The document summarizes research findings on spend management practices of Fortune 100 companies. It finds that only 39 companies have higher profit margins than their industry standards, and a small percentage have procurement executives or include suppliers in corporate social responsibility programs. While CEOs prioritize emerging markets, few companies have executives from emerging countries. The key recommendations are to establish chief procurement officer roles, engage more with emerging markets and suppliers, pursue spend management innovation, and get involved in sustainability activities.

1. Procurement
Practices
WHAT EVERY COMPANY NEEDS TO KNOW ABOUT
SPEND MANAGEMENT PRACTICES IN
FORTUNE 100 COMPANIES

2. We researched the Fortune 100
companies to determine their spend
management and sustainable
supply chain practices

3. ONLY 39 COMPANIES
HAVE BETTER EBITDA MARGIN
THAN THEIR INDUSTRY’S STANDARD.
AND OF THOSE…

4. Have board
21% members with
procurement or
supply chain
backgrounds
BUT ONLY …
5%
Have Chief
Procurement
Officers

5. SPEND MANAGEMENT IS A PUBLICLY-STATED,
KEY STRATEGIC OBJECTIVE FOR 47% OF CEOs

7. 
 4 FORTUNE 100 COMPANIES HAVE A
CHIEF PROCUREMENT OFFICER





 31 COMPANIES HAVE A VP-LEVEL
PROCUREMENT EXECUTIVE







8. CPOs CAN HAVE A SIGNIFICANT IMPACT ON
THE BUSINESS BUT IT’S NOT BEING
COMMUNICATED… …AND
THEY’RE
NOT VISIBLE

9. Companies that include suppliers in
their Corporate, Social and
Environmental Responsibility (CSER)
programs…
…tend to have a
higher net income margin
than those who do not

11. CEOs see emerging markets as a
key strategic objective

12. …AND 15% HAVE EXECUTIVES
FROM BRICS COUNTRIES ON THEIR
MANAGEMENT TEAM

13. Our
Findings
• LIMITED VISIBLE INNOVATIONS BY FORTUNE 100 COMPANIES
IN THE SUPPLY CHAIN & PROCUREMENT AREAS
• CSER PROGRAMS NEED TO INVOLVE THE SUPPLY CHAIN
• NOT ENOUGH FOCUS ON EMERGING MARKETS

14. What You
Should Do
Build a CPO profile
Engage emerging markets in your global
sourcing efforts
Pursue spend management innovation
Get involved with your company’s
sustainability activities

15. Full research report available by request
 jessica.warren@tradingpartners.com
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