The procurement function requires a specific kind of Chief Procurement Officer.
As the industry continues to change and shift amid seismic transformation brought on by the likes of a digital revolution and sustainability drive, standing still isn’t an option.
In this article, CPOstrategy explores five key characteristics every successful Chief Procurement Officer needs to have in order to succeed in the modern world.
Be strategic
CPOs need to be able to think long-term and be focused on future-proofing the organisation against potential disruption in the future. As a result, it is important to identify cost-saving opportunities, develop sourcing strategies and create influential relationships with key suppliers that will benefit the company in the years ahead.
Negotiation skills
The core task of a CPO is buying items at the best possible price. This is impossible without negotiation with suppliers to effectively communicate the needs of the company and work out favourable terms to ensure a good deal. In order to do this correctly, a CPO must demonstrate excellent communication skills, an understanding of the current landscape and possess an ability to build relationships.
Be ethical
Environmental, social and governance (ESG) goals are becoming increasingly critical to today’s CPO. Procurement leaders must be aware of legislation and relevant rules and regulations while ensuring corruption is prevented via engaging in fair business practices.
Demonstrate leadership
Successful Chief Procurement Officers must be confident in being able to lead and manage a team of procurement professionals. They should be able to motivate their teams to improve efficiency and help their people to achieve high performance. CPOs should be able to provide guidance and support while also allowing for development opportunities for team members which is fundamental for a robust procurement function.
Agile mindset
The world today is volatile and changes quickly. It means that great CPOs need to be able to pivot at short notice and adapt to geopolitical problems as they happen. Being agile is particularly key as new innovations come to the market so being responsive and open to transformation is important.