PEOPLE
Nearly a quarter of organisations have not invested in SRM skills Organisations completing sequential stages of SRM skills development
Defined the main SRM role
Developed an SRM skills and competency assessment 17% Included SRM in personal performance measures 37%
58%
Defined the SRM roles of operational personnel that supports SRM 42%
Provided SRM training
Created or updated job descriptions 34%
46%
None of these
Developed an SRM skills and competency framework 25%
24%
The people and skills development process
not completed any of these stages. What the figures don’t fully reveal is that in many cases organisations jump steps in the process: for example, developing a skills and competency framework without having defined the role; or delivering training without having assessed current skill levels. Looking at the investment in people and skills made by leaders, fast followers and followers, leaders, and fast followers are investing more, but still leave gaps in the process. However, leaders are twice as likely as followers to define the SRM role and more than four times more likely to carry out a skills and competency assessment. Despite their advantage, leaders are still not employing the full range of development tools to get the best out of their investment in people. Industry sectors also differ in their approach. Financial services have invested most heavily in the front end of the process: more than 50% of firms have defined the SRM roles and created job descriptions. FMCG and telecoms sectors are more likely to have created a skills and competency framework, but financial services is again leading on skills and competency assessments and provision of training.
Typically, companies lack purpose and strategy in their approach to people and skills development for SRM. But an effective method for developing the right skills is relatively straightforward to follow. It starts with defining the SRM role with consideration of the programme’s aims and objectives: 58% of organisations say they have done so. Next, define the roles of business and operational personnel who will play a part in supplier management such as service and performance managers. For 42% of organisations, that stage is complete. They then need to create or update current job descriptions to reflect the new role and responsibilities which 34% have done. A quarter of them have then thought about what skills are required to deliver the role successfully and created a skills and competencies framework. Only 17% have completed the next stage: an SRM skills and competency assessment to determine the training needs of team members. But more, 37% have included SRM in personal performance objectives and performance reviews. Only 46% of companies report having provided some form of SRM training in the last 12 months. However, 24%, have
Snapshot analysis
The problem with SRM skills is procurement is fighting the last war. It is delivering the training already well developed and tested in the marketplace such as training for negotiation. But that’s not what they need for SRM. Organisations that only provide the training they know and understand will fail to develop the skills they need for SRM and achieve the potential it promises. Meanwhile, investment in SRM strategy and technology could be wasted.
2019 GLOBAL SRM RESEARCH REPORT
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