COLLABORATION
achieved around a 30% saving in indirect spend for its membership. But it cannot rest on its laurels. Barclay says: “As a procurement person you know that you’ll hit diminishing returns. You might get smaller fraction of saving next time and so on. The results so far have been extremely successful, but it will not be sustainable to keep running a tactical process.” To move beyond tactical procurement, Narta Has implemented an SRM framework to increase value to members & suppliers through key enablers: governance, technology & risk management to continue
increasing the value it gains from its suppliers.
Turning plans into actions (or similar wording for example) Narta has appointed a relationship manager to improve policies and procedures relating to the management of suppliers and be a champion for SRM with all stakeholders. But the plan is to build on SRM as it exists in the member organisations and the work Narta has already done. “We’re not adding in another SRM tool, but utilising the tools that we’ve already got. Most people are doing SRM; they just don’t call it SRM. We already have a lot of information on suppliers; it’s about taking the elements that you’re already doing and putting them into processes.” Aside from appointing a dedicated SRM manager, Barclay also developed roles and responsibilities for SRM as part of a Raci process (which asks who should be Responsible, Accountable, Consulted and Informed about a given process) across the whole procurement team. This covered tendering to ensure all stakeholder requirements go into the sourcing event. The idea was to create a standardised process that could capture more value without taking more time. She also worked with suppliers to create standard terms and conditions across Narta. Here, the association’s buying power worked to help smaller members who were moved from 14 or 21-day payment terms to a standard 60-days, making a huge difference to working capital, says Barclay. Greater value and engagement But Narta is planning to extend SRM beyond improving existing processes and alignment with suppliers, to increase value to members, she says. The Australian government is introducing its 2018 Modern Slavery Act, with reporting that comes into effect from 1 January 2020. Although many of its larger members have already started work in this area, Narta is introducing a paper explaining the Act and introducing a standard sourcing process that will ensure all sourcing meets the minimum requirements.
2019 GLOBAL SRM RESEARCH REPORT
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