CFOs question performance and benefits delivered by procurement teams

Posted On 22 Aug 2014
Comment: Off

In a combined initiative designed to bring common value management visibility and practices to the procurement profession, three organisations” The Chartered Institute of Purchasing and Supply, A.T.Kearney and the Institute for Supply Management” have issued the results of the inaugural ROSMA Performance Check Report. The Return on Supply Management Assets (ROSMA) Performance Check Report was developed to establish a uniform measurement of procurement’s value delivery to a given organisation. Entitled ‘Building the Brand of Procurement and Supply’, the report finds that leading procurement teams are indeed delivering significant value to their organisations. However, without a credible standard allowing companies to consistently track and score procurement activities, many CFOs are now beginning to question the performance of” and the benefits delivered by” their procurement teams. In what is an independent survey of CFOs and financial function leaders, the extensive study highlights that only 10% of procurement functions have established recognition with their CFOs regarding how procurement contributes value to the host business and that the benefits are both real and measurable. The report is distilled from more than 400 completed, qualified and accepted cumulative benchmarks along with over 170 submissions focused on 2013 results. Contributors participated in the benchmarking through ROSMA Performance Check gateways located within the CIPS and ISM websites as well as via A.T.Kearney’s 2014 study entitled: ‘Assessment of Excellence in Procurement’. A.T.Kearney also contracted independent research to address the CFO community’s view of procurement. Joe Raudabaugh, A.T.Kearney partner and co-author of the ROSMA Performance Check Report, stated:” There are many opportunities to change the brand of procurement across the profession and within our enterprises, and to attract, develop and sustain best athlete-calibre talent. Adopting value management practices is necessary for the future.” David Noble, Group CEO at CIPS, noted:” There’s no doubt that the profession has to be seen as supporting the strategic aims of the enterprise and to have relevance to its goals and successes. We must be able to demonstrate value in a quantitative way.” Focus on the main study findings The inaugural ROSMA Performance Check report findings were developed through the survey responses of hundreds of companies. ROSMA is a revolutionary performance measurement standard that’s helping companies around the world to understand and measure how procurement contributes financially to the business. Key findings of the new study are as follows: ‘

About the Author
Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications) Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting. In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector. In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute's George van Schalkwyk Award. An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award. Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site. Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media. Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014 and as Editor of The Paper (Pro-Activ Publications' dedicated business newspaper for security professionals) in September 2015. Brian was appointed Editor of Risk Xtra at Pro-Activ Publications in May 2018.