2022 FOTP Procurement Pulse Survey Pulse – Based on Feedback from 217 Procurement Professionals!
What’s included in the survey:
Executive summary consisting of 10 Key Trends and Highlights
Detailed ratings for each of these Research Areas:
Sustainability in procurement
Use of technology
Communication and collaboration
Rich insights, based on the open text comments for the following 4 questions:
- What do you think will be the key attributes of successful procurement professionals over the next 5 years?
- What is your team currently doing to help your business achieve its sustainability goals?
- Given the number of challenges and disruption presented to procurement teams over the last 2 years, what have you, as a team, done particularly well to respond to these challenges?
- In your view, what will be the top procurement trends be over the next 5 years?
10 Key Trends:
- There has been a tendency to develop more collaborative supplier relationships over the last 12 months. In addition, the majority of Procurement Professionals are currently KPI’d to drive collaboration with suppliers.
- Focus on collaboration and building supplier relationships are also amongst the 4 biggest trends for the next 5 years.
- The role of Procurement Teams has grown in importance for the businesses. However, lack of resources and difficulties with recruiting new talent (which is a widely-publicised issue) are the two main factors currently disrupting smooth ways of working.
- Similar to many other functions, Procurement Professionals strongly feel that Hybrid working makes their teams most effective. However, some respondents felt that when negotiating with suppliers, it is more effective when conducted in person.
- Overall, Procurement Professionals feel that their businesses have strong and effective communication both internally (inter-departmentally) and with external partners (suppliers/partners). However, there is no clear evidence that suppliers feel the same way.
- The key attributes of future successful Procurement Professionals are dominated by softer skills such as: collaboration, flexibility and communication.
- Whilst Procurement Teams are currently engaging with suppliers on a sustainability agenda and share their sustainability expertise, this is not necessarily translated in having an active Net Zero Scope 3 strategy.
- Procurement Professionals recognise the critical importance of reducing the impact on the environment and confirm that an increased focus on sustainability will be the biggest trend in Procurement over the next 5 years. Some Procurement Professionals believe that digital transformation and advances will drive “greener” procurement processes.
- Overwhelmingly, Procurement Professionals see the importance of gathering and using supplier data. However, applying AI and automation in procurement decisions and contract reviews is not yet widely-spread.
- Risk management has become more important to Procurement Teams and finding UK-based suppliers and identifying additional suppliers as back-up or contingency, are the two main measures currently being taken to mitigate potential risks.
What HR respondents shared about the role of trust in employer/employee relationships
Below are the main topics that featured in the feedback (shown in order of the highest mentions/significance):
- Focusing on recycling and waste reduction
- Choosing sustainable materials/products
- Identifying and partnering with more sustainable suppliers
- Including sustainability criteria in tenders/bids/contracts
- Performing supplier sustainability evaluations/assessments
- Actively engaging with existing suppliers on a sustainability agenda
- Focusing on internal sustainability initiatives (electric vehicles, greener energy solutions etc.)
- Having dedicated sustainability teams/resources “Making sure we are all in contact and up to date and knowing that if anyone has an issue they have someone they can go to.”
“We tackle waste in our activities, not to over- commit to purchasing components and to under-order rather than over and waste too much”
“Sourcing sustainable raw materials changing all packaging components to recycled or compostable seeking accreditation for us and our suppliers to ensure they uphold standards.”
“Focusing on pairing with suppliers who have strong sustainability credentials.”
“Including sustainability questions into all tenders, encouraging all suppliers to create a sustainability action plan.”
Read the Executive Summary
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