This whitepaper, which is the third and final whitepaper in the series, investigates outsourcing as a strategy to augment existing capability, enhance expertise and enable procurement to power your business.
Proxima, in conjunction with NelsonHall, ran a research study (involving 120 FTSE 100 CFOs and CPOs from UK, Europe and North America) to investigate the perceptions, attitudes and desired outcomes of Indirect Procurement to catalyse a common sense that procurement could and should play a greater role in most businesses.
Some of the responses in our study do indicate that indirect procurement in some organisations is perceived to have a role that is somewhat tactical and administrative. Some respondents advised that it can create process blocks and can, on occasion, even be antagonistic to specialist suppliers of the business, particularly specialist service providers.
Our first two whitepapers in this series looked at the perceptions of the procurement function and why businesses often struggle to drive the most value out of their procurement operations. This whitepaper, the third and final paper in the series, investigates the efficacy of outsourcing as a solution for augmenting existing capability, enhancing expertise and enabling procurement to power your business.
Highlights from this paper:
- Success story from a FTSE 100, UK retailer
- Procurement outsourcing as a strategic decision is seldom currently instigated by the CPO, much more commonly by the CFO, COO or even the CEO
- The procurement outsourcing market witnessed a strong 2011 with annual growth of 14% (average contract value)
- 40% of the 17% of companies which are currently outsourcing, intend to expand their use of outsourcing within the year
- The activity that is currently outsourced the least, business engagement and change management, was rated by 98% of CFOs involved in the study as the most important capability of the indirect procurement function and one that over 60% of CFOs expressed dissatisfaction with