6 June 2011 | Lindsay Clark
Procurement professionals believe the tactics they used to achieve savings during the economic downturn will continue to work as the economy grows.
The SM100 survey found that 61 per cent of respondents think they can hang on to spending efficiencies by using the same methods that proved successful in the downturn. However, the remainder (39 per cent) said the same tactics would not work.
“If economic growth means we have more volume and new developments to offer, then that should be easier to sell than pleading poverty, and existing wins can be retained,” said Tony Hall, head of Welland Procurement, a local government procurement shared service unit.
Martin Wakelin, purchasing director, global elastomers, at Trelleborg Sealing Solutions, said the recovery was accompanied by severe material shortages and sometimes it was necessary to pay a premium to secure supply.
“However, this does not dilute our focus on cost. In fact right now we are much more likely to analyse a supplier’s costs in great detail to ensure we understand where any price increases are coming from and if they are justified,” Wakelin said.