Logistics Spend Management Survey: Ariba Research Identifies 2007 Spend Management Priorities And Challenges
Logistics and Transportation purchasing professionals march to the beat of a different drummer, according to a survey of more than 550 companies released by spend management company Ariba.
Where most of the other 14 industries surveyed ranked "Delivering Measurable Results" as their number one objective, Logistics and Transportation is most concerned about analyzing spend data and continuously improving spend processes.
Logistics and Transportation was also one of three industries (out of 14 total) that ranked "Ensuring High Quality Implementation" in its top 10 priorities. Following are the top five priorities (percentages of survey respondents that rated these priorities a "7" or greater on a scale of 10 in terms of importance):
- Accessing and analyzing spend data (93% rated it "7" or greater on a scale of 10)
- Establishing consistent, efficient processes (93%)
- Building internal commitment (93%)
- Ensuring User Adoption (86%)
- Ensuring high quality implementation (86%)
Compare The Above Survey Results With The Other 14 Industries Surveyed
Global survey of leading procurement executives finds delivering measurable results top business objective
What's top of mind among procurement executives as they prepare for 2007? According to a global survey conducted by Ariba®, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, delivering measurable results and accessing and analyzing spend data are at the top of the list.
"As the creator and leader of spend management, Ariba is focused on identifying and addressing emerging issues that companies are facing as they transform procurement and sourcing functions to help them achieve strategic goals of resource provisioning, strategy execution and risk management," said Christine Crandell, Vice President of Marketing, Ariba.
Spend Management Priorities
Leveraging its global roster of blue-chip customers, Ariba polled more
than 550 procurement professionals representing diverse industries,
roles, company sizes and geographic regions to understand their goals
for the coming year. For the second consecutive year, delivering
measurable results ranked as the number one priority among
respondents.
"Companies of all types and sizes clearly view spend management as a strategic initiative and key to their future success," said Hari Candadai, Senior Solutions Marketing Manager, Ariba and author of the Ariba report. "Looking ahead to 2007, companies will place increased emphasis on generating real, measurable results that translate to profitability improvements."
Accessing and analyzing spend and building internal commitment also ranked high among the objectives of those surveyed.
"Companies that are serious about spend management recognize the importance of understanding what is being purchased from whom and how these purchases align with the organizational goals," Candadai added. "And they are keenly aware of the need to drive awareness at different levels to secure the support, investments and adoption necessary for their initiatives to succeed."
The Top Ten
Among the top ten spend management priorities identified by
participants in the Ariba global survey:
- Delivering measurable results
- Accessing and analyzing spend data
- Completing projects on time and within budget
- Building internal commitment
- Establishing consistent, efficient processes
- Defining a spend management strategy
- Supporting multiple business units / geographies
- Managing strategic commodities
- Ensuring compliance with established processes
- Increasing the effectiveness of supplier relationships
Spend Management Challenges
Over 75 percent of respondents to the Ariba survey were chief
executive, vice president, manager or director level and represented
companies headquartered in the Americas, Europe, Asia Pacific/India
and Middle East/Africa. In addition to outlining their priorities,
survey participants also identified the most pressing challenges they
will face in driving spend management initiatives in 2007. The number
one issue among those polled was expanding the scope and reach of
their spend management programs without adding resources.
"Procurement executives are being asked to extend the boundaries of spend management both functionally and geographically to maximize the returns on their procurement and cost initiatives," Candadai noted. "But in most cases, they are not being given additional resources with which to do it. So they must be creative in their approach."
Gaining visibility into spend remains a significant challenge as well, ranking in the top three for the second year in a row.