More than half of Fortune 1000 executives are focused on cost reduction strategies for delivering earnings and funding growth in 2012, according to a recent survey commissioned by Procurian, formerly ICG Commerce, and conducted by Harris Interactive. Administered to more than 300 Fortune 1000 executives, the survey finds that in the coming year 60 percent of respondents will focus on non-people-related cost reductions as the major source of funds for investments in innovation and growth.
When organizations turn to the web to offer their suppliers and/or joint venture partners direct access to services and business processes to reduce costs and speed up processing, a virtual organization emerges.
Analyst Insight: Procurement and sourcing is a continuously evolving profession. A global Gartner Supply Chain study of 453 companies finds 51 percent of procurement and sourcing talent hired in the last three years was to satisfy short-term needs, with a focus on basic, intermediate and advanced procurement and sourcing skill sets. Procurement and sourcing hiring strategies for 2012 shifts to long-term needs and advanced skills requirements in the areas of SRM, supplier collaboration, performance management and analytics, and financial procurement. - Mickey North Rizza, Gartner Supply Chain Research