"Skills shortages cause concern for CPOs"

Current skills shortages cause real concern for chief procurement officers (CPOs), according to new Deloitte research.

The latest global CPO survey from the business advisory firm shows that these individuals also have major concerns about technological and geopolitical issues.

Talent concerns

With regards to employee skills, some 57% of the CPOs questioned said they are unsure about whether their teams have the right attributes to effectively deliver procurement strategies.

In particular, it was found that CPOs have recently seen a shortage of leadership and communication skills, while relationship-building is also a key problem.

With analytics becoming more important, almost half (49%) of the CPOs questioned said the talent market has actually become more restricted over the last 12 months.

Technological issues

When it comes to technology, some 53% of the respondents said their current procurement systems can be difficult to use.

Among those working within the very biggest companies, 62% said this is a concern of theirs.

Geopolitical tensions rise

Elsewhere, Deloitte said geopolitical risks are becoming more of a concern for CPOs.

A quarter (25%) said they are worried about these kinds of risks, with the figure tripling compared to 2013.

In light of these issues, 43% of the individuals polled said supply chain risks have gone up in recent months, with 28% of global CPOs also worried about information security threats.

Positive outlook

Among its more positive findings, Deloitte revealed that 28% of CPOs believe that they have become well-regarded strategic partners within their businesses.

Furthermore, in the coming year, another 30% said they are looking to increase levels of outsourcing in operational and transactional activity.

Commenting on the results, James Gregson, UK head of sourcing and procurement at Deloitte, said CPOs are increasingly focusing on supporting corporate growth.

He said: “These results reflect the improving global business environment’s impact on traditional models of procurement.”

“Although there are still challenges to address, procurement functions are likely to become ever more fundamental to their organisation’s development.” 

In total, some 239 CPOs and company directors were questioned as part of the Deloitte survey, representing firms from 25 different nations.

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Copyright Press Association 2014