Executive Briefings

Procurement Officers Claim Short-Term Goals Erode Long-Term Values

More than half of chief procurement officers have agreed that their company pursues short-term savings from suppliers that undermine long-term value, according to a survey by the Consero Group.

The recent 2013 Procurement & Strategic Sourcing Data Survey, compiled in partnership with Vantage Partners, revealed that the majority (65 percent) of chef procurement officers (CPOs) focus on using competitive pressure to get maximum value from suppliers, rather than using collaboration to achieve the same results (35 percent).

"Chief procurement officers are challenged with the task of driving savings and delivering critical resources with maximum value," said Paul Mandell, founder & CEO of Consero. "Our survey reveals a conflict for chief procurement officers, 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."

The role of the CPO is a challenging one, according to the survey results, which revealed that 45 percent of respondents feel they do not have enough resources to manage the procurement function effectively, and a significant minority (34 percent) are experiencing a budget decrease.

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The recent 2013 Procurement & Strategic Sourcing Data Survey, compiled in partnership with Vantage Partners, revealed that the majority (65 percent) of chef procurement officers (CPOs) focus on using competitive pressure to get maximum value from suppliers, rather than using collaboration to achieve the same results (35 percent).

"Chief procurement officers are challenged with the task of driving savings and delivering critical resources with maximum value," said Paul Mandell, founder & CEO of Consero. "Our survey reveals a conflict for chief procurement officers, 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."

The role of the CPO is a challenging one, according to the survey results, which revealed that 45 percent of respondents feel they do not have enough resources to manage the procurement function effectively, and a significant minority (34 percent) are experiencing a budget decrease.

Read Full Article