7 out of 10 CPOs feel the pressure of managing risk

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Spring finally kicked in with a vengeance in Stockholm this weekend and as always it’s accompanied by a number of sure to tell spring spend management signs.

First, we’ve got the eProcure & Supply – Germany’s largest purchasing and supply management event with approximately 125 exhibitors and an expected attendance of around 3000 purchasing professionals.

Second, and from my perspective a little more interesting is the annual spring unveiling of Aberdeen’s CPO Agenda report; this year subtitled “Smart Strategies for Tough Times”. As always, Andrew Bartolini has done a solid job, yet there are few headline grabbers lodged in the 36 pages.

The one standout metric unveiled relates to 2009’s big spend management topic: supply risk.

“71 % of CPOs believe supply risk is increasing, yet 30% have a formal program in place to manage it.”

Now, that a figure that definitely will be front and center in many vendor presentations as the year rolls-on.

I for one think many more companies actually have a formal risk management program in place, it’s just that it probably did not involve the purchasing department, let alone give purchasing the responsibility to actually own and manage the process.

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2 Responses to “7 out of 10 CPOs feel the pressure of managing risk”

  1. Carlos Ortiz Says:

    I agree with you. I think the word “solid” tells all. If not, your would have said “outstanding”, right?

    And I also agree that every single outfit out there that deals with sourcing and procurement will be selling a “supply risk management” solution. Even if it is a re-branded old product or service.

  2. Torbjörn Thorsen, IBX Group AB Says:

    Carloz, your last comment is spot on, I’m sure that re-branding workshops are at the top of the agenda for all marketing and product development departments across the entire vendor base at the moment.

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