“We’ll Focus on Transformation First.”
Author: Alan Day, Chairman and Founder
I received an email recently from a CPO who had decided not to prioritise SRM at this point in time. Their reason? “We’re focusing on transformation first.”
It’s a line I’ve heard before. And on the surface, it makes sense: why focus on suppliers when your data is a mess, spend is out of control, and processes are inconsistent across the organisation?
But here’s the thing, that’s exactly why you need SRM.
Procurement transformation without SRM is only half a transformation
Most procurement transformations start by tackling internal pain points: poor data, limited visibility, inconsistent controls, fragmented systems. And those do need fixing. But none of them mean SRM should be postponed. In fact, sidelining SRM in the name of “transformation” risks solving the wrong problems in the wrong order.
Because what the business sees and what ultimately determines procurement’s value isn’t your taxonomy or your process map. It’s how well you manage suppliers. How well you respond when things go wrong. How well you translate commercial agreements into performance outcomes.
That’s SRM. And it’s front and centre of your credibility.
The common objections and why they don’t hold up
Let’s break down the common reasons SRM is deferred:
1. “We don’t have good spend data yet.”
You don’t need perfect data to start managing your most strategic supplier relationships. In fact, one of the best ways to uncover hidden spend and performance issues is through better supplier conversations. SRM helps you surface risk, duplication, and inefficiency that spend analysis alone can’t reveal.
2. “We need to get our controls in place first.”
While spend governance is essential, it won’t stop stakeholders from engaging suppliers directly if they don’t see procurement as adding value. SRM is how you shift that perception. By improving supplier performance, responsiveness, and collaboration, you earn the right to be involved earlier and make controls actually work in practice.
3. “Let’s fix the process and systems, then tackle relationships.”
This logic treats SRM as a nice-to-have layer on top of a functioning procurement machine. But relationships aren’t a finishing touch they’re the core of how value is delivered. Waiting until everything else is perfect means you’re likely to never get there, and suppliers (and business stakeholders) will have long since disengaged.
Why SRM belongs at the start of the journey or at least alongside it
There are four powerful reasons to make SRM part of the transformation from day one:
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It delivers visible impact, fast.
Even basic improvements to supplier performance management or issue resolution can make a real difference to the business. It shows that procurement is focused on outcomes, not just compliance.
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It builds trust while the “plumbing” gets fixed.
Transformation programmes often take years to land. SRM provides a more agile, relationship-led way to demonstrate progress and keep the business engaged while the systems and processes are being rebuilt.
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It supports everything else you’re trying to do.
Want better data? Start with supplier self-service and shared performance dashboards. Want tighter controls? Work with suppliers to flag maverick spend and improve onboarding. Want more innovation? Build joint business plans. SRM is not a competing initiative, it’s a multiplier.
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It brings suppliers into the transformation and keeps Procurement accountable.
Running a Voice of the Supplier (VoS) exercise early in the transformation gives you a clear, external view of where improvements are most needed. It shapes the transformation agenda around what matters most to those delivering your products, services, and innovations. It also sets a baseline KPI for how well your function is performing as a customer of choice. Used well, it can help shape a supplier-facing event that explains the transformation, builds support, and ensures suppliers are engaged partners in the journey not observers. It’s transformation with the supply base, not just to them.
Put SRM where it belongs: at the heart of transformation
It’s understandable that CPOs want to fix the internal machinery first. But if transformation is about making procurement more strategic, visible, and valuable then SRM is not optional. It’s foundational.
The smartest organisations don’t treat SRM as something to do after they’ve transformed. They use SRM to drive the transformation by engaging stakeholders, unlocking supplier capability, and delivering quick wins that build momentum for change.
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