The report highlights the challenges faced by procurement organizations in justifying the return on investment for supplier relationship management (SRM) programs in the financial services industry. The report suggests that a rigid approach to SRM programs, driven by risk control and a highly regulatory environment, can limit the program's focus to a limited number of suppliers and become a "tick-box" exercise for all others. This can have negative impacts on the wider performance of procurement teams, including the inability to bring in innovation from the outside world, lengthy supplier selection timeframes, and clunky supplier onboarding processes.
The report also discusses the competitive advantage gained by leaders in the financial services industry who build and implement new supplier collaboration models, and suggests that aspiring leaders can take action to catch up. The report concludes that a new, tech-driven collaboration model can mitigate risks and optimize value in SRM programs in the financial services industry.
