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Is procurement open to innovation?

Procurement is a vital part of any organisation but does it stifle innovation? A report from APS Group entitled “The Procurement Puzzle” concludes that it does indeed, although we’ve seen procurement professionals confronted with suggestions like that and it isn’t pretty.

The snag appears to be that cost saving always trumps innovation regardless of the other benefits, although it’s worth stressing that the survey only encompasses views from 20 professionals.

56 per cent of respondents said they preferred a partner with a track record, compared to one that could offer innovation, which is hardly a surprise.

‘‘Conversations with procurement professionals revealed that the desire to introduce innovation is there, but that most departments are finding it difficult to prioritise this above all other considerations.’’ said George Smart, business development director at APS Group.

‘‘Part of this comes down to a culture of ‘short term-ism’ which sees departments focus on the immediate gains, such as cost savings. Long term goals are often secondary considerations, and, rightly or wrongly, innovation can often fall into this category.’

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