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CPOs bemoan focus on short-term savings
Many chief procurement officers (CPOs) believe their company focuses on short-term savings at the expense of sustainable value creation, a new survey has found.
According to the research by executive events firm Consero, over 50 per cent of CPOs said their procurement strategies are based around achieving short-term savings from suppliers that actually undermine value in the long term.
In addition, 45 per cent of respondents to the survey claimed they do not have adequate resources to manage the procurement function of their business effectively.
Consero founder Paul Mansell said CPOs face the challenge of "driving savings and delivering critical resources with maximum value". He added: "Procurement officers should communicate to senior management that pursuing unreasonable short-term savings can be destructive to long-term value."
The survey also indicated that budget constraints are forcing procurement executives to put issues like sustainability and social responsibility "on the back burner", as Mr Mansell noted. Almost half of the respondents rated these issues as 'not important' or just 'slightly important'.
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Categories: Procurement & Supply Chain