With the onset of the pandemic last year, supply chains struggled to deliver, but payment terms were also affected. Of the supply managers we surveyed, 31% increased their payment terms last year. While 66% paid within 45 days in Q1, by the third quarter of the year, the number dropped to 57%, shifting toward longer 60- and 90-day terms.
ESG still lags in supplier assessments
When it comes to what questions supply managers are asking in supplier assessments, less than half include environmental, social, and governance (ESG) questions.
Collecting Supplier Data
Out of all the data companies collect from suppliers, greenhouse gas (GHG) doesn’t make the list. Nope – it’s not an April Fools’ joke. While it’s encouraging that at least 1/3 of companies gather compliance and human rights information, key environmental data like GHG emissions are missing. Companies need to move beyond basic compliance to validating suppliers’ activities and carbon footprint. What proactive measures is your organization integrating to make a difference?
Supply management teams with high levels of managed spend are better able to leverage spend, mitigate supplier risk, and bring more strategic value to the organization.
Total Cost Savings
Our annual Metrics of Supply Management report provides KPIs for headcount, OPEX, spend, savings, ROI and more, broken out further across multiple industries.
Investing More in Strategic Roles
As companies identify priorities and fill gaps, strategic hires of supply management professionals shift to reflect organizational needs. Compared to last year, supplier diversity positions increased by 1.4%, category managers by 3.9%, and data analysts by 1.1%.
Supply Management ROI
Supply management (SM) return on investment (ROI) is a simple way to demonstrate the value of the function. To calculate your organization’s SM ROI – a powerful metric to communicate the value you deliver to stakeholders – divide cost savings (reduction + avoidance) by supply management operating expenses.
Retaining early-career supply management pros
What are the most effective compensation practices for retaining early-career supply management professionals? According to companies, performance bonuses top the list at 62%.
Job offers & early-career SM pros
What are the primary factors that increase acceptance of job offers by early-career supply management professionals?
Factors driving the implementation of category management
The executives we surveyed said the top factors driving the implementation of category management include creating value for the business as the top factor, followed by reduced costs, and reduced supply chain risk.