Deloitte 2023 Global CPO Survey: Five key takeaways
The annual report reflects on how about 10 editions the regular theme has involved procurement getting a seat ‘at the table’ but following the pandemic and supply chain disruption, the day has finally come, as procurement now plays an integral role in enabling growth and driving value.
Procurement Magazine has selected five of the top takeaways from the full report.
Takeaway one - Talent strategy
The survey found that talent acquisition and retention is recognised by the respondents as the most cited internal risk with 70% of CPOs saying they had difficulty attracting talent in the last year.
Only 4% of respondents said it is less difficult to find talent in 2023.
CPOs were largely confident in the quality of staff they have with 10% of orchestrators of value saying they were completely happy that their teams have the skills and capabilities to deliver their strategy, and 80% ‘to a large extent’.
Takeaway two - Top enterprise priorities and the growth of ESG
In the same report in 2021 the top four enterprise priorities for CPOs were driving operational efficiency (78%), cost reduction (76%), digital transformation (76%), and innovation (73%). ESG (68%) was ranked seventh on the list.
The 2023 report shows some significant changes. Driving operational efficiency was first (74%), then enhancing ESG (72%), digital transformation (72%) and improving margins via cost reduction (71%).
This suggests a notable increase in the importance of enhancing ESG efforts within the procurement function.
Takeaway three - Biggest barriers to improvement
The respondents in the survey were asked to select their top three barriers to improvement.
There was a clear top four issues that the CPOs considered to be blockers to their organisation.
In equal first with 41% were inadequate technologies and conflicting priorities, followed by talent capacity and talent gap (skillset) with 36%.
The survey also identified problems with change management capacity, insufficient business-wide support and a lack of funding.
Takeaway four - Inflation and top risk scenarios
One of the most striking changes between the 2021 and 2023 reports is the top risk scenario presenting the greatest risk.
In 2021 high inflation pressures was only recognised by 5%, but this had soared to 62% in 2023.
In contrast, economic downturn and deflation was recognised at 61% in 2021 but had slumped to 40% in 2023.
The second highest top risk scenario in 2023 was geopolitical uncertainty (46%) which is unsurprising considering the continuing war in Ukraine. This increased from 24% in 2021.
Takeaway five - Strategies to deliver value in 2023
The survey presented an obvious leader in selecting the top strategy to deliver the most value in 2023.
Increasing the level of supplier collaboration (61%) was the overwhelming preference of the CPOs surveyed, with investing in digital transformation (42%), enhancing demand management (37%) and renegotiation with existing suppliers (36%) also considered to be important strategies.
When is came to cost savings, 43% of firms considered improving margins as a strong priority, with 40% stating operational efficiency and digital transformation.
Further reading on Deloitte 2023 Global Chief Procurement Officer Survey
Read further analysis of the report from CEO of HICX Costas Xyloyiannis, writing for Procurement Magazine on how good data can help to fuel ESG success.
You can read the full Deloitte report here.
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Other magazines that may be of interest - Supply Chain Magazine | Sustainability Magazine
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