What a CEO looks for from a procurement team
While there have been many changes over the years when it has come to the basic objectives of procurement and supply chain, the one thing that remains constant is to provide the organisation with costs that are competitive, a quality that is unfailing and delivery that is on time. Procurement however also adds values in other ways, such as upfront involvement in product design, partnering in innovative ideas and actively participating in revenue generation.
Why CPOs roles are changing
CEOs are increasingly looking for those in procurement to view their role in a fresh light. That is, an increase in focus on profit growth, and not solely in the reduction of costs. By no means is cost management placed on the back burner but rather it is looked at within the wider scope of business. There have even been suggestions that procurement should potentially report directly to the CEO and it has been noted that in such instances where procurement practitioners manage indirect categories such as HR, staffing, partnering with suppliers and involvement in strategic and innovative ideas, these procurement officers have managed to make savings out of costs that are associated with the spend of each category.
In short, forward thinking CEOs want to see the link between procurement and financial performance. Companies that already have made this link whereby the CEO has a good understanding of procurement, its service and the value it brings to the table, communicate this to the organisation in its entirety. This enables procurement to take on a vision of its own, influencing suppliers, delivery time frames and internally throughout the organisation, to match CEO expectations.
Whilst it would be difficult to find a CPO with all the necessary experience in every area of a business, there are many benefits to board level representation from procurement professionals, to effectively direct cost reduction as part of a holistic business strategy.
Are you making the right decisions for your business? If you’re not sure and want to explore what opportunities may exist – then contact me for an initial free procurement consultation.
Paul Strachan M. 07793 447961 T. 01307 460667 E. email@example.com