With the business climate continuing to challenge, potential recession in store for many major markets in 2020, increasing regulation, trade uncertainty and intensifying competition, business leaders must use every lever at their disposal to help enhance their organisation’s value proposition.
One of those levers is procurement. But it is becoming increasingly apparent that a rich seam of opportunity to bring additional value exists within the remit of CPOs and their teams. Long have we argued that cost should no longer be the function’s primary driver, and long has been the assertion that procurement can bring further value by, for example, exploiting the innovative capabilities of suppliers, driving digital insights from the supply chain and sustainability improvements in the supply base. Speaking to 46 group-level CPOs at some of the world’s best-known companies at this year’s Procurement Leaders’ Ovation (our member-only global CPO thinktank event), it is clear the time has come for the function to step up and enhance the value it brings to the wider business. As a result, something is stirring deep within the marrow of procurement. We asked the Procurement Leaders CPO community to describe the value proposition of their function, and received some encouraging responses:
Global CPOs are turning their focus from the foundations of savings – which still must be delivered but are becoming increasingly commoditised – to more value-based deliverables, including innovation, sustainability, digital insights and capabilities, and new approaches to managing risk.
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