The Deloitte Global Chief Procurement Officer Survey 2017 has been saved
The Deloitte Global Chief Procurement Officer Survey 2017
Growth: the cost and digital imperative
Growth ambitions are high in an uncertain market, the pace of change and increased uncertainty requires superior levels of funding. Defensive strategies being implemented by Chief Financial Officers are demanding rapid, sustained cost reduction in parallel to a greater focus on risk from procurement. We are now sure that the traditional procurement operating model has to change. This has been driven by a lack of talent and an increase in digital innovation.
The procurement function has progressed slowly since this survey first began in 2011. Exceptions do exist, with a small number of high performers demonstrating leadership within their organisations and industries.
We recognise that despite the pressure to evolve and innovate, procurement is faced by capacity and capability constraints. Tough choices continue to be faced and new ways of generating productivity, changing focus or investment will need to be found or else future performance will continue to be hampered.
We remain confident that procurement does have a critical role in shaping companies’ overall business models and supporting execution to deliver value. In particular, procurement is using the procurement levers of consolidating spend (40%), increasing competition (35%), specification improvement (28%), increasing levels of supplier collaboration (26%) and reducing total ownership costs (26%).
The survey shows that executive support for procurement has never been stronger. For high performing CPOs who wish to have significant influence over commercial decisions, value delivery and risk management, the elevated expectations of the organisation will demand a significant improvement in execution, performance and leadership.
Our research shows that these high performers deliver increases in savings year after year, are more focused on security of supply, and are more effective at business partnering than their peers. Seven
key capabilities identified as being critical for high performance are:
• Executive advocacy
• Stakeholder alignment
• Decision making
• Talent strategy
• Talent investment
• Talent capability
• Digital procurement
There is still significant opportunity for most companies to improve across these seven capabilities moving from poor to excellent performance levels.