Industrial Manufacturing

Opportunities

55%

55% identify cost savings as procurements primary value driver, and 78% state that cost saving is a primary driver for the increasing use of the external workforce , but only 45% have high confidence in procurements ability to manage strategic sourcing. 41% of the C-Suite identify AI as a top strategic priority for procurement, with 65% identifying AI proficiency skills as the top priority for skills development. 41% identified that its CPO who owns the AI strategy for Procurement however only 14% are highly confident in procurements team ability to leverage AI for efficiency. 44% identified Sustainability as a top organizational risk for procurement to focus on and as a result Sustainability is the top strategic priority identified by 62% of respondents and 68% identified sustainability skills as the top in demand skill for procurement in the next 18 months. However only 31% were highly confident in procurements ability to deliver organizational ESG goals. 63% identified geopolitics as a top organizational risk area for procurement to focus on, with 41% identifying supply chain reorganization as the top strategic priority for next 18 months in response. Whilst 31% of respondents were highly confident in procurements ability to manage global external risks, only 21% have high confidence in procurements ability to manage risk strategies for different categories.

41%

44%

63%

Source: Economist Impact study, The Resilient Edge – Procurement in an era of polycrisis

0.66 Days

Average Invoice Approval Cycle time

Best in Class Metrics*

Sourcing Savings Rate

Sourcing Cycle Time

15.9%

14 Days

*SAP Customer Benchmarking program

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