The New Role of a Chief Procurement Officer (CPO)
Today’s CPOs do much more than simply procuring as it’s not just about buying goods/services anymore but also about enabling an organization to operate. Owing to factors like the widening in scope and complexity of supply chain management systems and the intrinsic change in the strategic value of the procurement process to an organization, the role of a CPO too is constantly evolving.
Here is a look at some of the key themes that CPOs today need to look at, in order to address the paradigm shift in procurement operations:
Value Addition: While a traditional CPO would focus purely on cost-cutting, the modern CPO focuses on adding true value to the business. He sets strategic direction for procurement as a supply chain management initiative, as opposed to being driven by costs alone
Digital Analytics: With the advent of digitization, 75% of CPOs believe that the role of procurement in delivering digital strategy will increase exponentially in the future. CPOs need to look at new digital and analytical solutions to aid them in decision-making and achieve maximum impact from core operational systems.
Risk Management: Positioning an organization strategically in the value chain to create effective market control, CPOs today need to understand their procurement competency portfolios. Almost six out of ten CPOs see managing risks as a priority; it is imperative for CPOs to exercise market intelligence by the creating a series of competitive advantages that are not affected by market fluctuations, therefore, sustaining the supply continuity.
With procurement operations undergoing constant evolution, there is a need for a new breed of CPOs who can help in creating global supply chains that can cater to the new level of global demand. Tell us more about what you think about the role of a modern CPO in today’s industry, in the comments section below.