Procurement Leaders’ CPO Compass report – the indispensable navigational document for today’s CPO – is published this week. One of its many insights focuses on the drive for new capabilities within the procurement ecosystem.
The past few years have been nothing short of transformational for procurement, while the road ahead looks just as challenging as it has ever been. Supply chain issues dominate the headlines, and with sustainability affecting every way in which an enterprise operates, procurement teams are at the centre of a massive global slipstream. Of course, within every challenge there is also opportunity for more growth and change, and the CPO Compass report is an indispensable device for today’s CPO navigating these massive operational and technological shifts.
The 2022 CPO Compass report has been split into three major trends within the procurement space to address the current concerns of procurement leaders, globally: volatility, sustainability and new capabilities. Ahead of its publication this month, CPOstrategy has gained a sneak preview of the report to reveal a little of the focus on new capabilities just to whet your appetite…
46% of CPOs are creating new roles and responsibilities in 2022.
“The next step for us is to focus on creating a procurement ambassador role. They will be able to better able to sit within business units and bring the right cast of characters from category management ranks to focus on the business units’ needs.” CPO, technology company
The CPO Compass report delves into the operational revolution that has redrawn the physical and virtual maps of every enterprise and how that has affected procurement in particular, as companies harness new technologies and remote working set against constant disruption. ‘The Call For New Capabilities’ looks at how procurement has emerged as a key partner in driving new ethical transformations, focusing on critical areas such as working practices, and how environmental impact and community engagement can only be meaningfully addressed if organisations have full visibility of their supply chains. The function has an opportunity to play a pivotal role in coordinating value-chain partners around these strategic priorities.
“This opportunity requires a transition in procurement’s role from a tactical, back-office function to a leading business partner. This transition is already driving a transformation in processes, skills and digital capabilities within mature procurement functions. It continues a longer-term trend towards CPOs seeking to deliver a more strategic value proposition which delivers value beyond cost-minimisation. This enhanced value proposition is built from enhanced supplier partnerships, with leading practitioners pushing a culture of collaborative relationships beyond simply delivering on cost savings.”
It’s obvious that with the massive operational changes hitting procurement and beyond, CPOs are going to need to recruit and upskill existing talent so that enterprises can “adapt at pace to create a more collaborative, connected and nimble function”. And these new roles will need to take advantage of digital solutions to automate and provide services and data to the rest of the business, as well as providing stakeholder-facing capability.
The report cites a new breed of specialists needed to meet these new responsibilities. “These new roles often involve coordinating activities around emerging priorities, with these individuals often representing specialist expertise; around risk, supplier-enabled innovation, sustainability and diversity. A second set of specialist roles are also evolving around enablement, building out capabilities which, whilst not directly associated with these areas, support the function on overall execution.”
The unprecedented times we live in, whether it’s the effects and risks of a global pandemic or the drive to a more sustainable way of living and working, have placed an incredible amount of pressure onto the procurement function and this has a direct influence on the types of supporting and innovative technology that CPOs require. “CPOs are looking for supporting technology and the demand is on technology providers to offer deeper, more flexible and more focused capability. The challenge for CPOs and digital procurement leads is optimizing their mix of digital solutions to support a growing breadth of organisational objectives. While for some that means focusing on best-of-breed providers, others see value in becoming more comfortable moving beyond the bounds of established providers and working with start-up technology, while others look to platforms and big-name providers to provide more versatility and leverage their scale to greater effect.”
The full report outlines many solutions to these challenges and much, much more… so register here to make sure you don’t miss out!