Procurement Teams are under increasing pressure across the globe, with almost a third forced to cut corners, research from Procurious and Ivalua has revealed.
The research surveyed more than 170 procurement and supply chain professionals.
Topics covered included the economic outlook, logistical, and market forces and supply chain pressures leading up to 2023.
Some of key findings in Procurement Under Pressure Procurement Bends and Adapts – Will it Break? included:
- Executive pressures almost at breaking point: 81% of procurement teams are pressured by executive teams to “to more quickly and effectively respond to challenges” but most are ill equipped to act.
- Lack of resources: Less than a quarter (21%) have seen headcount increase and just 14% have had budget increases to help face today’s market challenges.
- Bracing for inflation: Twenty-five percent (25%) of respondents believe business is in a recession and 17% expect us to enter recession in Q4 2022, while 23% say we will enter one in Q1 2023.
- Supply chains norms a long way off: Nearly half (49%) said global supply chains won’t fully recover to pre-Covid norms until at least 2024
Of the top five pressures facing the global economy, 87% and 85% of respondents say inflation and supply chain disruptions and shortages are of most concern.
Recession risk rounded out the top three, with 80% of those surveying highlighting the issue.
“These figures resonate: as the cost of commodities and finished products increases, and the security of supply and their reliable and timely delivery remain compromised, organisations face greater financial and operational uncertainty, which jeopardises their ability to achieve profit targets,” Procurious said.
When it comes to support, three quarters of procurement teams are being cut short with just 24% of executive teams having fast-tracked investments in new procurement technology.
It appears the ripple from the pandemic continues to have an effect in the labour market for the profession.
Labour shortages “driven by a combination of workers unwilling to accept or return to undesired jobs, and disabled workers suffering from “long Covid” symptoms, have contributed to market challenges that persist today,” Procurious says.
“In fact, seventy-seven percent (77%) rate labour shortages as having the largest impact on their business,” the research says.
Despite this, only 10% are prioritising employee retention, even though the Great
Resignation is touted as a big pressure. On ESG, just 7% are prioritising outcomes.
The forward look for procurement teams
Almost half, 49%, of respondents believe it will take at least 18 months to return to pre-pandemic operations. Almost two-thirds (64%) believe recession is here or will be shortly.
For technology, 56% believe transactional procurement will be mostly autonomous in the future.
On influencing the C-suite, 52% of respondents are confident it will continue to grow, resulting in potential for greater budgetary allocation for new technology investments.
Download a copy of “Procurement Under Pressure Procurement Bends and Adapts – Will it Break?”.