Procurement, in the new millennium, has been on a remarkable winning streak. But, truth be told, a good number of Chief Procurement Officers (CPOs) gained their acclaim by simply entering the industry. More recently, the stakes have started to rise, while a new set of rules and parameters are redefining the game. In 2019, having access to accurate, real-time metrics is a game-changer – perhaps now more than ever. Establishing and measuring relevant metrics allows an organization to understand its “current state” while laying the groundwork for its desired “future state.” After all, if a group is unclear on where it stands today, it cannot begin to make lasting enhancements that improve tomorrow’s performance. Thus, tracking metrics enables continuous improvement programs to take hold and provides organizations with a better opportunity to set proper goals and objectives and “course correct” when achieving them is in doubt.
For most business functions, the first step to tracking valuable performance metrics is access to quality data, typically delivered via process automation solutions. With such tools in place, a procurement department is significantly better able to capture performance metrics than in a manually-driven environment. While automation can be a critical step towards improving performance, it is the level of access and visibility into KPIs and the analytical capabilities to understand and act upon that data that enables intelligence and allows for continuous improvement. In other words: to improve performance, CPOs must have timely access to quality data, and measure and track that data in order to make optimal decisions to drive procurement performance.
Above all else, to improve performance in the decade ahead, the modern CPO will need an open and intellectually-curious mindset that has a capacity to thoughtfully consider new ideas and actively push them forward. Chief Procurement Officers must follow the courage of their convictions as they start to reframe the procurement function and how it engages and operates. Where courage does not exist, it must be manufactured. Remember that in business, the meek inherit nothing. Tomorrow’s best CPOs must develop new ways to break through inertia and drive better outcomes. They must inspire change, even as they execute it. Above all, they must unflinchingly see procurement as a competitive advantage and then work relentlessly to realize their vision.
This is just a summary of what is inside Ardent Partners’ Procurement Metrics that Matter in 2019 eBook. Register below to download it, compliments of our sponsors, GEP, Ivalua, and Tradeshift. And hurry! This is your last chance to download it while it is generally available.
