It has been stated many times on Ardent Partners’ The Future of Work Exchange and CPO Rising websites how procurement plays a significant role in the Future of Work paradigm. The collaboration between procurement and human resources in sourcing talent and aligning workforce skills with enterprise objectives cannot be understated.
A talent trend gaining more prominence is that of the fractional talent executive — particularly the fractional chief procurement officer (CPO). Small- to medium-sized enterprises that lack a mature or formal procurement department can now source the services of a fractional CPO who provides similar expertise as a full-time executive but at a lower cost. Whether it’s a part-time or project-based position, the critical CPO role and associated insights are attainable for any sized organization. A fractional CPO can deliver a variety of benefits, including:
- Strategic procurement leadership
- Supplier relationship management
- Procurement process improvement
- Sourcing and risk mitigation strategies
- Supply chain cost optimization
Fractional CPOs are often experienced executives who can step into the role and quickly ascertain business needs. Despite the advantages of a fractional CPO, it doesn’t replace an embedded and full-time chief procurement officer who oversees and manages daily procurement and supply chain decision-making.
So, when can an organization benefit from a fractional CPO? We’ve put together a decision tree to help answer that question. The starting point for Ardent Partners is whether an enterprise has less or more than $50 million in revenue. From there, a series of questions will help guide you on the path to whether a fractional CPO is advised.
The fractional executive serves as a flexible and on-demand approach to talent acquisition. In today’s volatile marketplace with frequent supply chain disruptions, the option to hire the services of a fractional CPO might be worthwhile to weather the storm as a more permanent procurement role develops.
RELATED RESEARCH
CPO Rising Listicle: Four CPO Strategies to Hire and Retain Top Talent
Procurement’s View of Direct Sourcing
“Talent Sustainability” Is The Next Great Workforce Strategy
The Agile Workforce Runs on Talent Marketplaces and Talent Communities
