Procurement Metrics That Matter in 2023

Andrew Bartolini | Founder & Chief Research Officer | Ardent PartnersJune, 2023 Underwritten by: Sponsor PageREPORT SPONSORSHIPThe views and opinions in this report represent those of Ardent Partners at the time of publication. Sponsoring companies have had no measurable influence on the content and research in this report. The contents of this research report are the exclusive property of Ardent Partners. Please direct any comments or questions regarding our research sponsorship policy to Ardent’s Chief Research Officer, Andrew Bartolini, at abartolini [at] ardentpartners.com and/or 617.752.1620.Sponsor: GEP delivers transformative supply chain solutions that help global enterprises become more agile and resilient, operate more efficiently and effectively, gain competitive advantage, boost profitability and increase shareholder value.Fresh thinking, innovative products, unrivaled domain expertise, smart, passionate people — this is how GEP SOFTWARETM, GEP STRATEGYTM and GEP MANAGED SERVICESTM together deliver supply chain solutions of unprecedented scale, power and effectiveness. Our customers are the world’s best companies, including more than 550 Fortune 500 and Global 2000 industry leaders who rely on GEP to meet ambitious strategic, financial and operational goals.Headquartered in Clark, New Jersey, GEP has offices and operations centers across Europe, Asia, Africa and the Americas. To learn more, visit www.gep.comContact Information:Phone: (732) 382-6565 Email: info@gep.comARDENT PARTNERS’ PROCUREMENT METRICS THAT MATTER IN 2023© Ardent Partners 20232RESEARCH WITH RESULTS About this eBookSince 2010, Ardent Partners has conducted more procurement-themed market research than any other firm or consultancy in the industry. In that time, Ardent has benchmarked thousands of distinct organizations across all aspects of their procurement programs. Ardent Partners’ Procurement Metrics that Matter in 2023 is a compilation of the industry’s best and most widely-used procurement industry benchmarks captured in Ardent’s annual state of the market report: CPO Rising 2023: CPO at the Crossroads, that published in April.ARDENT PARTNERS’ PROCUREMENT METRICS THAT MATTER IN 2023© Ardent Partners 20233RESEARCH WITH RESULTS IntroductionBusinesses focus on measuring their revenues and profits because they matter. These numbers are critical to employees, shareholders, customers, and suppliers alike, and represent the final “score” of a game played last quarter or last year. As such, businesses play the game to win, and Chief Procurement Officers are no exception. Procurement results matter, and in 2023, they will matter more to the enterprise. Measuring metrics helps track results.Ardent Partners presents the findings from its latest research effort in this eBook, which is part of the ongoing dialogue the firm has with global CPOs and other procurement leaders. While addressing the general competencies and capabilities of procurement organizations today and the top strategies and tactics that leading CPOs are using to combat deep-set uncertainty, this eBook also introduces the procurement industry’s “metrics that matter,” including the latest Best-in-Class results. This eBook’s contents are based upon the survey results of 341 CPOs and other procurement executives captured by Ardent Partners between January 2023 and March 2023.ARDENT PARTNERS’ PROCUREMENT METRICS THAT MATTER IN 2023© Ardent Partners 20234RESEARCH WITH RESULTS CPO at the CrossroadsThe events over the last three years have dramatically altered the global supply chain landscape, creating unprecedented challenges for procurement professionals. As the pandemic recedes and businesses drive forward, CPOs find themselves at a crossroads, facing critical decisions that will shape the future of their organizations for decades to come: How and when to unravel their global supply chains? How and when to truly achieve a digital transformation?Digital Transformation + AIRethink Global Supply ChainStatus QuoStatus QuoARDENT PARTNERS’ PROCUREMENT METRICS THAT MATTER IN 2023© Ardent Partners 20235RESEARCH WITH RESULTS 44% of All CPOs Have a “Great Deal” of Uncertainty Regarding 2023TALENTWARINFLATION COSTOFCAPITALSUPPLYCHAINDISRUPTIONSPervasive Uncertainty in 2023The perpetual state of uncertainty for procurement leaders that began with the global pandemic three years ago continues today. According to Ardent Partners’ annual “State of Procurement” survey, almost half (44%) of all CPOs are feeling a “great deal” of uncertainty about what will happen in 2023 and most express at least “some” level of uncertainty. Market and economic factors contribute directly to this feeling of unease as does the continual unraveling of longstanding institutions and societal norms, which have opened the door for extremists, catastrophists, and bad actors to gain more attention and promote their na