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Chief Procurement Officers Say Short-Term Cost Reduction a Higher Priority Than Long-Term Growth

By Patrick Burnson
March 5, 2014

A majority (57%) of surveyed Chief Procurement Officers (CPOs) said short-term cost reduction is a higher priority than long-term growth in 2014, according to a new survey by Consero Group, an international leader in creating high-level, invitation-only events for senior executives. The results were reported as part of the 2014 Procurement & Strategic Sourcing Data Survey, compiled by Consero Group.

In addition, 59% of CPOs surveyed said they do not feel they have sufficient access to the resources required to execute their function.
                   
“Today’s Chief Procurement Officer must look beyond purchasing decisions and supplier relationship management, focusing more on bottom-line growth, given that a company’s procurement execution is fundamental to financial success,” said Paul Mandell, Founder & CEO of Consero. “With a majority of CPOs reporting they are under-resourced and focusing on short-term cost reduction rather than long-term growth, CPOs will need to continue pushing for necessary resources from top management in 2014.”

Other findings included:

·    Talent Gap: A majority (59%) of CPOs do not see a sufficient talent pool to support their organization’s hiring needs.
·    Lack of Global Risk Management Policies: A majority (53%) report not having a global risk management policy in place.
·    Sustainability Programs Not Yielding Tangible Cost Reductions: Most (67%) say they have not achieved tangible cost reductions through the use of a sustainability program.


The 2014 Procurement & Strategic Sourcing Data Survey included 14 questions that were posed to all Fortune 100 CPOs in attendance at Consero’s invitation-only Procurement & Strategic Sourcing Forum in February 2014. A total of 49 responses were provided.


About the Author

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Patrick Burnson
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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