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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