89
FINANCIAL BENEFIT Cost avoidance, profit and loss impact or budget reduction can be the meas- ures of financial success from the sourcing process and easy to present in discussions to the CFO. However, with SRM we are regularly approached by businesses to help them define the value proposition of SRM, yet survey respondents say they are already seeing the benefit of SRM. While fewer respondents in Austral- asia have a specific SRM value proposition, 74% of survey respond- ents from the Australasianmarket see themselves delivering financial benefit through SRM, which is 11%higher than their global counterparts. While people could be attributing sourcing financial benefit to SRM, the positive take away is businesses feel comfortable there is bottom line benefit to pursuing SRM. As defined in the first pillar of SRM, ‘business drivers and value’, understanding the drivers and the benefit SRM will deliver on, will help you communicate the benefit to stakeholders.
Figure 3.18. SRM value proposition – ROW and Australasia
■ YES ■ NO ■ DON’T KNOW
GLOBAL EXCL. AUSTRALASIA
AUSTRALASIA ONLY
0% 20% 40% 60% 80% 100%
Figure 3.19. Financial benefit – ROW and Australasia
100%
■ MORE THAN 8% ■ 6 8% ■ 4 6% ■ 2 4% ■ 0 2% ■ 0% ■ DON'T KNOW
80%
60%
40%
20%
0%
GLOBAL EXCL. AUSTRALASIA
AUSTRALASIA ONLY
CUSTOMER OF CHOICE BENEFIT Do I get the best account team and other resource? Do we get access to the latest innovation? Are they pricing in the challenge of doing business with us? Do we openly and transparently discuss challenges with our account team? These are all attributes associated with being a customer of choice. The below chart indicates that already businesses feel they are benefiting from preferred pricing and better account management through their relationships with their vendors. So it appears some customer of choice benefits are evident despite the fact they believe less than 15% of their key suppliers are fully engaged in working with them.
Figure 3.20. Customer of choice benefits – Australasia
0% 10% 20% 30% 40% 50% 60% 70% 80%
■ GLOBAL EXCL. AUSTRALASIA ■ AUSTRALASIA ONLY
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