The role of the Chief Procurement Officer is in the midst of seismic transformation and change.
No longer a back-office role hidden in the background, today’s CPO has risen to become one of the most important components of a company’s operations. Out of sight no longer.
Witnessing the evolution first hand is Stephanie Lang, Director and General Manager for Amazon Business. Lang speaks exclusively to CPOstrategy and shares her extensive experience and expertise, shedding light on why CPOs are integral to an organisation’s strategic and operational success. The discussion covers various facets of a CPO’s responsibilities, including driving product innovation, aligning strategies with business goals, and fostering cross-functional collaboration.
Lang also explores how CPOs serve as the bridge between market needs and company capabilities, thus playing a crucial role in sustaining competitive advantage.
Can you talk to us about the importance of a Chief Procurement Officer in today’s business landscape?
Stephanie Lang: “The role of a CPO has evolved from being focused purely on cost reduction and compliance to now encompassing strategic sourcing, supplier relationship management, and driving innovation. Today, CPOs are positioned as strategic partners, helping an organisation navigate the complexities of procurement. In today’s global economy, the CPO plays a crucial role in dealing with supply chain hiccups. They must keep up with regulations, and push sustainability initiatives. All of which help maintain a company’s resilience and competitive edge. Having the CPO involved at the executive level shows how important procurement has become as a strategic function.”
What is your take on the industry at the moment? Is it an exciting or challenging space to be working in?
Stephanie Lang: “The procurement industry is at a turning point, with both exciting opportunities and tough challenges ahead. Digital transformation is changing the game. By 2027, 50% organisations will support supplier contract negotiations through the use of AI-enabled contract risk analysis and editing tools. Blockchain could reduce procurement fraud, and IoT applications may improve asset utilisation. These advancements can lead to smarter business decisions and better supplier relationships, making it an exciting space for forward-thinkers.
“On the flip side, the industry isn’t without its hurdles. Geopolitical uncertainties, fluctuating commodity prices, and organisations still implementing lessons learned during the pandemic are major challenges. CPOs need to be agile and resilient, constantly adapting strategies to manage risks and keep things running smoothly. So, while there are plenty of obstacles, the field remains dynamic and intriguing for those who can navigate its complexities.”
In what ways does a CPO at the C-suite level improve the company’s ability to manage supply chain risks and ensure sustainability?
Stephanie Lang: “CPOs are becoming the sustainability champions businesses need. Having a CPO in the C-suite is key for managing supply chain risks and ensuring sustainability. This role lets the CPO align procurement strategies with company goals, creating a more holistic approach to risk management. By weaving risk assessment into procurement, CPOs can spot potential disruptions, monitor supplier reliability, and put contingency plans in place, protecting the supply chain from unexpected hiccups.
“Today, 70% of companies see procurement as one of the top three drivers of their sustainability programs. They make sure procurement practices meet important environmental, social, and governance standards by vetting suppliers for sustainability, promoting ethical sourcing, and cutting down carbon footprints with smart sourcing. This not only helps tackle environmental risks but also boosts the company’s reputation and keeps it in line with regulations.”
How can CPOs drive cost efficiencies and operational excellence to sustain a competitive advantage?
Stephanie Lang: “CPOs help cut costs and boost operations by smart sourcing, optimising supplier relationships, and using tech to streamline procurement. With thorough market analysis and competitive bidding, they secure better prices and service, positively impacting the bottom line.
“Plus, CPOs enhance operations by standardising processes and using automation. Procurement software lets you make data-driven decisions, cuts down on manual errors, and speeds up the procurement cycle. Going digital with procurement can cut costs by up to 30%. These upgrades make procurement leaner, more agile, and help keep you ahead of the competition.”
What are the biggest challenges a Chief Procurement Officer is dealing with today and how is it managed?
Stephanie Lang: “One of the biggest challenges CPOs face today is dealing with supply chain disruptions caused by geopolitical tensions, natural disasters, and pandemics. To handle these risks, many CPOs are turning to diversified sourcing strategies, stronger relationships with key suppliers, and tools that improve supply chain visibility. These steps help reduce disruptions and keep everything running smoothly.
“Another challenge is balancing cost-effective procurement with sustainable practices. This requires innovative solutions like circular economy models and green procurement policies. By prioritising suppliers with strong ESG performance and promoting cross-functional teamwork, CPOs can effectively address these challenges.”
What advice would you have for a new Chief Procurement Officer starting their journey?
Stephanie Lang: “For new Chief Procurement Officers, my advice is to prioritise continuous learning and stay abreast of emerging technologies. There are different ways one can stay curious about innovation across the board. My journey has been to try and learn many different positions before working closely with procurement. I started as a strategic consultant where I learned to analyse risks and opportunities across industries. Then I moved into consumer electronics seeing innovation first hand before joining Amazon. There is not only one way to develop insights into procurement, but curiosity is one common theme.”
How can the integration of Amazon Business into a company’s procurement processes influence a CPO’s ability to demonstrate strategic value and secure a seat at the C-suite table?
Stephanie Lang: “Integrating Amazon Business into your company’s procurement processes can boost a CPO’s ability to show strategic value. With Amazon Business, you get access to a vast selection of products, great prices, and smoother purchasing, resulting in major cost savings and efficiency improvements. This setup gives CPOs better control and visibility over spending, helping them make smarter decisions.
“Plus, the data and analytics from Amazon Business can help CPOs spot spending trends, streamline procurement, and negotiate better deals with suppliers. Highlighting these strategic perks can solidify the CPO’s role in hitting organisational goals and securing their spot at the C-suite table.”
