The results of the Global SRM Maturity Survey are finally here! POOL4TOOL asked 222 procurement professionals from 24 countries about Supplier Relationship Management in their companies. Here are 3 important things we learned from them.
Don’t forget to download the full report to learn the complete results!
1. Manufacturing Is Leading The Pack
The manufacturing industries are currently the most advanced in Supplier Relationship Management across people, process and technology. Specifically, this means the automotive, industrial manufacturing, metals and technology sectors. One of the reasons for this is that suppliers in direct procurement in these sectors have a more direct impact on products, customers and the bottom line. In these industries, external spend is typically 50% of revenue. It’s also worth noting that these industries use lean processes. They are also investing early in SRM technologies to support lean processes and agility.
2. Multi-Nationals Are Mature - But SMEs Are Catching Up
It comes as no surprise that large multi-nationals are leading the way. But what you might not know is that SMEs are not too far behind them. While large companies look for ways to use their size as a strength, rather than a hindrance, smaller companies can also take advantage of their smaller size. They have set up efficient processes and have clearly defined and implemented the major roles in SRM, in particular lead buyers and category managers. They have most processes in place, but can still ramp up by making them truly connected so that decisions and strategies impact day-to-day activities, boosting compliance. However, there is still room for improvement. For example, SMEs need to work on linking strategy and execution.
3. Adoption Of SRM Technology Is Still Low
37% of companies surveyed said they do not have a dedicated supplier management database. And 57% of companies have neither a supplier portal to easily push information to suppliers, nor a more advanced technology base like a two-way supplier portal for exchanging information with suppliers including forecasts and planning (VMI, kanban etc). This is surprising because these technologies can make onboarding new suppliers and managing supplier information significantly easier and more efficient. The lack of proper technology affects large companies worse than it does SMEs. Procurement teams still have to access two or more systems and cannot profit from a global view of their supplier base. This is a real problem for large organizations with complex supply chains.
Read the full report in detail here: