How important is supplier discovery to your company? Your answer will determine whether you Should register for this webinar or MUST register for this webinar.
Before you answer – a little background information will help:
In 2018, an Institute for Supply Management article by Dan Zeiger wrote – “The old 80-20 rule — 80 percent of a company’s spend among the top 20 percent of its suppliers — is often considered an ideal starting point. Looking at the actual numbers, however, can catch even veteran supply managers off guard.”
Check out these industry stats from the ISM article showing the percentage of suppliers in different industries accounting for 80% of a buying company’s spend:
😯 aerospace and defense (6.5 percent)
😯 chemical manufacturing (7.7)
😯 engineering and construction (4.0)
😯 financial services (8.5)
😯 industrial manufacturing (7.0)
😯 petroleum (3.5)
😯 utilities (4.5).
In 2021, a McKinsey & Company article by Mark Baptista, Michael J Gordon, Christine Herrmann, Andrew Pratt reported – “Companies that rapidly adapt their supply bases reap rewards in cost, resilience, and growth potential. New tools can cut the time required to find the right suppliers by 90 percent or more.”
In 2024, here are the preliminary results from an impromptu poll asking the question, What is your organization’s top procurement priority for 2024?
💸 Improve spend cost reduction (50%)
🔐 Ensure supply continuity (42%)
🔭 Enhance supplier discovery (0%)
🎇 Optimize data cleansing (8%)
Here is my take – Those who already recognize that it is important to effectively engage a much broader supply base than a rationalized one “Should” attend. Anyone – especially in this day and age, who doesn’t have expanded visibility beyond a handful of suppliers “MUST” attend before your left arm goes numb and you start getting supplier-related chest pains.
Join Karin Hagen-Gierer, Travis Johnson, Maria Jesus Saenz, and me on March 14 at 11 am ET (4 pm CET) to discuss how AI revolutionizes supplier discovery and assessment. Thanks to Scoutbee for inviting me to participate in this exciting conversation! – Sign up here: https://lnkd.in/d-359BBp
#digitalsupplychain #digitalprocurement #supplierdevelopment
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Procurement Insights
Supplier discovery versus vendor rationalization: A case of an irresistible force meeting an immovable object
Posted on March 11, 2024
0
How important is supplier discovery to your company? Your answer will determine whether you Should register for this webinar or MUST register for this webinar.
Before you answer – a little background information will help:
In 2018, an Institute for Supply Management article by Dan Zeiger wrote – “The old 80-20 rule — 80 percent of a company’s spend among the top 20 percent of its suppliers — is often considered an ideal starting point. Looking at the actual numbers, however, can catch even veteran supply managers off guard.”
Check out these industry stats from the ISM article showing the percentage of suppliers in different industries accounting for 80% of a buying company’s spend:
😯 aerospace and defense (6.5 percent)
😯 chemical manufacturing (7.7)
😯 engineering and construction (4.0)
😯 financial services (8.5)
😯 industrial manufacturing (7.0)
😯 petroleum (3.5)
😯 utilities (4.5).
In 2021, a McKinsey & Company article by Mark Baptista, Michael J Gordon, Christine Herrmann, Andrew Pratt reported – “Companies that rapidly adapt their supply bases reap rewards in cost, resilience, and growth potential. New tools can cut the time required to find the right suppliers by 90 percent or more.”
In 2024, here are the preliminary results from an impromptu poll asking the question, What is your organization’s top procurement priority for 2024?
💸 Improve spend cost reduction (50%)
🔐 Ensure supply continuity (42%)
🔭 Enhance supplier discovery (0%)
🎇 Optimize data cleansing (8%)
Here is my take – Those who already recognize that it is important to effectively engage a much broader supply base than a rationalized one “Should” attend. Anyone – especially in this day and age, who doesn’t have expanded visibility beyond a handful of suppliers “MUST” attend before your left arm goes numb and you start getting supplier-related chest pains.
Join Karin Hagen-Gierer, Travis Johnson, Maria Jesus Saenz, and me on March 14 at 11 am ET (4 pm CET) to discuss how AI revolutionizes supplier discovery and assessment. Thanks to Scoutbee for inviting me to participate in this exciting conversation! – Sign up here: https://lnkd.in/d-359BBp
#digitalsupplychain #digitalprocurement #supplierdevelopment
30
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