Chief Procurement Officer (CPO) - Revision history

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← Older revision		Revision as of 18:34, 30 August 2023
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	Traditionally, CPOs have had one job and one job only: drive down costs. They’ve largely been successful at that, said Alex Zhong, [[Supply Chain\|supply chain]] lead at IBM Sterling, and it can be seen especially in the lower cost of consumer goods. But forward-thinking CPOs have already moved past the bottom line and "saw that only focusing on cost is definitely not sufficient. They need to step up even more in a strategic position to really support the [[Business\|business]] growth from a [[Revenue\|revenue]] perspective," he said.		Traditionally, CPOs have had one job and one job only: drive down costs. They’ve largely been successful at that, said Alex Zhong, [[Supply Chain\|supply chain]] lead at IBM Sterling, and it can be seen especially in the lower cost of consumer goods. But forward-thinking CPOs have already moved past the bottom line and "saw that only focusing on cost is definitely not sufficient. They need to step up even more in a strategic position to really support the [[Business\|business]] growth from a [[Revenue\|revenue]] perspective," he said.

−	[[Technology]] advancements have helped make that happen. Instead of the CPO being a mostly technical role, [[Artificial Intelligence (AI)\|artificial intelligence]] and [[Machine Learning\|machine learning]] have automated many rote procurement processes, such as vetting vendors and negotiating prices. That has allowed the CPO job to become a more a "qualitative or communication or a [[Leadership\|leadership]] function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and [[Total Cost of Ownership (TCO)\|ownership costs]], and encourage [[Innovation\|innovation]] in procurement and beyond.	+	Technology advancements have helped make that happen. Instead of the CPO being a mostly technical role, [[Artificial Intelligence (AI)\|artificial intelligence]] and [[Machine Learning\|machine learning]] have automated many rote procurement processes, such as vetting vendors and negotiating prices. That has allowed the CPO job to become a more a "qualitative or communication or a [[Leadership\|leadership]] function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and [[Total Cost of Ownership (TCO)\|ownership costs]], and encourage [[Innovation\|innovation]] in procurement and beyond.

← Older revision		Revision as of 13:27, 4 January 2023
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	These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function\|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management\|supplier management]] and transactional activity.		These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function\|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management\|supplier management]] and transactional activity.

−	Ultimately, the procurement function is what develops and executes [[Supply Chain Management (SCM)\|supply chain management]] processes, whether the resources used to perform the [[Process\|processes]] report to procurement or not. This means the CPO is the highest-ranking person in the company with the authority to influence the [[Supply\|supply]] and the spending required to acquire the supply, throughout the entire company. The procurement ~~[[policy\|~~policies]] and ~~[[Procedure\|~~procedures]] determine which purchases require procurement’s input, and which ones are handled by end users. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost.<ref>What & Who is a Chief Procurement Officer? [https://planergy.com/blog/chief-procurement-officer/ Planergy]</ref>	+	Ultimately, the procurement function is what develops and executes [[Supply Chain Management (SCM)\|supply chain management]] processes, whether the resources used to perform the [[Process\|processes]] report to procurement or not. This means the CPO is the highest-ranking person in the company with the authority to influence the [[Supply\|supply]] and the spending required to acquire the supply, throughout the entire company. The procurement policies and procedures determine which purchases require procurement’s input, and which ones are handled by end users. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost.<ref>What & Who is a Chief Procurement Officer? [https://planergy.com/blog/chief-procurement-officer/ Planergy]</ref>

← Older revision		Revision as of 14:39, 8 December 2022
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	These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function\|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management\|supplier management]] and transactional activity.		These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function\|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management\|supplier management]] and transactional activity.

−	Ultimately, the procurement function is what develops and executes [[Supply Chain Management (SCM)\|supply chain management]] processes, whether the ~~[[Resource\|~~resources]] used to perform the [[Process\|processes]] report to procurement or not. This means the CPO is the highest-ranking person in the company with the authority to influence the [[Supply\|supply]] and the spending required to acquire the supply, throughout the entire company. The procurement [[policy\|policies]] and [[Procedure\|procedures]] determine which purchases require procurement’s input, and which ones are handled by end users. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost.<ref>What & Who is a Chief Procurement Officer? [https://planergy.com/blog/chief-procurement-officer/ Planergy]</ref>	+	Ultimately, the procurement function is what develops and executes [[Supply Chain Management (SCM)\|supply chain management]] processes, whether the resources used to perform the [[Process\|processes]] report to procurement or not. This means the CPO is the highest-ranking person in the company with the authority to influence the [[Supply\|supply]] and the spending required to acquire the supply, throughout the entire company. The procurement [[policy\|policies]] and [[Procedure\|procedures]] determine which purchases require procurement’s input, and which ones are handled by end users. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost.<ref>What & Who is a Chief Procurement Officer? [https://planergy.com/blog/chief-procurement-officer/ Planergy]</ref>

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 According to Business Dictionary, the '''Chief Procurement Officer''', or CPO, is “[An] executive level employee whose responsibilities include [[IT Sourcing (Information Technology Sourcing)|sourcing]], [[Supply Management|supply management]], and [[Procurement|procurement]] for the [[Organization|organization]]. Generally, the CPO reports directly to the [[Chief Executive Officer (CEO)]] of a company.”
-And according to [[https://en.wikipedia.org/wiki/Chief_procurement_officer Wikipedia]], a CPO is, “typically the executive of a corporation who is responsible for the [[Management|management]], administration, and supervision of the company’s acquisition programs. They may be in charge of the contracting services and may manage the purchase of supplies, equipment, and materials.”
+And according to [https://en.wikipedia.org/wiki/Chief_procurement_officer Wikipedia], a CPO is, “typically the executive of a corporation who is responsible for the [[Management|management]], administration, and supervision of the company’s acquisition programs. They may be in charge of the contracting services and may manage the purchase of supplies, equipment, and materials.”
 These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management|supplier management]] and transactional activity.

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 CPOs of the future need the skills to address the following areas:
-*Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. This means understanding the overall business drivers, having a longer-term view and innovating the way the function is running. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. Conversely, strategic leadership traits such as positive [[Disruptive Innovation|disruption]], leading [[Digital Transformation (DX)|digital transformation]] and innovation are not commonly found among today’s CPOs but will need to be developed quickly.<br />''“I’m out there looking for ways to keep improving and keep adding value. I spend 25% of my time there speaking with other CPOs, leaders from industry and technology companies, so I can find out how they’re thinking around these challenges and how they’re motivating their teams.”''
+*Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. This means understanding the overall business drivers, having a longer-term view and innovating the way the function is running. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. Conversely, strategic leadership traits such as positive [[Disruptive Innovation|disruption]], leading [[Digital Transformation (DX)|digital transformation]] and innovation are not commonly found among today’s CPOs but will need to be developed quickly.<br />''“I’m out there looking for ways to keep improving and keep adding value. I spend 25% of my time there speaking with other CPOs, leaders from industry and technology companies, so I can find out how they’re thinking around these challenges and how they’re motivating their teams.”'' —Bob Murphy, CPO of IBM
 *Building Ecosystems" Organizations can no longer afford to operate in isolation. Instead, they function as part of an enormous global network. CPOs must navigate a complex web of [[Stakeholder|stakeholders]], including [[Supplier|suppliers]], [[Customer|customers]], internal colleagues, and external organizations and partners. The route to sustainable advantage lies in exploiting the strengths and competencies of various stakeholders to achieve greater responsiveness to market needs. As a result, best in-class CPOs have shifted to “[[Systems Thinking|systems thinking]]” and use their skills in relationship building and influencing to partner with suppliers and sometimes even competitors.
 *Driving [[Corporate Sustainability|Sustainability]] and Understanding [[Risk Management]]: Today’s multinational organizations are part of multitiered global supply chains linked together in complex webs of relationships traversing multiple jurisdictions. These intricate networks can mask dangerous vulnerabilities: A problem in one area can quickly ripple up and down the supply chain, leading to severe reputational damage. Companies are also facing a growing number of regulations and an increased awareness among consumers around the sustainability of the goods they buy. Consumers and regulators today hold companies responsible not only for their own practices, but also for those of their suppliers. To meet their demands, CPOs must be prepared to increase transparency of the sustainability and [[Compliance|compliance]] of their suppliers.
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 According to The Deloitte Global Chief Procurement Officer Survey 2018, the likes of cost control, risk management and technological advancements are some of the key issues being treated as priorities by both CFOs and CPOs. With global inflation pressures easing in most regions, CFOs are adopting a strategic approach and shifting their focus towards the longer term as revenue growth improves. Such common priorities highlight an opportunity for CPOs and CFOs to work together to align organizational and procurement strategies.
-*Include Procurement in Strategy Process: For strategic procurement to truly work, it is vitally important that procurement teams are involved in the early stages of overall strategy planning for the organization. Everyone needs to be fully aware of what their roles are, what the goals of the business are and what is defined as valuable. From there, procurement teams can then work on aligning their KPIs. CPOs should work with CFOs to develop a balanced procurement performance scorecard, with sensible targets for the team agreed upon. CPOs are in a strong position to influence and control suppliers while also providing strategic insights to the CFO around the types and capabilities of available suppliers. This takes procurement away from the traditional savings-related metrics and focuses attentions on total cost, performance and innovation.
+*Include Procurement in Strategy Process: For strategic procurement to truly work, it is vitally important that procurement teams are involved in the early stages of overall [[Strategic Planning|strategy planning]] for the organization. Everyone needs to be fully aware of what their roles are, what the goals of the business are and what is defined as valuable. From there, procurement teams can then work on aligning their [[Key Performance Indicator (KPI)|KPIs]]. CPOs should work with CFOs to develop a [[Balanced Scorecard|balanced procurement performance scorecard]], with sensible targets for the team agreed upon. CPOs are in a strong position to influence and control suppliers while also providing strategic insights to the CFO around the types and capabilities of available suppliers. This takes procurement away from the traditional savings-related [[Metrics|metrics]] and focuses attentions on total cost, performance and innovation.
-*Optimize Working Capital: Given that procurement teams work directly with suppliers, they are in a strong position to influence their organization’s strategic procurement process through the management of working capital. By managing stock levels and negotiating advantageous payment terms with suppliers, procurement teams can enable the CFO and treasury to accurately forecast cash flow. Positive cash flow puts you in a more stable position with better buying power and opportunities for growth. Supplier relationships are also enhanced as a result. In a recent blog, we outlined some of the most important tips for effectively managing working capital.
+*Optimize Working Capital: Given that procurement teams work directly with suppliers, they are in a strong position to influence their organization’s strategic procurement process through the management of [[Working Capital|working capital]]. By managing stock levels and negotiating advantageous payment terms with suppliers, procurement teams can enable the CFO and treasury to accurately forecast [[Cash Flow|cash flow]]. Positive cash flow puts you in a more stable position with better buying power and opportunities for growth. Supplier relationships are also enhanced as a result.
-*Utilize Technology to Reduce Costs: Establishing cost saving opportunities has always been a fundamental part of procurement and amongst the top priorities for businesses. The Deloitte Global Chief Procurement Officer Survey 2018 found that this is very much still the case. CFOs and CPOs now have access to a wide range of innovative technologies and advanced analytics systems to support their cost-saving efforts. It is important that CFOs are supportive of investment in technologies that procurement teams need in order to implement a strategic procurement process. Technologies can be leveraged to better monitor performance, ensure contract compliance and analyze supplier activities. E-procurement systems can continually scan data and alert to opportunities for savings such as better rates offered by different suppliers and reduction in maverick spending. While technology investment will greatly improve a CPOs ability to carry out their procurement process in a strategic manner, CFOs will also leverage the power of spend analytics. The data produced through this analysis will influence cash flow management, product or market development and expansion for the overall business.
+*Utilize Technology to Reduce Costs: Establishing cost saving opportunities has always been a fundamental part of procurement and amongst the top priorities for businesses. The Deloitte Global Chief Procurement Officer Survey 2018 found that this is very much still the case. CFOs and CPOs now have access to a wide range of [[IT Innovation (Information Technology Innovation)|innovative technologies]] and [[Advanced Analytics|advanced analytics]] systems to support their cost-saving efforts. It is important that CFOs are supportive of investment in technologies that procurement teams need in order to implement a strategic procurement process. Technologies can be leveraged to better monitor performance, ensure contract compliance and analyze supplier activities. [[E-Procurement]] systems can continually scan [[Data|data]] and alert to opportunities for savings such as better rates offered by different suppliers and reduction in maverick spending. While [[IT Investment (Information Technology Investment)|technology investment]] will greatly improve a CPOs ability to carry out their procurement process in a strategic manner, CFOs will also leverage the power of spend [[Analytics|analytics]]. The data produced through this analysis will influence [[Cash Flow Management|cash flow management]], [[Product Development|product]] or [[Market Development|market development]] and [[Business Expansion|expansion for the overall business]].
-*Talent Development: Technology and data are key to establishing a strategic procurement process, but CFOs and CPOs need to work together to ensure that they invest in the correct talent and training with which to capitalize on such assets. The skill set required to work in a modern procurement team is constantly evolving. For example, more so than ever before procurement professionals require strong data management and analytical skills. These skills fuel smarter spending, supplier relationships and risk reduction. Strategic procurement is now more so about data-based decision making rather than simply squeezing cost savings out of suppliers. However, talent development is very much an issue for CFOs and CPOs when it comes to developing their procurement strategy. The Deloitte report found that only 49 per cent of CPOs believe that their current procurement teams have the required levels of skills to successfully deliver on their organization’s procurement strategy. This percentage has improved in recent years but is still remarkably low. It is critical that procurement teams establish a strong working relationship with the CFO. If talent development in certain areas of procurement continues to be an issue, then outsourcing should be considered. Such a move will allow the internal procurement team to focus their attentions on using their company knowledge and strategic depth in different areas of the business. The external party could play a more specialist role in their dedicated area establishing the ideal blend of expertise and skills internally while also opening up the organization to the outside world.
+*Talent Development: Technology and data are key to establishing a strategic procurement process, but CFOs and CPOs need to work together to ensure that they [[Talent Management|invest in the correct talent and training]] with which to capitalize on such assets. The skill set required to work in a modern procurement team is constantly evolving. For example, more so than ever before procurement professionals require strong data management and analytical skills. These skills fuel smarter spending, supplier relationships and risk reduction. Strategic procurement is now more so about data-based decision making rather than simply squeezing cost savings out of suppliers. However, talent development is very much an issue for CFOs and CPOs when it comes to developing their procurement [[Strategy|strategy]]. The Deloitte report found that only 49 per cent of CPOs believe that their current procurement teams have the required levels of skills to successfully deliver on their organization’s procurement strategy. This percentage has improved in recent years but is still remarkably low. It is critical that procurement teams establish a strong working relationship with the CFO. If talent development in certain areas of procurement continues to be an issue, then [[Outsourcing|outsourcing]] should be considered. Such a move will allow the internal procurement team to focus their attentions on using their company knowledge and strategic depth in different areas of the business. The external party could play a more specialist role in their dedicated area establishing the ideal blend of expertise and skills internally while also opening up the organization to the outside world.
-*Open Communication: None of the previous points are likely to come to fruition, however, unless there is an open line of communication between the CFO and CPO from the outset of establishing a strategic procurement strategy. The CFO needs to be fully behind the work of the CPO. Business financials need to be regularly communicated to the CPO and procurement function so that conversations can be had over procurement’s role in driving the business forward. It is also important for CFOs to understand all areas of the business, particularly procurement. They need to be made aware of any potential roadblocks for the procurement function or any potential issues, ideally in advance of them occurring. Having such knowledge will allow the CFO to establish which area requires the highest levels of support and investment.
+*Open Communication: None of the previous points are likely to come to fruition, however, unless there is an open line of [[Communication|communication]] between the CFO and CPO from the outset of establishing a strategic procurement strategy. The CFO needs to be fully behind the work of the CPO. Business financials need to be regularly communicated to the CPO and procurement function so that conversations can be had over procurement’s role in driving the business forward. It is also important for CFOs to understand all areas of the business, particularly procurement. They need to be made aware of any potential roadblocks for the procurement function or any potential issues, ideally in advance of them occurring. Having such knowledge will allow the CFO to establish which area requires the highest levels of support and investment.

@@ Line 12: / Line 12: @@
 CPOs of the future need the skills to address the following areas:
-*Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. This means understanding the overall business drivers, having a longer-term view and innovating the way the function is running. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. Conversely, strategic leadership traits such as positive [[Disruptive Innovation|disruption]], leading [[Digital Transformation (DX)|digital transformation]] and innovation are not commonly found among today’s CPOs but will need to be developed quickly.
+*Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. This means understanding the overall business drivers, having a longer-term view and innovating the way the function is running. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. Conversely, strategic leadership traits such as positive [[Disruptive Innovation|disruption]], leading [[Digital Transformation (DX)|digital transformation]] and innovation are not commonly found among today’s CPOs but will need to be developed quickly.<br />''“I’m out there looking for ways to keep improving and keep adding value. I spend 25% of my time there speaking with other CPOs, leaders from industry and technology companies, so I can find out how they’re thinking around these challenges and how they’re motivating their teams.”''
 —Bob Murphy, CPO of IBM
 *Building Ecosystems" Organizations can no longer afford to operate in isolation. Instead, they function as part of an enormous global network. CPOs must navigate a complex web of [[Stakeholder|stakeholders]], including [[Supplier|suppliers]], [[Customer|customers]], internal colleagues, and external organizations and partners. The route to sustainable advantage lies in exploiting the strengths and competencies of various stakeholders to achieve greater responsiveness to market needs. As a result, best in-class CPOs have shifted to “[[Systems Thinking|systems thinking]]” and use their skills in relationship building and influencing to partner with suppliers and sometimes even competitors.
@@ Line 23: / Line 22: @@
 [[File:Transformation of the Procurement Function.png|400px|Transformation of the Procurement Function]]<br />
-source:
+source: Russell Reynolds
@@ Line 30: / Line 29: @@
-[[File:CPO Growth Chart.png|200px|CPO Growth Chart]]<br />
+[[File:CPO Growth Chart.png|500px|CPO Growth Chart]]<br />
 source: Supply Chain Dive
@@ Line 37: / Line 36: @@
 [[Technology]] advancements have helped make that happen. Instead of the CPO being a mostly technical role, [[Artificial Intelligence (AI)|artificial intelligence]] and [[Machine Learning|machine learning]] have automated many rote procurement processes, such as vetting vendors and negotiating prices. That has allowed the CPO job to become a more a "qualitative or communication or a [[Leadership|leadership]] function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and [[Total Cost of Ownership (TCO)|ownership costs]], and encourage [[Innovation|innovation]] in procurement and beyond.

← Older revision		Revision as of 00:04, 29 April 2021
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	[[Technology]] advancements have helped make that happen. Instead of the CPO being a mostly technical role, [[Artificial Intelligence (AI)\|artificial intelligence]] and [[Machine Learning\|machine learning]] have automated many rote procurement processes, such as vetting vendors and negotiating prices. That has allowed the CPO job to become a more a "qualitative or communication or a [[Leadership\|leadership]] function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and [[Total Cost of Ownership (TCO)\|ownership costs]], and encourage [[Innovation\|innovation]] in procurement and beyond.		[[Technology]] advancements have helped make that happen. Instead of the CPO being a mostly technical role, [[Artificial Intelligence (AI)\|artificial intelligence]] and [[Machine Learning\|machine learning]] have automated many rote procurement processes, such as vetting vendors and negotiating prices. That has allowed the CPO job to become a more a "qualitative or communication or a [[Leadership\|leadership]] function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and [[Total Cost of Ownership (TCO)\|ownership costs]], and encourage [[Innovation\|innovation]] in procurement and beyond.
		+
		+
		+	===See Also===
		+	[[Chief Executive Officer (CEO)]]<br />
		+	[[Chief Digital Officer (CDO)]]<br />
		+	[[Chief Financial Officer (CFO)]]<br />
		+	[[Chief Information Officer (CIO)]]<br />
		+	[[Chief Innovation Officer]]<br />
		+	[[Chief Marketing Officer (CMO)]]<br />
		+	[[Chief Operating Officer (COO)]]<br />
		+	[[Chief Risk Officer (CRO)]]<br />
		+	[[Chief Technology Officer (CTO)]]<br />
		+	[[C-Suite]]<br />
		+	[[Leadership]]<br />
		+
		+
		+	===References===
		+	<references/>

@@ Line 3: / Line 3: @@
 And according to [[https://en.wikipedia.org/wiki/Chief_procurement_officer Wikipedia]], a CPO is, “typically the executive of a corporation who is responsible for the [[Management|management]], administration, and supervision of the company’s acquisition programs. They may be in charge of the contracting services and may manage the purchase of supplies, equipment, and materials.”
-These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day supplier management and transactional activity.
+These definitions are both vague and redundant because the procurement industry lacks common definitions. Procurement is a [[Business Function|business function]] focused on supply management, which by default includes sourcing – beyond day-to-day [[Supplier Relationship Management|supplier management]] and transactional activity.
 Ultimately, the procurement function is what develops and executes [[Supply Chain Management (SCM)|supply chain management]] processes, whether the [[Resource|resources]] used to perform the [[Process|processes]] report to procurement or not. This means the CPO is the highest-ranking person in the company with the authority to influence the [[Supply|supply]] and the spending required to acquire the supply, throughout the entire company. The procurement [[policy|policies]] and [[Procedure|procedures]] determine which purchases require procurement’s input, and which ones are handled by end users. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost.<ref>What & Who is a Chief Procurement Officer? [https://planergy.com/blog/chief-procurement-officer/ Planergy]</ref>

← Older revision		Revision as of 21:11, 28 April 2021
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−	'''~~Content Coming Soon~~'''	+	The '''Chief Procurement Officer'''(CPO), leads an [[Organization\|organization's]] [[Procurement\|procurement]] department and oversees the acquisitions of goods and services made by the organization. The CPO ensures that purchases will meet organizational needs while helping to reduce costs, promote higher profit margins or both. The role is a strategic one, with the CPO establishing the processes and policies used to guide acquisitions throughout an organization. Given the strategic nature of the position, the CPO does not handle each and every purchase, instead s/he, is only directly involved in transactions that involve strategic partnerships with [[Supplier\|suppliers]] and/or have high costs. Moreover, the CPO's policies and procedures determine which acquisitions require the procurement department's involvement and which are handled exclusively by end users. These rules typically require a purchasing department's involvement for complex, expensive and long-term purchase transactions; end users are usually left to handle simple, low-cost and one-off transactions.<ref>Definition - Who is the Chief Procurement Officer? [https://searchcio.techtarget.com/definition/Chief-Procurement-Officer-CPO Techtarget]</ref>
		+
		+
		+	'''Chief Procurement Officer - Focus of Interest'''<ref>Chief Procurement Officer - Focus of Interest [https://en.wikipedia.org/wiki/Chief_procurement_officer Wikipedia]</ref><br />
		+	A chief procurement officer and his or her department will often be responsible for:
		+	*ensuring that goods and services are promptly delivered
		+	*making sure that vendors are paid in a timely manner
		+	*[[Supplier Relationship Management}supplier relationship management]].
		+	Some CPOs are in charge of locating sources for supplies and services, and of maintaining relations with suppliers and vendors. They usually negotiate with vendors to get the best prices and deals, utilizing the power of purchase and the economies of scale. Often they set up contracts between vendors and the company.
		+
		+	Aside from sourcing and negotiating prices and [[Contract\|contracts]], a chief procurement officer may see to it that files containing all information regarding purchases and services are kept in an orderly fashion. Her or his staff usually work with the accounting department to ensure that vendors are paid on schedule. In addition, they usually keep inventory levels current and take responsibility for forecasting the future supply needs of the company.
		+
		+	Many industries employ procurement officers, from small companies to global organizations. In a small company, the procurement officer may work singly, but often there is a team that executes the purchasing for an organization. If working in for a multinational corporation, the chief procurement officer might have to manage a global team.
		+
		+	Whether at a small company or a large one, the chief procurement officer usually provides overall leadership to the purchasing team and ensures that procurement policies and procedures are followed. Typically, they also are constantly in search of better quality products and better prices. In a lot of companies, all procurement decisions ultimately end up at the desk of the CPO.
		+
		+	The position of the chief procurement officer is believed by many to have taken on increased significance in corporations, and the role is thought to have grown more strategic in recent years. Globalization, compliance pressures and other factors have triggered a trend toward centralization of the procurement function for the purposes of standardization and leverage. Many CPOs report to a director or directly to the chief executive officer (CEO) of their company.
		+
		+	Exceptional interpersonal and negotiation skills generally are required of successful chief procurement officers. Excellent oral and written communication skills may also be necessary. Fluency in other languages also can be considered an asset, since vendors may be situated in other parts of the world.