Almost half of CEOs don’t understand procurement

48% of procurement professionals state that their bosses still don’t understand the functions of a procurement team

CEO-1024x440In a recent survey, questioning 521 Chief Procurement Officers, managers and procurement personnel, almost half stated that their employers do not fully understand the functions and benefits to be gained by having a well informed and proactive procurement team.

Beyond cost cutting, many of the added value functions of a procurement team are often neglected, says Mark Ellis, partner at 4C Associates, the organisation who carried out the survey.

“There are many different aspects to procurement which add value to an organisation”, explains Thornton & Lowe Director Tom Anderson. “CEOs who don’t fully understand how goods and services are procured by both the private and public sectors are potentially missing out on significant added value to their business.”

Through effective procurement, businesses have the possibility to streamline processes and create further efficiencies in cost and added value. Maintaining and improving on the levels of quality of the goods and services acquired is also a key area where smart procurement can really set an organisation apart from its competition. These aspects of procurement may also lead to further innovations, consistently moving forward and generating fresh perspectives.

“Procuring goods and services through local suppliers can help to foster relationships and lead to a positive impact on the well-being of local communities. Public sector organisations have got the potential, through procurement, to contribute to the prosperity and well-being of those within the community”, Mr Anderson explains.

If you feel your business could benefit from a further understanding of what buyers are looking for, Thornton & Lowe offer a range of services which could benefit you and your organisation. For further information, please click here.

 

 

 

Speak Your Mind

*