{"id":3865,"date":"2017-02-15T00:00:00","date_gmt":"2017-02-15T00:00:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/rise-srm_150217\/"},"modified":"2021-12-03T03:24:07","modified_gmt":"2021-12-03T03:24:07","slug":"rise-srm_150217","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/rise-srm_150217\/","title":{"rendered":"Supplier Relationship Management in 2017: It\u2019s all about talent, standardizing processes, and RPA"},"content":{"rendered":"<p>A smart business operation uses the right combination of talent and technology to drive desired business outcomes. Third party suppliers are crucial for that combination, and our new research shows an increasing focus on the relationships with suppliers to standardize contract management and governance, centralize management of strategic suppliers, recruit and engage talent that has relationship building and critical thinking skills, and better leverage self-service platforms and automation in procurement and supplier management.<\/p>\n<p><strong>The big emerging trends in SRM:<br \/><\/strong><br \/>Based on our new research, including discussions at the HfS Summit, our annual Shared Services and Outsourcing survey with KPMG, and interviews with executives from financial services, healthcare, logistics, high tech and other industries, we\u2019ve put together this picture of the \u201cstate of supplier and partner management\u201d in the IT and business process services industry:<\/p>\n<ul>\n<li><strong>Ambitious procurement \/ sourcing leaders are positioning themselves as advisors to plug capability gaps<\/strong> \u2013 partnering with the business units to define strategy; coordinating across business units, IT, and legal; defining standards for governance\u00a0(reinforced through templates and automation); using training to ensure the more distributed relationship management is active and following a framework.<\/li>\n<li><strong>Organizations are\u00a0increasingly standardizing and centralizing business operations functions &#8211; often incorporating outsourcing in hybrid \/ global business services models.<\/strong> <strong>IT has been the first mover here, with business functions following<\/strong> \u2013 F&#038;A, Procurement, and HR as well as industry specific support. We expect centralization and shared services to continue, with selective and targeted use of outsourcing (on and offshore) and RPA in a model many are calling \u201cno-shore.\u201d<\/li>\n<li><strong>There is a similar move to centralize supplier\/partner governance and contract management, often separate from the relationship management.<\/strong> Relationship management is more difficult to centralize, and typically happens when the suppliers are providing IT or BPO through a shared services unit. Once centralized, governance and contract management is increasingly automated; and relationship management gets more focus.<\/li>\n<\/ul>\n<p style=\"text-align: center;\">Exhibit 1: Top 3 Desired \u2013 and Hardest to Find \u2013 Capabilties for Business Operations<\/p>\n<p><img decoding=\"async\" style=\"display: block; margin-left: auto; margin-right: auto;\" src=\"\/storage\/app\/media\/Derk\/cropped-images\/Talent-0-0-0-0-1487184076.png\" \/><\/p>\n<p style=\"text-align: center;\">Source: HfS Research in Conjunction with KPMG, State of Business Operations 2017 N=454 Enterprise Buyers<\/p>\n<p style=\"text-align: center;\"><a href=\"\/storage\/app\/media\/Derk\/Talent.png\" target=\"_blank\" rel=\"noopener\">Click to enlarge<\/a><\/p>\n<ul>\n<li style=\"text-align: left;\">Supplier management talent is\u00a0increasingly oriented toward relationship building, decision-making, and analytical skills. Subject matter knowledge of the function is a basic capability that\u2019s needed; negotiation and contract management \u201ccan be taught.\u201d Executives are also increasingly interested in candidates with technical skills (or interest) in determining the right mix of talent and technology for managing optimal business results.<\/li>\n<li style=\"text-align: left;\">Procurement is setting the pace for\u00a0evaluating and implementing robotic process automation and cloud-enabled platforms for more self-service. In our state of industry study, 57% of enterprises are in the process of evaluating\/implementing RPA for procurement processes.<\/li>\n<li style=\"text-align: left;\">Across the board, we have found a\u00a0move to consolidate and prioritize\/tier suppliers for better negotiation capability, more effective and compliant oversight, and a more collaborative and engaged approach to partnering\u00a0versus managing \u201coff the side of the desk.\u201d<\/li>\n<li style=\"text-align: left;\">It doesn\u2019t matter what your operating model is if you don\u2019t have the right talent. The right talent will make the relationship with the supplier effective for the business.<\/li>\n<\/ul>\n<p><span style=\"font-size: 14pt; color: #ff6600;\"><strong>The bottom line: There are three critical components <\/strong><strong>to effective supplier management that stand out in our research<\/strong><\/span><\/p>\n<ol>\n<li>Alignment and tiering of suppliers with business objectives<\/li>\n<li>Standardized and coordinated supplier relationship management and contract management and governance<\/li>\n<li>The \u201cright\u201d talent to broker and manage relationships and results<\/li>\n<\/ol>\n<p>In general, companies are on a journey to have a more strategic approach to supplier management and believe it will take a matter of years to get there because of the cultural shifts required. We explore these themes further in our recently published POV, \u201c<a href=\"https:\/\/www.hfsresearch.com\/pointsofview\/the-rise-of-supplier-relationship-management\" target=\"_blank\" rel=\"noopener\">The Rise of Supplier Relationship Management<\/a>,\u201d available for download (free with site registration).<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A smart business operation uses the right combination of talent and technology to drive desired business outcomes. Third party suppliers&#8230;<\/p>\n","protected":false},"author":1,"featured_media":3866,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[836,90,98],"tags":[],"ppma_author":[893],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supplier Relationship Management in 2017: It\u2019s all about talent, standardizing processes, and RPA - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/rise-srm_150217\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Supplier Relationship Management in 2017: It\u2019s all about talent, standardizing processes, and RPA - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"A smart business operation uses the right combination of talent and technology to drive desired business outcomes. 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