VALUE
Consistent achievement of benefits greater than 4% SRM financial benefits reported 2010 to 2019 (all companies)
Industry sector perspective Just as the strategic objectives of companies vary, so too do the business drivers they will focus on. This variation will explain the different shape and priorities of SRM programmes typical in different industry sectors. It will also explain why some industries have drivers in common. For example, in the chart, it is easy to identify the more highly regulated industries such as financial services and those with critical operational dependence on suppliers such as manufacturing and automotive by their focus on risk management. Whereas highly competitive and consumer-focused industries like FMCG will put more emphasis on supplier innovation and sustainability. Regulators are keen on a proactive approach involving supplier relationship management, prompting further interest from companies in the sector. Other sectors take note: risks can be financial, operational, legal or reputational. SRM can help manage them all.
0-4%
4-6%
6%+
20%
40%
60%
80%
0%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Increase in higher value financial benefits
Isolating and tracking the financial benefits specifically attributable to an SRM programme is a challenge for many organisations. Since we started our research in 2009, we have asked this question in the same way: “What financial benefit do you believe your SRM programme is delivering?” Between 2018 and 2019 we have seen the proportion of organisations gaining financial benefits of more than 4% increase from 30% to 42%, a rise in return on investment in SRM. For 2019, manufacturing and automotive and IT and telecoms sectors
Snapshot analysis
The 10 years since the financial crisis has seen regulators across the globe take greater interest in risk management in financial services firms. In a heavily outsourced sector, this includes management of their suppliers. Regulators are keen on a proactive approach involving supplier relationship management, prompting further interest from companies in the sector. Other sectors take note: risks can be financial, operational, legal or reputational. SRM can help manage them all.
2019 GLOBAL SRM RESEARCH REPORT
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