Transactional or Tactical buying remains the primary focus for supply management headcount, accounting for 56% of resources. Strategic sourcing has the potential to produce greater value, but these resources make up a smaller portion of the team mix at 44% overall. This highlights a key imbalance in procurement resource allocation: while strategic sourcing can drive greater long-term value, most teams remain focused on transactional tasks. Procurement professionals must recognize this gap to advocate for shifting resources toward more strategic activities that enhance cost savings, supplier innovation, and competitive advantage.

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Every supply management organization tracks cost savings, but not all define it the same way. While every team surveyed measures price reductions, fewer include cost avoidance or negotiated savings against prior spend. Many CFOs and executives discount cost avoidance as “soft savings,” creating a disconnect between procurement’s reported value and what the C-suite recognizes. How aligned are your savings metrics with your leadership’s definition of value?