Recession 'has made procurement a priority'

Procurement has moved further up the corporate agenda as a result of the economic downturn, according to a business analyst.

Stefan Stern of the Financial Times stated that in the past, company bosses had tended to avoid taking the issue of purchasing and cost-control as seriously as they should have.

However, he noted that since the credit crunch began, this attitude has changed and people are now making it more of a priority.

"Suddenly everyone is interested in preserving cash, hammering out the best deal and getting tougher on suppliers," he commented.

Mr Stern noted that those businesses which did not take procurement seriously and failed to bring in enough professional expertise are suffering as a result.

He added that some firms which have always considered it important have been able to take advantage of this by creating more London procurement jobs and boosting their client base considerably.

The comments come shortly after the government began allowing small businesses free access to information on public sector procurement contracts worth up to £100,000.

Updated: 25 September 2009.
Categories: market-and-industry-news, procurement.