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26 August 2012 | Adam Leach
The majority of chief procurement officers admit they need to go back to the drawing board and rethink their buying strategies to deal with the volatile business environment.
Research carried out by conference CPO Exchange found 83 per cent of senior professionals agreed they needed to “rethink their procurement strategies” to better position their business for the current operating environment. The research found areas such as risk management and stakeholder management were of increasing importance for senior purchasers.
In addition, 69 per cent of respondents identified procurement risk management and supplier risk management as top priorities. The need to mitigate risk has also become more important than cutting costs, with just 57 per cent aiming for cost reduction.
Livia Trubenova, head of research at CPO Exchange, said: “We can see that procurement leaders are working on growing the influence and recognition for the procurement function within their organisations.”
The survey also found 45 per cent of buyers are looking to improve stakeholder management while 39 per cent aim to streamline internal processes through using procurement technologies. The research also suggested CPOs are looking to increase the number of suppliers, in order to spread risk.