Purchasers aim to prove themselves

4 December 2006
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04 December 2006 | Paul Snell

Proving what procurement can do for businesses remains the top priority for purchasers, according to a survey.

Priorities and Challenges in Spend Management, published last week by procurement consultancy Ariba, reveals that, for the second consecutive year, delivering measurable results is their primary concern. Ranked between one and 10, proof that purchasing can make an impact on costs scored an average of 8.74. Focusing on this aspect of purchasing shows that "companies place a significant value on the results generated by spend management initiatives and how it translates to profitability improvements", according to the report.

Other priorities that rank highly in the survey include accessing and analysing spend data and completing projects on time and on budget. Building internal commitment to purchasing in the business is another concern. "There is still a great deal of education that needs to happen internally at different levels to gain support in terms of investments and authority to succeed," the report claims.

The survey also reveals that the most important priority for buyers next year will be extending the scope and reach of procurement, with additional resources.

This compares with a recent poll on supplymanagement.com, where 81 per cent of purchasers said their responsibility would expand, but with few predicting extra resources (News, 19 October).

Ariba interviewed 550 procurement professionals, primarily in the USA and Europe, from a variety of sectors and all levels of business.

SMdec2006

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