Procurement is about strategic sourcing
Procurement is more about strategic sourcing than placing purchase orders and making sure that requisitions are smoothly processed, according to CIPS group CEO Malcolm Harrison.
The Supply Management article, "Procurement is about strategic sourcing," quoted Russell Reynolds Associates Consultant Jorge Gouveia de Oliveira on how digitalization is shaping the role of CPOs in the future. The article is excerpted below.
Harrison, speaking at a CIPS roundtable event in London, said in the past procurement had been focused on delivering value and ensuring consistency and continuity of supply.
"The context has changed. When you think about what many senior leaders, businesses, and organisations are looking for from their procurement and supply function, it's not just about delivering value or ensuring continuity of supply. It is about managing the risk agenda," he said.
The event, called 'Today's Digital Landscape and the Impact on Managing Talent', was organised jointly with consultancy Russell Reynolds Associates.
Jorge Gouveia de Oliveira, managing director at Russell Reynolds Associates, said CPOs of the future will need to ensure they are offering strategic leadership as digitalisation becomes a reality.
Traits that will be required by organisations such as "positive disruption" and the ability to lead digital transformation aren't widely seen in the CPO community yet, he added.
"You have to have an understanding of digital advancements because digital is affecting everyone, from chief marketing officers to CPOs.
"In the future, a lot of the supply chain work will be automated. What's left is the strategic work and the ability to interact internally and externally."
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