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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