KPMG 2023 Survey: Why Procurement Faces a Critical Year

The KPMG 2023 Global Procurement Survey has found that procurement leaders around the world are facing a series of complex risks, challenges and opportunities that will need a focus on strategic sourcing, sustainability goal-setting and embracing technology. The annual report took in the views of 400 C-suite and SVP/VP level executives from a mix of public and private organisations in July 2023.

The survey asked executives to share their views on six key topics:

• Continuing challenges with procurement
• Shifting short-term and long-term priorities
• Harnessing technology and investing in digital systems 
• The importance of supplier relationships
• Enhancing contract life cycle management
• Balancing current challenges with future aspirations

The executive summary immediately addresses how many of the surveyed executives see 2023 as critical for the success of their business function. This is because they are seeing many risks that are unfamiliar, but at the same time technological advances are promising a wide range of new and ‘unprecedented opportunities’.  

The risks and challenges facing procurement 

The challenges being surfaced in the survey include executives having to work with limited amounts of data, systems that remain out-dated, and a lack of integration with the wider supply chain.  There are also a range of external pressures such as uncertain demand, inflation, increasing costs for materials and supply chain disruption.  

Relationships between procurement and senior executives is also a prevailing trend, as most of the respondents are still convinced most of the C-suite do not appreciate procurement’s range of responsibilities or the potential it has in the future.  

Top priorities in procurement

The top priorities for procurement leaders featured cost avoidance and savings, with concerns about supply chain disruption remaining, but at a lower level as experiences of the pandemic begin to fade.  Executives were more positive about their abilities to stay on-top of compliance, strategic sourcing, operations and value generation.

The report brings together a series of key actions for procurement leaders to consider in the future

• Develop a procurement roadmap
• Embrace technology
• Enhance strategic sourcing
• Streamline supplier relationship management
• Improve contract life-cycle management
• Capitalise on outsourcing opportunities 
• Strengthen ESG initiatives 

Read more of the report here

Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain LIVE 2024 

**************

Procurement Magazine is a BizClik brand