Deloitte Content

CPO Survey Insights: Gaining Value While Focusing on Cost Reduction

Spend Matters welcomes this guest post from Deloitte. We recently launched Deloitte Consulting’s annual Global CPO Survey. Last year’s edition included feedback from more than 180 procurement leaders across 17 countries, and we’re excited to provide an even broader perspective this year. Our findings from last year (click here to review the 2013 survey summary) focused on the evolving theme of procurement executives learning how to lead in an expansionary – if still cautious – economic environment after years of leading through a tight focus on cost savings.

Bringing B2C Into B2B: Consumerization, Mobile, and Self Service

One of the more prescient findings in Deloitte’s 2013 CPO survey is not just that procurement executives expect to focus more investment and time on technology and analytics, but the specific areas they’re most interested in focusing on – from both “what” and “how” perspectives. Consider the drive to consumerization in procurement and B2B enterprise software and SaaS applications. As Deloitte observes, “in our personal lives, we are being provided with increasingly user-friendly and mobile technologies... the question is how to extend this into procurement.”

Deloitte CPO Study: Technology and Analytics are High Priorities

Procurement may be living in the Paleolithic analytics era, but there is hope for the future. Deloitte’s latest CPO study suggests a material interest in general technology learning and investment, as well as a focus on near-term objectives in regards to analytics and visibility: “Technology remains a high priority for CPOs with seven out of 10 respondents planning some or heavy investment in technology over the next year. With recent economic performance so positive, it is perhaps no surprise that Procurement is expecting to be given further permission to invest..."

Exploring the Deloitte Global CPO Survey: Holiday Facts, Figures, and Forecasts

As most of us from Spend Matters take some time off in the coming weeks to spend with family and reflect on the past year (and plan ahead for 2014), we will start to feature the especially interesting highlights from the study. We’ll try to spare everyone the standard, expected findings of such report (did you know CPOs care most about saving money?). Instead, we’ll zero in on some of the more nuanced, surprising, and comparative (based on geography and industry) data and findings. Spoiler alert: German CPOs are very much a smug bunch.

Procurement in 2020: Changing Roles for Recruiters and Talent Managers

"Talent will be looked at individually and globally. Criteria will include not just listed skill sets and capabilities, but past performance, demographic/cultural nuances, and preferences. For example, a system may flag a particular candidate for a role not based on a past similar rotation, but a collection of indicators in a profile that suggests success in the desired new role. Leading companies will likely be able to do this externally — not just internally — mining candidates from social networks, jobs boards and résumé items across public sites."

Procurement in 2020: Evolving External Forces – Global Trade, M&A, and Regulatory

Three areas where procurement will need to greatly expand its focus, charter, and capabilities by 2020 are trade/operating models, M&A, and regulatory compliance. In the Deloitte paper Charting the course: Why procurement must transform itself by 2020, the authors suggest that procurement will be at the nexus of broader trading and total cost efforts in a range of areas, evolving from having “variable connections with finance to mitigate commodity risk” and “often ad-hoc efforts” to realizing “commodity expertise and management as integral to the business as treasury, AP, etc.” In this environment, procurement will enable “currency and foreign exchange [to be] tied to broader risk and commodity management to manage exposure and trade risk/reward.”

Procurement in 2020: Evolving External Forces – Financial Metrics and Customers

If procurement organizations were a type of IT hardware, they would certainly be classified as advanced firewalls, filtering external inputs and managing an outbound stream of requirements and communications – and protecting the enterprise in both directions. In Deloitte’s paper, Charting the course: Why procurement must transform itself by 2020, the authors suggest that procurement’s role as a type of firewall, filtering the internal and the external, will only increase by 2020, as the function “will need to respond to external forces across a number of dimensions.” Two of these dimensions that the paper explores are financial metrics/bottom line value and customers, and how these will evolve between today and 2020.

Procurement in 2020: Into the Risk Maelstrom

In looking at Deloitte’s CPO Survey numbers, we find the significant increase in risk (compared to decreases) across all areas including supply assurances, financial, customer, regulatory and price volatility telling of a general trend: risk – and risk awareness and focus – is only headed in in one direction. And it’s not down.

Procurement in 2020: Be Prepared For an Entirely New World

Over the next few weeks on Spend Matters, we’ll be sharing excerpts from what is probably the most thoughtful and forward-looking paper we’ve seen on the future of the procurement profession in some time. Titled Charting the course: Why procurement must transform itself by 2020 and authored by the Deloitte sourcing and procurement team, the analysis is a tour de force of what is currently evolving in the profession, as well as the gradual (e.g., think climate change like) and seismic (think asteroid impact magnitude changes) that are going to completely stir the purchasing pot by 2020.