CHICAGO--(BUSINESS WIRE)--For the first time ever, procurement and finance leaders can dynamically benchmark their sourcing and spend management performance against industry peers. Powered by a data repository of over 125 million transactions and $140B in spend, Sievo’s new Dynamic Benchmarking solution, launched today, provides procurement organizations with unparalleled, real-time insight into category performance, peer benchmarks and critical financial metrics, including supplier payment terms, number of suppliers accounting for 80 percent of spend, spend as percentage of revenue and per employee, and more.
“Procurement has been striving to create real competitive advantage for years – but historically, CPOs have lacked the necessary insight to measure performance against industry norms,” said Sammeli Sammalkorpi, co-founder and VP of customers at Sievo, the procurement analytics company. “Sievo’s new Dynamic Benchmarking capability will revolutionize procurement performance by providing procurement leaders with insight into how they are performing, where they are falling behind and opportunities to lead the market.”
While static procurement benchmarking has been available in the market for some time, it typically requires costly and time-consuming consulting engagements, and only provides a high-level overview. By integrating dynamic benchmarking into its spend analysis suite, on-demand, Sievo is equipping organizations to monitor performance metrics, financial gaps and sourcing opportunities in real-time, and drill down to a level of detail that enables procurement to act on those opportunities.
“We’re enabling procurement leaders to more intelligently, quickly and efficiently set targets, prioritize strategic opportunities and adjust their sourcing strategies to generate more value and savings,” said Sammalkorpi. “Benchmarks have existed for a while – however, they’ve been too high-level to really drive action. The real differentiator of our Procurement Benchmarking Service is that now you can drill-down to sub-category and country specific details, enabling not only opportunity identification but also quick actions. Analytics that do not lead to actions are useless.”
Sievo’s Dynamic Benchmarks are built leveraging both internal and external data sets – including transactional ERP data and Sievo’s proprietary spend data, but also supplier information, credit ratings, currency rates, publicly-traded commodities, risk and CSR profiles, to mention a few. Customers can benchmark by peer group, industry or category across a variety of KPIs, including supplier counts, spend as a percentage of revenue, indirect spend per employee, purchase order coverage, payment days and more.
In addition to the Dynamic Benchmarking functionality available to customers in its spend analytics platform, Sievo will publish quarterly industry-specific reports for public consumption that track how KPIs and benchmarks shift over time. The first two reports – Consumer Packaged Goods and Manufacturing – provide detailed, industry-specific benchmarks for indirect procurement. Strategic insights from the October 2018 manufacturing report include:
- Facilities spend per headcount has increased significantly – by 34 percent from 2015 to 2017 –driven by increased spend in recycling and waste management
- The number of suppliers across indirect categories has grown the fastest in utilities, with a 39.1 percent increase
- Payment terms have improved the most in utilities, led by the oil, heat and electricity sub categories
- Marketing spend per headcount has gone down by 12 percent, mostly due to a drop in overall spend per headcount in market research and media buying
For more information about Sievo’s market-leading procurement analytics solution, or to download the industry benchmark reports, visit sievo.com/procurement-benchmarking.
Sievo is a leading procurement analytics SaaS-based solution company that helps the world’s leading businesses understand and create business value by enabling them to take control of all procurement information with the leading Spend Management solution offering best-of-breed software, world-class services and value-added content. Sievo provides spend visibility but also goes way beyond that. We help our clients identify opportunities, translate these opportunities into projects, embed created value into budgets and ensure that savings truly hit the bottom line. For more information, visit sievo.com, or find us on Twitter @Sievo.