Our twice-yearly economic survey has foreshadowed some good (and a lot of bad) developments for the global procurement profession over the past few years. The findings of our latest research (page 34) are no exception.
The headline figures suggest things are easing for senior procurement professionals, but not all that much. Although some internal constraints have been relaxed, the pressure to reduce supply costs has intensified. The increase is small (88.5 per cent to 91.7 per cent) but provides a good indication of the continuing direction of travel.
Other measures offer a more optimistic view. The volume of organisations delaying investment decisions has fallen from 60.4 per cent to 47.2 per cent – a good sign for the buyers themselves as well as the vendors and consultants seeking to serve them.
The biggest change, though, is in recruitment. Nearly all companies have had a recruitment freeze. But the number that still have one in place has fallen to 38.9 per cent from 67.9 per cent six months ago. Plainly, the companies that were unable to recruit during the economic downturn are looking to refresh the talent pool. Indeed, 42 per cent are now hiring. Staff churn in the profession has been at an all-time low over the past year and this development will be welcome for candidates and recruitment consultants alike.
Another interesting feature is the increase in senior buyers who have managed to curb their stakeholders’ demand for goods and services. A total of 63.3 per cent of respondents say they have “reduced internal demand” – an increase from 52.6 per cent in November last year. This figure is particularly interesting as procurement professionals often tell me (and as we discuss in this issue’s executive debate on page 40) that cementing our hard-won, recession-induced prominence is going to be a challenge over the next 12 months. What more sustainable example of procurement’s influence could there be than demand management on this scale?
Also, although the widespread fear of supplier failure has subsided, almost all organisations are maintaining their mechanisms for evaluating the risk of vendors going out of business. Some positive signs indeed, and while the fat lady may not yet be singing, the survey suggests her hair and make-up are done and she is warming up in the wings.
You will notice a different look to the front third of the magazine from this issue. We have introduced a new Any Other Business section, which combines some previous elements with a host of other procurement and wider business miscellany. The plan is that this will make reading CPO Agenda enjoyable as well as informative. I hope you find this useful. Please do email me your views either way.
Steve Bagshaw
steve.bagshaw@cpoagenda.com
