WHITEPAPER

The Cognitive Sourcing Survey 2019

LevaData’s 3rd annual Cognitive Sourcing Survey compiles input from leaders at companies across the high tech, industrial, consumer, life science, chemical, and automotive industries. Combined, our participants manage between $800 billion to $1 trillion in direct material spend annually.

Key Learnings

Deeper Dive

Update of last year’s study with new questions and additional topics

$800 Billion

Combined annual direct spending among survey participants

Multiple Industries

Participants represent high tech, industrial equipment, high tech, automotive, life sciences, and consumer products

RajeshKalidindi_v3

Rajesh Kalidindi

Founder & CEO, LevaData

People know that digital disruption in the supply chain is already underway. Given this, we were greatly surprised to learn how many procurement managers are still using outmoded management tools. As more companies implement AI-powered strategic sourcing technologies, those that don’t will find themselves at a crippling disadvantage.

A Significant - and Widening - Performance Gap

This year’s survey showed that an increased number of manufacturing executives are making steady progress towards digital transformation, and the ones that aren’t are falling further behind.

Strategic Control

Average organizations engage in competitive bids with just 41% of their suppliers at least once a year, while best in class organizations actively cover over 80% of their supply base at least once annually

RFQ Cycle Time

Best in class organizations are completing the RFQ process in a few days, giving them a one month advantage over average organizations

Sourcing Event Frequency

The study measures how best in class organizations outperform their peers by holding regular discussions with suppliers, versus semi-annual events

Management Tools

Best-in-class organizations increasingly use integrated market intelligence systems, versus siloed tools

Cross-Functional Collaboration

Best in class procurement organizations engage in cross-functional collaborative decision making

Donald Farmer

Donald Farmer

Principle, TreeHive Strategy

The real gap, and the real opportunity here, is to enroll more sources of insight from outside the organization, integrating them with historical data and internal insights, and then applying them to new and developing negotiation strategies. Organizations now have access to a much wider scope of information that is potentially relevant to sourcing decisions they make.

USA

LevaData, Inc.
60 S Market St
Suite 700
San Jose, CA 95113


INDIA

LevaData Software Solutions Pvt Ltd
Level 4, Block 1
Cyber Pearl
Hitech City, Madhapur
Hyderabad – 500081