Since 1992, A.T. Kearney has performed a series of studies to explore the trends, business developments and emerging issues surrounding procurement. For 10 years, we have seen leading companies transform a transaction-based business necessity into a strategic weapon with the potential to deliver significant competitive advantage. These leaders use marketplace knowledge and supply relationships to create value via innovation, growth and cost leadership. They have broadened the scope of activities beyond traditional procurement, so that the term of choice has become supply management.
This paper begins with a brief summary of the results from A.T. Kearney’s 2002 Assessment of Excellence in Procurement (AEP) study, the first study to examine the impact of e-supply management on large enterprises across the globe. We discuss the sources of value from supply management, and how e-tools can unlock additional value. Also, based on our findings, we describe the characteristics that distinguish the leading companies in e-supply management from all others. Finally, we explore the future of e-supply management: what lies ahead for the users, the providers and the technologies.
Editor’s Note: though conducted in 2002, much of the analysis is of long-lasting value; there is a lot of good information in this report.