Most chief procurement officers feel they are not getting enough out of their company data, according to research.
A survey by Consero found 84 per cent of respondents were not satisfied with the level of insight they were able to extract from their company’s data.
The July 2015 Procurement & Strategic Sourcing Data Survey also found 53 per cent of procurement officers named spend visibility as the most effective data metric in supporting their operations.
Some 31 per cent of CPOs surveyed planned to invest in spend analytics and e-procurement tools this coming year, with 14 per cent looking to purchase electronic data interfaces to help drive their operations. A further 58 per cent named spend visibility as the metric that has proven most effective in supporting their operations, followed by supply chain visibility, cited by 17 per cent. But 69 per cent of procurement executives believed metrics used to evaluate their function drive the wrong behaviour within their organisations.
Two-thirds of those surveyed reported an increase in departmental budget over the last 12 months, up from 53 per cent in 2014. Fewer CPOs have experienced a budget reduction during this period.
Other findings from the report were nearly three quarters of executives reported a better relationship with their suppliers than a year ago. Only 42 per cent increased the number of suppliers they worked with in the past year. And 52 per cent of respondents reported that personal relationships between the procurement team and suppliers had a “high impact” on the success of partnerships, with only 11 per cent saying it had low or no impact. Only 20 per cent of respondents reported achieving tangible cost reductions through the use of a sustainability programme.
Opinions of the procurement talent pool were split, with 50 per cent of CPOs believing there was a sufficient pool of trained procurement talent available to support their hiring needs.
Consero founder and chief executive Paul Mandell said that CPOs should be concerned by the findings of dissatisfaction with the level of insight from data.
“Moving forward, CPOs may want to invest time in identifying ways to extract insight from their data and communicate the key metrics that drive positive change and behaviour,” he said.
The poll surveyed 47 CPOs based in the US.