CFO Research: Supplier Programs Powered by Procurement & Contract Management Software Drive Better Results

Optimum
Tuesday, December 21, 2010
Posted by Kevin Potts at 4:34 AM 

CFOs from 200 of the Fortune 1000 leverage strategic procurement and contract management software for rapid ROI and competitive advantage. Are you one of them?

I’m not a CFO, but I deal with one daily. Brad Miller, our CFO, always asks for external benchmarks when I tell him how I want to spend the marketing budget. Can you believe that? He tells me he is just doing his job – making sure Emptoris gets the best return for each marketing dollar. I want to respond, “Brad, don’t let me confuse you with the facts…I already know where to spend the money.” But, I know better.

If you are a CFO and want accurate, reliable information that justifies how your supply management programs will yield the highest return, then we have a holiday gift for you.

We recently sponsored a CFO Research survey of CFOs and senior financial executives at Global 1000 companies to benchmark the financial impact of supply management vendor performance.

The conclusion of the report Supplier-Side Economics, Making Vendor Relationships an Enduring Source of Competitive Advantage is clear: companies with a strategic supply management program that employ technology achieve greater savings, which leads to improved bottom-line results.

Here are some of the findings:

• A strong majority of companies that have adopted new technologies for supply management reported savings of 5% or more in their spending on materials and services.
• Similar results were reported when procurement functions were centralized: 41% of respondents who completed a centralization campaign reported savings of 5% or more in spending on materials and services.
• The survey also revealed room for improvement. While 70% of respondents say they conduct a regular, documented review of suppliers, a closer look revealed that they rely on ad-hoc rather than structured procedures.

To learn more about these findings:

1. Click here to download your complimentary copy of Supplier-Side Economics, Making Vendor Relationships an Enduring Source of Competitive Advantage.
2. Tune in to hear to the on-demand webcast featuring CFO Research and Deloitte Consulting for a deeper examination of the research findings.