Of the companies we surveyed, the majority are utilizing descriptive analytics, which includes the use of dashboards for the exploration of KPIs and benchmarks. However, only 4% are diving into more mature levels of analysis including prescriptive analytics and automation.
Diversity has become a top priority for large companies in recent years, but supplier diversity managers represent a small fraction of total supply management employees.
Companies' Carbon Footprint & GHG Emissions
Organizations are realizing the importance of reducing GHG emissions and taking action. Of the 69% of companies that made a public commitment to reduce their GHG emissions, almost half (47%) committed to be net carbon neutral.
SM & Corporate ESG Objectives
ESG efforts have taken the main stage as companies seek to improve or fortify their economic, environmental, and social sustainability practices. At 63% of the companies we surveyed, the procurement group is already actively involved in these efforts, at least at a moderate level.
Metrics of Supply Management
The Metrics of Supply Management is the profession’s flagship survey for effectiveness and efficiency KPIs. If you are a supply management practitioner at an organization with at least $2 billion in annual revenue, opt-in to take the survey now.
The pandemic's impact on payment terms
With the onset of the pandemic last year, supply chains struggled to deliver, but payment terms were also affected. Of the supply managers we surveyed, 31% increased their payment terms last year. While 66% paid within 45 days in Q1, by the third quarter of the year, the number dropped to 57%, shifting toward longer 60- and 90-day terms.
ESG still lags in supplier assessments
When it comes to what questions supply managers are asking in supplier assessments, less than half include environmental, social, and governance (ESG) questions.
Collecting Supplier Data
Out of all the data companies collect from suppliers, greenhouse gas (GHG) doesn’t make the list. Nope – it’s not an April Fools’ joke. While it’s encouraging that at least 1/3 of companies gather compliance and human rights information, key environmental data like GHG emissions are missing. Companies need to move beyond basic compliance to validating suppliers’ activities and carbon footprint. What proactive measures is your organization integrating to make a difference?
Supply management teams with high levels of managed spend are better able to leverage spend, mitigate supplier risk, and bring more strategic value to the organization.