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The report, which surveyed 480 senior procurement leaders from 36 countries, found 75 percent specify cost reduction as their main priority. Six out of 10 said managing risks such as volatility in emerging markets, the possibility of a renewed euro crisis and uncertainty around Brexit outcomes, were a prime concern for the year.
UK head of sourcing and procurement at Deloitte Lance Younger said this strategy was proving positive but warned that a growing talent gap and poor technology implementation could threaten the growth they seek.
“Like other business leaders, managing a global backdrop of economic and political risks, CPOs continue to focus on cost management in 2017 to support growth in an uncertain market,” he said.
“So far, this is proving successful for CPOs, with 58 percent achieving better savings performance than last year. However, challenges with talent and poor adoption of digital technology still hinder progress. Unless addressed quickly, these could jeopardize the future of procurement.”
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