2019 Global SRM Research Report - grow supplier innovation

COLLABORATION

Half of companies find SRM has improved supplier collaboration SRM programme impact on collaboration with key suppliers (all companies)

Nine out of 10 organisations see a positive impact on collaboration from SRM SRM programme impact on collaboration with key suppliers (leaders, fast followers and followers)

Leader

Fast Follower

Follower

11% Yes - greatly 40% Yes - to some extent 42% Too early to say 7% No - not at all

Yes - greatly

59%

21%

33% Yes - to some extent

64%

37%

7% Too early to say 14%

51%

No - not at all

relationships — has improved. Collaboration is enabling 44% of companies to work more effectively on continuous improvement while almost one in three have put in place improved governance. Collaboration also has a positive impact on operational and service performance and supply chain risk, as indicated by 26% and 18% of respondents respectively. Other examples of collaboration include better engagement from both internal and supplier executives, and fewer disputes and conflict escalations taking place. Of course, there is room for improvement. Less than one in five companies are collaborating more with suppliers on innovation, and just 7% are collaborating more internally to drive supplier innovation. Industry sector perspective The industry sector perspective on the types of collaboration taking place shows a wide gulf exists between the industries which most often collaborate with suppliers and those which seldom do. Our research shows that over

Snapshot analysis

Concepts such as collaboration and innovation can be nebulous. It can be hard to get businesses to invest in them when they are constantly under financial pressure. But organisations also need to see growth and improve value. So, it’s important to emphasise that SRM produces measurable financial and no-financial benefits through collaboration with suppliers. Around half of organisations say they gain these benefits from SRM, but many more could take the opportunity.

2019 GLOBAL SRM RESEARCH REPORT