Consero Releases Results of 2013 Procurement and Strategic Sourcing Data Survey

CPOs confirm: companies pursue short-term savings from suppliers versus long-term value

Bethesda, Md.April 2, 2013—Over 50 percent of chief procurement officers said their company pursues short-term savings from suppliers that undermine long-term value, according to new survey results from event organizer Consero Group LLC, in partnership with Vantage Partners.

The “2013 Procurement & Strategic Sourcing Data Survey” also revealed that 65 percent of participants said their company’s procurement strategies are more focused on using competitive pressure to get maximum value from suppliers; while only 35 percent said their company’s strategies are more focused on using collaboration to get maximum value from suppliers.

“Chief Procurement Officers are challenged with the task of driving savings and delivering critical resources with maximum value,” said Paul Mandell, Founder and Chief Executive Officer, Consero Group. “Our survey reveals a conflict for chief procurement officers, who want to obtain the best overall value, yet often rely on competitive pressure rather than collaboration. Procurement officers should communicate to senior management that pursuing unreasonable short-term savings can be destructive to long-term value.”

Survey findings also confirm that:

  • Approximately 45 percent of respondents said that they do not have enough resources to manage the procurement function effectively
  • Nearly three quarters of participants said their procurement budgets are either stable or increasing but a significant minority (34 percent) reported a budget decrease
  • Nearly half (46 percent) of surveyed participants said that social responsibility and sustainability were “not important” or only “slightly important”

 

“These findings are indicative of economic weakness, as a significant portion of respondents say they lack sufficient resources to manage effectively, and many companies continue to put issues like sustainability and social responsibility on the back burner,” Mandell concluded.

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