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.
Update of last year’s study with new questions and additional topics
Combined annual direct spending among survey participants
Participants represent high tech, industrial equipment, high tech, automotive, life sciences, and consumer products
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.
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.
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
Best in class organizations are completing the RFQ process in a few days, giving them a one month advantage over average organizations
The study measures how best in class organizations outperform their peers by holding regular discussions with suppliers, versus semi-annual events
Best-in-class organizations increasingly use integrated market intelligence systems, versus siloed tools
Best in class procurement organizations engage in cross-functional collaborative decision making
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.
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