- A.T. Kearney, the Institute for Supply Management and the Chartered Institute of Procurement and Supply on Tuesday released the 2016 Return on Supply Management Assets (ROSMA) report, which evaluates the skills and performance indicators that make a good procurement professional.
- The related, free and online ROSMA Performance Check Study divides professionals into three tiers, from high-performing to low-performing, based on the value they deliver to stakeholders.
- The study notes a high-performing procurement team should: be recognized by stakeholders as valuable; be accountable to stakeholders; have well-defined performance metrics; work closely with finance; be understood by the C-Suite; contribute to financial results, and add seven times its costs in value to the company.
The notion that procurement is anything less than a key player in any company is not only inaccurate, but also self-defeating. Yet, a recent survey of 500 procurement professionals by AC Associates found 48% believe their bosses do not "get" what procurement's role is, while 55% felt they were treated as a "support" role, Supply Chain Digital reports.
While diminishing the role or importance of procurement excellence could result in poor performance for the company as a whole, the ROSMA performance check can help procurement teams self-evaluate performance and make companies realize the role's importance.
"Sharing performance goals, outcomes and external benchmarking comparisons drives collaboration and enhances talent development," Joseph Radabaugh, a partner at A.T. Kearney and one of the authors of the ROSMA study told Supply Chain Dive. "Clarifying how procurement adds value is critical in establishing expectations with stakeholders for what they should expect (process, timing and results) from a well-managed procurement team."
The study finds a properly valued procurement team can potentially earn back more than seven times its costs. Companies that empower their procurers can benefit through well-negotiated deals with suppliers, increased agility in times of disruption and greater financial health.