Cognitive Sourcing Survey 2019 And Maturity Model V4 - Final
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- 1.
To what extent does your organization leverage artificial intelligence (AI) in its procurement and supply chain processes today?
- A.
I don't know
- B.
No use
- C.
Limited use in one area only
- D.
Moderate use
- E.
Broad use in multiple areas
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- 2.
What are your plans for incremental investment in AI technologies in a procurement context?
- A.
I don't know
- B.
No plans
- C.
Minor investment to test ROI
- D.
Major investment within the next 24 months
- E.
Major investment within the next 12 months
-
- 3.
Sources of insight can include internal information, generated from enterprise systems, as well as external information sources. About what % of your Direct Materials spend is captured in your Spend Analysis systems or tools?
- A.
We extract data from our ERP to analyze Spend
- B.
Less than 50%
- C.
50-75%
- D.
75-95%
- E.
More than 95%
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- 4.
How often are your spend analysis and related sources of insights refreshed?
- A.
Annually (or less frequent)
- B.
Semi-annually
- C.
Quarterly
- D.
Monthly
- E.
Continuously
-
- 5.
How are your sources of insights integrated with your sourcing and RFQ systems?
- A.
Manual
- B.
Semi-Automated
- C.
Fully Automated (little or no manual operations)
-
- 6.
How do you use external sources of insight?
- A.
Track market indices for only our most strategic categories.
- B.
Track market indices for most or all relevant categories.
- C.
Market indices are analyzed by BI tools and supplemented by third party reports.
- D.
Market indices, analyst reports, and other sources are automatically fed into category-specific applications.
- E.
Category-specific applications are enabled by AI to provide and execute recommendations.
-
- 7.
How does your organization track current events in your market?
- A.
Informally through traditional media and publications.
- B.
Some automated alerts monitor our most strategic suppliers
- C.
Automated alerts setup for all suppliers.
- D.
Artificial Intelligence agents monitor alerts to provide and execute recommendations.
-
- 8.
What visibility do you get beyond Tier 1?
- A.
Virtually None
- B.
Limited Visibility
- C.
Good Transparency
- D.
Full Transparency
-
- 9.
How many suppliers (direct materials) are being actively managed by your organization?
- A.
Less than 150
- B.
151 - 400
- C.
401 - 1000
- D.
1001 - 1500
- E.
More than 1500
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- 10.
What percentage of these suppliers actively participate in a sourcing event / competitive bid at least one time per year?
- A.
Less than 20%
- B.
21% to 30%
- C.
31% to 50%
- D.
51% to 70%
- E.
More than 70%
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- 11.
What percentage of total direct materials spend is strategically sourced or managed vs. the "tail spend"? (Strategically sourced means a defined category strategy communicated to management and sourcing teams have a strong relationship with the suppliers.)
- A.
Less than 30%
- B.
30 - 50%
- C.
50 - 75%
- D.
75 - 90%
- E.
More than 90%
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- 12.
What is the frequency of scheduled sourcing events or RFQs per year?
- A.
Primarily ad hoc, not executed on a regular pre-defined schedule
- B.
Primarily Annual events with most suppliers
- C.
Quarterly events for key sub commodities or groups of suppliers.
- D.
Weekly events executed for key sub commodities or suppliers.
- E.
Continuous sourcing with suppliers or sub commodities as needed based on market conditions.
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- 13.
What percentage of your total suppliers participate in a sourcing event or competitive bid process at least once a year?
- A.
Less than 30%
- B.
30 - 50%
- C.
50 - 75%
- D.
75 - 90%
- E.
More than 90%
-
- 14.
How does your organization typically negotiate with suppliers? Please check all that apply.
- A.
Primarily price or cost-focused negotiations
- B.
Focus on long-term partnerships
- C.
Competitive situations are leveraged whenever possible (e.g. 2 or more suppliers compete for awards)
- D.
Target costs or external benchmarks are shared with suppliers
- E.
Cross-functional considerations (technology, risk, quality) are considered
- F.
Artificial Intelligence provides negotiation recommendations
-
- 15.
On average, how many calendar days does it take to conduct a strategic sourcing event from baseline collection to contract execution?
- A.
Less than 10 Days: We're integrated with suppliers and utilize an AI- enabled platform to automate many of the event tasks
- B.
10 - 30 Days: Most events are "two bids and a buy"
- C.
30 - 60 Days: We keep events small and digestible and utilize tools to ease baseline collection and analysis
- D.
More than 60 Days: Tools and techniques allow us to consolidate into fewer, much larger events that take more time to collect bids and obtain internal approvals
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- 16.
On average, how much time is spent collecting and preparing baseline data for a sourcing event?
- A.
Less than 2 days: Our systems are all integrated with data cleansed and maintained on a near continual basis, and our AI platform processes baseline preparation automatically.
- B.
2 - 5 days: Our systems are all integrated with data cleansed and maintained on a continual basis
- C.
5 - 15 days: Our events are very small and suppliers help provide the data
- D.
15 - 30 days: Data is extracted from a Spend cube and/or purpose-built category management tools, so a majority of the time is fine-tuning and getting stakeholder approval.
- E.
More than 30 days: Need to pull data from multiple sources, requires manual manipulation, then push into a reporting tool to gain stakeholder approval.
-
- 17.
On average, how much time is spent designing and building an RFx?
- A.
Less than 1 day: We are on stand-by to run an event on any given day given market conditions.
- B.
1 - 5 days: Our events are simple and we typically start from what was done previously.
- C.
5 - 14 days: We typically start from previous events / templates, but review for updates.
- D.
More than 14 days: We reference previous events / templates, but given the large scope of events we revisit and potentially redesign events.
-
- 18.
On average, how much time is spent evaluating bids and providing feedback to suppliers?
- A.
Less than 1 day: Our AI tools provide insights and analysis for Category Manager review, and distribute feedback.
- B.
1 - 5 days: Our events are limited in scope so we can typically churn through analysis and feedback quickly, albeit manually.
- C.
3 - 5 days: Our sourcing tools provide nice reports and collaboration tools to analyze bids, then make feedback fairly easy to distribute.
- D.
5-10 days: Our sourcing tools help aggregate bid information, but we analyze in a separate BI tool then distribute feedback.
- E.
More than 10 days: We run large events and although our category-specific tools help aggregate bid data and analysis, it takes time to interpret the results then distribute internally to prepare feedback.
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- 19.
On average, how much time is spent preparing for and conducting negotiations?
- A.
Less than 1 day: Our AI tools identify negotiation opportunities which are communicated to suppliers who we share an open-book relationship with.
- B.
1-3 days: Although we manually prepare for negotiations, the scope is limited so we're able to complete it quickly.
- C.
3-5 days: We extract the data from our sourcing tools to feed our BI tool and/or create our negotiation materials.
- D.
5-7 days: Our sourcing tools help identify negotiation opportunities.
- E.
More than days 7: We run large events and although our category- specific tools identify negotiation opportunities, it takes time to align internally and prepare for large-scale negotiations.
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- 20.
Who typically leads preparation for the overall commodity/category strategy?
- A.
The Category/Commodity Manager
- B.
The Category/Commodity Manager + supporting business analysts
- C.
Cross-functional alignment with input from manufacturing partners, engineering, supply chain, and finance
- D.
Automated commodity/category strategy digital playbooks sourced from an AI/cognitive platform?
-
- 21.
On average, how much time is spent making award decisions and gaining internal approvals?
- A.
Less than 2 days: Our AI tools aggregate bid data, provide data insights, and present those insights and recommendations to Category Managers to approve.
- B.
2 - 6 days: Although we manually analyze and award it goes fairly quickly because our events are limited in scope
- C.
6 - 10 days: Our final analysis is executed outside our sourcing system, then distributed to decision makers, and awards are made.
- D.
10 - 14 days: Our sourcing tools allow us to analyze and award quickly, so most of time is spent reviewing with stakeholders and gaining internal approvals.
- E.
More than 14 days: We run large events and although our category- specific tools help, it takes time to conduct final analysis to make award decisions, distribute those to stakeholders, and announce award decisions.
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- 22.
What Sources of Insight are typically utilized for negotiations? Please check all that apply.
- A.
Historic Data from enterprise systems (ERP, Business Intelligence, Spend Analytics)
- B.
Benchmark pricing for standard parts from distributors or third parties.
- C.
Contextual insights around supplier financial health, raw material input costs, foreign exchange, news sources.
- D.
Market intelligence from third-party research, analysts, published indices
- E.
Community insights from peer companies engaged with similar commodity groups or strategic suppliers
- F.
Data or research collected from company's supplier network
- G.
Attribute-based, bottoms up "should cost" models
- H.
AI-generated risks and opportunities
-
- 23.
What are the key challenges in your negotiation preparation and execution today?
- A.
Relevant benchmark/market trned data, poor supplier relationships
- B.
RFX solution to efficiently execute and manage bids, lack of negotiation skill/guidance
- C.
Unachievable targets
- D.
Challenging commodity market environments
- E.
Underlying business externalities (e.g. forex, tariffs/trade, cutstomer markets, global economy)
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- 24.
How would you evaluate the effectiveness of the procurement function as a partner in your organization?
- A.
Excellent - Procurement is well-regarded and is seen as a key business partner
- B.
Fair - Procurement has more influence with some functions than others
- C.
Poor - Procurement operates is silos and has difficulty collaborating
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- 25.
How involved is Supply Chain & Procurement in NPI?
- A.
1 (Limited or no input during design phase, operating in a silo)
- B.
2
- C.
3 (Visibility and input into development decisions and timelines)
- D.
4
- E.
5 (Full data consistency and visibility across all functions), supply chain participates in trade-off decisions
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Current Version
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Mar 13, 2023Quiz Edited by
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Aug 02, 2019Quiz Created by
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