The 2018 Cognitive Sourcing Study 2019-06-20T21:29:03+00:00

The 2018 Cognitive Sourcing Study

This updated survey compiles input from procurement executives in medium and large manufacturing firms who oversee a combined $920 billion in direct material spending.

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Deeper Dive

Update of last year’s study with new questions and additional topics

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$920 Billion

Combined annual direct spending among survey participants

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Multiple Industries

Participants represent high tech, industrial equipment, high tech, automotive, life sciences, and consumer products

“People know that digital disruption in the supply chain is already underway. Given this, we were greatly surprised to learn how many procurement managers are still using outmoded management tools. As more companies implement AI-powered strategic sourcing technologies, those that don’t will find themselves at a crippling disadvantage.”

Rajesh Kalidindi
Founder & CEO, LevaData

Rajesh Kalidindi

A Significant - and Widening - Performance Gap

This year’s survey showed that an increased number of manufacturing executives are making steady progress towards digital transformation, and the ones that aren’t are falling further behind.

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Strategic Control

Average organizations engage in competitive bids with just 41% of their suppliers at least once a year, while best in class organizations actively cover over 80% of their supply base at least once annually

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RFQ Cycle Time

Best in class organizations are completing the RFQ process in a few days, giving them a one month advantage over average organizations

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Sourcing Event Frequency

The study measures how best in class organizations outperform their peers by holding regular discussions with suppliers, versus semi-annual events

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Management Tools

Best-in-class organizations increasingly use integrated market intelligence systems, versus siloed tools

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Cross-Functional Collaboration

Best in class procurement organizations engage in cross-functional collaborative decision making

“The real gap, and the real opportunity here, is to enroll more sources of insight from outside the organization, integrating them with historical data and internal insights, and then applying them to new and developing negotiation strategies. Organizations now have access to a much wider scope of information that is potentially relevant to sourcing decisions they make.”

Donald Farmer
Principle, TreeHive Strategy

Donald Farmer

© 2018 LevaData