Consero Group Study Finds Procurement Executives Are Dissatisfied With Technology Infrastructure

Nine out of ten procurement leaders surveyed report that their technology infrastructure does not meet the needs of the procurement operation. This significant level of dissatisfaction with technology was reported as part of the 2017 Procurement and Strategic Sourcing Report by Consero Group, a consultancy for senior executives, based in Bethesda, Maryland.

To improve tech infrastructure, 54% of surveyed corporate procurement leaders will invest in spend analytics in 2017, while 46% plan to increase use of e-procurement tools. The report, which was generated from survey responses of 52 senior procurement executives, also found that while 67% of respondents increased the use of metrics to evaluate procurement in 2016, a resounding 82% are unhappy with the level of insight they are able to extract from their company's data.

Paul Mandell, Co-Founder & CEO of Consero, told SCMR that finding qualified procurement talent to manage technology is also a legitimate concern, given that 51% of procurement executives surveyed report that there is not a sufficient pool of trained procurement talent in the market.

“As to particular skills gaps, only 22% of CPOs noted that their teams lack technical experience, while 44% identified relationship management skills as a departmental need,” he says. “This provides a good reminder of the importance of staying focused on soft skills in era of increasing technology.”

According to Mandell, the report highlighted the sensitivity of procurement officers to cyber risks and risks related to third-party contracts, too.

“With respect to third-party relationships in particular, many CPOs do not believe their vendors are sufficiently focused on minimizing risk, which can lead to a variety of supply chain issues, as well as heightened general corporate liability,” he adds.

Additional findings include:

• Suppliers do not Demonstrate Adequate Focus on Risk Mitigation: A resounding 86% of procurement leaders do not believe their vendors are sufficiently focused on minimizing risk. This issue may contribute to reasons why only 15% of procurement executives plan to outsource more of their operation in the months to come.
• Cost Control is the Number One Procurement Priority: A total of 76% of procurement executives surveyed name cost control their top priority in 2017. This data point may explain why spend analytics is the main technology in which this group will invest in the coming year.
• The Procurement Industry Lacks Enough Relationship Management Skills: Forty-four percent of chief procurement officers name relationship management as the greatest skills gap in their department. While 49% believe there is enough trained procurement talent available in the market, candidates for procurement roles may want to demonstrate relationship management and leadership skills to current and future employers.

“The procurement department requires a strong technology foundation in order to control costs, manage supplier relations, and generally execute the function effectively,” says Mandell. “To that end, chief procurement officers should consider spending more time and energy in the coming months to identify and close technology gaps, as well as improve data management and analytics within their departments.”

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