Experts from the private and public sector joined Public Spend Forum for a discussion on how principles of Supplier Relationship Management (SRM) can help procurement organizations create business value in support of their broader mission.For this webinar, we partnered with State of Flux, a global procurement and supply chain consultancy, to hear directly from their chairman Alan Day. State of Flux has been conducting global research on SRM for nearly the past decade and discussed not only their findings but key takeaways from the 2017 Global SRM Research Report.
Take this year’s State of Flux SRM Survey!
What is “Entrepreneurial” SRM?
As Day described during the session, being entrepreneurial “is not about improving the way procurement works but about expanding procurement’s horizons. By understanding the changing customer expectations and competitive market, procurement can look to serve the business by finding new opportunities for growth enabled by suppliers.”
We were lucky to be joined by guest speaker Steve Duckworth, Head of Supplier Partnering Models for the UK’s Cabinet Office, who presented best practices and techniques from a case study demonstrating how SRM software created value for his organization. Duckworth provided three keys to getting it right:
1. SRM requires holistic engagement. Everyone in the organization that is affected by the contract should be bought in
2. Define the value of conducting SRM with a given supplier. As a best practice, Duckworth suggests creating a multi-faceted value proposition that covers multiple facets of the business to help promote buy in.
3. Understand that collaboration alone won’t enable the transformational power of SRM. This requires incremental delivery o value for both parties (government and supplier).
If you can address these three areas, then the answer to “should we SRM?” will be a resounding yes!
Is Your Organization Ready for SRM?
Day concluded the session by describing six pillars of SRM and how State of Flux ranks organizations in the public and private sector for their level of maturity across those pillars. Organizations interested in seeing where they stand are invited to take the 2018 version of the survey, which will provide a complementary copy of the 2018 research report and the opportunity to receive an SRM maturity and benchmark assessment at no cost.
Procurement can be a channel to access more supply-side value and taking business and suppliers on the SRM journey is key to effective engagement. Organizations that embark on a purposeful, value-driven journey to SRM with their most valuable suppliers will experience great reward and help to position procurement as a strategic asset to their organization.
Watch this recorded webinar for in-depth insights and practical advice for your organization and get “entrepreneurial” with your SRM today!