30 January 2014 | Will Green
The proportion of organisations reporting annual procurement savings of up to 5 per cent has more than doubled, according to a survey.
The poll, carried out by Science Warehouse, showed in 2013 some 34 per cent of organisations said they had saved up to 5 per cent, compared to just 15 per cent in the previous two years.
The survey also found half of organisations planned to invest in procurement technology in 2014, a one third increase over 2013, and 43 per cent intended to invest in training, up by a fifth.
Becoming more strategic was the second most important driver behind cost cutting, which was the number one priority for 82 per cent of organisations.
The poll of 260 public and private sector organisations showed procurement’s influence has grown, with 38 per cent of organisations recording 60 per cent or more of spend under management in 2013, up 17 per cent on the year before.
Jonathan Betts, marketing director at Science Warehouse, said: “Our survey this year shows a surge in procurement optimism mirroring the upturn in the economy. I believe this shows a real increase in confidence in businesses that recognise that procurement capability needs to be enhanced to cater for future growth. Strikingly, there is also an increasing drive to become more strategic. This aligns with the continuing evolution of procurement into a value-enhancing function which goes beyond the basic cost reduction capability.”