Procurement steps up its game (Determine)
Is Spend Under Management a “Has Been?”
In this, the third of our four-part blog series for the release of CPO Rising 2018: The Age of Intelligence, Kelly Barner of Buyers Meeting Point delves into the myriad facets of Procurement Performance in Chapter Three. There’s no debate that the importance and influence of procurement is on the rise across industries, but the question is, are procurement’s metrics – like spend under management – truly representative of those accomplishments?
This year’s CPO Rising 2018: The Age of Intelligence report ends the chapter on procurement performance with a compelling reflection point offered up by the report’s authors. They write about the role that spend under management has played in the perception and measurement of procurement maturity. For the analysts at Ardent Partners, spend under management has not only been central to their models and evaluation of best practices, it has been a “powerful comparative metric that can be uniformly applied to procurement organizations no matter their size, vertical or region.”
The phrase “…has been…” says it all. The question on the table is whether spend under management is still a representative performance metric, one that is able to reflect procurement’s financial contributions, strategic effectiveness, and operational priorities.