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Supply Chain Graphic of the Week: Leaders Continue to Drive More ROI from Procurement

 

Best Companies Get More than Twice Their Investment in People and Technology Back versus Peers, a Huge Advantage

Aug. 25, 2017
SCDigest Editorial Staff

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.

 

Your Comments/Feedback

 
 
 

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