Developing a procurement strategy that aligns with the overall objectives of their company is more important to senior buyers than making savings, research has found.
GEP Value Trends: Procurement Strategy, which surveyed more than 50 senior procurement professionals, found 32 per cent identified ‘strategic alignment to other business’ as their priority. Cutting expenditure followed, with 26 per cent selecting ‘delivering on cost reduction targets’; 11 per cent chose ‘driving business support for procurement’; while 10 per cent wanted more spend under management.
The research, conducted by Information Services Group on behalf of GEP, found the issue causing concern for most senior buyers is the lack of the right skills in their teams. While business unit support was the number one worry for 33 per cent of respondents, gaps in resource skill sets was chosen by the largest number of respondents as one of their three key concerns. Twelve per cent chose it as number one, 18 per cent as number two and 28 per cent as number three. Other notable worries were a lack of analytical tools and transaction automation.
A commentary included in the report explained that one of the recurring problems highlighted was procurement was being brought in into the contract negotiation process too late. This restricts purchasers’ ability to mitigate risk. It said: “Contributing to this is the resource and skill gap – to have the right talent to engage with the business proactively and build strong peer relationships with economic and technical buyers.”