Two-thirds of CPOs do not believe they have enough resources to manage their procurement operations effectively, according to a survey.
The poll, by industry events firm Consero, found that while 58 per cent had experienced an increase in their departmental budget in the past year, 66 per cent said it was not enough, up from 55 per cent on the same survey in 2013.
The survey also found that 40 per cent of CPOs had increased the number of suppliers they worked with in the past 12 months, 31 per cent had cut the number of vendors, and for 29 per cent there was no change.
Consero found cost reduction was the top priority for the coming year, cited by 85 per cent of respondents, followed by spend analytics and talent management.
Paul Mandell, founder and CEO of Consero, said: “These findings indicate that procurement may not be sharing fully in the availability of new resources, and are of concern given procurement’s vital role within today’s corporations.
“With cost reduction remaining a top priority, procurement executives may be facing a challenging year ahead.”
The greatest area of concern for the coming year was supplier risk, followed by contract risk and commodity risk.
The poll, involving 49 CPOs at Fortune 1000 firms, also found 90 per cent had better relationships with suppliers compared to a year ago, 81 per cent anticipated more supplier-driven innovation but 72 per cent said they had not achieved “tangible cost reductions” through using a sustainability programme.
Consero’s 2014 Procurement and Strategic Sourcing Forum takes place on 12-14 October in St Albans, Hertfordshire.