Procurement analytics software company Sievo is rolling out a new feature for business customers allowing them to assess their procurement spend habits against industry peers.
In a press release issued on Wednesday (Oct. 3), Sievo said it is rolling out Dynamic Benchmarking, a tool that provide real-time visibility into performance based on spend category, peer benchmarks and other metrics, including supplier payment terms, suppliers that make up 80 percent of company spend, spend as a percentage of total revenue, spend per employee and others.
“Procurement has been striving to create a real competitive advantage for years – but historically, CPOs have lacked the necessary insight to measure performance against industry norms,” said Sievo Co-founder and VP of Customers Sammeli Sammalkorpi in a statement. “Sievo’s new Dynamic Benchmarking capability will revolutionize procurement performance by providing procurement leaders with insights into how they are performing, where they are falling behind and opportunities to lead the market.”
The solution aggregates ERP data and data from within the Sievo platform, including spend information, supplier information, currency rates, credit ratings and other data sources.
Sievo noted that existing solutions provide “static benchmarking” solutions, which may prevent procurement professionals from gaining deeper, real-time insight into performance.
Sammalkorpi added that the feature lets these professionals set goals and develop sourcing strategies to improve their performance based on the insights delivered.
“Benchmarks have existed for a while – however, they’ve been too high-level to really drive action,” stated Sammalkorpi. “The real differentiator of our Procurement Benchmarking service is that now, you can drill down to subcategory and country-specific details, enabling not only opportunity identification, but also quick actions. Analytics that do not lead to actions are useless.”
In addition to providing the benchmarking solution for its clients, Sievo said it will also be releasing quarterly, industry-specific reports based on key performance indicators and benchmarks analyzed with the Procurement Benchmarking tool.