It’s that time of the year again. 2019 is off to a flying start for Chief Procurement Officers (CPOs). That means it’s the perfect time to make solid resolutions…digitalization, compliance, supplier management, collaboration…and stick to them!
2019 New Year’s Resolutions for CPOs
l will focus my team’s efforts on the strategic value of procurement and how we can bring additional benefits to the organization by leveraging technology. Procurement technologies innovations hold the potential to reshape both strategic and operational procurement. Digitizing procurement is just the first step in an ongoing journey.
In the coming years, we’ll see the further evolution in next generation digital procurement. It’s imperative that CPOs start (or continue the pursuit of) their digital procurement journey now to ensure they’re not left behind in the race for competitive advantage.
Contract Compliance Guardian
I will rely on robust Contract Lifecycle and Supplier Management solutions to tackle vulnerabilities and risks associated with each phase of the contracting process and guarantee regulatory and process compliance.
In 2019, organizations no longer have the luxury of choosing to implement a compliance program, and therefore need the right checks and balances for managing their compliance requirements. In many aspects, Procurement is the execution and implementation arm for many of the compliance department’s policies and directives.
Ensuring that the contracts you have put in place are adhered to is a tricky business but a shifting regulatory and global business environment are compelling organizations to implement a much more robust strategy and technology approach to contract management (or contract lifecycle management – CLM).
I will stay on top of progress in the fields of Big Data and Smart Data so as not to miss the opportunities offered by these innovations.
In a world driven by data, organizations that have the people, processes and technology in place to leverage it have all the advantages. CPOs need to start thinking about intelligence in the context of their organization’s current state of maturity and work to identify the areas of greatest leverage. At the same time, all CPOs need to ensure that there is a foundation in place to tap into Big Data opportunities because they will continue to grow.
I will commit to recruiting, hiring, retaining and developing outstanding Procurement human resources and contribute to the improvement of my organization’s business performance and results.
Identifying, retaining, and optimizing the right talent is a critical mission among CPOs today. As the talent crisis and digital procurement skills shortage are becoming a matter of huge concern for many organizations, there is an urgent need to relook into procurement talent management.
By designing and implementing a talent management strategy for procurement, CPOs can ensure that they have the personnel required to change the dynamic of the procurement process and evolve into strategic service providers to the businesses.
In 2019, I will work closely across functions and departments and fully embrace my role as Business Partner.
More than ever, the role of procurement is gaining influence across organizations. According to the recent Deloitte Global Chief Procurement Officer Survey 2018, cost reduction remains the top priority for procurement. But as innovative technology and digitization play a greater part in the procurement process, the function has become much more strategic.
The role of cost-killer is rapidly giving way to critical business partner. Procurement objectives and performance criteria are increasingly aligned with the overall goals of the organization. Beyond financial performance, there’s also a growing focus on the development of new markets and new products, as well as supplier risk management. Delivering value to the entire company is now a crucial part of the function.
I understand that Agility is the future of procurement success; I will get my company ready for the challenges the next decade will bring and along the way turn volatility into a competitive advantage.
The rate of change that companies are facing has never been greater. That’s one on the reason why Business Agility has become one of the most important trends in business including procurement. Defined by the Agile Alliance as “the ability of an organization to sense changes internally or externally and respond accordingly in order to deliver value to its customers,” achieving procurement agility means finding ways to move fast, innovate and adapt to ever-changing market conditions to deliver sustainable business value through innovation, revenue generation and competitive advantage.