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. To demonstrate your negotiation skills, its helpful to be able to show any past deals youve helped solidify, and how those relationships helped your company grow. The need for more and more critically thinking CPOs is accelerating, said Pettis Kent, assistant professor of supply chain management at Loyola University Chicago Quinlan School of Business. Northern Kentucky University: Salmon P. Chase College of Law, JD , Law Education: senior vice president, chief procurement officer, Global Sourcing. Many of their priorities and financial responsibilities overlap and if both Finance and Procurement are to be successful in achieving their goals, strong collaboration between both must exist. Career History: After obtaining a degree in physics from Delft University, Stijn immediately joined the Shell workforce and he fits the mold of the typical work-your-way-up-from-the-bottom success story. Delft University of Technology: Physics Company: Royal Dutch Shell 
Industry: Consumer Goods Supply Chain Digital focuses on procurement and supply chain news, key interviews, supply chain videos, along with an ever-expanding range of focused procurement and supply chain white papers and webinars. Thats especially true for "multinational companies where they need someone to stand at the intersection between what we need internally and whats available externally," he said. You must be familiar with laws and regulations around procurement in general, and specific to the industry youre handling procurement for. Stay up-to-date with news sent straight to your inbox, Sign up with your email to They usually negotiate with vendors to get the best prices and deals, utilizing the power of purchase and the economies of scale. Procurement activities at Shell often range from major equipment for platform and refineries to confectionery for retail stations. Prior to joining Starbucks, Kelly gained broad experience in packaging, product development, manufacturing, and project management at Macys, Bensussen Deutsch, Cranium and Hasbro. During his time at Ryder, Mr. Fiore and his team were instrumental in improving the supplier selection and management process that resulted in more cooperation with Ryders key suppliers for vehicle, vehicle support, and fuel activities. Read this article in our digital magazine. [1] This survey of nearly 250 CPOs around the world includes a procurement competency matrix, which considered the higher-level skills a purchasing department should have. Campbell is a strong advocate of exporting strong talent to the business units outside of procurement. Additionally, the teams activities addressed all sectors of Ryders supply chain by championing a fact-based, data-driven process to establish future key supplier relationships. He has also been ilinked to research and new business acquisitions in his time at Shell. Some organizations give the CPO an alternate title, such as assistant vice president for procurement. Most notably, Hughes is known for creating an important link with P&Gs Chief Marketing Officer, despite the suggestion that marketing and purchasing dont play nicely together. Kelly has held numerous leadership positions during her 8-plus years with Starbucks, including direct and indirect sourcing, store development, and commercialization. Most recently, Kelly served as vice president of Starbucks Global Supply Chains Strategy & Deployment team, a new team created under Kelly to support Starbucks supply chains aspirations of becoming digitized, strategically aligning resources against priorities and building capabilities through long-term capacity planning and supply chain intelligence. Its these like-minded individuals that will set the procurement standards of the future and pave the way for others to follow. Beyond the procurement function, CPOs will increasingly be called upon to enable digital efforts across the organization, including honing an ability to source in-demand digital products like, Future Ready Teams: Procurement leaders of the future will need to lead a different type of organization. Instead of the CPO being a mostly technical role, artificial intelligence and machine learning have automated many rote procurement processes, such as vetting vendors and negotiating prices. A new Supply Management report published in July 2011 says that "76 percent of chief procurement officers (CPOs) feel the skills of their purchasing staff either 'need improvement' (65 percent) or display a 'significant gap' (11 percent), according to research from Ardent Partners. You must be able to show that youve been able to save a company money, if not just by reducing costs, but also by improving profits through cost avoidance and risk mitigation. She works to build open relationships with her team and suppliers to discuss areas that need development. His service included Operation Desert Storm. Many readers tell us they would have paid consultants for the advice in these articles. Director of Procurement and Contract Services. CPOs also have to source materials in a socially and environmentally responsible way, which can mean monitoring the carbon footprints, fuel consumption or labor practices of suppliers. Projects as CPO: Linton has transformed purchasing at LG into a much more strategic, agile function. Chief Marketing Officer (CMO) If you have updates or corrections for this site, contactmmusick@alaska.edu. 2022 Starbucks Corporation. In startup operations and smaller companies, the team typically only includes a few procurement professionals. case studies, client success stories, and testimonials. This means the CPO is the highest-ranking person in the company with the authority to influence the supply and the spending required to acquire the supply, throughout the entire company. The role of a Chief Procurement Officer has become much more complex in todays world. Cloud eProcurement and spend management company Wax Digital surveyed over 100 CPOs in 2013. Career History: Campbell was Vice President, Worldwide Procurement at Dell, Inc. before joining Reed Elsevier in 2008. Where the best opportunities for savings are in indirect spend. The length of experience in procurement will vary from job to job, but the MTA position requires 15 years of satisfactory full-time experience in procurement, leading a sourcing function, along with at least five years managing at least 10 full-time resources. Generally, the CPO reports directly to the Chief Executive Officer (CEO) of a company., And according to Wikipedia, a CPO is, typically the executive of a corporation who is responsible for the management, administration, and supervision of the companys acquisition programs. Ever better is a trademark of Ryder System, Inc. Copyright 1996 - 2022 Ryder System, Inc. Carlos de Jesus, Operational Director of APCOR - the Portuguese cork association - on how the vision of people 90 years ago created a sustainable industry, FedEx Express opens new South China centre; Amazon Freight extends 3PL offering; Lufthansa strike averted; New record for DP World London Gateway, Accenture report says that adopting AI at scale & making data central to supply chain operations is the route to resilient value chains in time of chaos. According to LinkedIn Economic Graph Research, CPO ranks 11 on the list of fastest growing -C-Suite titles of 2020, with 15% growth (as a proportion of total C-suite hires last year). How to gain visibility and control of your indirect spend. She also served eight years as the VP Global Procurement at Oracle Corporation. To work as a Deputy Chief Procurement Officer for the Metropolitan Transportation Authority (MTA) New York City Transit, for instance, you must have a bachelors degree in Supply Chain, Procurement, or a related field and masters or other advanced degree is preferred. His work evolved from projects in manufacturing and maintenance in the early 90s to the global responsibilities he manages today as Executive VP Contracting & Procurement. He founded and developed IBM's China Procurement Center, Singapore Trading Center, Singapore Technical Center and Ireland Procurement Center. Alexandra also leads Ciscos enterprise contract workforce strategy and the continuous digital transformation evolution across the holistic operation. Kelly Bengston is senior vice president, chief procurement officer. The report said there was a 'picture of a very middle-of-the-road set of skills residing within the typical procurement department'. Many industries employ procurement officers, from small companies to global organizations. Tomorrows CPO: New Responsibilities and Opportunities, How Technology Helps CPOs be more Strategic, 5 Ways CPO and CFO Relations Can Fuel Strategic Procurement, balanced procurement performance scorecard, invest in the correct talent and training, https://cio-wiki.org/index.php?title=Chief_Procurement_Officer_(CPO)&oldid=8937, Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. You wont handle all the purchases but will focus on the ones that are high cost or involve one of your strategic partnerships. However, there are a few CPOs that refute that glass-half-empty mindset and prove that you can apply innovation while still maintaining a cost-effective orientation. While in that role, he was responsible for a group of 40 procurement professionals who managed more than $1.1 billion in spending. They need to step up even more in a strategic position to really support the business growth from a revenue perspective," he said. Exceptional interpersonal and negotiation skills generally are required of successful chief procurement officers.
Theyve largely been successful at that, said Alex Zhong, supply chain lead at IBM Sterling, and it can be seen especially in the lower cost of consumer goods. According to Business Dictionary, the Chief Procurement Officer, or CPO, is [An] executive level employee whose responsibilities include sourcing, supply management, and procurement for the organization. While it is most common for the CPO to report to the CEO, its also possible to the CPO will report to the chief operating officer, chief financial officer (CFO), or another senior vice president position. in Management from Central Washington University. As a CPO, you must keep an eye on costs, keeping them under control, and doing what you can to reduce them. Prior to her procurement tenure she ran the Dell Global Segment sales force for Europe, Middle East and Africa. You must be able to negotiate with suppliers and be prepared to use those skills for large deals. Procurement leaders need an understanding of how they can capture the benefits of those new tools for their own functions and across the organization. Some larger enterprises, particularly those dealing with global procurement, may require a masters degree in any of the following: business, finance, supply chain management, or procurement.
Alexandra received the highly coveted Procurement Leader Award from the World Procurement Organization in 2017. In the Spring of 2022, Lopez was named Top 10 Women in Procurement by Procurement Magazine. Some companies will also have an assistant chief procurement officer. This means developing a procurement strategy based on strategic sourcing, helping purchasing staff with the evaluation and selection of suppliers, overseeing, and occasionally participating in contract negotiations. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[970,90],'cio_wiki_org-large-leaderboard-2','ezslot_9',119,'0','0'])};if(typeof __ez_fad_position != 'undefined'){__ez_fad_position('div-gpt-ad-cio_wiki_org-large-leaderboard-2-0')}; Technology Helps CPOs be more Strategic[3] Ultimately, the procurement function is what develops and executes supply chain management processes, whether the resources used to perform the processes report to procurement or not. You must be able to focus on the needs of a customer, anticipating them ahead of time when and where possible to manage risks and effectively handle supplier relationship management. [3] The survey found that: Learn how and when to remove this template message, "Survey uncovers major procurement skills gap", List of business and finance abbreviations, https://en.wikipedia.org/w/index.php?title=Chief_procurement_officer&oldid=1009274811, Articles lacking in-text citations from March 2018, Creative Commons Attribution-ShareAlike License 3.0, making sure that vendors are paid in a timely manner, The average career length to date of a CPO was 22 years, The youngest CPO in their survey was aged 35, This page was last edited on 27 February 2021, at 18:12. She enjoys running, traveling, and spending time with her family. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Mr. Fiore reports directly to Chairman and CEO Robert Sanchez and is a member of Ryders Leadership Team. Such common priorities highlight an opportunity for CPOs and CFOs to work together to align organizational and procurement strategies. Company: Proctor & Gamble How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend. There is an idea in the procurement industry that businesses are no longer trying to ensure future gains, but instead they are only trying to prevent further losses to stay afloat in a poor economy. Often they set up contracts between vendors and the company. Career History: Linton took the position of CPO at LGs headquarters in Seoul, South Korea in January of 2008 after the LG CEO said publically that the company would look for the top talent regardless of nationality. Linton previously served as CPO of Agere Systems, and people know him from his work with E2Open, a leading provider of supply chain management solutions. 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. It is often his or her responsibility to source goods and services and to negotiate prices and contracts. This area is reserved for members of the news media. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. In a lot of companies, all procurement decisions ultimately end up at the desk of the CPO. ESG In Supply Chain: Creating a Sustainable Value Chain, How Strategic Procurement Can Give You a Competitive Advantage, ESG Procurement: Sustainability Through Procurement Strategy. For questions or concerns, please contact the OIT Support Center. Harrington earned an MBA at the University of North Carolina at Chapel Hill and a bachelors degree at Rochester Institute of Technology. While they might not have procurement backgrounds, those are things that can be taught, and she believes these employees will become strong ambassadors for the procurement process, while adding cross-functional experience. How to report and analyze indirect spend to identify savings opportunities. These definitions are both vague and redundant because the procurement industry lacks common definitions. In this role, he provides analysis of panelist data and comments, interprets their meaning, releases the report, and provides commentary and analysis to the financial and economic community.
He has streamlined processes in the supply chain as an alternative to asking suppliers to cut their margins. source: Russell Reynolds Hughes also served as a Major in the Army for five years after earning his Bachelors degree at Notre Dame. CPOs must navigate a complex web of, Digital Advancement: While prospects of a digital transformation in procurement look promising, the reality is that most organizations have not yet captured the opportunities those tools will deliver. In these organizations, its common to have a CPO with a different job title, such as procurement director, procurement contract officer, or deputy chief procurement officer. Industry: Publishing Tim Fiore is senior vice president and chief procurement officer (CPO) for Ryder System, Inc., a leading commercial fleet management, dedicated transportation, and supply chain solutions company. Instead, they function as part of an enormous global network. They want people who are willing to collaborate across departments to improve company culture, and people who are willing to embrace technology to make procurement processes more efficient and effective. Name: Rick Hughes If working in for a multinational corporation, the chief procurement officer might have to manage a global team. Alexandra Lopez is Senior Vice President and Chief Procurement Officer of Global Procurement Services at Cisco leading the organization responsible for more than $9 billion annually in FY21 across the companys end-to-end buying ecosystem. Follow @alexmassalopezz on He built his career at IBM, however, where he spent 20 years, eventually rising to the role of Director of Global Hardware Procurement. In this practice, regional employees around the globe report ideas and ways to improve efficiency directly to the Shell C&P team, which is coordinated by Stijn. receive updates from our blog. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. We have identified a few of the top CPOs in the world and the projects they are working on to help us navigate through these economic times. CPOs must also work to make sure procurement policy and procedure adhere to internal and external compliance guidelines be they for government requirements for supplier diversity (to avoid discrimination against women-owned and minority-owned businesses), or company initiatives for ethical procurement and corporate social responsibility. 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. The procurement policies and procedures determine which purchases require procurements input, and which ones are handled by end users. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and ownership costs, and encourage innovation in procurement and beyond. Typically, they also are constantly in search of better quality products and better prices. Lowering the cost of supply is achieved through what Shell deems Enterprise Category Management. Name: Tom Linton Fluency in other languages also can be considered an asset, since vendors may be situated in other parts of the world. It is imperative for leaders to assess how they leverage the procurement function and where they are in terms of maturity of the function, as shown in the Figure below.
Industry: Consumer Goods Supply Chain Digital focuses on procurement and supply chain news, key interviews, supply chain videos, along with an ever-expanding range of focused procurement and supply chain white papers and webinars. Thats especially true for "multinational companies where they need someone to stand at the intersection between what we need internally and whats available externally," he said. You must be familiar with laws and regulations around procurement in general, and specific to the industry youre handling procurement for. Stay up-to-date with news sent straight to your inbox, Sign up with your email to They usually negotiate with vendors to get the best prices and deals, utilizing the power of purchase and the economies of scale. Procurement activities at Shell often range from major equipment for platform and refineries to confectionery for retail stations. Prior to joining Starbucks, Kelly gained broad experience in packaging, product development, manufacturing, and project management at Macys, Bensussen Deutsch, Cranium and Hasbro. During his time at Ryder, Mr. Fiore and his team were instrumental in improving the supplier selection and management process that resulted in more cooperation with Ryders key suppliers for vehicle, vehicle support, and fuel activities. Read this article in our digital magazine. [1] This survey of nearly 250 CPOs around the world includes a procurement competency matrix, which considered the higher-level skills a purchasing department should have. Campbell is a strong advocate of exporting strong talent to the business units outside of procurement. Additionally, the teams activities addressed all sectors of Ryders supply chain by championing a fact-based, data-driven process to establish future key supplier relationships. He has also been ilinked to research and new business acquisitions in his time at Shell. Some organizations give the CPO an alternate title, such as assistant vice president for procurement. Most notably, Hughes is known for creating an important link with P&Gs Chief Marketing Officer, despite the suggestion that marketing and purchasing dont play nicely together. Kelly has held numerous leadership positions during her 8-plus years with Starbucks, including direct and indirect sourcing, store development, and commercialization. Most recently, Kelly served as vice president of Starbucks Global Supply Chains Strategy & Deployment team, a new team created under Kelly to support Starbucks supply chains aspirations of becoming digitized, strategically aligning resources against priorities and building capabilities through long-term capacity planning and supply chain intelligence. Its these like-minded individuals that will set the procurement standards of the future and pave the way for others to follow. Beyond the procurement function, CPOs will increasingly be called upon to enable digital efforts across the organization, including honing an ability to source in-demand digital products like, Future Ready Teams: Procurement leaders of the future will need to lead a different type of organization. Instead of the CPO being a mostly technical role, artificial intelligence and machine learning have automated many rote procurement processes, such as vetting vendors and negotiating prices. A new Supply Management report published in July 2011 says that "76 percent of chief procurement officers (CPOs) feel the skills of their purchasing staff either 'need improvement' (65 percent) or display a 'significant gap' (11 percent), according to research from Ardent Partners. You must be able to show that youve been able to save a company money, if not just by reducing costs, but also by improving profits through cost avoidance and risk mitigation. She works to build open relationships with her team and suppliers to discuss areas that need development. His service included Operation Desert Storm. Many readers tell us they would have paid consultants for the advice in these articles. Director of Procurement and Contract Services. CPOs also have to source materials in a socially and environmentally responsible way, which can mean monitoring the carbon footprints, fuel consumption or labor practices of suppliers. Projects as CPO: Linton has transformed purchasing at LG into a much more strategic, agile function. Chief Marketing Officer (CMO) If you have updates or corrections for this site, contactmmusick@alaska.edu. 2022 Starbucks Corporation. In startup operations and smaller companies, the team typically only includes a few procurement professionals. case studies, client success stories, and testimonials. This means the CPO is the highest-ranking person in the company with the authority to influence the supply and the spending required to acquire the supply, throughout the entire company. The role of a Chief Procurement Officer has become much more complex in todays world. Cloud eProcurement and spend management company Wax Digital surveyed over 100 CPOs in 2013. Career History: Campbell was Vice President, Worldwide Procurement at Dell, Inc. before joining Reed Elsevier in 2008. Where the best opportunities for savings are in indirect spend. The length of experience in procurement will vary from job to job, but the MTA position requires 15 years of satisfactory full-time experience in procurement, leading a sourcing function, along with at least five years managing at least 10 full-time resources. Generally, the CPO reports directly to the Chief Executive Officer (CEO) of a company., And according to Wikipedia, a CPO is, typically the executive of a corporation who is responsible for the management, administration, and supervision of the companys acquisition programs. Ever better is a trademark of Ryder System, Inc. Copyright 1996 - 2022 Ryder System, Inc. Carlos de Jesus, Operational Director of APCOR - the Portuguese cork association - on how the vision of people 90 years ago created a sustainable industry, FedEx Express opens new South China centre; Amazon Freight extends 3PL offering; Lufthansa strike averted; New record for DP World London Gateway, Accenture report says that adopting AI at scale & making data central to supply chain operations is the route to resilient value chains in time of chaos. According to LinkedIn Economic Graph Research, CPO ranks 11 on the list of fastest growing -C-Suite titles of 2020, with 15% growth (as a proportion of total C-suite hires last year). How to gain visibility and control of your indirect spend. She also served eight years as the VP Global Procurement at Oracle Corporation. To work as a Deputy Chief Procurement Officer for the Metropolitan Transportation Authority (MTA) New York City Transit, for instance, you must have a bachelors degree in Supply Chain, Procurement, or a related field and masters or other advanced degree is preferred. His work evolved from projects in manufacturing and maintenance in the early 90s to the global responsibilities he manages today as Executive VP Contracting & Procurement. He founded and developed IBM's China Procurement Center, Singapore Trading Center, Singapore Technical Center and Ireland Procurement Center. Alexandra also leads Ciscos enterprise contract workforce strategy and the continuous digital transformation evolution across the holistic operation. Kelly Bengston is senior vice president, chief procurement officer. The report said there was a 'picture of a very middle-of-the-road set of skills residing within the typical procurement department'. Many industries employ procurement officers, from small companies to global organizations. Tomorrows CPO: New Responsibilities and Opportunities, How Technology Helps CPOs be more Strategic, 5 Ways CPO and CFO Relations Can Fuel Strategic Procurement, balanced procurement performance scorecard, invest in the correct talent and training, https://cio-wiki.org/index.php?title=Chief_Procurement_Officer_(CPO)&oldid=8937, Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. You wont handle all the purchases but will focus on the ones that are high cost or involve one of your strategic partnerships. However, there are a few CPOs that refute that glass-half-empty mindset and prove that you can apply innovation while still maintaining a cost-effective orientation. While in that role, he was responsible for a group of 40 procurement professionals who managed more than $1.1 billion in spending. They need to step up even more in a strategic position to really support the business growth from a revenue perspective," he said. Exceptional interpersonal and negotiation skills generally are required of successful chief procurement officers. Theyve largely been successful at that, said Alex Zhong, supply chain lead at IBM Sterling, and it can be seen especially in the lower cost of consumer goods. According to Business Dictionary, the Chief Procurement Officer, or CPO, is [An] executive level employee whose responsibilities include sourcing, supply management, and procurement for the organization. While it is most common for the CPO to report to the CEO, its also possible to the CPO will report to the chief operating officer, chief financial officer (CFO), or another senior vice president position. in Management from Central Washington University. As a CPO, you must keep an eye on costs, keeping them under control, and doing what you can to reduce them. Prior to her procurement tenure she ran the Dell Global Segment sales force for Europe, Middle East and Africa. You must be able to negotiate with suppliers and be prepared to use those skills for large deals. Procurement leaders need an understanding of how they can capture the benefits of those new tools for their own functions and across the organization. Some larger enterprises, particularly those dealing with global procurement, may require a masters degree in any of the following: business, finance, supply chain management, or procurement.
Alexandra received the highly coveted Procurement Leader Award from the World Procurement Organization in 2017. In the Spring of 2022, Lopez was named Top 10 Women in Procurement by Procurement Magazine. Some companies will also have an assistant chief procurement officer. This means developing a procurement strategy based on strategic sourcing, helping purchasing staff with the evaluation and selection of suppliers, overseeing, and occasionally participating in contract negotiations. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[970,90],'cio_wiki_org-large-leaderboard-2','ezslot_9',119,'0','0'])};if(typeof __ez_fad_position != 'undefined'){__ez_fad_position('div-gpt-ad-cio_wiki_org-large-leaderboard-2-0')}; Technology Helps CPOs be more Strategic[3] Ultimately, the procurement function is what develops and executes supply chain management processes, whether the resources used to perform the processes report to procurement or not. You must be able to focus on the needs of a customer, anticipating them ahead of time when and where possible to manage risks and effectively handle supplier relationship management. [3] The survey found that: Learn how and when to remove this template message, "Survey uncovers major procurement skills gap", List of business and finance abbreviations, https://en.wikipedia.org/w/index.php?title=Chief_procurement_officer&oldid=1009274811, Articles lacking in-text citations from March 2018, Creative Commons Attribution-ShareAlike License 3.0, making sure that vendors are paid in a timely manner, The average career length to date of a CPO was 22 years, The youngest CPO in their survey was aged 35, This page was last edited on 27 February 2021, at 18:12. She enjoys running, traveling, and spending time with her family. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. Mr. Fiore reports directly to Chairman and CEO Robert Sanchez and is a member of Ryders Leadership Team. Such common priorities highlight an opportunity for CPOs and CFOs to work together to align organizational and procurement strategies. Company: Proctor & Gamble How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend. There is an idea in the procurement industry that businesses are no longer trying to ensure future gains, but instead they are only trying to prevent further losses to stay afloat in a poor economy. Often they set up contracts between vendors and the company. Career History: Linton took the position of CPO at LGs headquarters in Seoul, South Korea in January of 2008 after the LG CEO said publically that the company would look for the top talent regardless of nationality. Linton previously served as CPO of Agere Systems, and people know him from his work with E2Open, a leading provider of supply chain management solutions. 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. It is often his or her responsibility to source goods and services and to negotiate prices and contracts. This area is reserved for members of the news media. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that youve provided to them or that theyve collected from your use of their services. In a lot of companies, all procurement decisions ultimately end up at the desk of the CPO. ESG In Supply Chain: Creating a Sustainable Value Chain, How Strategic Procurement Can Give You a Competitive Advantage, ESG Procurement: Sustainability Through Procurement Strategy. For questions or concerns, please contact the OIT Support Center. Harrington earned an MBA at the University of North Carolina at Chapel Hill and a bachelors degree at Rochester Institute of Technology. While they might not have procurement backgrounds, those are things that can be taught, and she believes these employees will become strong ambassadors for the procurement process, while adding cross-functional experience. How to report and analyze indirect spend to identify savings opportunities. These definitions are both vague and redundant because the procurement industry lacks common definitions. In this role, he provides analysis of panelist data and comments, interprets their meaning, releases the report, and provides commentary and analysis to the financial and economic community.
He has streamlined processes in the supply chain as an alternative to asking suppliers to cut their margins. source: Russell Reynolds Hughes also served as a Major in the Army for five years after earning his Bachelors degree at Notre Dame. CPOs must navigate a complex web of, Digital Advancement: While prospects of a digital transformation in procurement look promising, the reality is that most organizations have not yet captured the opportunities those tools will deliver. In these organizations, its common to have a CPO with a different job title, such as procurement director, procurement contract officer, or deputy chief procurement officer. Industry: Publishing Tim Fiore is senior vice president and chief procurement officer (CPO) for Ryder System, Inc., a leading commercial fleet management, dedicated transportation, and supply chain solutions company. Instead, they function as part of an enormous global network. They want people who are willing to collaborate across departments to improve company culture, and people who are willing to embrace technology to make procurement processes more efficient and effective. Name: Rick Hughes If working in for a multinational corporation, the chief procurement officer might have to manage a global team. Alexandra Lopez is Senior Vice President and Chief Procurement Officer of Global Procurement Services at Cisco leading the organization responsible for more than $9 billion annually in FY21 across the companys end-to-end buying ecosystem. Follow @alexmassalopezz on He built his career at IBM, however, where he spent 20 years, eventually rising to the role of Director of Global Hardware Procurement. In this practice, regional employees around the globe report ideas and ways to improve efficiency directly to the Shell C&P team, which is coordinated by Stijn. receive updates from our blog. Currently, the most common leadership traits in procurement are acting as a role model, collaborating internally and externally to deliver value and delivering results. We have identified a few of the top CPOs in the world and the projects they are working on to help us navigate through these economic times. CPOs must also work to make sure procurement policy and procedure adhere to internal and external compliance guidelines be they for government requirements for supplier diversity (to avoid discrimination against women-owned and minority-owned businesses), or company initiatives for ethical procurement and corporate social responsibility. 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. The procurement policies and procedures determine which purchases require procurements input, and which ones are handled by end users. It frees the CPO up to do risk-scenario planning, reduce total lifecycle and ownership costs, and encourage innovation in procurement and beyond. Typically, they also are constantly in search of better quality products and better prices. Lowering the cost of supply is achieved through what Shell deems Enterprise Category Management. Name: Tom Linton Fluency in other languages also can be considered an asset, since vendors may be situated in other parts of the world. It is imperative for leaders to assess how they leverage the procurement function and where they are in terms of maturity of the function, as shown in the Figure below.