2013 Global SRM Research Report - Six pillars for success

State of Flux 2013 Global Supplier Relationship Management Research Report focuses on the six pillars of success. Nearly 500 Supply Management professionals have contributed to this year's research. Its free to download but provides incredible insights into the SRM market right now.


Foreword
5

Contributors
6

Executive summary
8

Introduction
11

Six pillars of SRM, benchmarking & maturity model
12

Current state of SRM
18

Article: Top five trends to impact procurement
29

Business drivers & value
32

Case study: Procter & Gamble
45

Article:Does the innovation you receive from your suppliers demonstrate you are a customer of choice
49

Case study: NHS supply chain
52

Stakeholder engagement & support
54

Case study: Eastman Chemicals
61

Article: What do your suppliers really think?
67

Governance & process
70

Article: Risk – Is it time to bring supply chains home?
83

Case study: LV=
86

Article: Is Australasia ready for SRM?
90

People & skills
96

Case study: Kellogg's
105

Article: Is CSER still on the business agenda?
109

Information & technology
114

Article: SRM Technology – achieving a clear line of sight
123

Case study: Sainsbury's
128

Relationship development & culture
132

Case study: Surrey County Council
145

Article: SRM – No longer a zero sum game
150

Conclusions and call to action
153

About the research
156

Our partners
158

About State of Flux and State of Flux Technologies
160

List of Charts
162

Figure 0.1. Primary focus of SRM – buy side
19

Figure 0.2. Primary focus of SRM – industry sector
19

Figure 0.3. Assessment of SRM progress – buy side
20

Figure 0.4. Assessment of SRM progress – sell side
21

Figure 0.5. Assessment of SRM progress – industry sector
21

Figure 0.6. SRM activity progress – buy side
22

Figure 0.7. Barriers to SRM progress
23

Figure 0.8. Number of SRM programmes engaged in – sell side
24

Figure 0.9. Supplier engagement with customer SRM programmes
24

Figure 0.10. Reasons for suppliers not being engaged in SRM – sell side
25

Figure 0.11. Future growth of SRM – buy side
26

Figure 0.12. Reasons for future growth – buy side
26

Figure 0.13. Reasons for future growth – industry sector
27

Figure 1.0. Importance of business drivers for the creation and deployment of SRM – buy side
34

Figure 1.1. Importance of business drivers for the creation and deployment of SRM – sell side
34

Figure 1.2. Tangible benefits reported from SRM programmes – buy side
37

Figure 1.3. Tangible benefits reported from SRM programmes – leaders and followers
38

Figure 1.4. Average post contract financial benefit reported as a result of SRM – buy side
38

Figure 1.5. Average post contract financial benefit reported as a result of SRM – leaders and followers
38

Figure 1.6. Average post contract financial benefit reported as a result of SRM – industry sector
39

Figure 1.7. How frequently financial benefits derived from joint SRM activities are shared – buy side and sell side
40

Figure 1.8. How frequently financial benefits derived from joint SRM activities are shared – leaders and followers
41

Figure 1.9. How frequently financial benefits derived from joint SRM activities are shared – industry sector
41

Figure 1.10. Comparison of supplier benefits – buy / sell
42

Figure 1.11. Customer of choice benefits – buy side
43

Figure 1.12. Customer of choice benefits – sell side
43

Figure 1.13. Customer of choice benefits
44

Figure 2.0. Executive and senior management stakeholder engagement and support – leaders and followers
56

Figure 2.1. Operational business engagement and support – leaders and followers
56

Figure 2.2. Supplier engagement and support – leaders and followers
56

Figure 2.3. Executive and senior management stakeholder engagement and support – industry sector
57

Figure 2.4. Operational business engagement and support – industry sector
57

Figure 2.5. Supplier engagement and support – industry sector
57

Figure 2.6. Specific SRM value proposition developed – leaders and followers
58

Figure 2.7. Proportion of impacted internal stakeholders informed of the SRM value proposition – buy side
58

Figure 2.8. Proportion of key suppliers that have an accountable executive appointed – leaders and followers
59

Figure 2.9. Proportion of key suppliers regarding your company as a strategic customer – buy side
60

Figure 2.10. Proportion of SRM programme with strategic customers – sell side
60

Figure 2.11. What proportion of your key suppliers currently regard you as a customer of choice?
69

Figure 2.12. Typical voice of the supplier summary output
69

Figure 3.0. Organisations that have a single SRM process owner – buy side
72

Figure 3.1. Process owner responsibilities – buy side
72

Figure 3.2. Budget responsibility for SRM
72

Figure 3.3. Most commonly used segmentation criteria – buy side
73

Figure 3.4. Number of suppliers classified as strategic – buy side
74

Figure 3.5. Proportion of spend with segmented strategic suppliers – buy side
74

Figure 3.6. Where SRM practitioners are located organisationally – industry sector
76

Figure 3.7. How the SRM role is organised – 2012 - 2013
77

Figure 3.8. How the SRM role is organised – industry sector
77

Figure 3.9. Contract management in place for key suppliers – buy side
79

Figure 3.10. Performance management in place for key suppliers – buy side
79

Figure 3.11. Contract management in place for key suppliers – industry sector
80

Figure 3.12. Performance management in place for key suppliers – industry sector
80

Figure 3.13. Customer contract management in place – sell side
81

Figure 3.14. Customer performance management in place – sell side
81

Figure 3.15. Importance of SRM in the next 12 months – rest of world (ROW) and Australasia
91

Figure 3.16. Primary focus of SRM programmes – ROW and Australasia
91

Figure 3.17. Performance and contract management – ROW and Australasia
92

Figure 3.18. SRM value proposition – ROW and Australasia
93

Figure 3.19. Financial benefit – ROW and Australasia
93

Figure 3.21. Supplier engagement – ROW and Australasia
94

Figure 3.22. Skills needing improvement / training delivered – Australasia
94

Figure 4.0. Is SRM defined and recognised as a specific role and discipline within your organisation? – buy side
98

Figure 4.1. What elements of the usual infrastructure to support a properly defined role are in place?
98

Figure 4.2. Is SRM defined and recognised as a specific role and discipline within your organisation? – industry sector
99

Figure 4.3. Job profile and description changes resulting from SRM – sell side
99

Figure 4.4. Cross functional supplier management teams consisting of named individuals with defined roles and responsibilities for key supplier relationships – leaders and followers
99

Figure 4.5. Deployment of cross functional team – 2011 / 2012 / 2013
100

Figure 4.6. Knowledge and skills priorities for SRM
101

Figure 4.7. Training demand and supply – buy side
101

Figure 4.8. Level of investment in training – 2011 / 2012 / 2013
102

Figure 4.9. Level of investment in training – leaders and followers
102

Figure 4.10. Level of investment in training – industry sectors
103

Figure 4.11. Level of investment in training – buy side / sell side
103

Figure 5.0. Degree to which IT systems are being used to support SRM activities – buy side 2011 / 2012 / 2013
116

Figure 5.1. How well current IT systems are supporting SRM – buy side
117

Figure 5.2. Typical problems encountered using IT systems – buy side
117

Figure 5.3. Degree to which IT systems are being used to support SRM activities – leaders and followers
118

Figure 5.5. Degree to which IT systems are being used to support SRM activities – industry sector
118

Figure 5.6. How well current IT systems are supporting SRM – industry sector
119

Figure 5.7. Effective customer SRM IT systems – sell side
119

Figure 5.8. Managing and sharing information relating to key supplier relationships – buy side
120

Figure 5.10. Visibility and oversight of SRM activity – buy side
120

Figure 5.11. Metrics employed to measure SRM success
122

Figure 6.0. Types of information shared with key suppliers – buy side
134

Figure 6.1. Ability to attract, evaluate and implement supplier innovation – buy side / sell side
135

Figure 6.2. Barriers to supplier innovation – buy side / sell side
135

Figure 6.3. SRM helped innovation? – sell side
136

Figure 6.4. Degree to which guided innovation is used – buy side / sell side
136

Figure 6.5. Ability to attract, evaluate and implement supplier innovation – industry sector
137

Figure 6.6. The most important factors in the success of an SRM approach, top five aligned – buy side / sell side
138

Figure 6.7. The most important factors in the success of an SRM approach, five least aligned – buy side / sell side
138

Figure 6.8. What suppliers value from relationships – buy side / sell side
138

Figure 6.9. Use of 360 relationship assessment tool – buy side / sell side
139

Figure 6.10. Use of 360 relationship assessment tool – leaders and followers
139

Figure 6.11. Importance of trust to the success of SRM – buy side
140

Figure 6.12. Importance of trust to the success of SRM – sell side
140

Figure 6.13. How frequently collaboration takes place – buy side / sell side
141

Figure 6.14. How frequently collaboration takes place – industry sector
141

Figure 6.15. What form does collaboration take – buy side / sell side
142

Figure 6.16. Impact of SRM on negotiations
143

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