Assessment of Excellence in Procurement Study, 2014

The rush to cut costs in the wake of the 2008–09 Great Recession propelled procurement organizations to the forefront at companies around the world.

Faced with so much uncertainty, companies raced to shed costs - and procurement rose to the challenge, delivering exceptional results.

With this came an increase in procurement’s stature, influence, and reach. A.T. Kearney’s Assessment of Excellence in Procurement (AEP) 2011 study saw a doubling in the rate of benefits achieved by the procurement functions since the 2008 study, yielding the highest percentage gains seen in the more than two decades since we began conducting this study.

This year’s study finds that:

• Leading companies get twice as much measurable cost reduction as typical companies, while capitalizing on their supply base for competitive advantage through supplier-driven innovation, risk management, and other means.
• Since 2011, progress in the typical company has leveled off, leaving executives to ask: “What’s next for procurement?”
• Leaders use procurement as a catalyst to drive durable superior business performance through excellence in managing categories, suppliers, and teams.
• Companies that adopt the procurement practices that separate the best from the rest will have a much brighter future. The time is now for procurement to reassert its position as a critical value driver.