Procurement Analytics and Spend Management Blog

Automotive and Manufacturing Procurement Benchmarks: An Industry Outlook for 2026

Written by Meri Tuominen | Dec 15, 2025 2:38:49 PM

Automotive and industrial manufacturers enter 2026 with procurement under pressure from multiple directions.

This article translates 236B USD of anonymized procurement benchmarks from the automotive and manufacturing industries from into a focused set of benchmarks and KPIs.

The goal is simple:

  • Show how your procurement metrics compare with industry peers
  • Explain what the numbers signal about cost, risk, and scalability
  • Highlight where CPOs should focus heading into 2026

Benchmarks are shown across top, average, and bottom performers, split between direct and indirect spend.

 

What does the automotive and manufacturing procurement landscape look like heading into 2026?

Recent spend patterns show an industry moving from disruption management toward structural rebalancing.

  • Direct spend declined, correlating with production challenges.
  • Semiconductor shortages forced OEMs to prioritize higher-margin vehicles. By 2024, inventory adjustments had created oversupply conditions, creating further production planning constraints rather than stabilizing normalization.
  • Professional Services spend increased, linked to demand for supply chain strategy work and ESG/compliance support.

Takeaway for 2026: Plan for a mixed environment: fewer pure crisis fire drills than 2022–2023, but continued volatility and compliance complexity that demand structural cost and risk optimization.

 

What are the baseline procurement benchmarks CPOs should use to start 2026?

The median company profile provides a realistic reference point for most global manufacturers.

Across total spend, the typical automotive or manufacturing enterprise looks like this:

  • Spend mix: 60% direct / 40% indirect
  • PO-covered spend: 78%
  • Suppliers per 1B USD spend: 6,200
  • Invoices per 1B USD spend: 192,000
  • Spend per supplier: 160K USD
  • Spend per invoice: 5.2K USD
  • Invoice-to-due: 42 days

These numbers describe organizations with partial control and visibility, but still significant fragmentation, especially in indirect categories.

Takeaway for 2026: If your metrics are materially worse than these medians, the constraint is likely structural. Incremental savings initiatives will struggle until control improves.

 

How different is procurement performance between top and bottom performers?

The gap between leaders and laggards is structural, not incremental.

Direct spend benchmarks

(bottom → top performers)

  • PO coverage: 84% → 99%
  • Suppliers per 1B USD: 4,500 → 1,700
  • Spend per supplier: 221K USD → 589K USD
  • Spend per invoice: 0.7K USD → 2.2K USD
  • Invoice-to-due: 39 → 61 days

 

Indirect spend benchmarks

(bottom → top performers)

  • PO coverage: 32% → 71%
  • Suppliers per 1B USD: 20,300 → 7,600
  • Spend per supplier: 49K USD → 132K USD
  • Spend per invoice: 2.2K USD → 5.4K USD
  • Invoice-to-due: 24 → 37 days

How much supplier and invoice complexity is normal for large manufacturers?

Fragmentation remains one of the clearest differentiators between performance tiers. The median enterprise still operates with high transactional volume.

Median benchmarks:

  • 6,200 suppliers per 1B USD
  • 192,000 invoices per 1B USD

Complexity is also being pushed upward by structural shifts in supply strategy:

  • Nearshoring expands the supplier footprint

  • Regional dual sourcing adds parallel supply paths

  • Multi-hub operating models increase entities and transactions

Without parallel supplier rationalization and stronger master data and PO control, that growth strains traceability, risk management, and compliance workflows.

According to the Deloitte Manufacturing Outlook 2026, digital supply chain tools are increasingly used to model scenarios, evaluate trade routes, surface risk, and identify cost savings as global complexity rises.

Takeaway for 2026: Nearshoring and regional dual sourcing are necessary, but without parallel supplier rationalization, complexity will limit risk management and digital scalability.

 

How much working capital is available through payment terms optimization?

Payment terms remain one of the most tangible financial levers for procurement.

Invoice-to-due benchmarks show:

  • Median (total spend): 42 days
  • Direct spend: 39 days (bottom) → 61 days (top)
  • Indirect spend: 24 days (bottom) → 37 days (top)

For indirect spend, moving from the bottom to the top quartile of terms unlocks roughly 45K USD per 1M USD of spend, on average.

Examples by category:

  • Fleet: +20 days (~55K USD per 1M)
  • Logistics: +19 days (~51K USD per 1M)
  • CAPEX: +18 days (~50K USD per 1M)
  • Energy & Utilities: +14 days (~40K USD per 1M)

Takeaway for 2026: Payment terms support both liquidity and resilience, giving procurement room to secure long-term supply without stressing cash flow.

 

How should procurement measure and manage supply risk in 2026?

Risk is becoming a core procurement KPI as geopolitical tension, logistics volatility, and material constraints persist.

Benchmark patterns associated with stronger risk posture include:

  • Higher PO coverage
  • Fewer suppliers per dollar of spend
  • Higher spend per supplier

Direct top performers combine 99% PO coverage, 589K USD spend per supplier, and 61-day invoice-to-due, creating the foundation for long-term agreements.

Takeaway for 2026: Formalize risk dashboards and tier-1/tier-2 stress testing around the suppliers where spend is already concentrated and dependency is highest.

How to benchmark AI readiness in procurement?

AI, real-time visibility platforms, and guided buying rely on structured, consistent data.

Median benchmarks that describe the data foundation include:

  • PO-covered spend: 78%
  • Suppliers per 1B USD: 6,200
  • Invoices per 1B USD: 192,000
  • Spend per supplier: 160K USD

Takeaway for 2026: AI value scales where procurement structure is already simplified. Fixing data fragmentation is a prerequisite, not a side project.

Which procurement KPIs matter most for automotive and manufacturing performance in 2026?

Across the dataset, a small set of KPIs consistently separates top performers from the rest:

  • PO coverage (especially indirect)
  • Suppliers per 1B USD
  • Spend per supplier
  • Invoices per 1B USD and spend per invoice

These metrics link procurement execution directly to cost control, compliance, resilience, and scalability.

Conclusion

A practical next step is to benchmark your own KPIs against industry peers in the State of Spend report.

Using these KPIs as a common language with finance, supply chain, and business leaders makes it easier to agree on priorities, track impact during 2026, and adjust as markets move.

The full State of Spend report provides the benchmarks and distributions needed to decide where procurement is already leading and where targeted changes can unlock the next step of value.