24 May 2007 | Antony Barton
A third of CFOs say their procurement functions are poor at producing timely and accurate information from their activities. Over half rank their performance as merely adequate in this area.
The survey of 214 senior finance executives from across North America also asked how effective respondents' procurement departments were at sourcing through strategic suppliers and creating and finding contracts quickly. "Adequate" ratings dominated the responses.
The finance executives said the biggest problem with their procurement function was a lack of coordination with the rest of the company. They said improving this would help communication and enhance the firm's purchasing clout.
They added they will look to external spending on direct and indirect goods rather than headcount, employee benefits or facilities as likely sources of cost improvement.
Analyst firm CFO Research Services worked with spend management company Ariba to produce the survey, CFOs' Views on Procurement - Information, Risk, and Money.