Profession in 'identity crisis'

Procurement must overcome its "identity crisis" to have a voice in businesses' biggest decisions, according to an industry analyst.

Speaking to SM, Michel Janssen, chief research officer at the Hackett Group, said CPOs across the globe are torn between securing cheap goods and services, and moving their organisations forward.

It follows a study by the US consultancy that found procurement is failing to cut costs at some of the world's largest companies during the recession (Web news, 26 August 2009).

Janssen said purchasing is in a "massive state of flux" and is uniquely positioned to deliver savings in response to reductions in revenue.

To make an impact, CPOs must use their supply chain knowledge and persuade senior management to redesign business processes and consider outsourcing, he said.

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