In this session, we’ll share the most important insights from Deloitte’s 2016 Global CPO Survey, which reflects the sentiments of more than 300 procurement executives from 33 countries representing every major industry. The survey covers the state of play in key procurement disciplines such as business engagement, talent, and productivity. With five years of data under our belt, we’ll talk about how the CPO’s outlook has changed over the years—as well as what the future holds.

1. Ryan Flynn, Principal, Deloitte Consulting LLP

2. 2 Copyright © 2016 Deloitte Development LLC. All rights reserved.
Survey Participant Overview
The 2016 Global CPO Survey captures sentiment from over 320 Procurement Executives from 33 countries
Manufacturing
26%
Consumer
Business
13%
Energy &
Resources
13%
Healthcare &
Life Sciences
11%
Financial
Services
10%
Technology,
Media, &
Telecom
7%
Public
Sector
7%
Other
14%
RESPONSES BY INDUSTRY
7%
26%
42%
20%
> $50B
$10B - $50B
$1B - $10B
< $1B
RESPONSES BY ANNUAL
REVENUE
179Europe
93North America
52Rest of World
RESPONSES BY REGION
Source: Deloitte Global CPO Survey, 2016

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Survey Backdrop – We’ve Come a Long Way?
Much has changed since we launched the inaugural Global CPO Survey in 2011, but many of
the macro factors are the same
Source: Deloitte Global CPO Survey, 2016
2011 2016
Early stage economic recovery, driven
by emerging markets
Uneven economic growth, weighed
down by emerging markets
Boom in demand for commodities,
driving up prices
Weak commodity demand, slump in
prices
Focus on Greece (default) Focus on Greece (refugee crisis)
Supplier risk on the rise (e.g., Japanese
tsunami)
Supplier risk here to stay (e.g.,
information security)
Disruptive technologies (e.g., social
media)
Disruptive technology (e.g., sharing
economy)

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2016 Survey Key Findings – Back to the Future
CPOs are responding to economic uncertainty by returning to the traditional cost control focus,
while looking to technology to drive analytics and efficiency
Source: Deloitte Global CPO Survey, 2016
Return to Cost
Control
Increasing But
Limited Risk Role
Mixed Internal
Influence
Talent Gap
Technology
Innovation
In the face of increased economic uncertainty and worsening financial outlooks, many
procurement organizations seek a return to cost control
While procurement-related risks have increased, along with CPO involvement in
managing risk, few CPOs are playing a major role
CPOs report mixed effectiveness within the organization and will need to continue to build
influence and engagement with the business
The talent gap continues to grow within procurement teams, and CPOs have reduced
budgets dedicated to training and recruitment
Investments continue in innovative technologies like portals and cloud computing, though
60% of CPOs surveyed lack a clear digital strategy

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Market Outlook – Return to Cost Focus
CPOs are responding to declining financial forecasts by focusing on cost reduction, a change
from last year’s focus on supporting growth
Source: Deloitte Global CPO Survey, 2016
*Net percentage of respondents that anticipate economic uncertainty to increase;
net percentage of respondents that anticipate financial outlook to improve
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2011 2012 2013 2014 2015
Uncertainty Financial Outlook
TOP PRIORITY BUSINESS STRATEGIES
FOR NEXT YEAR
43%
45%
15%
74%Reducing Costs
47%
New Products /
Services / Markets
Expanding Organically
Increasing Cashflow
Increasing CapEx
2015: From 2014:
ANTICIPATED ECONOMIC UNCERTAINTY
VS. FINANCIAL OUTLOOK*

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Risk Management – Stepping Up
CPOs are increasingly involved in managing supply risk, requiring different capabilities to meet
new challenges – but involvement is still low
Source: Deloitte Global CPO Survey, 2016
REPORTED LEVEL OF PROCUREMENT-
RELATED RISK
PERCENTAGE OF CPOs INVOLVED IN RISK
MANAGEMENT AND MITIGATION
Today’s CPO faces new challenges
as the steward of supply chain risk:
• Need for increased collaboration
with suppliers
• Establish coordination across
multiple internal functions
• Gain visibility into operations of
all global suppliers
• Capture and analyze internal
and third-party data

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Business Engagement – Strategic Partners
Internal partnerships are critical for Procurement to achieve results, yet CPOs report only mixed
influence internally, with wide variations by industry
IMPORTANCE OF PARTNERSHIPS WITH
C-SUITE
CPOs DRIVING INNOVATION WITH
SUPPLIERS – BY INDUSTRY
Healthcare & life sciences
Consumer Business
Technology, Media, & Telecom Manufacturing
Financial Services Government & Public Sector
Energy & Resources Business & Professional
Services
CEO CFO CIO CHROCOO CMO
EFFECTIVENESS OF PROCUREMENT AS A
STRATEGIC BUSINESS PARTNER
32%
Excellent
3%
Poor
65%
Mixed
Source: Deloitte Global CPO Survey, 2016

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Business Engagement – Room for Improvement
CPO involvement in decision making remains largely unchanged from last year, indicating an
opportunity for Procurement to take on a greater role
LEVEL OF PROCUREMENT INVOLVEMENT IN DECISION MAKING
Post-merger/acquisition
activities
New Product
Development
Corporate Risk Planning
Shaping/Changing The
Way Services are
Delivered
Make vs Buy Decisions
Source: Deloitte Global CPO Survey, 2016

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Talent – A Widening Gap
Procurement teams increasingly lack the skills required to execute the vision of the CPO, and
organizations are slow to invest in talent
PRIORITIES FOR TALENT IN
THE NEXT YEAR
TEAM HAS SKILLS TO DELIVER
CPO’S STRATEGY
Retaining
Talent
Attracting
Talent
Training
Source: Deloitte Global CPO Survey, 2016

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Talent – Has Outsourcing Peaked?
While interest in outsourcing as a means to plug the talent gap has increased in recent years,
the trend has slowed this year
Source: Deloitte Global CPO Survey, 2016
FOCUS ON OUTSOURCING
ACTIVITIES
AREAS OF OUTSOURCING
FOCUS
2013
2014
2015
Business
Planning &
Develop-
ment
Category
Management
/ Strategic
Sourcing
Operational
Buying
Contract and
Supplier
Management
Requisition
to Pay
2014 2015

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Technology – Digital Divide?
Investments in traditional procurement technologies continue to grow, as are new emerging
disruptive technologies – but most CPOs have no clear digital strategy
Source: Deloitte Global CPO Survey, 2016
INVESTMENT IN INNOVATIVE DIGITAL
SOLUTIONS
LEVEL OF PROCUREMENT DIGITAL
STRATEGY
No clear digital
strategy, but
exploring options
for digital
enhancement
No clear digital
strategy and not
exploring options
for digital
enhancement
Clear digital
strategy
aligned with
wider
organization
Clear digital
strategy, but not
aligned with
wider
organization
40%
Clear digital
strategy
60%
No clear
digital
strategy
2014
2014
2014
2014
2015
2015
2015
2015
Social Media
Self Service Portals Cloud Based Computing
Mobile Technologies
23%
42%
43%
70%
26%
45%
16%6%

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Technology – Safe Investments
Planned technology investments reflect the increased focus on cost control and
risk management
Source: Deloitte Global CPO Survey, 2016
PLANNED INVESTMENTS IN PROCUREMENT TECHNOLOGY
• Improved insight into
key areas for cost
reduction, volume
consolidation, SKU
rationalization and other
opportunities
• Dynamic category view
of spend over time
• Understanding of
spending across the
organization
• Increased spend under
management
• Improved ability to
capitalize on supplier
incentives such as
dynamic discounting and
volume discounts
• Better leverage with
major suppliers
• Improved reliability of
spend data, which has
positive implications for
the effectiveness of
analytics tools
• Better compliance with
purchasing policies and
adherence to negotiated
pricing
• Streamlined procure-to-
pay process
38% 37% 30%
Spend Analysis Contract Management eSourcing

13. Questions?

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Ryan Flynn, Principal, Deloitte Consulting LLP
rpflynn@deloitte.com or +1.312.498.8250
Booth #5 at SAP Ariba LIVE
Website: www.deloitte.com/SAP
General enquiries: SAP@Deloitte.com
Follow us on Twitter: @DeloitteSAP

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