Beyond purchasing

38 Global differences | Section VI
Section VI. Global differences:
The procurement function in the
Asia-Pacific region
According to our survey, procurement is lagging behind as
a function in Asia-Pacific countries:
• Day-to-day purchasing decisions are more often in the hands of non-procurement
professionals (for 26 percent of regional respondents) than in the rest of the world
(17 percent).
• CPOs are much less likely to have primary responsibility for procurement strategy
(24 percent to 42 percent).
• Except for tax-efficient procurement — as noted above a particular concern in the
region — companies in the region were less likely to adopt any of a series of popular
procurement strategies listed in the survey, and were also less likely to have
installed, or to be in the process of installing, any of a variety of advanced IT tools.
• Finally, the problem of procurement personnel not sufficiently understanding the
business to have a broader impact within companies was far more widespread, cited
at 42 percent of respondents from the region, against 27 percent elsewhere. The
war for talent, an issue across the globe, is particularly relevant in this area,
especially as companies expand.
Change in number of suppliers to respondent organizations, over the past three years and in the next three years
Asia Pacific: Past 3 years
Rest of World: Past 3 years
11%
33% 30%
13%
5%
8%
11%
30% 25%
24%
4%
6%
Asia Pacific: Next 3 years
Rest of World: Next 3 years
11%
32% 26%
17%
7%
7%
8%
24% 19%
32% 9%
8%
0
10
20
30
40
50
60
70 80
90
100
% of respondents
Increased greatly (>30%)
Increaseded moderately (5-30%)
Stayed about the same (down
5%, up 5%)
Decreased moderately (5-30%)
Decreased greatly (>30%)
Don’t know
© 2008 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member
firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.