Recognise the Value of Supplier Relationship Managers 1. Supplier relationship managers deserve equal, if not greater, recognition than internal managers 2. Supplier relationship managers: Leaders without direct control 3. Impact on customer experience and business value 4. Equitable support, resources, and recognition for SRMs 5. Changing mindsets: The strategic case for elevating SRMs Supplier relationship managers deserve equal, if not greater, recognition than internal managers Suppliers, outsourcing organisations, third parties - over the last decade, organisations' reliance on them has grown exponentially. Covid has shown us how important they and their supply chains are to our organisation, and the reliance on them has only grown since then. Take outsourcing, which has expanded beyond traditional manufacturing and IT to include healthcare, finance, human resources and customer service, reflecting the growing trust that organisations have in external providers to manage diverse functions and focus on core activities. Business Process Outsourcing (BPO) has become increasingly prominent, with the market reaching USD$280.6 billion in 2023 and expected to grow at a 9.6% CAGR through 2030. IT outsourcing also surged, with projected spending of USD$519 billion in 2023, up 22% from 2019. Organisations have shifted from purely transactional outsourcing to strategic partnerships emphasising innovation, flexibility, and long-term value. Digital transformation, driven by cloud computing, AI, and automation, is further driving scalable supplier provided solutions across industries. But there is an organisational leadership challenge. Traditionally, leaders of large internal teams have been seen as the backbone of an organisation, responsible for nurturing talent, driving productivity and embodying corporate culture. However, there is a growing and increasingly overlooked group of leaders - Supplier Relationship Managers (SRMs) - who manage large supplier partnerships or outsourced relationships. According to our extended enterprise research report, on average 50% of the customer experience is delivered by suppliers, and approximately 50% of an organisation's workforce doesn't work directly for the organisation, but through suppliers. This data underlines the strategic importance of SRMs, who often have as much - if not more - influence on customer satisfaction, operational continuity and corporate reputation than internal managers.
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