News
Vantage Partners Releases New Research on the Value of Supplier Relationship Management
FOR IMMEDIATE RELEASE
Contact Information:
Christine Batterson
+1 617 354 6090 x212
cbatterson@vantagepartners.com
BOSTON – 31 March, 2010 – Vantage Partners announced today the release of a new research study on the value of SRM entitled Value Delivered by Strategic Supplier Relationship Management in Major Organisations.
The research, conducted in partnership with the performance improvement consultancy Future Purchasing, is based on in-depth interviews and assessment of progressive global companies that have had a formal SRM program in place for an average of 3-5 years.
Key findings include:
- Leading organisations see SRM as a means for driving innovation while reducing costs and also better managing supply chain risks – not a decision to prioritize innovation over cost reduction.
- Most SRM programmes are led by a central team responsible for developing tools, training stakeholders, coordinating scorecards, organising summits, and coordinating relationships across business unites and geographies.
- Leading SRM programmes utilize tools such as supplier segmentation; formal relationship governance; balanced, two-way scorecards; structured business and performance review meetings; joint supply chain redesign efforts; and joint long-term strategic planning with key suppliers. Software tools are seen as less important than cultural and mindset changes.
- Measurement of SRM benefits is still relatively unsystematic, even among leaders. Some organisations are working with their Finance organizations teams to develop methodologies to measure the different types of value generated by supplier management, and augmenting quantitative data with rich case studies to demonstrate value to senior management.
- The value generated by SRM programmes can be categorized and tracked by a framework that includes four basic categories: value enablers, value levers, business benefits, and business value.
“As the discipline of supplier relationship management becomes increasingly mainstream, we hope this research provides committed leaders and their organisations with insights about how to leverage the transformative potential of enhanced collaboration with suppliers to lower costs, reduce risk, and drive innovation.” – Jonathan Hughes, Partner and Sourcing & Supplier Management Practice Leader, Vantage Partners
"The SRM value study has provided the most comprehensive and detailed analysis of the value delivered from SRM by major global companies. Leading organizations are successfully quantifying and demonstrating the full range of value that SRM can deliver and we are sure the findings will be of interest to business leaders and SRM practitioners” - Mark Webb, Managing Director, Future Purchasing.
To access a copy of the study, click here.
About Vantage Partners
Vantage Partners is a global management consulting firm that specializes in helping companies achieve breakthrough business results by transforming the way they negotiate with, and manage relationships with, key business partners. Through our Sourcing and Supplier Management Practice, we help companies develop and implement supplier relationship management programs, benchmark sourcing and supply chain effectiveness, provide tailored training and skill development solutions for procurement professionals and leaders, improve collaboration with internal business partners, and help drive procurement and supply chain transformation. A spin-off of the Harvard Negotiation Project, the partners and staff at Vantage have authored numerous books and articles in leading journals like the Harvard Business Review on commercial negotiations, supply chain collaboration, and strategic alliances. To learn more about Vantage Partners, and to access our extensive library of research and publication, please visit: www.vantagepartners.com
About Future Purchasing
Future Purchasing is a performance improvement consultancy that helps major organisations unlock value from suppliers by implementing best-in-class sourcing and supplier management. We work closely with global clients on complex change assignments where we build, educate and apply best-in class sourcing and supplier management methods. For each client, we adopt a flexible approach to meet their specific requirements. From providing targeted educational courses through to co-leading major transformation programmes, we tailor our approach to ensure organisational fit and delivery of results. Our commitment to delivering successful assignments is balanced with a strong sensitivity to organization culture and engagement of teams and their stakeholders.
To learn more about Future Purchasing or access our extensive range of published articles and “ideas to take away,” please visit: www.futurepurchasing.com.