Following the release of Part One and Part Two, Part Three of our category management series looks at the relationship between category management and SRM and the degree of alignment of these activities within the procurement community.
More than 60% of survey respondents admitted that they either had no SRM at all, or that it was not aligned with category management.
- Savings through category management are declining so procurement need to demonstrate value through the whole procurement value chain
- More than 60% of survey respondents admitted they had either no SRM at all, or that it was undertaken as a separate activity
- There are many benefits to the implementation of SRM, although cost related factors will still remain high on procurement’s agenda of what SRM will deliver
- Organisations operating at the more advanced levels of maturity in category management also tend to have category management and SRM activities more integrated
- SRM requires more emotional intelligence skill sets.
How to use this report
This report shows that procurement are even less advanced in SRM practices than in category management. We explore what SRM looks like, suggest a governance structure and different classifications of SRM, and also look at the benefits that SRM can deliver.
This report is best read in conjunction with Part One and Two, and the upcoming Part Four