurement function, with this also being the most favoured option for other sectors . › › Examination of the ‘other’ categorisation by financial services and utilities reveals they are also employing a mixture of models .
Figure 3.6. Where SRM practitioners are located organisationally – industry sector
■ FINANCIAL SERVICES ■ FMCG / CPG ■ IT / HIGH TECH ■ MANUFACTURING ■ OIL AND GAS ■ UTILITIES
0% 10% 20% 30% 40% 50% 60% 70% 80%
2
3
1
PROCUREMENT EMBEDDED IN BUSINESS UNIT / FUNCTION
ANOTHER CENTRAL / GROUP FUNCTION
BUSINESS UNIT SERVICE MANAGEMENT
OTHER
PROCUREMENT FUNCTION AT CENTRAL / GROUP LEVEL
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