2015 Global Procurement Study from Xchanging

"The biggest challenges today stem from the difference in how procurement’s role within organisations is viewed and the value it actually adds" according to the latest Xchanging Global Procurement Study for 2015

"Misaligned KPIs, internal engagement, capacity shortages, and the skills gap are the core issues presently affecting global procurement departments"  Xchanging's report explains why that is the case and offers advice on how to overcome these challenges.

The report is also discussed in Supply Management..

Eighty per cent of respondents identified procurement team time pressures as a challenge, with 20 per cent considering it a "major challenge”.The study talked of a “perception gap” between mid-level buyers and those representing procurement at an executive level. Sixty per cent of CPOs feel procurement is a board level priority in their organisations compared to 37 per cent of procurement middle managers.

Some 63 per cent of respondents described internal stakeholder engagement as a challenge, and 14 per cent cited it is as an "extreme challenge".There was also a discrepancy between the wide-ranging responsibilities procurement decision-makers believed they faced and the KPIs by which their performances were being measured. Some 47 per cent named ‘cost savings realised’ as their number one KPI. All other listed KPIs were cost-related and sustainability impact was ranked as the least important.

Talent shortage was considered an operational challenge by 59 per cent of respondents, but only 12 per cent believed it to be an extreme challenge. The study confirms talent shortage is still an operational challenge, there is a much bigger issue in the form of ‘team time pressures’. The main problem isn’t a lack of available talent but insufficient capacity within procurement.

Respondents said the skills they considered most important for procurement professionals were relationship management (considered important by 88 per cent and very important by 59 per cent) and negotiation skills (considered important by 88 per cent and very important by 58 per cent). But these were also the areas where procurement leaders saw the biggest lack of skills. ....to see the Supply Management article. To see the Xchanging 2015 Global Procurement Study