GOVERNANCE
Organisations use a wide range of criteria to segment suppliers Supplier segmentation criteria 1 (all companies)
Growth and innovation among segmentation criteria for 42% of respondents Supplier segmentation criteria (all companies)
Business criticality of products/services
4% Spend only
83%
Level of spend
8% Spend and business criticality only 88% Spend, business
81%
Potential for growth and value creation 42% Reputational risk including sustainability 39% Market characteristics - number of suppliers/competitiveness 38%
criticality and other criteria
Your importance as a customer 31% Supplier innovation capability 29%
Supplier appetite and capability to work collaboratively 29%
Supplier unique technological capability 26% We haven’t segmented our suppliers 8%
Snapshot analysis
Business criticality and level of spend are a given as criteria used to segment suppliers. But it is encouraging growth and value creation is used by 42% of organisations to segment their suppliers and underscores that innovation is a permanent fixture on the SRM agenda. The problem is, too few organisations follow through these intentions by working pro-actively with suppliers to stimulate and manage innovation effectively. It is only by genuinely harnessing supplier-based innovation can organisations create competitive advantage.
2019 GLOBAL SRM RESEARCH REPORT
43
Powered by FlippingBook