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31 January 2012 | Adam Leach
UK businesses will invest in procurement during 2012 to enable them to meet cost cutting targets, according to a survey.
The Science Warehouse and eWorld study, Procurement Pulse Survey 2012, published yesterday, was based on the responses of 313 business professionals. It found that 85 per cent plan to invest in procurement technology, training or recruitment during the course of this year.
In addition, 84 per cent said cutting costs is the number one priority for their procurement team. The most sought-after area of savings was professional services, with 37 per cent identifying it as the highest priority spend category.
Steve Kerridge, managing director of Science Warehouse, said: “While factors such as quality of supply and financial control are among the most important value drivers in procurement, cost cutting will be the number one priority in the year ahead. However, it was interesting to see that the majority of organisations also recognise the importance of investing in their procurement capability in order to deliver long-term savings.”
The survey also found that developing greater control and visibility of spend is a key priority for 2012, with more than half (51 per cent) identifying it as highly important. It also found that just a third of companies had generated a saving of over £1 million in 2011.
Cost cutting also emerged as the number one priority in the recent Supply Management Readers Survey 2011. More than 3,000 people responded and, perhaps unsurprisingly, reducing spend was named as the priority. Next came SRM, while better stakeholder management emerged as the third top area of attention for 2012.
Influencing more spend areas came fourth, followed by risk management; raising the profile of purchasing; sustainable procurement; investment in procurement resources; and finally, more outsourcing.