CPO Rising 2023: Procurement’s Top Achievements in Last 25 Years (Part 1) - CPO RISING - THE SITE FOR CHIEF PROCUREMENT OFFICERS & LEADERS IN SUPPLY MANAGEMENT

Today, we feature our ongoing coverage of this year’s 18th-annual CPO-themed report, where my team and I continue our nearly two-decade-long dialogue with chief procurement officers (CPOs) and other procurement leaders.

The report is based on research by Ardent Partners and represents a comprehensive, industry-wide view of what is happening in the world of procurement and captures the experience, performance, perspective, and intentions of 341 CPOs and other procurement executives.

Our post today takes a unique turn down an interesting path as we share the views of more than 150 CPOs about the top achievements in the procurement profession over the past 25 years.

Procurement’s Top Achievements over the Last 25 Years (Part 1)

In 2023, the CPO sits at a crossroads … But the journey to get here has been dramatic and impressive. When business historians reflect on the first quarter-century of the new millennium, the broad-based transformation that occurred within the average enterprise’s procurement department will be on the list of top trends and highlights.

Today, procurement organizations are not only responsible for managing the purchase of goods and services but also have a strategic role in helping businesses achieve their objectives. The adoption of new technologies, tools, and platforms enables procurement professionals to improve their processes, collaborate with suppliers, and drive value for their organizations. This year, 164 CPOs weighed in with their views on the top achievements of the procurement profession over the past 25 years. What follows is a summation of their ideas.

Transformation of procurement with the adoption of new technologies, tools, and platforms: One of the most significant achievements of the procurement profession over the past 25 years is the adoption of new technologies, tools, and platforms. The use of technology allows procurement professionals to streamline their processes, automate tasks, and gain greater visibility into their supply chains. E-procurement platforms, for example, have allowed organizations to centralize their purchasing, reduce costs, and improve efficiency.

Emphasis on supplier relationship management and collaboration to drive value for both businesses and strategic suppliers: Procurement professionals are now working more closely with their suppliers to drive value for both businesses and vendors. This collaboration led to improved product quality, reduced costs, and better supplier performance.

Integration of sustainable purchasing into procurement processes: Sustainability has become a significant focus for procurement professionals over the past 25 years. The integration of sustainable purchasing into procurement processes enables organizations to reduce their environmental impact, improve social responsibility, and enhance their reputation.

Adoption of the Total Cost of Ownership (TCO) concept in procurement organizations: The adoption of the Total Cost of Ownership (TCO) concept in procurement organizations allows procurement professionals to evaluate the true cost of goods and services. This approach takes into account not only the purchase price but also other costs associated with the acquisition, usage, and disposal of the product. By considering these areas, organizations can make more informed purchasing decisions and reduce their overall costs.

Focus on non-disruptive business continuity, stronger customer-supplier relationships, and greater savings in supply and resource replenishment: By ensuring continuity in their supply chain, organizations can reduce the risk of disruptions and maintain their operations. Strong customer-supplier relationships, on the other hand, can lead to improved supplier performance and better product quality.

Next week, we’ll be looking at part two of procurement’s biggest achievements over the last 25 years.