The best procurement organizations continue to drive much higher returns from their investment in the function than do average companies.
That is the message for a number of years now from a couple of organizations, including AT Kearney/ISM with their annual ROSMA report, and yearly research from the consultants at The Hackett Group.
Hackett recently released new datafor 2017 on this topic, which included a chart that we show below as our Graphic of the Week:
As can be seen, in 2017 leaders are getting about $10 back from every $1 invested in procurement (people, technology) versus less than half that - 4.6% - for average companies.
Stated simply: leaders get more done with less. Leaders, for example, operate with about 29% fewer FTE's than companies of comparable size.
Could such an analysis be performed on the supply chain as a whole? We're looking in to that question.
Any Feedback on our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback section below.
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