In a recent press release, SciQuest announced survey results “that reveal procurement is evolving into a true profit center, as spend data and analytics are increasingly driving business decisions.” Over 1000 procurement professionals from SciQuest’s global customer network were polled and “includes manufacturing, consumer packaged goods, higher education and transportation companies with an annual spend of between $150 million to $2 billion dollars.” Nearly 500 company responses were received.
Specific findings from the survey include (directly quoted):
The role of procurement is evolving in multiple critical ways.
- 25% strongly feel that procurement is considered a profit center within their companies.
- 72% said they are actively planning or currently using use spend analytics to access data and supplier visibility to drive business decisions.
- 67% of procurement professionals stated they expect that executive interest will increase over the next 12 months, as procurement is encouraged to deliver cost savings and value to their organizations.
- 60% of responders believe the role of procurement is evolving to facilitate collaboration across business units.
- 56% feel that are trusted advisors.
Procurement is being tasked with new areas of responsibility.
As procurement becomes more visible in a company, its reach is expanding to other areas. It’s no longer buttonholed into helping users purchase office supplies and other indirect materials; procurement is now being asked to source and purchase training services, IT/telecom, direct materials, financial services, and reagents/chemicals.
- 52% feel that they are tasked with driving the company’s risk tolerance.
- 37% of respondents stated that they will be involved with financial services decisions.
- 29% feel that they will gain additional responsibility with legal services.
Efficiency, business intelligence and compliance are the top three challenges for 2017
- 41% of respondents feel that greater process efficiency is their biggest challenge of the year.
- 25% state that business intelligence and analytics are their biggest challenges.
- 20% are concerned with improved supplier management and compliance.
SciQuest will be conducting a webinar on the survey results on January 26, 2017 11:00 AM EST.