TECHNOLOGY
Half of organisations say current solutions fail to support SRM Satisfaction with current supplier
change once. Commonly, organisations adopt a new process and then change again when technology is implemented in an attempt to automate the process. Organisations should not wait for the right technology, and build everything in Excel in the meantime, or try to extract data from disparate data sources when a system can be in place from day one. How well do current technology solutions work? In a world becoming increasingly dependent on data and technology, it is interesting so many organisations have a negative view of their current SRM solutions. Of the companies we spoke to, over half say that their current technology solutions do not adequately support the supplier management lifecycle; 44% report they are just adequate; and only 6% are fully satisfied. Dissatisfaction and frustration are clearly high. Some 30% of companies report a lack of fit-for-purpose IT as one of their top three barriers to achieving better SRM results. In the last five years, the cost of deploying enterprise software has been slashed with the introduction of cloud- based systems. This development is transforming how organisations understand and engage with customers (see comment from Hubspot CEO Brian Halligan, p76-78). It can do the same for the management of their suppliers.
the last four years, it remains low at just one in five organisations. The management of supply chain sustainability and supplier innovation are the activities least likely to be supported by technology. Around one in four companies are yet to make any meaningful investment in technology. Confusion over the range of software available, rather than a lack of interest or awareness, is likely to lead to poor investment strategies. Contrasting with CRM Most organisations are focused on delighting customers and ensuring the organisation provides a consistent customer experience. If a new CEO joined and found the company didn’t have a CRM system, they would either think they had made a big mistake or put it at the very top of their to-do list. The same thinking should apply to SRM: technology should be deployed to ensure a consistent supplier experience whilst creating an increase in value and innovation, and a reduction in risk. Effective SRM requires a combination of process, people and technology. The conventional wisdom is that an investment in technology usually follows the other two. But technology can be the catalyst for change and can be a key enabler at the start of a programme. By implementing it in this way, you only require stakeholders to
management technology solutions (all companies)
Currently fails to adequately support the supplier management lifecycle
50%
Adequately supports most aspects of the supplier management lifecycle
44%
Fully supports the supplier management lifecycle
6%
Snapshot analysis
While adoption of supplier management technology has been slower than expected, there is strong evidence of increasing demand.
There is little evidence of a genuinely strategic approach to supplier management technology. The business case for investment is not as clear cut and easy to measure as it is for CRM, for example. The current SRM technology landscape is complex, and organisations need to take the time and trouble to map the processes, develop a strategy and use the value-and risk-benefits of effective SRM to make the business case. Organisations should not be seduced by short-term fixes; instead they should look 10 years ahead and visualise success that is equal to that achieved by the best adopters of CRM technology.
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STATE OF FLUX
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