current effectiveness of business partnering at less than 70% and have an ... strategy will increase in the future and a
Growth: the cost and digital imperative The Deloitte Global Chief Procurement Officer Survey 2017 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. Traditional procurement operating models are changing, driven by a lack of talent and an increase in digital innovation.
The top four business priorities for CPOs in 2017 show an increased focus on cost reduction and cashflow
48%
79%
1
57%
52%
Cost reduction
Increasing cashflow
Managing risks
Introducing new products/ services or expanding into new markets
CPOs are primarily focused on the following procurement levers to deliver value over the next 12 months Key procurement levers
40%
Consolidating spend
35%
Specification improvement
28%
Increased competition
26%
26%
Increasing supplier collaboration
Reducing total ownership costs
Executive support for procurement change exists for 75 per cent of procurement leaders. The majority of CPOs rate their current effectiveness of business partnering at less than 70% and have an ambition for future effectiveness to be greater than 90% 86%
72%
12%
Excellent Fair Poor
21%
Current
7%
Future
2%
60% of CPOs do not believe their teams has the skills to deliver their procurement strategy
75% of CPOs believe that procurement’s role in delivering digital strategy will increase in the future and analytics will have the largest impact for over 65% of procurement leaders
