The Deloitte Global CPO Study 2018 found just 6 percent of respondents had full transparency of their entire supply chain, while 65 percent had limited visibility or none.
Brian Umbenhauer, principal and global head of sourcing and procurement at Deloitte, said: “It’s both a worrying and opportunistic finding that two in three procurement leaders have limited visibility beyond their tier one suppliers.
“This has major implications for organisations across all industries, particularly for meeting regulatory and corporate social responsibility requirements and for the identification and mitigation of supply chain risks.
“Improved transparency of pricing, supplier locations and critical dependencies can help procurement leaders deliver greater value and avoid potentially significant regulatory, reputational and operational risk.”
Overall, cost reduction (78 percent), new product/market development (58 percent) and managing risk (54 percent) remained the top business strategies for CPOs in 2018.
Enjoy curated articles directly to your inbox.