London - eWorld Feb 08

February 20th, 2008 at 02:02am Sean Delaney - Iasta UK

Well another eWorld (London 12th & 13th Feb) has come and gone but some significant shifts it the market yet again. As always the keynote session was well received and after a year’s absence Chris Sawchuck from Hackett delivered the presentation. Some of the key points were:

• Best in class procurement organisations are costing less to run. The total cost of running the procurement department is falling as a percentage of total revenue. Procurement is being asked to deliver more with the same resources.
• BIC are finding diminishing returns on their sourcing activities and they are starting to hit a wall.
• In order to maintain and improve returns BIC are starting to look at the Total Cost of Ownership – influencing spend decisions earlier.
• However only 33% of world class organisations are actually focusing on Total Cost of Ownership approach – so there is room for growth.

Chris went on to add that although in Procurement has been through 10 great years we are now heading into a perfect storm……

S - Supply Assurance – the need for the right goods in the right place at the right time is going to be an even greater challenge.
T – Talent and technology will continue to be top issues. The lack of talent continues to have detrimental affects on the adoption technology. This has become a worldwide issue.
O – Operational – procurement is still about purchase and payables.
R – Risk and regulation is a growing concern. Supply chain risk factors are multiplying and at the same time regulations are growing.
M – More growth, more innovation greater brand enhancement. CEO’s are tasking procurement to deliver and influence in all these areas.

As you can see from Chris’s analysis not only do we have some difficult economic conditions ahead but Procurement will have a far greater range of challenges to contend with.

There was also a Green tint to the show with exhibitors like Green2020 focusing on carbon footprint reduction and Action Sustainability focus on sustainable procurement.

From a personal perspective the delegates were far more focused on their organisational needs and what eSourcing had to offer them. Spend Analysis has yet some way to go to reach a similar level of understanding.

Overall another great conference and looking forward to September already!

Entry Filed under: Analysts/Research, e-Sourcing Marketplace

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