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Macdonald Hotels and Confex Group announces results of industry procurement report


Mar 09, 2009 | News

Findings of procurement trends report commissioned by Macdonald Hotels and Resorts in association with Confex Group were unveiled at International Confex.

Explaining the need to commission the report, Ruaridh Macdonald, Business Development Director said: “The research was conducted to provide businesses with insight into how to reach potential buyers more effectively. As the objectives of procurement and purchasing decision makers evolve to protect their companies in the current economic climate, it is vital that we also adapt in line with them. By understanding what procurement teams throughout the UK look for when making their purchasing decisions we are more equipped to remain on a buyer’s preferred supplier list and maximise our potential to win and maintain business.”

*Main Findings*

*CSR* (53%) second least influential factor now when purchasing decisions are made

There is still some merit in an active CSR policy for a supplier’s sales and marketing strategy over the next 12-24 months.

However, according to 47% of procurement decision makers, a CSR policy will have significantly less impact on their decision after 24 months, believing that this policy will have reached the level of importance that it would reach and remain static thereafter. 12% of these procurement decision makers believed CSR policies will never be important again.

*Budgets* - almost half (40%) of procurement decision makers believe budgets will increase in the next 18 months, 25% believe budgets will increase in the next 12 months and reassuringly only 9% believed that budgets would not increase until after 30 months.

The research indicates *if ROI is guaranteed*, then quality of service / product is considered the most appealing additional factor when making purchasing decisions, with a 44% selection followed closely by added value at no extra cost with an 31% selection

*Planning times* – at the moment almost half (46%) of procurement decision makers predict there will be little change in planning times in the next 12 – 24 months

Only 19% predicted planning times would reduce, compared to 12% who predicted an increase.

Added value will become important again as budgets increase.

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