Supply management ROI is a simple way to communicate the value your supply management group delivers to stakeholders. In 2022, every US$1 invested in supply management returned $7.05, an average of all companies’ ROI using reduction + avoidance savings.
Top Procurement Software
Based on a recent CAPS Research survey, the top 5 software solutions being used for sourcing and procurement are SAP Ariba, Salesforce, In-house tools, Coupa BSM, and Microsoft Azure.
Inventory Performance Metrics
In a new CAPS Survey about Inventory and Warehouse Management, respondents report the top 3 performance metrics are Inventory Accuracy rate tracked by 71% of companies, Inventory Turnover rate tracked by 67% and On-time and In-full Inbound Receipts tracked by 54%.
Standard Payment Terms
Across the manufacturing and service sectors the largest percentage of companies, 38%, use 45-day payment terms. Meanwhile 36% use 30-day terms, 1% use 75-day terms and 11% use 90-day terms.
Most Important SM COE Skills
Top skills and capabilities needed in 2023 for Supply Management Centers of Excellence (SM COE) employees include problem solving, supply management experience, and cooperation.
SM COEs By Sector
Over the past 4 years, the percentage of Supply Management Centers of Excellence (SM COE) in Discrete Manufacturing has decreased, while increasing in Process Manufacturing and Service Sectors.
Net Cost Reporting
On average, 71% of companies surveyed provide monthly updates for net cost reporting, while 35% update quarterly and 12% update annually.
Top 3 Reasons for SM COEs
In 2023, the top 3 reasons companies create and use Supply Management Centers of Excellence (SM COE) are to drive standardization, best practices, and skill building.
5 Most Important Themes in 2026
According to almost 200 supply chain executives, the 5 most important themes requiring attention in 2026 will be ESG, supply chain resilience, cost efficiency, implementation of technologies, and strategic alignment.
Net Cost Calculations
In the current inflationary environment, 56% of companies are including index data or estimated factors for inflation estimates in net cost calculations, with 39% including costs related to dual sourcing and 22% including carrying costs for increased buffer supply.
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increase the comparative breakouts only they receive.