As a CPO, the role has also changed substantially – no longer just focused on supply and savings, CPOs are being held to a higher standard in delivering against a stretching agenda that includes profitability, ESG and innovation in addition to supply assurance and risk management. Taking time to articulate this value and develop the appropriate metrics and measures to track and demonstrate performance is critical.
Procurement as an organization across the enterprise must ensure:
- Clarity of vision for Sr. Stakeholders, peers and talent at all levels. This start with articulating a clear and compelling business case and a case for change. Ensuring communications are planned and investing the time with Sr. Stakeholders to clarify the full value of Procurement.
- Category management is a key skill to embed in the organization and is the foundation of a strong procurement organization. Defined as a holistic and data based approach to sourcing a good or service, category managers must partner and ensure engagement of stakeholders across the value chain. Category management is an end to end process and includes the identification of needs through strategy to ongoing supplier management.
- Technology is a key unlock for Procurement. Thoughtful application of technology to advance the delivery of procurement and to enable talent to be more strategic and impactful is necessary – both to meet ongoing market challenges and to ensure the return on investment of your procurement organization.
- Supplier management is a key differentiator for success– to ensure consistent supply and innovation for changing consumer needs. To date organizations that have maintained a proactive and strategic approach to supplier have been able to secure supply in times of stress. However, critical focus and attention on the supply base- including direct suppliers and those farther back in the supply chain (input suppliers)- is a prerequisite for continued success. And as more organizations consider this lever, modern approaches to sppleir management will differentiate preferred customers.
While supply chains are improving, fundamental issues exposed overt the last few years exist and need to be addressed.