Large firms fail to promote plans

8 January 2004
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08 January 2004 | Simon Binns

Three-quarters of large companies have a procurement strategy but many staff don't know about it, according to a new report.

The Strategic Procurement Review 2004, carried out by Market Focus Research, also found that only 13 per cent of respondents had a fully implemented e-procurement strategy.

Three-quarters did not buy goods and services online at all.

But e-procurement spend is to increase dramatically in the next three years, by when only 40 per cent of respondents expect they will still not use e-procurement.

Print and office supplies, telecommunications, IT and business travel are areas where 90 per cent of respondents said they had corporate strategies.

The areas least subject to a corporate strategy were marketing services and recruitment of permanent staff.

Procurement is most centralised in business travel, IT, and print and office supplies.

The report also found that 72 per cent of UK respondents gave either a leading or supporting role to procurement, compared with 61 per cent of US and Canadian companies.

The report surveyed 31 large UK, US and Canadian companies including MG Rover, Adidas and financial services company Bradford and Bingley.


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