Managed Spend by the Supply Management Group
Gaining control over the spend of the enterprise is how the supply management group can leverage savings, mitigate supplier risk and bring strategic value to the organization. Where is your supply management group on the journey to increase its influence and bring more value by managing more spend? The average managed spend for all companies is 84.1 percent.
Supply Management ROI
Supply management ROI continues to grow in popularity as a simple yet powerful way to demonstrate value of the function. The Supply management ROI in this Dashboard is calculated by dividing cost savings (reduction plus avoidance) by supply management operating expenses. Supply management ROI can also be calculated using only reduction. Tell your stakeholders about the value you deliver. Every US$1 invested in supply management returns $7.20 (based on 2016 average of all companies using reduction-plus-avoidance savings in the calculation).
Delivering Value to You
While measures that show the value of the supply management group remain popular, cost savings is still a cornerstone number that stakeholders expect and continue to use to measure the impact of the supply management group on the bottom line. How does your organization stack up? (Cost savings are calculated as a percent of managed spend.)