PEOPLE
55% of leaders havemade SRM a dedicated role 38% have not rolled out any training at all in the past year 30% have defined an SRM role
SUMMARY Businesses and other organisations still struggle to grasp the importance of skills in SRM. Given the average spend with external suppliers and third parties, it is worrying how little is known about, and how little is invested in, the skills that manage these relationships. Only SRM leaders are more likely than not to have a role dedicated to managing supplier relationships; overall just under 30% of respondents have defined an SRM role and described its aims and objectives. Communication, strategic thinking and influencing are the most important SRM skills, and the skills organisations are most likely to say they need to improve. However, our research shows 38% of themhave not rolled out any training at all in the past year. Where they do invest, spending is mismatched with their SRM needs. Training in negotiation skills is the most popular option, but negotiation is ranked only 11th in SRM skills most needing improvement. Businesses risk missing out on the benefits of SRM if they fail to develop and execute a fit-for-purpose skills strategy.
SKILLS AND COMPETENCE POORLY DEFINED Next, we consider the question of how organisations develop the necessary skills to manage supply-side relationships in a new way. The best-practice approach to skills and competency development requires them to have defined the role; developed an SRM skills and competency framework; completed a skills and competency assessment; and implemented SRM training.
Across economic sectors, full-time dedicated roles are more likely to be found in the financial services and oil & gas sectors. Those who have not already done so may want to create dedicated SRM roles. Experience and consistent feedback tells us that combining the SRM role with other procurement or service management roles may be expedient, but it is fraught with difficulties and conflicting priorities.
SNAPSHOT ANALYSIS SRM is closely tied to procurement, but there are differences. Leaders in the field see it as a distinct role, even if it remains within the procurement function. They are alsomore likely to complete a skills and competency assessment and develop a skills framework than the other groups. Given the returns leaders enjoy on SRM projects, it is easy to see that investment in skills pays dividends.
OVERALL, SRM IS MOST LIKELY TO BE PART OF SOURCING OR CATEGORY MANAGEMENT ROLE
LEADERS ARE MORE LIKELY TO HAVE A FULL-TIME DEDICATED SUPPLIER MANAGER THAN OTHER GROUPS
Fig 25. Which of the following would best describe the resourcing /organisational designmodel for SRM adopted by your organisation?
% of respondents
Fig 24. Which of the following would best describe the resourcing / organisational designmodel for SRMadopted by your organisation?*
Other Follower Leader
Full time dedicated supplier managers responsible for one relationship
We find that among SRM leaders there is a tendency to create a dedicated role: around 55% opt for this approach, of which 10% have dedicated SRM roles managing a single supplier relationship. However, across the whole sample the solutions vary and in some cases more than one approach is adopted. We found 54% of all respondents currently deliver their SRM capability as part of a broader set of category management or sourcing responsibilities and 29% deliver it as part of a wider service management role. However, we have seen an increase in those delivering SRM via a dedicated role up from 30% in 2016 to 50% this year. Experience and consistent feedback suggests combining the SRM rolewith other procurement or service management roles is fraught with difficulties and conflicting priorities
People are the centre of SRM. Their skills, and the relationships they can form and maintain, will be the crucial factor in ensuring that the value, governance and engagement pillars of SRM benefit the organisation. If you are designing, planning or refreshing an SRM programme or function, you need to make some decisions about people and skills. They will include the structure and headcount, definition of the SRM roles, the position of the roles, selection of necessary skills, and the design and delivery of training. Here we offer some insight into how our survey respondents view these decisions. ONLY LEADERS ARE LIKELY TO DESIGN SPECIFIC SRMMODELS OR RESOURCES How organisations choose to deliver SRM capability to manage key supplier relationships varies greatly. Some do it fromwithin existing role structures while others create a new dedicated role. Depending on the organisation’s history (relative to supplier management and SRM), the existing structure and head count can either be realigned to do things a bit differently, or they might need to start doing things they’ve never done before.
7
11
41%
54%
6
Full time dedicated supplier managers responsible formore than one relationship
35
9% 29% Part of a broader category management or sourcing role in procurement Full time dedicated supplier managers responsible formore than one relationship Part of a broader operations / servicemanagement role in the business Full time dedicated supplier managers responsible for one relationship
44
27
Part of a broader categorymanagement or sourcing role in procurement
45
28
42
Part of a broader operations / servicemanagement role in the business
13
17
*This analysis is for all respondents.
25
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2017GLOBAL SRMRESEARCHREPORT PEOPLE STATE OF FLUX GL AL SR RESEARCHREPORT
PEOPLE STATEOFFLUX 2016GLOBAL SRMRESEARCHREPORT
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