Supply Management ROI
Supply management ROI is growing in popularity as a simple and powerful way to demonstrate value of the function. The return on investment (ROI) of supply management is calculated by dividing cost savings (reduction plus avoidance) by supply management operating expenses. Tell your stakeholders about the value you deliver. Every US$1 invested in supply management returns $7.23 (based on a 2017 average of all companies using reduction-plus-avoidance savings in the calculation).
Managed Spend by Sector
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, 86 percent of spend for all companies, regardless of sector, is managed. How does your company compare?