Engaging supply management with internal business partners can create value and alignment with business goals.
Business Partner Engagement
Aligning and integrating with the business can help supply management leaders drive value for their companies, especially at a strategic level.
Supplier Risk of the Future
71% of companies consider cyber security & data to be the highest risk for suppliers over the next 3 years.
The CEO’s Support of SRM
On average, CEOs spend just 6% of their time with suppliers, while 18% said their organization is considered a “customer of choice” by their suppliers. Increasing the time CEOs spend with suppliers could potentially improve supplier collaboration and innovation and improve savings over the long-run.
When CPOs ranked their priorities over the next 12 to 36 months, 40% of respondents said ensuring continuity of supply will be their top priority over the next 12 months. Half of CPOs (49%) said advancing data analytics to a more mature level will be the top priority in the next 3 years.
Tactical v. Strategic Buyers
Tactical buying remains the biggest focus for supply management headcount, claiming 31% of resources. Strategic sourcing has the potential to produce greater value, but these resources are a smaller portion of the team mix.
Investing in More Strategic Roles
As companies identify priorities and fill gaps, strategic hires of supply management professionals shift to reflect organizational needs.
Managed Spend Growing Influence
When the business involves the supply management group in purchasing and sourcing, it can increase savings, better leverage organizational spend, and negotiate stronger contracts. Managed spend, as a percentage of sourceable spend, is a primary indicator of a company’s ability to capture value from the supply management process.
Supply Management Employees
Across industries, only 1.4% of the total headcount is supply management employees.
Supply management professionals from member and non-member companies can participate in benchmarking surveys and get metric reports in return.