CIPS Global State of Procurement & Supply Report Overview
Executive Summary
- Innovation in Procurement: The Chartered Institute of Procurement & Supply (CIPS) in collaboration with GEP, initiated the first-ever "CIPS Global State of Procurement & Supply" survey to explore the current state and future directions of procurement and supply chain professionals globally.
- Rapidly Evolving Economic Landscape: Procurement and supply chains now play a pivotal role in driving innovation, strategic growth, and compliance, but face increasing pressures from geopolitical instability, inflation, and workforce challenges.
- Sustainability Focus: There's a heightened awareness among procurement leaders regarding environmental, social, and governance (ESG) issues and their role in promoting sustainability within their organizations.
- Automation Push: While automation is on the rise, it's enhancing rather than replacing human elements in procurement processes.
- Supply Chain Resilience: Concerns about global supply chain disruptions and product shortages are increasing, with geopolitical factors being the key drivers.
Methodology and Respondent Profile
- Survey Context: Conducted in February-March 2024, the survey targeted senior executives from 122 organizations with a combined turnover exceeding $73 billion.
- Respondent Characteristics:
- Geographical Spread: Respondents were primarily based in the UK & Ireland, New Zealand & Australia, the Middle East & Africa, Continental Europe, and North America.
- Sector Diversity: Representing a wide range of sectors including public, construction, manufacturing, banking, energy, healthcare, and defense, among others.
- Organization Size: Majority of organizations had a turnover above $20 million, with several in the $50-$100 million range.
- Employment Scale: A significant portion employed over 5,000 people, with 22% having more than 20,000 employees.
- Procurement Function: Over 75% of respondents held positions such as Head of Procurement, Chief Procurement Officer, or Procurement Director.
Key Findings
- Influence and Responsibility: Procurement and supply professionals are increasingly recognized as key decision-makers, influencing strategy and operations across their organizations.
- Alignment with Leadership: There is a noted disparity in alignment between procurement and supply functions and the boardroom, with a balanced distribution between organizations with strong alignment and those with less direct involvement.
- Sustainability Priorities: Over three-quarters of procurement leaders recognize the growing importance of ESG issues within their organizations and aim to enhance their sustainability efforts.
- Automation and Human Element: While automation is a focus area, it is viewed as complementary to human expertise, enhancing rather than diminishing the role of procurement professionals.
- Supply Chain Resilience: Immediate concerns about potential disruptions and shortages are prevalent, with geopolitical factors identified as the primary driver of volatility. Strategies such as supplier diversification, insourcing, and inventory management are being implemented to mitigate risks.
This report serves as a comprehensive resource for procurement and supply chain leaders, offering insights into the current challenges and opportunities, and guiding principles for navigating the complexities of the global economy in 2024 and beyond.