ARDENT PARTNERS’ PROCUREMENT METRICS THAT MATTER IN 2024
Introduction
Ardent Partners has conducted extensive research since 2010, focusing on procurement metrics that matter. This research includes a survey of 382 Chief Procurement Officers (CPOs) and other procurement executives, capturing insights from January 2024 to March 2024.
Structural Changes in the 2020s
The 2020s have seen significant structural changes in the global business landscape, driven by factors such as inflation, geopolitical unrest, and the increasing influence of artificial intelligence (AI).
CPOs Expect Challenges in 2024
- Challenges: 68% of CPOs believe 2024 will be more challenging than 2023.
- Stability: 25% expect 2024 to be similar to 2023.
- Improvement: 7% believe 2024 will be less challenging.
CPOs Expect Their Teams to Step Up
- Value Delivery: 65% of CPOs expect their teams to deliver more value in 2024.
- Stable Performance: 27% expect the same level of performance.
- Decline: 8% expect a decline in performance.
AI in Procurement
- Current Use: 28% of CPOs are currently using AI in their procurement operations.
- Future Use: 46% plan to use AI by the end of the year.
- Overall: 74% of CPOs expect to be using AI by the end of 2024.
- Impact: 61% of CPOs believe AI will have a transformational or significant impact on procurement.
CPO Priorities in 2024
- Cost Savings: 74% of CPOs prioritize cost savings.
- Risk Management: 36% prioritize risk management.
- ESG: 31% prioritize ESG initiatives.
Cost Savings as a Priority
- Current Focus: 74% of CPOs have cost savings as a top priority in 2024.
- Increase from 2023: A 61% increase compared to 2023.
- Best-in-Class: 56% of Best-in-Class CPOs prioritize cost savings.
Historical Prioritization of Savings
- Yearly Trends: The percentage of CPOs prioritizing cost savings has increased over the years, with a notable spike in 2024.
- Historical Data:
- 2009: 64%
- 2011: 51%
- 2014: 36%
- 2018: 28%
- 2023: 46%
- 2024: 74%
Managing Risk
- Top Priority: 36% of CPOs consider managing and mitigating risk as a top priority.
- Action Plan: 40% plan to build supplier and supply market intelligence capabilities.
ESG Programs
- Growing Importance: ESG programs are becoming more central, continuing a multi-year trend.
This summary captures the key findings and priorities of CPOs in 2024, highlighting the significant role of AI and the continued focus on cost savings and risk management.