May 17, 2020
Procurement on CEOs' Agenda, says Capgemini survey
The 2010 Global Chief Procurement Officer Survey is based on over 150 responses from the CPOs and senior supply chain leaders of over 150 companies fro...
The 2010 Global Chief Procurement Officer Survey is based on over 150 responses from the CPOs and senior supply chain leaders of over 150 companies from Europe, Asia and the Americas across a range of sectors, including manufacturing, financial services, energy, utilities, retail, public sector and telecommunications.
The latest findings reveal that procurement’s standing in organizations has become more prominent.
Capgemini’s findings showed that 65 percent of CPOs and supply chain leaders felt the economy was showing clear signs of recovery. While over 60 percent of respondents confirmed that the procurement function has emerged from the economic downturn “a winner”, with an improved image within their organization.
In addition, 20 percent of those surveyed went on to say that procurement is now strategically positioned for future growth.
With cost savings still top of the agenda, procurement executives are employing several strategies, including contract renegotiation, tighter contract compliance, global sourcing, hedging and moving to outsourced procurement services.
A major indication that procurement is moving up the ladder within organizations is that nearly 70 percent of respondents indicated that procurement reports into the boardroom and another 25 percent report directly to the CEO.
Centralized procurement operating models are emerging as a strong trend, with over 40 percent of companies surveyed favoring the centralized model. An additional 50 percent favor a center-led/hybrid model, according to the survey.
Download a full copy of the report from here.
Edited by Darrel Moore