Globalisation rules the modern procurement world
1 min read
New research says that 4 in 5 businesses source globally, and that the benefits of global sourcing are moving beyond pure cost cutting.
Indeed, 60% of those surveyed cite ethical and environmental concerns as having significant impact on global sourcing.
Research released by The Chartered Institute of Purchasing and Supply (CIPS) shows that globalisation rules the modern procurement world. 81% of UK-based procurement professionals surveyed source globally, or over 4 in 5 businesses, and furthermore, the vast majority (96%) think that globalisation has not been exploited to its capacity in the procurement and supply-chain profession.
The survey also identifies that the long-term benefits of globalisation in procurement are seen as more than just cost cutting. While 40% of purchasing professionals singled out cost cutting as the main long-term benefit of globalisation, a greater number, 45%, cited improving business efficiency and reducing the risks of supply-chain vulnerability as the main benefit.
The survey was released to mark the publication of The Chartered Institute of Purchasing and Supply’s White Paper titled Procurement – Challenges and Opportunities in a Global Market Place, at the annual CIPS Premier Conference in London. The paper examines the increasing need for procurement professionals to engage in business activity on a global level.
The survey also highlights the ethical conundrum that faces procurement professionals. Together, 60% of those surveyed cited carbon footprint monitoring, global warming, and the demand for fair-trade products as the issues that will have the greatest impact on global sourcing. Looking at carbon footprint monitoring alone, purchasing professionals think that it will increase the costs of sourcing products (54%), increase the time taken to source products (23%), and require additional supply-chain transport options (20%).
