2023 GLOBAL SRM RESEARCH REPORT
ABOUT SRM, SOF AND THE RESEARCH
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About Supplier Management, State of Flux and our research
About Supplier Management Supplier Management (SM) represents a broad approach to engagement and interaction with suppliers and internal business stakeholders that optimises the value derived from those relationships. For it to be a practical and manageable approach, it is based on the segmentation of suppliers according to their importance to the business and encompasses engagement and treatment strategies. In their most basic application, they enable the effective management of contracts, performance and risk, and their most advanced level can enable strategic relationships to be developed that reduce the demarcation lines between organisations as they increasingly become part of an extended enterprise that is working towards common goals and objectives that drive additional value for both parties. About State of Flux Since 2004, when Alan Day founded State of Flux, we have been a standard bearer for Supplier Management. We have established a reputation for thought leadership in the field and have grown with offices in Europe, the US and Australasia. This global reach enables us to deploy our
resources and genuine subject matter expertise and establish great working relationships, no matter where in the world our clients are based. Our approach is based on the ‘Six Pillars of SRM’ developed over many years as a practical template for effective and efficient supplier management. We continue to invest and add talent to our team, expand our consulting services, enhance our people development and training offer and further develop our leading Supplierbase technology solution. We are confident that State of Flux remains a standard bearer for Supplier Management. About our research As State of Flux’s global supplier management research enters its 15th year, we have to express our gratitude to all the companies that have contributed over the years, many are regulars that have used the overall research to inform their development of supplier
management, and the individual feedback to benchmark their progress. As in previous years, we have reached out globally and continue to gather and analyse more data and provide more insights about global supplier management than anyone else. In addition to providing feedback across the Six Pillars of SRM, we have again adopted a specific theme. The focus of this year’s study is ‘extended enterprise’. The survey was conducted between May and July 2023 and includes feedback from 509 respondents representing 350 companies across the globe from more than a dozen global industries. In addition to the report’s analysis, features explore different aspects of the extended enterprise and how supplier management is a vital ingredient. There are also interviews and case studies from organisations in the US, Europe and Australasia, including
Followers: (2023 – 69% of respondents) Are organisations with limited supplier management ambition and/or are simply at the start of their supplier management journey. If you are interested in receiving a Supplier Management maturity and benchmark analysis – even if you didn’t participate in the original research, please contact enquiries@stateofflux.co.uk
Maturity and benchmark analysis This research enables us to provide each participating company with a unique insight into their Supplier Management practices. These are assessed against the State of Flux model for SRM best practice ‘The Six Pillars of SRM’ model and its four levels of maturity – Advanced, Established, Developing, and Undeveloped. In addition to an assessment of maturity against each of the six pillars, we also provide a designation based on overall maturity of an organisation’s supplier management practices.
Leaders: (2023 – 8% of respondents)
Those companies, we believe, based on their responses to the questions posed, have developed established and, in some cases, advanced supplier management programmes across the six pillars. Fast Followers: (2023 – 23% of respondents) These companies show strong evidence of supplier management being developed, with some aspects being established.
Discover Financial Services, Airservice Australia, Savills and Transurban.
The survey was conducted between May and July 2023 and includes feedback from 509 respondents representing 350 companies across the globe from more than a dozen global industries.
Leader Fast Follower Follower All Respondents
Value
Engagement Governance People Technology Collaboration
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