Procurement challenges in an age of austerity

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Procurement challenges in an age of austerity

Office Depot commissioned a market intelligence survey asking the readership of Supply Management magazine for their views on a whole range of procurement issues.

Nearly 900 procurement professionals took part in this online survey about the key challenges they face. Topics included supplier selection criteria, sustainability, internal stakeholder issues, contract ‘leakage’ and outsourcing.

While cost reduction and control were recurring themes, the responses revealed a commitment that such gains should not be made at the expense of quality and service.

You can read the full findings here, but this is a quick summary:

Key trends

  • Cost reduction is a primary challenge for most buyers
  • Quality of goods/services is the number one supplier selection criterion
  • Sustainability and CSR are still important when selecting a supplier and will grow in importance over the next 2 years
  • The trend towards outsourcing is likely to grow over the next 12 months.

Specific concerns

  • A lack of buy-in to the role and value of the procurement function by other departments continues to be a challenge
  • Off-contract spend levels are not known for many organisations
  • Suppliers need to work on improving their service levels and the quality of their communication
  • Unjustified price increases and suppliers being ‘economical with the truth’ are the two biggest irritants for buyers!

Download the full report here

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