A new study has revealed cost savings are viewed as the key performance indicator (KPI) for procurement.

According to Xchanging, 47 per cent of professionals in the sector see cost savings realised as their main KPI. Also important are revenue impact (19 per cent), cost savings identified (16 per cent) and cost avoidance (14 per cent). One in ten respondents pointed to risk management as a key KPI.

The survey also revealed 87 per cent of procurement professionals feel their organisation is on track to achieve their targets or are already ahead of them.

Those that have failed to achieve their goals highlighted lack of internal engagement as the key factor, being highlighted by one in three respondents. Other issues that contribute to a missed target include lack of technological resources (21 per cent), misaligned objectives (13 per cent) and a talent shortage (12 per cent).

Procurement professionals were also asked whether they considered the function to be a c-level priority. Six in ten of the executive respondents said they believe the department is near the top of the boardroom agenda, but only 37 per cent of middle managers thought the same.

When asked about the obstacles they are facing, 79 per cent of the individuals surveyed pointed to time pressures, which was more than any other issue. Some 20 per cent of these respondents claimed this represents an 'extreme' challenge.

Other barriers to success include internal stakeholder engagement (63 per cent), a talent shortage (59 per cent), organisational spending cuts (74 per cent) and managing procurement activity across different countries (65 per cent).