2017 Global SRM Research Report - Solving the value Puzzle

TECHNOLOGY

FEWSEE STRONG TECHNOLOGY SUPPORT FOR SRM

DESKTOP TOOLS DOMINATE PROVISION OF SRMREPORTS

DISPARATE SYSTEMS CAUSE SRMHEADACHES

SRMDOCUMENTS ARE STORED ON SHARED DRIVES

SNAPSHOT ANALYSIS Technology support for SRM is clearly poor. Only 18%of respondents have anything positive to say about their current solutions. Theremay be historic reasons for dissatisfaction. SRM applications need to draw data frommultiple sources, which can be difficult to find and access. Yet advances in computing and the lower cost of applications present an opportunity for procurement to lobby for the right technology investment.

Fig 32. Where you are using IT systems (as indicated in the previous question) generally how well do they support supplier management?*

Fig 33. How do you currently create SRM-related reports, eg,

Cloud software application % Fig 35. In what ways do you currentlymanage and share information relating to key supplier relationships?*

Fig 34. Where IT systems support supplier management less than adequately, what are themain deficiencies?*

relationship scorecard, innovations or risks?*

Mainframe software application

Manually in Excel

71%

39%

34%

Hosted software application

SharePoint

32%

Utilise standard reports from existing systems

16%

23%

Cloud software application

Intranet

63%

14%

Create custom reports from an existing system

Systems are disparate and not integrated Lack of up to date information Inaccessible to suppliers Inaccessible to internal stakeholders Lack required functionality and features

Other

Very poorly Very strongly

Poorly Adequately Strongly

Other

*This analysis is for all respondents.

Excel and other tools do not offer the scale and speed of a purpose-built SRM tool

Other

*This analysis is for all respondents.

19% use cloud software applications

INCREASING PROBLEMSWITH DISCONNECTED SYSTEMS As well as assessing general

business units and regions, but few procurement professionals feel there is the right level of support for SRM. Levels of satisfaction remain low and the feedback suggests increasing levels of frustration as evidenced by the 43% of respondents describing technology support for SRM as poor or very poor in 2017 compared to the 30% in 2016. The source of dissatisfaction is clearly evident in the tools businesses use to bring together data describing supplier relationships. The ability to manage supplier relationships is heavily dependent on capturing and reporting information. It can be time-consuming and a distraction from activities that add value. Our survey tells us procurement relies heavily on Microsoft Excel to bring together

For example, when we look at business drivers for SRM, innovation is considered important or very important by around 70% of leaders and followers. However this is not reflected in their willingness to invest in technology. Many organisations have a fragmented approach to technology based on a legacy of systems designed to manage specific activities in the procurement lifecycle. SRM also draws from other enterprise systems such as ERP or finance management, which were never designed to support supplier relationships. The legacy of existing systems and DIY solutions creates a barrier to moving to more integrated and efficient solutions.

system and 55% claim to have systems that help management of supplier information, these are often just document repositories. The pattern of current systems is similar across leaders, followers and others. We see a mismatch developing between where procurement wants to apply technology, where they actually apply it, and where the business would gain the most value. SATISFACTIONWITH SRM IT SUPPORT IS LOW Unsurprisingly, few procurement professionals are satisfied with the current application of technology to supplier relationship management. IT systems are vital to maintaining control and being able to develop often complex relationships involving multiple engagements, contract,

and analyse data describing supplier relationships: 86% of respondents do so. While Excel is a very effective general- purpose desktop tool, there is a serious risk of creatingmultiple versions of data, leading to inconsistency and obscuring a true picture of relationships across the business. Excel and other tools do not offer the scale and speed of a purpose-built SRM application. The continued reliance on basic desktop applications and simple file-sharing ignores the opportunities offered by specialist providers who can rapidly launch applications on the cloud. For example, State of Flux offers Statess, an SRM application which can draw data from existing in-house systems.

dissatisfaction with systems, we ask what aspects of current systems present the biggest challenges. Ideally, technology must be aligned to business and user needs. It is therefore important to understand what businesses and users are looking for in terms of features and functionality. Too many technology solutions tell users what they need. Since we started the research nine years ago respondents have said the disparate nature of current systems being used to try and piece together supplier management is their biggest problem. In 2017, 71% cited this problem, an increase on 63% in 2016. Not only are these systems fragmented and largely standalone, they also lack the

While 60% of companies already have some form of contract management

73 TECHNOLOGY STATE OF FLUX

TECHNOLOGY STATE OF FLUX 2017 GLOBAL SRMRESEARCHREPORT

2017 GLOBAL SRMRESEARCHREPORT