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Assessment of Excellence in Procurement™ Benchmarks
A.T. Kearney Procurement & Analytic Solutions offers an Assessment of Excellence in Procurement (AEP) Benchmarking service to provide companies with insights into how their procurement organization compares with leading companies, plus a view into emerging procurement insights. Combining our in-depth understanding of industry requirements and trends, business functions and procurement best practices, we help clients establish ‘Best-in-Class’ procurement capabilities to drive value.

We leverage the A.T. Kearney Assessment of Excellence in Procurement survey (AEP), where companies are evaluated based on a detailed scoring model of leadership practices in each of the procurement excellence areas. Our most recent study builds on our previous six AEP studies, which we have been conducting since 1992.

The assessment of Excellence in Procurement identifies and elaborates on the key dimensions that differentiate the performance of procurement leaders from followers:
  • Innovation
  • Risk Management
  • Commodity Management
  • Emerging Markets
  • Key Partner Management
The AEP study is used to benchmark your procurement practices to identify improvement opportunities and determine strategic direction for a holistic positioning of procurement across the organization.

  • Evaluates Procurement in the broader context of corporate mission, organizational set-up, and enabling functions and tools
  • Facilitates a discussion on the positioning of client’s procurement practices vs. leaders and peers
  • Leverages the company’s knowledge and A.T. Kearney’s benchmarks and experience to produce a comprehensive assessment
  • Defines and helps prioritize improvement opportunities based on quantitative and qualitative assessment of business requirements, current capabilities and leading practices/A.T. Kearney’s benchmarks.
The Assessment of Excellence in Procurement Benchmarking evaluates companies across several key dimensions and provides insights on how to improve procurement practices and capabilities through:
  • Alignment of corporate and procurement strategies
  • Procurement organization structure and agenda for addressing near-term and long-term goals
  • Methodologies and tools for achieving efficiency and effectiveness in critical procurement processes
  • Infrastructure required to support the strategic and tactical activities of the procurement organization
A.T. Kearney Procurement & Analytic Solutions has set the standard for best in class supply management, sourcing and analytic solutions. Our strategies are based on proven methodologies from decades of experience. Our A.T. Kearney Assessment of Excellence in Procurement survey (AEP) is the leading benchmarking survey, conducted since 1992 providing quantitative data on practical leadership practices and emerging trends in supply management.
For a major North American utility, we conducted an Assessment of Excellence in Procurement Benchmarking study which was then used to develop a supply management transformation to strategy to address key CEO concerns including:
  1. Unprecedented anticipated employee attrition over the next 5 years (>1/3 of supply management employees)
  2.  A "bet the company" 5-year capital expenditure program with planned spend well in excess of annual revenues 
Supply management was examined in a broad business context including “Voice of the Customer” analysis to identify urgent business requirements. Current supply management capabilities and practices were assessed against qualitative and quantitative benchmarks. Gaps and improvement opportunities were identified with respect to work practices, organization/governance and supporting technology.

In the end, stronger organizational structure and governance provided much greater alignment with business and supply management strategies, streamlined organizational structure, improved strategic planning and budgeting practices and a technology implementation plan to drive improved spend visibility, reduced transaction costs/resources and a greater emphasis on strategic category management functions.

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AEP study results reveal new supply realities
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