Supply management return on investment (ROI) is a simple way to demonstrate the value of the function, calculated by dividing cost savings (reduction + avoidance) by supply management operating expenses.
Investing in More Strategic Roles
It’s important for organizations to evaluate their needs and consider strategic headcount as they design the supply management organization of the future...
SM employees to total employees
While the strategic focus of supply management groups is quickly expanding, increased responsibility is not supported by growing headcount. Many supply management groups, in fact, are expected to do more with less...
Total Cost Savings
Our annual Metrics of Supply Management (Cross-Industry) Report provides data for Key Performance Indicators (KPIs) for headcount, OPEX, spend, savings, ROI and and more, broken out further into five industries and three sectors, allowing for supply management groups to see how they stack up against comparable organizations.
Turning the Corner on Tactical v. Strategic
Supply management groups realize the importance of a shift toward strategic practices, but the transition is slow. Across industries, we’re seeing 3% growth in the strategic employee balance, with companies reporting 62% tactical employees and 38% strategic employees.
Managed spend, growing influence
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.
What categories do you source with reverse auctions?
You may not be surprised by the list of categories that companies source through reverse or e-auctions, with direct materials and goods topping the list.
E-Auction use is on the rise
46% of companies currently using E-Auctions have increased their use over the last two years due to increased cost savings and process efficiency, market efficiency, reduction in risk, and effectiveness in running what-if scenarios.
SM Organizational Design
Global companies have shifted the organizational structure of their supply management and procurement groups through the years. What's your org's ideal design?
Supply management's growing influence
Sourceable spend managed by supply management/procurement groups is experiencing an uptick, giving companies more strategic contracting, greater savings, and increased protection from supplier risk. An average of 87.5 percent of spend is managed, for all companies across sectors. How does your company compare? ...