CURRENTSTATEOFSRM
01 VALUE
02 ENGAGEMENT
03 GOVERNANCE
04 PEOPLE
05 TECHNOLOGY
06 COLLABORATION
SIXPILLARSOFSRM
The State of Flux six pillars of SRM is amodel for SRM excellence, developed and refined over the past 11 years. Many of the global businesses we have helped get value fromSRMhave adopted this approach. While there is the suggestion of a sequential approach, fundamentally each pillar is linked and dependent on the other so they are best approached in parallel andmust all be tackled to get themost out of SRM.
02 ENGAGEMENT How do you get the C-level teambehind SRM? How do you get buy-in frombusiness and operational managers who deal with suppliers day-to-day? Howwill you engage suppliers more in the process? The answer to all three questions lies in a strategy for stakeholder engagement and support. Readmore on p30
06 COLLABORATION Value fromSRM does not flow automatically when the other five pillars are in place. Businesses need to decide how to develop the relationship to get themost out of it. Relationships need to be explored and developed and specific initiatives identified that will drive value. Both supply-side and buy-side businesses may need to adopt changed behaviours and collaborate more to get there. Readmore on p80 03 GOVERNANCE Business cannot invest time inmanaging all their suppliers in a strategic fashion. How they decide which ones are worth investing in is part of the governance process that underpins SRM. This in turn will drive the approach to creating value, level of engagement, meetings etc. It will also put in place a structure that ensures relationships are sustained over the long term. Readmore on p42
01 VALUE How do suppliers help your business reach its strategic goals? And what more could they do? That’s the value proposition. Then it’s a question of measuring both the financial and non-financial value created. Maintaining a clear line of sight between the business drivers (your company’s strategic objectives) and the value that SRM is creating is crucial. Readmore on p16 04 PEOPLE People in all areas of the business, as well as in procurement and supply chain management, will contribute to SRM. Businesses need to make sure that the necessary skills are developed and maintained to deliver successful SRM outcomes. Readmore on p56
05 TECHNOLOGY Successful SRM will be built on reliable, accurate, up-to-date information and working effectively, efficiently and in collaboration with internal stakeholders and suppliers. Getting information and managing collaboration using legacy IT is tough, but new software tools can help. They are cheaper and quicker to roll out than many businesses think. Readmore on p68
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STATEOFFLUX 2017GLOBAL SRMRESEARCHREPORT
2017GLOBAL SRMRESEARCHREPORT
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