Procurement performance: Voice of the Stakeholders

This is an excerpt of the original article. It was written for the January-February 2017 edition of Supply Chain Management Review. The full article is available to current subscribers.

January-February 2017

Transformation is a topic that comes up in almost every conversation I have with supply chain managers these days. Executives from companies as diverse as J&J Vision Care, the division of Johnson & Johnson that manufactures contact lenses, and Thrive Markets, a startup selling health and wellness products to its members, have talked about how they have had to remake their supply chains to meet new customer demands. Transformation is also the theme of this issue of SCMR.

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The A.T. Kearney 2016 ROSMA Performance Check Report, “So, This is What Good Looks Like,” details what customers say about their procurement team’s performance. The report includes a Voice of the Stakeholders segment that captures the views of non-financial, non-procurement executives about the performance of their procurement organizations. With the addition of the stakeholders research we now have three comprehensive views on procurement performance—CPOs self-reporting, CFOs and stakeholders.

The view among stakeholders is mixed when asked about the value procurement delivers as well as why and when procurement is engaged. There are five well-defined and differentiated performance segments: Leaders, Leaners, Strugglers, Inconsequentials and the Pack.

The good news is that some teams—the top 15%, or Leaders and Leaners—have built strong brands with their procurement stakeholders. This finding is very similar to the verdict of CFO and finance stakeholders (as reported in our 2014 and 2015 reports) and in line with CPOs who report top-quartile ROSMA performance.

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