SRM Supports Supply Chain Development (Technology Focus)

Publication Date	January 2007
Publisher	Datamonitor
Product Type	Report
Pages	19
ISBN Number	not applicable
Product Code	DAT04325

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Summary

Introduction

As the demand for more advanced supplier relationship management (SRM) functionality starts to develop, IT vendors are increasingly bringing to market software that seeks to provide that needed functionality. SRM can generally be broken down into two key segments: transactional and analytical SRM. This brief analyses how SRM can support manufacturers.

Scope

Looks at supplier relationship management software and how it supports manufacturing strategies
Covers manufacturing from a top-level, global viewpoint, and forecasts the revenue opportunity within 16 sub-verticals

Highlights

Transactional SRM is focused on the automation of relatively high volume, low variation processes within key areas such as procurement and contract management. Because of the nature of these interactions, automation provides a significant reduction in the rate of error along with increased gains from data structure commonality and faster throughput

Reasons to Purchase

Understand how SRM technology supports supplier-related strategies within manufacturing companies
Assess the revenue opportunity for SRM solutions across 16 manufacturing industries

Content

Catalyst
Summary
Methodology
- AnaLYSIS
- Transactional SRM focuses on process automation and cost reduction
- Procurement is often the starting point for an SRM implementation
- Contracts remain the binding agent for supplier relationships
- Analytical SRM seeks to drive growth through business intelligence
- The core of any SRM strategy is spend analysis
- Strategic sourcing has grown in popularity among manufacturers
- The rationalization of suppliers can reduce risk and enhance leverage
- Discovering new suppliers is supported through a number of different possibilities
- Risk management is a growing demand for manufacturers investing in SRM
- Keeping track of supplier performance can help manufacturers seek out bad apples
- The market for SRM software in the manfuacturing industry is growing, but remains small
- At a global level, manufacturers are increasing their spend on SRM software
- Discrete manufacturers are investing the most in SRM software
- The high-tech industry leads the way for SRM investment
- Pharmaceutical manufacturers spend the most out of batch industries
- Process manufacturers spend significantly less on SRM software than other industries
Appendix
- Definitions
- Extended methodology
Further reading
- Ask the analyst
List of Tables
- Table 1: Global market for procurement software in the MFG industry ($m, 2003-2010)
- Table 2: MFG industry investment in procurement software ($m, 2005)
- Table 3: Global SRM software license revenue by region ($m, 2004-2010)
- Table 4: Global SRM software license revenue by MFG industry ($m, 2004-2010)
- Table 5: Global SRM software license revenue by discrete industry ($m, 2004-2010)
- Table 6: Global SRM software license revenue by batch industry ($m, 2004-2010)
- Table 7: Global SRM software license revenue by process industry ($m, 2004-2010)
List of Figures
- Figure 1: The minority of procurement processes are currently automated - 2006 survey
- Figure 2: Global market for procurement software in the MFG industry ($m, 2003-2010)
- Figure 3: MFG industry investment in procurement software ($m, 2005)
- Figure 4: Spend analysis looks at both internal and external procurement
- Figure 5: Global SRM software license revenue by region ($m, 2004-2010)
- Figure 6: Global SRM software license revenue by MFG industry ($m, 2004-2010)
- Figure 7: Global SRM software license revenue by discrete industry ($m, 2004-2010)
- Figure 8: Global SRM software license revenue by batch industry ($m, 2004-2010)
- Figure 9: Global SRM software license revenue by process industry ($m, 2004-2010)