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CPOs bemoan focus on short-term savings

8 April 2013

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'.

Odgers Interim are UK leaders in Interim Management solutions for the Commercial Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits.

Categories: Procurement & Supply Chain


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