Deloitte recently surveyed leading CPOs across the globe around key issues affecting the function and industry. The survey revealed, unsurprisingly, that reducing costs prevails as the top priority for at least 79% of CPOs.
The Survey also covers four additional areas of concern to procurement leaders; market outlook, value and collaboration, talent, and digital procurement.
Schalk Human, Acting CPO at National Treasury believes that; in a low-growth economic environment organisations require cost-related strategies that are key to drive cost reduction, cost avoidance, cost containment, and aggregation, in order to lower unit costs and defer costs or even cancel contracts.
Value and Collaboration
Venkatesan Giridhar, Commercial and Finance Vice President at AngloGold Ashanti, says that whilst not the expectation in the past, organisations are now slowly moving towards value creation rather than just-in-time contracting and delivery. The desired future state is value creation through cross-functional teams with appropriate vendor relationship management.
Khutso Sekgota, Associate Director of Integrated Operations Delivery at Deloitte says that an organisation’s procurement skills are largely dependent on the operating model of the organisations in which they operate. Investing in strategic procurement skills and peer benchmarking globally will prove a lot more beneficial for organisations seeking a more strategic approach to running their procurement functions.
Rieta De Villiers, Associate Director of Technology Enablement at Deloitte believes that CPOs who accelerate the adoption of predictive and cognitive analytics will enable end-to-end supply chain visibility and use data to drive decision-making. “Many CPOs are already thinking about augmenting their existing tools by leveraging cloud, analytics and robotics. The challenge will be making sure their investment is well spent”.
Access the full report here.