Date:
Buyers choose operational efficiency over cost-cutting
“Driving operational efficiency” has knocked “reducing costs” from the top spot, in Deloitte’s annual survey of leading buyers, for the first time in its 10-year history.
The global consultancy’s Survey 2021 saw reducing costs pushed into second place, with digital transformation making up the third of their priorities.
The programme, first launched in 2011, found innovation at number four and introducing new products/services at number five.
Deloitte said innovation’s ranking “reflected the need to improve supply chain transparency and supplier collaboration more broadly”.
Corporate social responsibility, which embraces the organisations’ environmental strategy, saw the largest increase of any priority, up 22% on 2019.
Commenting on their latest survey results Deloitte Consulting, said that this year has demonstrated the importance of bringing buyers into higher level C-suite conversations, in navigating risk, helping realise digital transformation and furthering corporate responsibility initiatives.
Unsurprisingly, 70% of respondents said risk had increased over the last year, with 56% saying key suppliers had gone bankrupt or been severely hampered and 41% had to expedite shipping to keep supply lines running. Who would have thought it 12 months ago!
More than two-thirds (70%) believed they had good visibility into risk in tier one suppliers but only 15% had visibility into lower tiers, while just 26% were formally tracking risk in their supply base.
Deloitte Consulting believe that the most senior buyers are uniquely positioned to help their organisations navigate such a historically disruptive time and build the agility required to thrive amidst external forces like the Covid-19 pandemic that pose significant challenges for the global economy.
Priorities in 2021:- Driving operational efficiency
- Reducing costs
- Digital transformation
- Innovation
- Introducing new products/services
- Enhancing risk management
- Enhancing corporate social responsibility
It should be no surprise that our capabilities, resources and focus mirror the findings of Deloitte’s survey. This has been our philosophy and approach for many years before the current global situation has unwound as we have constantly encouraged with our partners.
Since inception our whole ethos has been on supporting our customers’ growth, by delivering reliable and dependable solutions, which are efficient and cost-effective.
Our commitment to innovation and developing bespoke digital solutions goes back decades, with the latest generation of 4PL tools incorporating robotics and AI, to minimise risk along the supply chain, with modules to monitor and measure CO2 emissions, at consignment level, for off-setting and ultimately carbon-neutral supply chains.
Download Deloitte’s 2021 2021 Global Chief Procurement Officer Survey infographic. You can see more on the survey here