With the complexities of the modern business environment, it can seem like a juggling act to balance the demands of the expanded role of a CPO. With an increasingly diversified view of procurement geared towards sustainable value becoming the norm, executives are forced to look outside of solely comparisons of price. In light of these new goals comes the need for innovative ideas and solutions. This year, The 2014 CPO Exchange event in Frisco, Texas serves to help CPOs move beyond traditional cost metrics of procurement into new tactics toward value and achievement of a competitive edge. To address the changing climate, CPOs are seeking to broaden their horizons and welcome the changes ahead. Source One plans to attend this event to drive the work quality of these executives’ companies by offering solutions fitting with the new model of procurement demands.
The Chief Procurement Officer Exchange presents the opportunity for delegates to network and build partnerships with peer level professionals, while learning new ideas and strategies that they can replicate within their own organizations, to build a best practices culture. Considering the reality that it wasn’t until the 1980’s that procurement started to be seen as a strategic function, it is worth the opportunity to attend functions such as this to understand the importance of the role and innovate practices.
To aid in aiming for an accurate blueprint for success, there are certain traits that CPOs should embody that address both internal and external pressures at hand:
1. Embedded Leadership tendencies to allow advancement
To deliver a greater impact, CPOs should work to use their skill set to advance an organization beyond the traditional supplier-facing procurement roles. In order to recognize the most change, CPOs should strive to address tactical needs, but also the behavioral and change management requirements to keep the team motivated.
2. A Well-Rounded Perspective to Allow Value Outside of Price
Since the perspective of a successful CPO has shifted, a successful CPO must pursue a new viewpoint that involves a wide scope of goals in addition to solely observing cost leverage. Due to the large majority of total cost of a product accumulated prior to the procurement process, it is essential for the CPO to actively work with teams to drive value from decisions made at an early point in the life cycle.
3. Industry Know-How and a Clear Understanding of how to Manage Risk
With emerging regulation and potential for unrealized risk, CPOs must acknowledge a wide variety of risks to understand the impact of each and develop appropriate mitigating strategies for each.
Whether you are part of a small-scale or global organization, it is imperative to adopt strategy transformation in a developing market to remain competitive. Whatever outlet pursued, there are endless opportunities to welcome additional idea forums such as the 2014 CPO Exchange. If any of these pain points sound relevant to your business, Source One looks forward to providing insights for organizations that are either in need of a drastic change, or just a few refinements.