In April 2013, Spend Matters conducted a research study with ISM (The Institute for Supply Management) to focus on how to improve procurement productivity. Even though procurement has a >10X ROI as a function, it is still under the same pressure as other functions to improve productivity, especially since they’re typically asked to do even more (beyond spend savings) with less. So, we came up with a punch list of 25 things that procurement organizations could do to free themselves up from the tactical and focus on the strategic.
We used a web-based survey for the study. After validating and cleansing the data, we had 218 respondents across multiple industries, but manufacturing was by far the largest type of firm. The study presentation and replay is available to ISM members from the ISM web site (membership required) or from the Hubwoo website, here.
The study methodology was not overly sophisticated. We scored companies based on their level of adoption of the 25 practices, created an average score, and then took roughly the top quartile firms and rated them against the rest. We did find that these capabilities were highly correlated to a self-rated performance score – and we could have used that equally well for segmenting top quartile organizations.
The rest of this PRO research brief can be found on Spend Matters PRO. If you’d like to become a Spend Matters PRO member, please subscribe. If you’re not ready to subscribe or wonder why you should, we’ve answered some FAQs here or you can email a Spend Matters team member directly. If you’re not into paying for content, we get that too. Thanks for reading!