The Hackett Group’s 2021 Key Issues Research Details Procurement's Response to the Pandemic Spend Cost Reduction and Risk Management are Priorities 1 and 2, Improvements in Data-Driven Analytics And Digital Transformation are Also Key

In response to the business environment related to the global pandemic, spend cost reduction and supply risk management are back at the top of the procurement agenda, according to new Key Issues Research from The Hackett Group, Inc. (NASDAQ: HCKT). In 2021, the most popular initiatives for procurement teams are to improve data and analytics, accelerate digital transformation through the implementation of cloud-based suites and best-of-breed solutions, and pilot emerging technologies.

The full research, “2021 CPO Agenda: 10 Key Issues Procurement Needs to Act on Now,” is available on a complimentary basis, with registration, at this link: http://go.poweredbyhackett.com/2021prockeyissuessm. Key findings from the research include:

Continued Instability Expected – 41% of survey respondents expect business conditions will stabilize by Q2 2021, but 36% believe it will take longer. (Page 3).

Spend Cost Reduction Back at the Top of the CPO Agenda – Business disruption has driven procurement to refocus on supporting critical business operations and tap the value from supplier relationships, resulting in a pivot towards spend cost reduction and capturing non-price value from supplier relationships as the top procurement priority for 2021. Continuing to further strengthen procurement’s role as a strategic business enabler and delivering in an agile way are further important priorities. (Page 4, 5, 10).

Increased Focus on Corporate Sustainability and Supply Base Diversity - Corporate sustainability made the top 10 list of procurement priorities for the first time in 2021, representing a broader focus on corporate social responsibility and an acknowledgement that sustainability generates business value through reduced costs, risk management and improved brand value. At the same time, diversity and inclusion rose by seven spots to become the number two enterprise initiative for 2021. For procurement, this has translated into increased focus on supplier diversity initiatives (Page 4, 5, 10, 13).

Supply Chain Risk Reduction a Major Priority – Supply assurance became a board level issue in 2020, and reducing supply risk to maintain supply continuity is Priority 2 for procurement in 2021, our research found. Procurement leaders are tasked with strengthening third-party risk management, monitoring a broader set of risk exposures at earlier stages of the supplier life cycle, and continuing to monitor and mitigate risks. Maximizing visibility and timeliness are key here, requiring proper digital tools and the ability to leverage market intelligence data from multiple internal and external sources (Pages 4, 5).