An HR-related module I recently completed for my MBA in energy management at Aberdeen University posed an important question: what issues have the potential to keep an HR director awake at night? It started me thinking along similar lines: what would cause a Procurement and Supply Chain Manager to stare at the ceiling through the wee small hours? To prevent anybody losing sleep over work-related worries, it is important in any organisation to identify which elements in a work-scope are the most critical.
Questions with the potential to disrupt a CPO’s sleep cycle might easily include the following:
These strategic areas should be on the mind of every CPO.
According to a recent Deloitte CPO Survey (2017); ‘cost, risk, and digital are top priorities to improve growth in uncertain times’.
The report uncovered some interesting facts:
Changes in global trade spending habits have increased the focus on how much value procurement can bring to a boardroom table. Times are changing for the procurement function at a strategic level. These changes will eventually trickle down to the whole procurement organisation and other functions, meaning there are certainly exciting times ahead for procurement.
- Is everybody who works for us safe while they’re on the job?
- Can I guarantee our operations continuity and security of supply?
- Are we getting the best value out of our supply chain?
- Are we compliant with industry, local and international regulation and legislation?
- Do I know everything I ought to know about environmental changes that can affect our supply chain?
- In our procurement processes, are we using technology to our best advantage?
- How healthy are our relationships with our suppliers?
- Are our stakeholders convinced we are operating ethically?
- Is our procurement team as good as it can be?
- Do I have what it takes to succeed in my role?
These strategic areas should be on the mind of every CPO.
According to a recent Deloitte CPO Survey (2017); ‘cost, risk, and digital are top priorities to improve growth in uncertain times’.
The report uncovered some interesting facts:
- 79% of procurement leaders focus on cost reduction
- Almost 60% prioritise risk management
- 52% are focused on new products, services and market development
- 60% believe their teams lack the skills needed
- 75% believe their role in delivering digital strategy will expand
- 75% of c-suite executives support procurement’s role and further development.
Changes in global trade spending habits have increased the focus on how much value procurement can bring to a boardroom table. Times are changing for the procurement function at a strategic level. These changes will eventually trickle down to the whole procurement organisation and other functions, meaning there are certainly exciting times ahead for procurement.