2017 Global SRM Research Report - Solving the value Puzzle

SUMMARYOFKEYFINDINGS

Fig 2. Primary sources of SRMvalue in the last 12months*

%

Cost reduction/avoidance

Regulatory compliance

81

34

SUMMARYOF KEYFINDINGS Leaders showwhere to get themost value fromSRM and where everyone can improve.

Riskmanagement / reduction

Suppliersmorewilling to accept andmanage risk

64

29

Service level improvement

Secured the best supplier resource

55

27

General increased commitment ('going the extramile')

Preferential pricing that was not an existing contractual obligation

47

26

→  90%of leaders have a value proposition for SRM; only 40%of other businesses do → 95%of SRM leaders report both financial and non-financial benefits →  46%of leaders achieved post contract signature financial benefits of more than 4% →  Leaders have good support for SRM fromsenior leadership at 84%but is could be stronger →  Other business priorities aremost often cited as a barrier tomore senior engagement →  Leaders are the only group where the majority have gathered structured supplier feedback →  66% report improved collaboration as a direct result of their SRM programme →  8 in 10 companies are actively seeking more supplier innovation →  Leaders are twice as likely to have a process in place tomanage innovation → Across all respondents a lack of time and resource is the seen as the biggest barrier tomore supplier innovation

→  While 90%of respondents have segmented suppliers only 21%have fully implemented differentiated treatment strategies →  39%of leaders have contract and performancemanagement in place for less than half of their key suppliers →  Around 30%of respondents have good governance in place for less than half of their key suppliers

More supplier innovation

Help achieving your sustainability and CSRgoals

41

15

Improved account management

Improved speed tomarket

41

15

Pro-active ideas for continuous improvement

Gaining competitive advantage in yourmarket

39

15

Quality improvement

Priority access to access to scarcematerials and / or manufacturing capacity

37

→  Only around a third of companies have defined their SRM role

12

Improved internal or end customer experience

36

→  21%have identified the requisite skill set

*This analysis is for all respondents.

→  Just 11%have carried out a skills and competency assessment →  20%have implemented some formof SRM training

Fig 3. Themost important source of SRM value required in the next 12months*

%

Other (please specify)

Cost reduction/ avoidance

21

5

Cost and risk stay central to SRM value While cost reduction and risk management remain the primary sources of SRM value (see Fig 2.) it’s evident that a broad value proposition is being pursued by some companies. Fifteen percent of respondents identify the need to gain competitive advantage in their market as their primary source of SRM value in the next 12 months (see Fig 2.).

Regulatory compliance

Riskmanagement / reduction

→  43%of respondents describe current IT systems support for SRM as poor or very poor →  Performancemanagement is seen as to biggest benefit of SRM technology by 80% →  57%believe that supplier innovation would be easier to capture with help from technology

20

5

Service level improvement

Gaining competitive advantage in yourmarket

15

4

Quality improvement

Improving your internal / end customer experience

10

2

Improving speed tomarket

Improving supply chain efficiency

9

1

Helping achieve your sustainability and CSR goals

More supplier innovation

8

1

*This analysis is for all respondents.

12 STATEOFFLUX

13 STATEOFFLUX

2017GLOBAL SRMRESEARCHREPORT

2017GLOBAL SRMRESEARCHREPORT

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