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Other top priorities revealed include:
- Improving Cost Reductions and Savings (60%)
- Revenue Growth and Profit Improvements (30%)
- Risk Management (28%)
- Procurement Transformation (23%)
- Supplier Performance and Sustainability Management (23%)
- Supplier Collaboration and Innovation (19%)
- More Spend Under Management (19%)
- Improve Working Capital (15%)
- Compliance with Customer Requirements (14%)
- Procurement Organization Costs (9%)
ISM analysts report that supply chain executives are targeting the fundamentals including improving cost reductions and savings, revenue growth and profit improvements, and risk management. Interestingly, analysts found that although more than 90% of respondents report they measure total savings as a percentage of spend, 25% or more don't measure the savings from RFX processes, collaborative sourcing initiatives, and other methods of controlling spend.
In the area of revenue growth and profit improvements, analysts found that incremental improvements of only 10% or 20% were targeted by initiatives aimed at these improvements. As for risk management, only 50% of respondents were prepared to mitigate reasonable levels of general supply chain management, supplier financial and operational risks.
Here are a few more details from the ISM survey.