In a 2018 CAPS report, 40% of CPOs chose strategic thinking as the most important capability to advance the profession strategically. Will alignment to larger business objectives going forward require greater headcount working on strategic initiatives?
Managed Spend Growing Influence
When the business involves the supply management group in purchasing and sourcing, it can increase savings, better leverage organizational spend, and negotiate stronger contracts. Managed spend, as a percentage of sourceable spend, is a primary indicator of a company’s ability to capture value from the supply management process.
Average Cost Savings
Cost savings is a powerful KPI for demonstrating the value of supply management (SM) to the business. On average, 21.8% of SM employees are in a strategic sourcing role, each delivering $9.1 million in total savings. How does your company compare?
Total Cost Savings
Cost savings is a cornerstone KPI for most supply management groups, measured here as reduction and avoidance in managed spend. In 2021, Oil and Gas led with 7.1% total cost savings.
Supply Management Org Design
Spend Under Management
Supply Management Employees
Modeling & Machine Learning In Use at Top Orgs
AI in Supply Management
The Advantages of Choosing Diverse Suppliers