Turning the Corner of Strategic v. Tactical
The average supply management group is comprised of 62 percent operational employees and 38 percent strategic employees. How does your organization stack up? Operational employees are primarily engaged in the day-to-day, tactical procurement activities that support the business, while strategic ones engage in high-level activities like category management, supplier relationship management, and stakeholder engagement. How does your organization divide strategic versus tactical staffing?
Measures to Define Value
While cost reduction and cost avoidance remain popular, supply management groups are using additional measurements of their contribution to corporate KPIs. Supply management groups have metrics that are outward facing, aligned with business goals and part of shared scorecards with internal business partners.
Expanding Into Indirect
As supply management pushes the boundaries of managed spend, more companies are expanding into indirect spend categories. Forty percent of supply management employees are assigned to indirect, and of those, 44 percent are in primarily strategic roles, while 56 percent are in operational roles.