When your Procurement team talks about metrics for success, what’s on the list? Is it cost savings? Better supplier relationships? Operational efficiencies?
If your answer is all the above, you have your eyes set on the right objectives. The reality is that procurement success doesn’t stem from meeting just one of these indicators, but from how achieving each of these goals contributes to the strategic direction of the organization.
A look at the data: What peers are saying
We find it often helps to look at what peers are doing and where they see the most success to inform your own strategies. We recently surveyed procurement professionals across the grocery, restaurant and retail sectors to uncover what they deemed as measurable results. We found that:
- 72% said cost savings
- 55% said time savings for staff
- 53% said improved processes
- 50% said improved service levels
The majority of respondents cited cost savings as a critical measurement of their success. The fact that cost is top of mind for procurement leaders is not surprising – savings have always been high on the procurement agenda due to pressure from CFOs and the board.
To really see the kind of profitability the board expects and deliver real, lasting financial gains that positively impact the bottom-line, these savings must be sustained and optimized over time. Teams do this through implementing a simple formula that combines the right technology with deep expertise, proven processes, established methodologies and experienced and talented people.
Adopting this type of holistic approach to sourcing that takes a variety of technological and human capital factors into consideration can help teams meet all key performance indicators; securing operational efficiencies, identifying the best supply options, capturing cost savings – generating better value creation and sustainable improvements to the business model.