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  • Writer's pictureJeremy Conradie.

Cost CPOs' top Worry, Outweighing AI Adoption

Cost containment and cash flow optimisation are top of the priority list for procurement leaders, research from the Hackett Group shows.

The 2024 Procurement Key Issues report finds that cost reduction is the most important issue currently facing procurement leaders, who are facing a challenging market, beset by high-interest rates, labour problems, supply chain disruption and tight margins.

The report says that, at the start of 2023, most organisations were “preoccupied with ensuring supply continuity and combating inflationary price increases”. 

The Hackett Group’s 2024 Key Issues Study is undertaken every year, and provides a snapshot of the perspective of executives as they look ahead to the upcoming year.

Amy Hillcox is Senior Research Director at The Hackett Group, while Chris Sawchuk is Principal & Global Procurement Advisory Practice Leader.

Sawchuk stresses the importance for organisations to “understand the context of the broader environment as they begin to consider their priorities”. 

He points out that the top three priorities for 2024 were also the same as those listed in both 2022 and 2023. He adds that one procurement priority that is new for 2024 is transforming the procurement operating model.

Source: Supplychaindigital

Image Source: Getty images

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