The third Global Chief Procurement Officer (CPO) Survey, newly released by Capgemini Consulting, provides insight into the impact of the global recession on procurement executives. Nearly seven in 10 participants acknowledge that the current economic recession is forcing them to increase targets, alter focus areas and shorten planning time horizons. For many, savings targets have doubled from those that prevailed when Capgemini last conducted the Global CPO Survey and in some cases are a clear requirement for survival.
The Global CPO Survey is based around responses from more than 150 organizations spanning Europe, North America and Asia Pacific, mainly represented by senior procurement executives. This survey provides a temperature check on the world of buying in 2009 and gives a comparison of findings from previous surveys conducted in 2007 and 2008. The survey also represents a diversity of industries ranging from energy to pharmaceuticals and manufacturing to the public sector. What is common to all respondent organizations is the continuing theme of having to manage and drive value out of third-party expenditure.
One of the short-term tactics companies are using is the re-negotiation of existing contracts to reflect reduced demand. Other activities being pursued are enhanced supplier management and raising the profile of procurement across the organization.
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