procurement practices of fortune 100 companies: what you need to know about spend management
DESCRIPTION
The results of a study of the Fortune 100 companies to determine their spend management and sustainablesupply chain practices. We found that while most successful companies have advanced spend management tools, few make a commitment at executive and board levels.TRANSCRIPT
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Procurement
WHAT EVERY COMPANY NEEDS TO KNOW ABOUT
SPEND MANAGEMENT PRACTICES IN
FORTUNE 100 COMPANIES
Practices
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We researched the Fortune 100
companies to determine their spend
management and sustainable
supply chain practices
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AND OF THOSE…
ONLY 39 COMPANIES
HAVE BETTER EBITDA MARGIN
THAN THEIR INDUSTRY’S STANDARD.
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BUT ONLY…
21% Have board
members with
procurement or
supply chain
backgrounds
5% Have Chief
Procurement
Officers
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SPEND MANAGEMENT IS A PUBLICLY-STATED,
KEY STRATEGIC OBJECTIVE FOR 47% OF CEOs
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31 COMPANIES HAVE A VP-LEVEL
PROCUREMENT EXECUTIVE
4 FORTUNE 100 COMPANIES HAVE A
CHIEF PROCUREMENT OFFICER
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CPOs CAN HAVE A SIGNIFICANT IMPACT ON
THE BUSINESS BUT IT’S NOT BEING
COMMUNICATED… …AND
THEY’RE
NOT VISIBLE
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…tend to have a
higher net income margin
than those who do not
Companies that include suppliers in
their Corporate, Social and
Environmental Responsibility (CSER)
programs…
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CEOs see emerging markets as a
key strategic objective
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…AND 15% HAVE EXECUTIVES
FROM BRICS COUNTRIES ON THEIR
MANAGEMENT TEAM
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Our
• LIMITED VISIBLE INNOVATIONS BY FORTUNE 100 COMPANIES
IN THE SUPPLY CHAIN & PROCUREMENT AREAS
• CSER PROGRAMS NEED TO INVOLVE THE SUPPLY CHAIN
• NOT ENOUGH FOCUS ON EMERGING MARKETS
Findings
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Get involved with your company’s
sustainability activities
Engage emerging markets in your global
sourcing efforts
Pursue spend management innovation
Build a CPO profile
What You Should Do
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Full research report available by request
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