The changing role of the CPO
Look up the role of Chief Procurement Officer (CPO), and you’ll get the same or a similar answer nine times out of ten—one that hasn’t changed much in the last decade. However, in the ever-evolving procurement landscape, the CPO's role can no longer be defined by traditions. Organizations must think differently if procurement is going to be transformed and provide a competitive advantage.
That’s not to say that the traditional role of a CPO no longer exists. Rather, the role today embodies three distinct personas to cope with the dynamic shift of modern organizations. We’ll take a look at them-
· Chief Procurement Officer (CPO) is the traditional definition of the term CPO. The leader of a procurement organization, who manages traditional areas such as cost & risk, while managing a team of procurement experts. Of course, this is oversimplified as sustainability and other important areas also form part of the CPO’s operations.
· Chief Partnership Owner (CPO) In the same role, a CPO shall also seek and create strong and robust alliances with external suppliers and internal stakeholders. These alliances are critical and indeed a prerequisite for achieving sourcing excellence. They are also a key to value creation beyond organizational boundaries.
· Chief Process Owner (CPO). The CPO shall also be the Chief and owner of processes, developing and governing smart procurement workflows and automation. They breakdown silos, reduce lead times and understand the value of engaging suppliers to add efficiency, drive predictability, and improve performance in their supply chains.
Raising the Profile of the CPO
Going forward, procurement leaders will become even more vital to businesses. By assuming the different roles, there is a fantastic opportunity for CPOs to serve as a catalyst for collaboration and enhance value creation across the supply chain and in doing so become a highly visible, key contributor to the success of an organization.
