ENGAGEMENT
Engagement in SRM has shown signs of stalling in the last five years. Senior management support for initiatives has fallen from 75% in 2015 to 55% in 2019, while support from operational management also fell over the same period. Those who gain the most value for SRM – the leaders in our survey – are seven times more likely to get strong and active support from senior management than SRM followers. Other business priorities are the most likely cause of poor engagement with SRM, although a lack of awareness of the value proposition is also an important factor. While 72% of suppliers support SRM, their engagement has also been falling off in recent years. SRM is not just a procurement game; broad-based engagement is necessary to get the benefits. There is a lot of work to do. Summary
N o matter what the value have hands-on, day-to-day dealings with suppliers, the whole enterprise can fail. The trouble is, they can see procurement as a barrier to be got over or around. Some of them have decades of experience, so they have earned the right to say they know their suppliers and the supply market. They may say they have more important things to do than work on a new procurement programme – without understanding SRM can help them achieve their strategic goals. of SRM on paper, without engagement with business leaders and the people who Leadership team engagement SRM leaders – those organisations that get the highest returns – are almost twice as likely to have strong and active support from their leadership team (57% do) as the fast followers group of survey respondents (34%). Leaders are also seven times more than SRM followers who make up the majority of our sample. SRM followers are also much more likely to get neutral support for their programmes (39%) than fast followers (8%) and leaders (6%). Neutral support is really no support at all.
Across all survey respondents, engagement with the leadership team remains a challenge. If we look at the last 10 years of results, we see a decline in the overall level of support from company leadership teams. While direct opposition is unusual, the level of what could be regarded as a neutral attitude has increased. This indicates less successful engagement with the leadership team over more recent years. 33% of respondents put this down to competing business priorities. The level of support from business and operational teams is a tell-tale sign of the health of a programme. SRM leaders are almost three times more likely to be receiving strong and active support than fast followers.
57% OF SRM LEADERS GET STRONG AND ACTIVE SUPPORT FROM THEIR LEADERSHIP TEAM 33% SAYOTHERBUSINESS PRIORITIESAREABARRIER TOSRM
72% SAY SUPPLIERS SUPPORT SRM
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STATE OF FLUX
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