New research found one in three purchasing departments are taking shortcuts.
The latest study from Procurious and Ivalua revealed 33 per cent of procurement teams around the world have little choice but to cut corners.
A sample survey of more than 170 procurement and supply chain workers reached this conclusion after gathering views on the economy, logistics, market forces and supply chain challenges ahead of 2023.
Key findings from the Procurement Under Pressure report include:
- although executive teams pressure 81 per cent of procurement teams to more “quickly and effectively” respond to challenges most of those surveyed claimed they were poorly equipped
- 21 per cent recorded a jump in manpower while only 14 per cent observed budget increases to help face modern market challenges
- a quarter of respondents claimed their market was experiencing a downturn and 17 per cent expect a recession to officially begin before Christmas 2022 – a further 23 per cent believe a recession is likely during the first quarter of 2023.
“These figures resonate: As the cost of commodities and finished products increases, and the security of supply and their reliable and timely delivery remain compromised, organisations face greater financial and operational uncertainty, which jeopardises their ability to achieve profit targets,” researchers said in a public statement.
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