Excellence in Purchasing and Supply Management
(joint survey with McKinsey)
Objective:
- What Best Practices can be identified from the 43 dimensions at international companies?
- What dimensions, such as, for example,
- Inter-functional collaboration in supply management teams
- Goal-setting mechanisms or
- Collaboration with users
- What dimensions need to be prioritized so that Best Practice can be achieved?
- What strengths should High Performers concentrate on in order to secure a competitive advantage?
- Are the crucial differences in the attainment of cost reduction targets and innovation targets?
Prodecure:
More than 150 participating companies from all continents and from all industries, 70% with > USD 5 billion sales
Results
- Purchasing & supply management pays for itself: There is a strong correlation between a healthy purchasing organization and financial performance, which is reflected in higher annual price decreases, reduction of COGS and an increase in the EBITDA margin
- Even the best can improve: While 54% of the companies are rated at 5 at least once, there is none which is rated at 4 or higher overall.
- "Grass is not always greener": Every industry sector has its high performers – being in a sector which generally cuts a poor figure is no excuse.
- The best know where it’s at: High performers tend to rate their own performance more poorly and set ambitious goals, while low performers ignore the opportunities that arise.
- It comes down to the employees: Capabilities and culture have the strongest effect on purchasing performance.
- "Earn a seat at the table": CPOs from above-averagely successful companies are 5x more often a part of the top management team.
- "Take charge": Central co-ordination improves performance.
- "Take charge, the sequel":High performers take more responsibility for a higher spending volume than low performers. And they control it.
