Executive Briefings

Majority of Procurement Departments Focused on Supplier Collaboration Rather Than Lowest Cost, Survey Suggests

Sixty-seven percent of surveyed chief procurement officers say their departments are more focused on building collaborative relationships with suppliers than on obtaining the lowest costs, according to a survey by Consero Group, an international player in events scheduling for senior executives. The results were reported as part of its Fall 2013 Procurement & Strategic Sourcing Data Survey.

Majority of Procurement Departments Focused on Supplier Collaboration Rather Than Lowest Cost, Survey Suggests

"The survey indicates that companies are increasingly striving for long-term value and collaboration from suppliers, rather than focusing solely upon minimizing cost, " said Paul Mandell, CEO of Consero. "This finding signifies a shift from earlier this year when it appeared chief procurement officers were more focused on short-term savings."

According to the spring survey, more than 50 percent of CPOs said their companies pursued short-term savings instead of long-term value from suppliers.

Other findings from the fall survey include:

"¢ Companies Not Exploring New Sourcing Strategies: Fifty-seven percent said their companies do not spend sufficient time exploring new sourcing strategies.

"¢ Vast Majority Purchase From Foreign Countries: Ninety-five percent stated that their companies purchase goods and services from outside the U.S.

"¢ Foreign Suppliers Have No Advantage Over U.S. Suppliers: Only five percent said that foreign suppliers have an advantage over U.S. suppliers.

"¢ Insufficient Protection for Purchasers from Foreign Governments: Just thirty-eight percent of those surveyed who purchase goods and services outside the U.S. believe that foreign governments provide sufficient protection to U.S. purchasers.

The Fall 2013 Procurement & Strategic Sourcing Data Survey included 11 questions that were posed to Fortune 1000 Chief Procurement Officers in connection with an invitation-only event hosted by Consero in July 2013. A total of 42 responses were provided.

Source: Consero Group

"The survey indicates that companies are increasingly striving for long-term value and collaboration from suppliers, rather than focusing solely upon minimizing cost, " said Paul Mandell, CEO of Consero. "This finding signifies a shift from earlier this year when it appeared chief procurement officers were more focused on short-term savings."

According to the spring survey, more than 50 percent of CPOs said their companies pursued short-term savings instead of long-term value from suppliers.

Other findings from the fall survey include:

"¢ Companies Not Exploring New Sourcing Strategies: Fifty-seven percent said their companies do not spend sufficient time exploring new sourcing strategies.

"¢ Vast Majority Purchase From Foreign Countries: Ninety-five percent stated that their companies purchase goods and services from outside the U.S.

"¢ Foreign Suppliers Have No Advantage Over U.S. Suppliers: Only five percent said that foreign suppliers have an advantage over U.S. suppliers.

"¢ Insufficient Protection for Purchasers from Foreign Governments: Just thirty-eight percent of those surveyed who purchase goods and services outside the U.S. believe that foreign governments provide sufficient protection to U.S. purchasers.

The Fall 2013 Procurement & Strategic Sourcing Data Survey included 11 questions that were posed to Fortune 1000 Chief Procurement Officers in connection with an invitation-only event hosted by Consero in July 2013. A total of 42 responses were provided.

Source: Consero Group

Majority of Procurement Departments Focused on Supplier Collaboration Rather Than Lowest Cost, Survey Suggests