Almost half (48 per cent) of procurement professionals think their CEO or managing director doesn’t understand the true purpose of the procurement department, according to research by 4C Associates.
And 55 per cent of those surveyed said they were treated as a support function, and there to cut costs.
“Procurement has come a long way in the past few years,” said Mark Ellis, partner and procurement transformation specialist at 4C Associates. “In some enterprises, the function has gone from being seen as a ‘blocker’, ‘bean counter’, ‘policy enforcer’ and ‘enemy of innovation’, to being viewed as a strategic business partner.
“However, not all businesses are recognising the true extent to which procurement can add value. As the economic climate begins to change, enterprises, which before could thrive by implementing cost leadership models, now need to re-evaluate their offerings.”