Hackett Group: 5 Key focus areas for Procurement
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Hackett group recently conducted Procurement Key Issues survey to understand the prospects of procurement departments in 2015.
The primary finding was that due to limited budget growth, there will less focus on transformation projects, however procurement departments are focussing on the following issues in the order of their priority
- Trusted advisor: It very obvious that is must have, however given that this is priority indicates that Procurement organizations are struggling to have a trusted advisor status within their organization. Given strong focus on cost reduction, stakeholders generally look at Procurement purely for negotiation, being a trusted advisor helps Procurement to work with stakeholders to come with the optimum solution.
- Reduce/avoid purchase costs: This remains the priority as usual :)
- Increasing Agility: Though economy has rebounded from 2008 debacle, Procurement departments have not seen much increase in their budgets. Doing more with less has become the norm now, hence Procurement teams needs to be more agile to meet the changing demands from procurement.
- Expanding influence over spend: Bringing more spend under management and increasing the influence on spend remains at number 4.
- Deepening influence on complex indirect categories : Complex categories like professional services, marketing, Legal needs strong focus and that is evident from the survey
Procurement landscape is changing, especially with strong alignment with Finance. You need to have right leadership as well as more diverse team. Hence it is important that there is an effective talent management plan in place.
You can download the full report at
Go to the link