Chief Procurement Officers Say Short-Term Cost Reduction a Higher Priority Than Long-Term Growth
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
Latest NewsProcurement is getting its digitized act together Third Party Risk: Too Close for Comfort 2018 MHI Innovation Award finalists announced The Overlooked Competitive Advantage: Connected Teams Reusable Packaging Association announces 2018 board and committee chairs More News
Latest ResourceThird Party Risk: Too Close for Comfort You’ve got a handle on many of the potential supply chain "disrupters" that can paralyze your business. But the real risk is embedded in areas you may have overlooked.
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 AuthorPatrick Burnson, Executive Editor 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 [email protected]
Subscribe to Supply Chain Management Review Magazine!Subscribe today. Don't Miss Out!
Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
Get Smart (about replenishment) The Benefits of Blockchain: Fact or Wishful Thinking? View More From this Issue