Managed Spend: Growing Influence
How much of your organizational spend is influenced by your supply management or procurement team? Teams with high levels of managed spend are increasing their opportunity to leverage spend, mitigate supplier risk and bring more strategic value to the organization. Which spend areas are managed or influenced by your team? The challenging categories continue to be legal, HR, marketing, IT services and engineering services.
Cost Savings: Money in the Bank
As supply management groups deliver greater strategic value to the organization, new measurements that align with business goals are emerging. However, cost savings is still the most popular measurement used to communicate the value of the supply management group, with cost reduction savings leading the way. In a separate report (New Measures of Value, 2017), 100 percent of companies indicated they measure cost-reduction savings, and 79 percent indicated they measure cost-avoidance savings..
Do You Use a Purchasing Operations Center?
Seventy percent of companies have established purchasing operations centers (POC) for transactional PO activity; 58 percent of them use a POC as a training ground for career advancement into more strategic or complex supply management roles.