Legislation not a high priority for CPOs

28 September 2006
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29 September 2006 | Paul Snell

Procurement will continue to be reactive to legislation rather than proactive, a survey by Capgemini Consulting has found.

The research asked chief procurement officers (CPOs) from six European countries in a variety of sectors to award 14 areas a score of zero to five, according to how much they would focus on them in 2007.

Capgemini said legislative issues, such as the introduction of Sarbanes-Oxley rules, were a growing focus for businesses with a global presence. However, the research found devising strategies to deal with this legislation was low on the list of priorities, ranking between two and three on the scale.

CPOs said their main concern was ensuring suppliers comply with existing contracts, which scored just above four. This was followed by acquiring better spend information, improving the sourcing process, supplier management and purchase to pay systems.

The report said: "The focus on successful contract management is a significant change and reflects the awareness of businesses to actively manage their spend and suppliers more effectively."

Outsourcing purchase to pay systems was considered the lowest priority, ranking just below two on the scale.


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