Supply Management: CPOs struggle with lack of resources

Originally Published in Supply Management | April 4, 2013 | By Adam Leach

Almost half of chief procurement officers (CPOs) believe they do not have the resources to lead procurement operations and are under pressure to deliver short-term savings over long-term value.

The 2013 Procurement & Strategic Sourcing Data Survey, published this week by events business Consero Group, found 45 per cent of CPOs believe they do not have sufficient resources to manage their function effectively.

Furthermore, over half of respondents reported their organisations are prioritising the drive for short-term cash savings from suppliers, rather than delivering value over the long-term.

Paul Mandell, founder and CEO at Consero, said in a statement: “The survey reveals a conflict for CPOs who want to obtain the best overall value, yet often rely on competitive pressure rather than collaboration. Procurement officers should communicate to senior management that pursuing unreasonable short-term savings can be destructive to long-term value.”

Just 35 per cent of respondents said they were trying to get greater value from the supply chain through collaboration.

The survey, which was completed by 42 CPOs, also found 34 per cent of respondents have seen their budgets cut. In addition, social responsibility and sustainability are either not important or slightly important to 46 per cent of procurement leaders.