Across the manufacturing and service sectors the largest percentage of companies, 38%, use 45-day payment terms. Meanwhile 36% use 30-day terms, 1% use 75-day terms and 11% use 90-day terms.
Most Important SM COE Skills
Top skills and capabilities needed in 2023 for Supply Management Centers of Excellence (SM COE) employees include problem solving, supply management experience, and cooperation.
SM COEs By Sector
Over the past 4 years, the percentage of Supply Management Centers of Excellence (SM COE) in Discrete Manufacturing has decreased, while increasing in Process Manufacturing and Service Sectors.
Net Cost Reporting
On average, 71% of companies surveyed provide monthly updates for net cost reporting, while 35% update quarterly and 12% update annually.
Top 3 Reasons for SM COEs
In 2023, the top 3 reasons companies create and use Supply Management Centers of Excellence (SM COE) are to drive standardization, best practices, and skill building.
5 Most Important Themes in 2026
According to almost 200 supply chain executives, the 5 most important themes requiring attention in 2026 will be ESG, supply chain resilience, cost efficiency, implementation of technologies, and strategic alignment.
Net Cost Calculations
In the current inflationary environment, 56% of companies are including index data or estimated factors for inflation estimates in net cost calculations, with 39% including costs related to dual sourcing and 22% including carrying costs for increased buffer supply.
Net Cost Methodology
64% of supply chain organizations surveyed use a net cost methodology to offset cost-up impacts with cost-down strategies. Of those, 50% recognize cost avoidance as part of the net cost methodology.
Level of Risk Severity
Across industries, 65 global companies increased the severity of future supplier risks for sustainability and climate change over the next three years, indicating a higher focus on environmental issues and their impact on supply chain disruptions.