Supply Management ROI
Supply management (SM) return on investment (ROI) is a simple way to demonstrate the value of the function. To calculate your organization’s SM ROI – a powerful metric to communicate the value you deliver to stakeholders – divide cost savings (reduction + avoidance) by supply management operating expenses. In 2020, every US$1 invested in supply management returned $6.30 – an average of all companies’ ROI using reduction + avoidance savings.
Members have unlimited access to our new on-demand Metrics Dashboard and can read the most recent Metrics of Supply Management Report, but anyone can access the 2016 report with a free CAPS Library account.