Procurement emerges from credit crunch as a 'winner'

07 Oct 2010

Source: Procurement Leaders
Procurement has emerged from the recession as a "winner", a new poll claims.
According to the 4th edition of Capgemini Consulting's Global chief procurement officer survey, around two-thirds of CPOs and senior supply chain professionals feel that the economy is showing "clear signs of recovery from recession", although the pre-credit crunch status quo has not yet been reached.

"Over 60% of respondents confirmed that the procurement function has emerged from the global economic downturn as a winner, with an improved image within their organisation," the survey revealed.
"Cost reduction continues to be a major focus area with savings targets increasing as they did in 2009 (over 40% of respondents have savings targets at nearly 10% for 2010)."

It also revealed that there is a continued trend towards centralised procurement operating models with over 40% of the surveyed companies favoring the centralized model and another 50% favoring a center-led/hybrid model. However, the report went on to caution that almost 80% of survey participants responded that top management expected them to improve the overall value contribution of procurement.