PHOENIX, AZ--(Marketwired - Apr 29, 2015) - Investments into sourcing operations are paying off substantially for retailers, grocers and restaurants, according to a new industry survey of procurement executives and practitioners, conducted by Intesource. In fact, 62 percent of the procurement and sourcing professionals surveyed by Intesource report that their sourcing strategy has a direct and positive impact on company margins, profitability, working capital and cash flow.
"In industries with historically tight margins, achieving optimal sourcing performance is vital in creating a healthy balance sheet and offering quality products," said Brian Miller, VP of Services at Intesource. "Our customers continue to see lasting and meaningful business value and quality improvements from their e-sourcing programs."
For grocers, retailers and restaurants, the benefits of e-sourcing extend well beyond maintaining a healthy balance sheet. Of the procurement and sourcing executives surveyed by Intesource, 58 percent said that their sourcing strategy aids in the tracking and reduction of capital expenditures, and 46 percent reported that their sourcing programs help their organization find new money that can be invested into strategic company initiatives.
Additionally, e-sourcing continues to have a direct impact on the functional level. According to Intesource's survey:
- 77 percent of organizations experience lower costs and achieve better savings through e-sourcing
- 62 percent report that e-sourcing improves efficiency and enables the internal team to focus on more strategic initiatives
- 58 percent find that e-sourcing opens the door to new supplier relationships
Skill Gaps and Internal Resource Challenges Remain
Despite the financial and functional benefits of e-sourcing, some organizations still aren't leveraging e-sourcing to its fullest capacity. When asked for the top internal challenge preventing their departments from running more events, 31 percent identified uncertainty around the categories they should take to auction and 27 percent reported a lack of organization-wide support for e-sourcing. Nearly 20 percent identified limited internal resources as the primary roadblock, and nearly 10 percent said the primary obstacle was a lack of qualified suppliers.
"At most retailers and chain restaurants, the procurement and sourcing teams operate with limited resources, which creates a constant battle around how to best utilize internal staffing capacity," said Miller. "While the obstacles highlighted in our survey are very real, there's an easy solution for most of them. To drive top sourcing performance, organizations need a partner that acts as an extension of their team -- providing category guidance, supplier intelligence, e-sourcing best practices, and most importantly, experienced human capital to help manage more sourcing projects."
Concern over talent gaps and skill development have been top-of-mind for most procurement leaders in 2015. When asked to assess their procurement team to identify the biggest talent gaps, data analytical skills (50 percent) were in highest demand. Additional talent gaps include category expertise (identified by 35 percent of survey respondents), innovation and collaboration skills (35 percent) and negotiation skills (15 percent).
On the positive side, more procurement and sourcing teams are being viewed internally as a strategic business function. According to Intesource's survey:
- 23 percent are viewed internally as a highly strategic entity, with the executive team very engaged and invested in the program
- 42 percent are viewed internally as strategic, with a solid level of executive support and enablement
- 12 percent are viewed internally as strategic, but lack executive support
- 19 percent are still viewed tactically, with a lack of internal champions outside of the procurement department
For more information on procurement and sourcing trends in the grocery, retail and restaurant industries, check out Intesource's latest report, Sourcing Innovation Insights.
About Intesource, a PROACTIS Company
Companies are caught between two opposing goals: drive cost savings or invest in innovation. Both require people, technology, and expertise in a time when resources -- and the skills and time required to source effectively -- are scarce.
Intesource eliminates operational headaches from the sourcing equation by offering the industry's only enterprise wide, unlimited, full-service e-sourcing package. Intesource's turnkey approach to e-sourcing consistently drives double-digit savings without requiring additional staff or process overhauls -- an approach that saves valuable time and frees up staff to focus on strategic initiatives.
With a history of success in the most challenging sourcing climates, and expertise in both direct and indirect categories, Intesource ensures that buyers are getting the best value every single time. Learn more at www.Intesource.com.
Contact Information:
Media contact:
Abigail Holmes
617-969-9192