Study: Buyers are focusing too much on short-term savings

Are companies too shortsighted in their approach to procurement? Yes, according to the results of a new survey from the Consero Group, a conference production and research firm. More than half of the 42 chief procurement officers responding to a survey at a Consero-sponsored event said their companies pursue short-term savings from suppliers that undermine long-term savings.

Sixty-five percent of the survey participants said that their companies' procurement strategies are more focused on using competitive pressure to get maximum value from suppliers. Only 35 percent said that their companies' strategies are more focused on using collaboration to get maximum value from suppliers.

The survey also found that 45 percent of respondents do not have enough resources to manage the procurement function effectively. Although 66 percent of respondents also said that their procurement budgets are stable or increasing, 34 percent reported a budget decrease.

Consero conducted its 2013 Chief Procurement Officer Data Survey in partnership with Vantage Partners LLC.