Research Identifies Industry-specific Best Practices and Trends in Procurement
Jacksonville, FL; June 13, 2013—ProcureAbilityTM announces completion of a groundbreaking benchmarking study focused specifically on United States financial services organizations, including banking, insurance, and specialty finance. The study’s purpose is to identify industry-specific best practices and trends in procurement, and to quantify key operational metrics for comparison among participants.
“We invited a diverse group of senior procurement executives from the financial services industry to get their perspectives and strategic insights—to capture the pulse of this ever-changing industry,” said John Evans, managing partner of ProcureAbility who spearheaded the study. “We evaluated participants’ companies on approximately 40 quantitative benchmarks and qualitative practice points. We also looked at three specific themes, including value creation—practices and metrics relating to procurement’s ability to generate value to the organization; operational excellence—practices and metrics relating to procurement’s ability to operate an efficient and cost-effective operation; and finally, growth strategies—trends and anticipated changes in the procurement landscape going forward.”
The financial services industry is a robust and dynamic business sector with 59 trillion dollars of assets in the U.S. alone. Some of the trends found by ProcureAbility in the benchmarking study include the following.
- Spend on technology is expected to continue rising.
- Outsourcing is expected to remain prevalent to help reduce costs.
- The industry remains highly competitive and fragmented and continues to see a rise in demand.
- The industry has a strong regulatory presence that continues to create uncertainty.
“Data was compiled and customized benchmark reports were shared with participants, showing exactly how their organization ranked against peer organizations,” continued Evans. “Findings have demonstrated the significant value that is being driven by procurement within the financial services industry.”
While privileged data can’t be shared with nonparticipants, some of the key summary findings of the report include the following.
- The average participant spends 2.1B dollars per year, with 66% of that actively managed by procurement organizations.
- On average, procurement costs are 31 cents per dollar spent.
- Top categories of spend include: IT/telecom, real estate and facilities, temporary and professional services, marketing, and HR/employees.
- On average, participants return 9.4 times their cost in savings each year.
To receive the full range of benchmarks, participation in the benchmarking study is required. There is no cost to participate and participants receive a customized benchmarking comparison report. All information is kept strictly confidential.
To participate in ProcureAbility’s financial services benchmarking study, contact John Evans at firstname.lastname@example.org.
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