76
An industry sector perspective Looking at the feedback on contract and performance management by industry sector reveals some unexpected findings. The sectors reporting the highest proportion of key suppliers covered by effective contract management are FMCG, oil and gas, utilities, and financial services. Surprisingly, manufacturing have the lowest coverage and IT / high tech seem to appear at both ends of the spectrum but not in the middle.
■ FINANCIAL SERVICES ■ FMCG / CPG ■ IT / HIGH TECH ■ MANUFACTURING ■ OIL AND GAS ■ UTILITIES
Figure 3.11. Contract management in place for key suppliers – industry sector
50%
40%
% OF KEY SUPPLIERS WITH ROBUST CONTRACT MANAGEMENT IN PLACE
30%
20%
10%
0%
76-100%
51-75%
26-50%
0-25%
DON'T KNOW
% OF RESPONDENTS BY INDUSTRY SECTOR
When we look at performance management across industries, we see a similar pattern with FMCG, utilities, financial services, and oil and gas leading theway, followed by IT / high tech and againmanufacturing reporting the least performancemanagement coverage of key suppliers.
■ FINANCIAL SERVICES ■ FMCG / CPG ■ IT / HIGH TECH ■ MANUFACTURING ■ OIL AND GAS ■ UTILITIES
Figure 3.12. Performance management in place for key suppliers – industry sector
50%
40%
% OF KEY SUPPLIERS WITH ROBUST CONTRACT MANAGEMENT IN PLACE
30%
20%
10%
0%
76-100%
51-75%
26-0%
0-25%
DON'T KNOW
% OF RESPONDENTS BY INDUSTRY SECTOR
In the earlier section ‘current state of SRM’, we saw that it was the manufacturing sector that reported having the primary focus of their SRM programmes on collaboration and value creation. A hypothesis for this could have been that they had embedded contract and performance management to the point that more ‘headroom’ was available to focus on the relationship aspects of SRM. The results above would indicate that this is not the case and that the manufacturing sector still has plenty of work to do in this area.
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