Companies with top performing procurement organizations report profit margins 15 percent higher than the average company – and 22 percent higher margins than companies with low performing procurement organizations. High performers were found to have built an agile supply network designed to adapt to changing market conditions.
For example, the study showed that 73 percent of high performing CPOs are highly effective at responding to product redesign and demand challenges compared to just 16 percent of the low performers. They excelled through the use of analytics and collaboration:
- 83 percent of high performing CPOs excel at leveraging analytics compared to just 63 percent of the lowest performers.
- 80 percent of high-performing companies report that collaboration across departments, such as IT, marketing and sales, is both a key strength and an investment priority, compared to only approximately 45 percent of low performers
- Top performers direct 38 percent more of their annual spend through strategic alliances than low-performing organizations
For more information or to download the full report visit www.ibm.com/business/value/chief-procurement-officer