VALUE
opinion State of Flux
Value is the first of the Six Pillars of SRM for a reason. Understanding a organisation’s aspirations to create value will ensure SRM becomes a standard way of working with strategic suppliers. However, it is not enough just to dream of value; it must be driven through a structured and collaborative approach, measured, validated and reported. So, it is concerning that the number of organisations building an SRM value proposition has declined. After increasing from 33% in 2017 to just over half last year, it has fallen back to 47% in 2019. The value proposition is fundamental to attracting business engagement in SRM and should get more attention. But there are some upsides to the results. Risk management is more or less joint highest business driver for SRM, and it is also the greatest
non-financial benefit. Compare the result with innovation: while 28% of organisations see it as a driver, less than half of that (only 12%) actually achieve innovation as a non- financial benefit. Elsewhere in this report, we share how the digital transformation is sweeping through economies (Hubspot, p76) makes supplier innovation a necessity. Those organisations failing to make it part the value they gain from SRM face being left behind.
It is not enough just to dream of value; it must be driven through a structured and collaborative approach, measured, validated and reported.
2019 GLOBAL SRM RESEARCH REPORT
27
Powered by FlippingBook