Buyers will concentrate their efforts on cost cutting over the next year, while also trying to reduce supply risk and increasing their strategic value to the wider business.
The 2013 Procurement Pulse, conducted by Science Warehouse in association with eWorld Purchasing & Supply, found cost cutting is in the top three priorities for 76 per cent of buyers. Reducing supply risk was chosen by 40 per cent of respondents and becoming more strategic was identified by 36 per cent.
Jonathan Betts, marketing director at Science Warehouse, said: “For the second year running our survey shows that cost reduction remains the number one priority for organisations. This reflects the continued economic uncertainty and ongoing government austerity measures affecting investment in both the private and public sectors.”
Other priorities identified by the 263 buyers that responded were getting more financial control (30 per cent), saving time (29 per cent) and improving the ability to effectively analyse spend (27 per cent). Just just one in 10 respondents chose improving payment terms, while tackling fraud was a top three priority for just 2 per cent.
The survey also found while attention is still firmly fixed on cutting out unnecessary costs, many procurement teams will receive some form of extra investment to strengthen their ability to remove costs from other areas. The survey found that 16 per cent plan to invest in procurement training, 19 per cent plan to create new roles and 25 per cent plan to invest in technology.
Adam Leach, Supply Management