Procurement organizations are struggling to define, quantify and ensure savings hits the P&L
In a survey of 100 Procurement Foundry members, respondents report a general belief that “both systems and reporting structures are not aligned to support” proper and effective tail spend monitoring—which negatively impacts the P&L.
As a result, this toxic combination of a lack of resources and systems as well as reporting misalignment manifests a real challenge for procurement professionals to be strategic, let alone take the lead in managing the more complex categories of tail spend.
What We Found
61%
of respondents reported resources are not in place to deliver expected results
42%
of respondents “don’t know or don’t believe their definition of savings is properly ‘aligned’ to deliver optimal P&L impact”
38%
of respondents said savings is rewarded “as P&L impact is realized,” revealing a significant majority get rewarded for savings without assurance it actually materializes