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Total Cost Savings

Cost savings is a cornerstone KPI for most supply management groups, measured here as reduction and avoidance in managed spend. In 2021, Oil and Gas led with 7.1% total cost savings.

Supply Management Org Design

Companies that undergo organization structure changes as part of an enterprise-wide initiative or market-driven decision face a huge endeavor, but data indicates these changes don’t happen frequently. For the last three years, an average of 72% of companies say they’ve operated under their current org structure for five or more years (Metrics of Supply Management, 2019 - 2021).

Spend Under Management

Across industries, category management employees comprise an average 17.9% of the total supply management headcount, but each SCM employee manages hundreds of millions of dollars.

Supply Management Employees

Across industries, a mere 1.3% of the total headcount is supply management employees.

Modeling & Machine Learning In Use at Top Orgs

Of the companies we surveyed, 73% use statistical modeling and 51% use deep machine learning. More on how modeling & machine learning is used at top organizations can be found in the CAPS Research report, Applying Advanced Data Analytics.

AI in Supply Management

Of the people we surveyed, 19% are currently using artificial intelligence while 34% plan to implement AI within 12 months. Top uses of AI include spend analysis, invoice processing, payment processing, and contract management. 

The Advantages of Choosing Diverse Suppliers

Many large companies have found strategic benefits in developing a robust supplier diversity program, citing primarily that diverse suppliers are responsive, resilient, and committed to developing their own capabilities. Advancement of supplier diversity programs in large companies requires commitment and capital to develop suppliers, as well as alignment with business objectives.

A Shift In Post-Pandemic Travel Policies

Corporate travel policies continue to fluctuate more than a year after the global health pandemic began. In a recent survey, more than half of the participants (64%) anticipated their company would permanently shift 25 to 50% of their pre-pandemic travel to virtual options.

Sustainability & Supplier Compliance

76% of companies contractually require their suppliers to meet corporate sustainability standards and performance obligations, to be mindful of people, profit, and planet; however, overall governance and validation of the supply base is not as widely practiced.

Supply Management's Efforts in Data Analytics

Of the companies we surveyed, the majority are utilizing descriptive analytics, which includes the use of dashboards for the exploration of KPIs and benchmarks. However, only 4% are diving into more mature levels of analysis including prescriptive analytics and automation.

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