CEOs and CFOs know supply management is critical to business performance. But most CXOs either don’t know what world class procurement is or they don’t think they have it. Our experience shows that over one-half of company executives don’t trust reported savings from procurement–but when they do and commit to fully unleashing the energy of their organizations and suppliers–their procurement teams get twice the cost reduction and deliver strategic value beyond cost in areas such as innovation and risk management. This positions these business leaders to capture and reliably sustain superior business performance.

1. Durable Supply
Advantage
Unleashing Value from
External Spend
#SupplyAdvantage

2. #SupplyAdvantage
Procurement
remains one
of the biggest
bottom-line
improvement
levers for any
executive
Durable Supply Advantage

3. #SupplyAdvantage
Each 1% increase in
procurement performance
creates a roughly
4% bump in EPS
Durable Supply Advantage

4. #SupplyAdvantage
Procurement has not
lived up to its potential
at many companies
• Sourcing strategies fizzle out
• Teams give up on technology
• Results are not tracked
Durable Supply Advantage

5. #SupplyAdvantage
The best companies manage
three things exceptionally
well: categories, suppliers,
and procurement teams
Durable Supply Advantage

6. #SupplyAdvantage
Category Excellence:
generate powerful cost
reductions using the
latest analytical tools
and strategic sourcing
approaches
Durable Supply Advantage

7. #SupplyAdvantage
Category management
leaders deliver twice
the cost reduction
of typical
companies
Durable Supply Advantage

8. #SupplyAdvantage
Supplier Excellence:
unleash supplier energy
to drive innovation,
speed to market,
sustainability, and
supply risk management
Durable Supply Advantage

9. #SupplyAdvantage
Supply management
leaders increase
value by more
than 10%
across the
extended
value chain
Durable Supply Advantage

10. #SupplyAdvantage
Team Excellence:
equip the
procurement team
with the capabilities
and tools to make
changes stick
Durable Supply Advantage

11. #SupplyAdvantage
Leaders in team excellence
can achieve annual
returns of up to 7:1
Durable Supply Advantage

12. #SupplyAdvantage
A.T. Kearney continues
to innovate to create
Durable Supply
Advantage
Durable Supply Advantage

13. For more information
on A.T. Kearney’s
Durable Supply Advantage:
www.atkearney.com/procurement/
durable-supply-advantage
#SupplyAdvantage