11 January 2008 | Paul Snell
Procurement functions are not sufficiently integrated with other departments to cope with the demands expected of them in the next five years, according to research.
A survey of 70 CEOs of leading German firms revealed that while they will expect much more from their purchasing teams in the future, only three out of 10 believe procurement works closely enough with other functions.
Sven Marlinghaus, partner at supply chain consultancy BrainNet who led the research, said in a statement: "The pressure to evolve is enormous, but procurement departments lack the resources they need to cope successfully with this change."
He added that while bosses expected procurement to become more involved in product development, purchasers currently only take part in the R&D process in one in four firms.
The study also said that procurement chiefs lack the tools and processes to adequately explain the performance and contribution of the purchasing department to the CEO.