APQC and SCMR Explore Supplier RelationshipManagementSCM Quick Poll #5 - Supplier Relationship ManagementOctober 15, 2018 2:18 PM CDT

In the next two years, how likely is your organization to implement supplier relationship

management for your supply base?

11%

15%

21%

14%

7%

32%

Already implemented Extremely likely to implement Very likely to implement Moderately likely to implement

Slightly likely to implement Not likely at all to implement

32%

11%

15%

21%

14%

7%

Alreadyimplemented

Extremely likelyto implement

Very likely toimplement

Moderately likelyto implement

Slightly likely toimplement

Not likely at allto implement

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

C U R R E N T S TAT E :

SUPPLIER RELATIONSHIP MANAGEMENT

APQC and Supply Chain Management Review asked supply chain professionals to answer five questions about Continuous Improvement in September 2018.

Supplier relationship management (SRM) is the final phase of a buying organization’s procurement process. SRM aims at managing third party organizations that supply goods and/or services (“suppliers”) in order to ensure their compliance with previously negotiated contractual terms, service levels and performance objectives.

CURRENT STATUS OF SUPPLIER RELATIONSHIP MANAGEMENT

www.apqc.org

Date Collected September 2018 - N=128

said they are not using SRM within their supply base.

31%

FAMILIARITYWITH SUPPLIER RELATIONSHIP MANAGEMENT

are at least moderately familiar with supplier relationship management

It may come as no surprise that

of participants

of participants indicated that their organization is using SRM within their supply base, but...

39%

HURDLESTO SUPPLIER RELATIONSHIP MANAGEMENT

The biggest hurdles to widespread adoption of SRM are employee resistance to change, lack of clearly

defined processes, and lack of resources.

BENEFITSOF SUPPLIER RELATIONSHIP MANAGEMENT

see supplier relationship management as a way to

monitor contract compliance and service levels.

see supplier relationship management as a way to

improve supplier reliability and reduce risk.

72% 80%

About 80% have already implemented or are at least

moderately likely to implement SRM within their

supply base in the next 2 years.

80% Only 7% Said they are not

likely at all to implement SRM within their supply base in the

next 2 years

7%

Is your company currently using or exploring the use of SRM within your supply base?

Q2 - Is your company currently using or exploring supplier relationship manageme...

39%Yes, currently using

23%Yes, currently exploring

31%No

Yes, currently using (39%) Yes, currently exploring (23%) No (31%) Don't know (8%)

39% 23% 31%

Is your company currently using or exploring the use of SRM within your supply base?

Q2 - Is your company currently using or exploring supplier relationship manageme...

39%Yes, currently using

23%Yes, currently exploring

31%No

Yes, currently using (39%) Yes, currently exploring (23%) No (31%) Don't know (8%)

39% 23% 31%

LOOKING AHEAD

Q5

Q5 - Which of the following, if any, do you see as hurdles to the widespread ado...

48%

42%38%

35%32%

Resistance tochange

No clearly definedprocess or

methodology

Lack of time orresource

No guiding strategy Technologylimitations

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other Barriers to Supplier Relationship Management

supp

ly

limitveryunsureterm

supplier

situationset

sate

llite

reso

urce

rela

tions

hip product

personnel

apply

naturally

narro

w

man

agem

ent

interestedhear

great

frequ

ent

dealcritical

change

base

none

STREAMLINE / SIMPLIFY

PROCESSES

REDUCE COSTS

IMPROVE CUSTOMER

SERVICE