03 April 2009 | Jake Kanter
Identifying new savings opportunities is the top priority for CPOs over the next year as they come under greater pressure to reduce costs, a global study suggests.
Of 400 worldwide purchasing directors, surveyed by research consultancy Loudhouse, 77 per cent had prioritised the hunt for new ways to cut costs in 2009.
The survey, commissioned by e-procurement firm BravoSolution, found
74 per cent of respondents had come under increased pressure from their organisations to make savings over the past year.
Buying leaders also reported greater responsibility for their procurement teams, with 44 per cent citing an increased mandate to control costs, and 38 per cent allowed more input into wider company strategies.
Some 51 per cent of the CPOs said the economic downturn has given them a stronger position to negotiate costs, and 48 per cent of the group reported more flexibility to renew existing contracts.
"When costs need to be cut and supplier contracts renegotiated, it is clear that procurement can play a leading role in steering their businesses through the current economic turbulence," said Nader Sabbaghian, chief executive of BravoSolution.
However, the study also revealed only 31 per cent of the respondents had fully assessed supply chain risks during the downturn, and failed to evaluate problems such as the financial stability of vendors.