CPOs are primarily focused on cost reduction, managing risks, and increasing cash flow to deliver value over the next 12 months. They plan to achieve this through consolidating spend, specification improvement, increased competition, and increasing supplier collaboration. However, 60% of CPOs do not believe their teams have the skills to deliver their procurement strategy. Additionally, 75% of CPOs believe procurement's role in delivering digital strategy and analytics will increase in the future.

1. 1
86%72%
Excellent 12%
Fair
Poor
2%
21% 7%
Current Future
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
Cost reduction
Managing risks
Increasing cashflow
Introducing new products/
services or expanding into new markets
79%
57%
48%
52%
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%
Increasing
supplier
collaboration
26%
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%
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
75%believe
procurement’s
role will increase
65%think analytics
will have the
largest impact
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