Strategic Employees Deliver Value to Your Company
Of all the KPIs that show the value of the supply management group, cost savings is most vital. The cost savings generated by your strategic supply management employees makes them extremely valuable to your organization. How much total cost savings (reduction and avoidance) are your strategic supply management employees delivering?
Supply Management Growing Influence
Sourceable spend is increasingly being managed by supply management/procurement groups. This growing influence results in a more strategic approach, increased savings and greater protection from supplier risk. On average, 84 percent of spend for all companies, regardless of sector, is managed. How does your company compare?
Do You Have a Formal Supplier Risk Program?
The 58 percent of companies surveyed that regularly rescore suppliers have a formal supplier risk program in place. These companies assign a score to, on average, 75 percent of the suppliers in their programs. (The median is 100 percent!) Does your organization have a formal supplier risk program? If so, are you assigning and re-evaluating risk scores? A dynamic supplier risk program benefits from the rescoring of suppliers on a regular basis to adjust to changing risk and market conditions.