More Procurement Departments Focused on Collaboration vs. Cost

Sixty-seven percent of chief procurement officers say they focus more on collaborative relationships than costs

Bethesda, Md.Sept. 18, 2013—Sixty-seven percent of surveyed chief procurement officers say their departments are more focused on building collaborative relationships with suppliers than on obtaining the lowest costs, according to a new survey by Consero Group, an international provider of creating high-level, invitation-only events for senior executives. The results were reported as part of the Fall 2013 Procurement & Strategic Sourcing Data Survey compiled by Consero Group.

“The Fall 2013 Procurement & Strategic Sourcing Data Survey indicates that companies are increasingly striving for long-term value and collaboration from suppliers, rather than focusing solely upon minimizing cost,” said Paul Mandell, founder and CEO of Consero. “This finding signifies a shift from earlier this year, when it appeared chief procurement officers were more focused on short-term savings.”

According to Consero’s Spring 2013 Procurement & Strategic Sourcing Data Survey, more than 50 percent of chief procurement officers said their companies pursued short-term savings instead of long-term value from suppliers.

Other findings from the Fall 2013 Procurement & Strategic Sourcing Data Survey include:

  • Companies are not exploring new sourcing strategies: 57 percent said that their companies do not spend sufficient time exploring new sourcing strategies.
  • The vast majority purchases from foreign countries: 95 percent stated that their companies purchase goods and services from outside the U.S.
  • Foreign suppliers have no advantage over U.S. suppliers: Only 5 percent said that foreign suppliers have an advantage over U.S. suppliers.
  • There is insufficient protection for purchasers from foreign governments: Just 38 percent of those surveyed who purchase goods and services outside the U.S. believe that foreign governments provide sufficient protection to U.S. purchasers.

The Fall 2013 Procurement & Strategic Sourcing Data Survey included 11 questions that were posed to Fortune 1000 chief procurement officers in connection with an invitation-only event hosted by Consero in July 2013. A total of 42 responses were provided.

Companies in this article