2024 GLOBAL SRM RESEARCH REPORT
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Measuring Value and the return of relationships This year, respondents were asked to select ways in which they measure both financial and non-financial benefits. The results highlight that 73% of all respondents measure benefits through cost savings/avoidance. This is significantly above the next reported approach (improved operational efficiencies), indicating that, as a whole, value is still very much derived from financial-based metrics. A key focus of this year’s survey is Return on Relationships, and looking at the range of benefits that can be achieved through supplier management. Leaders certainly seem to be exploring the non-financial benefits that stem from their programmes. 76% of respondents measure benefits using both improved operational efficiencies and innovation and new product development facilitated by supplier collaboration.
How do you measure the financial and non-financial benefits your supplier management programme is delivering? Leader Fast Follower Follower Cost savings/avoidance 87% 83% 68% Enhanced product quality or service delivery leading to improved end-customer satisfaction 27% Enhanced reputation and brand value through supplier partnerships 34% 15% 6% Improved operational efficiencies 76% 65% 40% Improved sustainability performance in supply chain operations 66% 47% 20% 68% 45%
Increased market share through strategic supplier alliances 18% 6% 7% Innovation and new product development facilitated by supplier collaboration 76% 44% 24% Responsiveness and agility to implement corrective actions (time taken to resolve the issue) e.g. 8D analysis 37% 39% 25% Don’t know 0% 5% 20% No benefits received
0% 0%
3%
“Organisations from Leaders through to Followers appear to be focused at tracking the financial benefits that stem from supplier management, albeit to varying levels. What sets the Leaders apart, however, is their focus on recognising and measuring non-financial benefits as well.”
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