Prices of greater concern to CFOs than supply security

22 March 2012

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22 March 2012 | Adam Leach

CFOs are more concerned about price volatility than security of supply.

According to the CFO Survey 2012, conducted by procurement consultancy 4C Associates, 48 per cent of finance directors see price risk and fluctuations as their biggest supply threat, while just 16 per cent are most concerned about securing supplies.

The results, based on the responses of over 40 CFOs, also found the potential reputational risk from the supply chain is a significant worry, with 36 per cent identifying it as their primary concern.

While sales growth emerged as the number one priority for CFOs in 2013, chosen by 45 per cent of respondents, a further 31 per cent believed effective cost reduction was the key issue. In addition, the survey revealed operational efficiency improvements are also seen as a priority for CFOs with 45 per cent identifying it as their second priority.

Ed Ainsworth, managing director of 4C Associates, said: “It’s no surprise given the current economic situation that cost transformation is a real concern for finance leaders. The volatile climate means that although sales growth is difficult to achieve there are a range of cost cutting measures which CFOs can use to drive growth.” 

In terms of where they will be looking to cut costs, procurement was the main area identified by 29 per cent and supply chain and logistics was selected by 18 per cent. Organisational change was the most popular with 36 per cent.

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