Organizational Performance Metrics

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    • #292308

      This SIG buy-side member has recently completed a major reorganization of the sourcing department. The member requesting this information is the head of their RFx division and is interested in collecting industry best practices to contribute to their budgetary discussions. 

      Please take a moment to provide the following insights on your organization. 

      1. How much spend do you have under management? 
      2. How many layers of a reporting structure do you have? 
      3. How many employees work exclusively on RFx engagements?
      4. How many engagements does each employee carry at one time?
      5. What is the duration of each engagement?
      6. Are RFx Analysts category aligned?
      7. Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements?
      8. Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)?
      9. How do you measure capacity?
      10. What title does a person in your organization who only handles RFx engagements carry?
      11. What is a typical salary band for this position?
      12. How many hours per week does this position work?
      13. Would you provide a job description?

       

    • #294099

      1.How much spend do you have under management? $600M

      2.How many layers of a reporting structure do you have? 3 for Procurement

      3.How many employees work exclusively on RFx engagements? 0  The Sourcing team manages the RFx engagements based on the category they manage

      4.How many engagements does each employee carry at one time? N/A

      5.What is the duration of each engagement?  Engagement time varies based on the RFx complexity 

      6.Are RFx Analysts category aligned? No

      7.Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements? Yes

      8.Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)?Yes

      9.How do you measure capacity?  Daily and weekly reporting od Procurement Request Forms sent to Procurement for project engagements 

      10.What title does a person in your organization who only handles RFx engagements carry? NA

      11.What is a typical salary band for this position? N/A

      12.How many hours per week does this position work? N/A

      13.Would you provide a job description? N/A

       

    • #294100

      1. $600m

      2. 3 layers: CPO->VP/Sr Director->Sourcing Manager

      3. 9 FTE

      4. Depends on size: typically 10-20

      5. Large RFPs 4-5 months

      6. Hybrid –  Primarily aligned by customer/organization but do have some category experts as well

      7. We are split between tactical (proc operations) and strategic sourcing

      8. No

      9. We don’t

      10. Strategic Sourcing Manager or Sr. Strategic Sourcing Manager

      11. $90k-$110k

      12. 40+

    • #294101

       

      1. How much spend do you have under management? $1.5B of the $3B vendor spend

      2. How many layers of a reporting structure do you have? 3 – VP, Director and individual contributors 

      3. How many employees work exclusively on RFx engagements?  20

      4. How many engagements does each employee carry at one time?  15 on average (not all are RFx, most are contract efforts)

      5. What is the duration of each engagement?  RFx typically last 4 months

      6. Are RFx Analysts category aligned? Yes

      7. Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements? Yes

      8. Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)?  These are handled by an analyst 

      9. How do you measure capacity?  Do not measure capacity today

      10. What title does a person in your organization who only handles RFx engagements carry?  Category Manager

      11. What is a typical salary band for this position?  $80K – $130K

      12. How many hours per week does this position work?  45-50

      13. Would you provide a job description?

       

      JOB SUMMARY:

       

      Develop sourcing roadmaps and plans that support internal client’s strategies and objectives. Source select and negotiate with 3rd party suppliers to ensure that performance meets requirements in a cost-effective manner. Follow and use defined sourcing processes, procedures and systems. Primarily support 3rd party technology initiatives. Facilitates development of relationships with vendors/suppliers and maintains relationships for long-term contracts.  Influence internal stakeholders on source selection and vendor strategies.  

       

      GENERAL DUTIES & RESPONSIBILITIES:

       

       Partner with internal clients/team to understand strategy and develop a mulit-year sourcing roadmaps aligned to the strategy and company objectives. 

       Coordinate sourcing activities across the entire global enterprise.

       Lead the development of requirements drafting, facilitating bid process, developing RFx, performing bid analysis and selection recommendation. 

       Negotiate procurement contracts (liaise with business partners on additions, deletions, and modifications), including monitoring of expiring contracts

       Ability to perform spend analytics, review trends, data analysis and develop recommendations from the data. 

       Develop and maintain vendor relationships including tracking and analysis of vendor spend and performance. 

       Follow a defined sourcing methodology that brings accountability and controls to the sourcing process.

       Primary focus on technology related supplier solutions (Mainframe, midrange, and outsourced IT contracts) 

    • #294102

       

      1.How much spend do you have under management?  ~$1B

       

      2.How many layers of a reporting structure do you have? CPO -> VP -> Director -> Category Manager(s) (~4 layers)

       

      3.How many employees work exclusively on RFx engagements? None. Category Managers have a wider scope, they manage suppliers (SRM), strategic sourcing projects (RFx engagements) and an overall category plan. We focus on smaller portfolios ~$30-$50M with wider scope to allow the Category Manager to develop a wide range of skills. We take a “drink our own champagne” approach… we investigate the market, identify opportunities, conduct strategic sourcing initiatives, negotiate contracts, implement and manage supplier performance. The entire vendor lifecycle is managed by a knowledgeable category manager with expertise in their category. 

       

      4.How many engagements does each employee carry at one time?  Highly variable, driven by the category plan. We leverage Buyers to assist with lower value, lower risk sourcing initiatives in the event a Category Manager has too many engagements going at once. Most of my category managers are working on 3 to 5 strategic sourcing projects at a time to ensure we have a pipeline of projects in development to deliver substantial business value on a recurring basis. It’s not unusual for a Category Manager to have a 2 year plan developed to ensure sourcing projects deliver results (savings realization). 

       

       

      5.What is the duration of each engagement? Highly variable. 

       

      6.Are RFx Analysts category aligned? Yes. 

       

      7.Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements?  Not entirely. We have Category Managers aligned to a portfolio and stakeholder group. We have “analyst” types focused on pure number crunching and analysis to support new sourcing initiatives, as well as ongoing supplier management (scorecards/performance management).

       

       

      8.Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)? No. 

       

      9.How do you measure capacity?  Capacity isn’t a key focus, we’re more interested in execution and delivery… speed to market. As a result, we likely run with less projects per Cat. Manager. I’ve worked in an environment where I ran 20+ strategic sourcing projects at a time… we take a different approach at my current workplace. We focus on high value results and speed to market, rather than many projects with potentially mixed results. For example, one of my category managers closed 3 large strategic programs last year that delivered 40 to 60% cost reductions. High complexity, high involvement, a year of work, resulting in substantial transformation and cost reductions. 

       

       

      10.What title does a person in your organization who only handles RFx engagements carry?  Does not exist, mixed role of a Category Manager

       

      11.What is a typical salary band for this position?  Confidential. I encourage you to seek industry salary surveys from ISM, CIPS, Hays, etc. Many data sources are available by region, role, skill/experience, category, etc. 

       

       

      12.How many hours per week does this position work?  Work Life Balance is a KEY value proposition at our company. In our market, our competitors for sourcing talent focus on high pay, high stress, large hour commitments. We focus on work life balance, collaboration, strategic value, staff development, and fair pay. Typical Category Manager works between 37.5 and 42 hours a week depending on project demands, their skill/experience, and ability to plan their time/projects effectively. 

       

      13.Would you provide a job description?  Job descriptions are commonly available through LinkedIn from many organizations. 

       

    • #294103

       

      1. How much spend do you have under management? $2.9B

      2. How many layers of a reporting structure do you have? CPO +3

      3. How many employees work exclusively on RFx engagements? 23, which includes 3 managers. This covers all sourcing transactions over $500k (not just those that go to RFx)

      4. How many engagements does each employee carry at one time? 10-15

      5. What is the duration of each engagement? Average RFx runs 60-120 days

      6. Are RFx Analysts category aligned? yes

      7. Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements? We have outsourced low value/low risk work, so the remaining employees focus primarily on higher value or higher risk activities.

      8. Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)?no

      9. How do you measure capacity? At the category level

      10. What title does a person in your organization who only handles RFx engagements carry? Sr Sourcing Analyst or Sourcing Lead

      11. What is a typical salary band for this position? Sr Sourcing Analyst: $75k-$95k / Sourcing Lead $95k-$115k

      12. How many hours per week does this position work?50

      13. Would you provide a job description?

    • #294104

       

      1. How much spend do you have under management? 67%

      2. How many layers of a reporting structure do you have? 2

      3. How many employees work exclusively on RFx engagements? 6

      4. How many engagements does each employee carry at one time? 10-12 average

      5. What is the duration of each engagement? 11-16 weeks is the target, average is 15-17 weeks

      6. Are RFx Analysts category aligned? Some are, some are not

      7. Is your team split between a higher level analyst group handling more strategic work and a lower level analyst working less strategic engagements? Yes

      8. Is there an administrator handling all admin functions (scheduling meetings, calls, etc., booking rooms, sending NDAs, etc.)? No

      9. How do you measure capacity? Spend, Project Count, Complexity 

      10. What title does a person in your organization who only handles RFx engagements carry? Associate through Project Manager

      11. What is a typical salary band for this position?

      12. How many hours per week does this position work? 40

      13. Would you provide a job description?

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