Cost reduction and managing risk top the list of procurement leaders’ business priorities in 2017 according to Deloitte’s annual global Chief Procurement Officer (CPO) Survey.
With uncertainty and growth ambitions being a constant focus in many organisations, the Number One priority for 79% of CPOs is reducing costs. This is closely linked to 48% of those surveyed wanting to increase cash flow in order to help fund growth.
Managing risk will also be a strong priority for over half (57%) of CPOs this year. Key global risks cited include weakness and volatility in emerging markets, rising geopolitical risk, the possibility of a renewed Euro crisis, spill-over effects of any slowdown from China, uncertainty around Brexit and outcomes from upcoming trade negotiations. Perhaps unsurprisingly, the latter was the highest risk cited by UK-based participants.
In addition, 54% of respondents report a resurfacing of procurement risk, which could include price volatility, disruptions in supply and supplier bankruptcy. This is up from a figure of 42% in 2014.