Only a third of chief executive officers believe their procurement departments are well prepared for “transformative change”, according to research by PricewaterhouseCoopers.
The 2014 PwC Global CEO Survey found 33 per cent of CEOs thought their procurement and sourcing departments were ready for the changes necessary to capitalize on global trends, compared to 56 per cent who felt their finance departments were.
At the same time, just 6 per cent of CEOs thought supply chain would be the “next big thing” to impact business and society over the next 10 years, with technology and the role of government taking the top spots.
The survey, which involved 1,344 interviews across 68 countries, uncovered three key trends facing firms over the next five years, with technological advances in first place followed by demographic changes and shifts in global economic power.
Dennis Nally, chairman of PwC, said: “Quite simply, everything is now in flux – from where and how people live and work, to the wider social and political contexts in which companies interact with their stakeholders. These developments will create many new opportunities for innovation and growth. But to seize these opportunities, companies must be ready to radically reassess how they function.”