Companies that undergo organization structure changes as part of an enterprise-wide initiative or market-driven decision face a huge endeavor, but data indicates these changes don’t happen frequently. For the last three years, an average of 74% of companies say they’ve operated under their current org structure for five or more years (Metrics of Supply Management, 2020 - 2022).
Spend Under Management
Across industries, category management employees comprise an average 13.3% of the total supply management headcount, but each SCM employee manages hundreds of millions of dollars.
Total Cost Savings
Cost savings is a cornerstone KPI for most supply management groups, measured here as reduction and avoidance in managed spend. In 2022, Financial Services led with 6.4% total cost savings.
Marketing tools in investment recovery
The most effective marketing tools used for the disposal of surplus assets are email, auctions, and eAuctions.
Profile of a CPO
The length of CPOs’ careers in procurement and supply management has become progressively longer. CPOs averaged 21 years of experience in 2017, which grew to 25.5 years by 2022.
Reporting levels between the CEO & CPO
With supply disruptions, supplier risk, and cost inflation critically impacting the performance of many companies, why are only 12% of CPOs reporting directly to the C-suite?
Supply management skills and gaps
Strong fundamentals in procurement, supply chain, and supply management will always be important, but supply management leaders are placing increased importance on leadership abilities and interpersonal strengths.
The impact of skills & training on cost modeling
We asked what factors negatively impact effective cost modeling, and top overall impediment was lack of readily available cost data, at 54%; however, the remaining responses revolved around skills and training.
Tactical v. strategic buyers
Tactical buying remains the biggest focus for supply management headcount, claiming 35% of resources. Strategic sourcing has the potential to produce greater value, but these resources are a smaller portion of the team mix.
Supply management ROI
Supply management (SM) return on investment (ROI) is a simple way to communicate the value your supply management group delivers to stakeholders. To calculate your organization’s SM ROI, divide cost savings (reduction + avoidance) by supply management operating expenses.