Economic dip 'an opportunity'

31 January 2008
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31 January 2008

The economic downturn should be seen as an opportunity for purchasers, the latest SM poll has found.

According to the survey of 100 buyers, 71 per cent thought the downturn in the economy should be considered positive for procurement, while 29 per cent believed it posed a threat.

Buyers who thought it presented an opportunity said it represented a chance to demonstrate abilities in a difficult market. They explained this could include exercises such as reducing an organisation's cost base, or building more competition in the supply chain. Those who consider the downturn a threat felt it could affect long-term contracts and tighten supply chains, as suppliers go bust or get taken over by other firms.

Other buyers had a mixed opinion. They described the pressure on procurement to perform in an unstable market, but recognised it represented an opportunity for the profession to shine in the face of tough economic conditions.

One buyer said procurement must always be managing costs effectively so any impact should be minimal.

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