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Did You Know? Six Unexpected Procurement Facts.

RiskSupplier relationship managementCorporate social responsibilityCategory managementTalent and LeadershipBlog+-

Here are six interesting stats and facts from around procurement that you didn’t know last week.

1) The Swiss get paid the most

 

Which country would you have to move to seriously bump up your earnings? Switzerland, according to the 2016 Procurement Leaders Salary Survey. The research revealed that those procurement professionals living and working in Switzerland commanded the highest salaries. But, before you put the house on the market, take the kids out of school and book your flights the research also reveals that many others still have a high weighting of salary.

2) 4% is the average profitability of an airline

 

The airline industry is one tough cookie. Margins are fine, consumers demand a high-level of service and geopolitical or commodity market shocks can rock the industry to its core. It has been revealed that full-service airlines are still only enjoying relatively low profit margins, according to IATA. It was found that the average profitability of the airline industry is 4%, however, this is taking into account low cost airlines who tend to skew the results, with Ryanair achieving an 18.4% operating profit for 2015.

3) Single sourcing is still being used in the automotive industry

 

Toyota was forced to shut down production this month after an explosion at a steel factory exposed a point of single sourcing within its supply chain. This isn’t the first time the Japanese carmaker has been stung by supply chain disruptions though and continues to raise questions about running lean supply chains without contingency plans in place for key sources of supply.

4) CPOs are seriously worried about a skills shortage

 

A worrying 62% of CPOs reported not having the skills and capabilities within their teams to deliver their strategy, according to research by Deloitte. The question is: are the strategies underestimating the talent market, or are the other 38% just better at attracting and developing the resources they need?

5) Tesco is striving to change its supplier reputation

 

83 out of 128 suppliers refused to talk to pollsters about their views on their supermarket clients. Tesco, which has come in for criticism recently for the way it has treated suppliers in the past, is trying to completely change its approach but could ultimately be hindered by the very nature of the consumer goods sector.

6)The number of digital marketing suppliers has exploded

 

Between January 2014 and January 2015, the number of digital marketing suppliers doubled worldwide, growing from 947 suppliers to 1,876, according to Scott Brinker, editor of the Chief Marketing Technologist blog. It will become increasingly important in the coming years for procurement to collaborate with internal marketing teams to fully understand the businesses’ requirements within this category and choose suppliers based on that.

 

Members can access Procurement Leaders exclusive content here while non-members can also find out more about membership packages.

Jon Webb
Posted by Jon Webb