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
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
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 (Global Headquarters)
LevaData, Inc.
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Suite 600
San Jose CA 95113
+1 (408) 899-8289
INDIA
LevaData Software Solutions Pvt Ltd,
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The Sky View, Hitech City Main Road,
Hyderabad – 500081
+91 40 6819 8999