2024 Global SRM Research - Return on Relationships

2024 GLOBAL SRM RESEARCH REPORT

SUMMARY OF KEY FINDINGS

24

25

Summary of Key Findings

89% 58%

of Leaders have the buy-in from critical and strategic suppliers to push supplier management initiatives forward. 95%

of Leaders obtain 360o feedback from critical and strategic suppliers to understand how they are perceived as a customer. of respondents battle with other business priorities when seeking engagement to drive supplier management.

The maturity of Supplier Management was evaluated based on feedback from 504 respondents, with questions aligned to the Six Pillars of SRM. Respondents were grouped into four categories: Leaders, Fast Followers, Followers, and All Respondents. Their maturity levels were assessed across a four-stage scale: Undeveloped, Developing, Established, and Advanced.

85%

89%

27%

of Leaders have developed treatment strategies for different supplier groups.

of Leaders have regular meetings with suppliers at the executive level.

of respondents have outlined a two-way RACI with their suppliers for supplier management activities.

Leader Fast Follower Follower All Respondents

management role. 87%

of Leaders have defined the main supplier

36%

Value Engagement Governance People Technology Collaboration

of respondents highlighted that their employers have implemented supplier management training.

This year, the strongest pillar is Technology, with an average score of 59% for all respondents, a 10% increase from 2023. Close behind is Collaboration, scoring 52%. However, Value remains the least developed pillar, with an average score of 36%. Leaders, however, are better aligned with the value of supplier management and its connection to business objectives, leading to greater benefits from their programmes. Leaders consistently outperform in all six pillars, with their greatest strengths evident in the People and Governance pillars.

54%

of respondents reported that supplier management is done on a part-time basis.

34% Only

82% 77%

71% 66%

of Followers don’t know if their supplier management programme is delivering a benefit. 75% of organisations plan on evolving their relationships from transactional to strategic in order to improve the return on supplier management. 70%

of Leaders have a dedicated system in place to support contract life cycle management.

of all respondents believe the main advantage of effective supplier management technology is to support performance management.

of respondents report that they are happy with their current supplier management systems.

of Leaders would define Return on Relationships as generating value beyond financial transactions.

of Followers struggle to access meaningful data when measuring the return on their supplier relationships.

90%

of Followers do not have joint account plans with the majority of their suppliers.

of Leaders see improved innovation and continuous improvement as a significant benefit from collaboration with their critical suppliers. 76%

92%

87% of Leaders have gained continuous improvement and innovation benefits from supplier management activities with their key suppliers.

76% of Leaders are receiving improved account management because of

of Leaders have a defined and fully documented business case for supplier management.

their customer choice status with their critical suppliers.

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