Risk management a top priority for chief procurement officers

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Published: Monday, 13 February 2017 09:25

Cost reduction and managing risk top the list of procurement leaders’ business priorities in 2017, according to Deloitte’s annual global Chief Procurement Officer (CPO) survey.

Managing risk will be a high priority for over half of CPOs this year (57 percent). Key global risks cited include weakness and volatility in emerging markets; rising geopolitical risk; the possibility of a renewed Euro crisis; spill over effects of any slowdown from China; and uncertainty around Brexit and outcomes from upcoming trade negotiations. Perhaps unsurprisingly, the latter was the highest risk cited by UK based participants.

In addition, 54 percent of respondents report a resurfacing of procurement risk, which could include price volatility, disruptions in supply and supplier bankruptcy. This is up from 42 percent in 2014.

Conducted in association with Odgers Berndtson, the global CPO survey is an annual survey of chief procurement officer’s across the world. 480 procurement leaders from 36 countries around the world took part in this year’s survey, representing organisations with a combined annual turnover of $US4.9 trillion.