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23 November 2011 | Angeline Albert
Attempts to reduce costs by buyers in
Ireland are hampering sustainable procurement.
The number of firms making procurement
decisions based on cost rose from 27 per cent in 2010 to 44 per cent in 2011,
whereas decisions based on sustainability fell from 17 per cent to just 4 per
cent this year, according to a survey of 112 senior procurement executives in
the country by Accenture.
Buyers reported a shift in resources and
priorities in favour of short-term cash flow improvement and cost reduction,
pushing long-term economic objectives, such as improved sustainability, down
The report Performance through Procurement:2011 National Procurement Survey of Ireland: Accenture Procurement MasteryBenchmarking,
found most buyers are contributing to their organisation’s bottom line. Some 66
per cent of procurement functions delivered savings of 6 per cent or more to
their company’s bottom line in the past 12 months.
“An enterprise should also focus on
compliance to contracted suppliers and demand to achieve both sustainable
savings and growth,” said the report.