The 2024 global SRM research found that only 7% of organisations achieved 'Leader' status for supplier management. This means that only 7% (yes, you read that right, seven percent) of organisations had the people, processes, policies, technology and governance structures in place to be considered good at managing suppliers. The worst performing area is 'People', where we have found that organisations don’t:
• Define the supplier relationship management role, • Embed it into job descriptions, • Recognise and reward for activities, • Define competencies, • Provide specific training.
Organisations must recognise and invest in these supplier relationship managers with the same (or even greater) level of resources, recognition, and support as internal leaders. Here’s why SRMs are crucial to an organisation’s strategic goals and why they deserve equitable status alongside traditional managers. Supplier relationship managers: leaders without direct control Managing a large supplier relationship requires sophisticated leadership skills similar to those needed to lead internal teams, but with additional challenges. Unlike internal managers who rely on organisational hierarchy to drive accountability and performance, SRMs often influence outcomes without direct authority, working across organisational boundaries to align objectives and maintain smooth operations. 1. Influence and persuasion over authority : SRMs operate in complex environments where they must balance their organisation's expectations with the supplier's interests. They can't rely on hierarchy alone, but must cultivate strong relationships, negotiate diplomatically and foster a collaborative mindset. This requires a high level of emotional intelligence as they must navigate different personalities and motivations to achieve results. 2. Cross-organisational coordination : SRMs are not only responsible for performance metrics but must also bridge the cultural divide between their organisation and the supplier. They translate the company's culture and values to the supplier's workforce, ensuring that the supplier's actions reflect the company's brand, values and commitment to customers. Without this alignment, the customer experience - and ultimately the brand reputation - can suffer. 3. High-stakes decision making : SRMs make critical decisions that have a direct impact on customer satisfaction and operational efficiency. With suppliers now delivering a significant part of the customer experience, SRMs play a central role
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