The role and strategic agenda of the chief procurement officer (CPO) have evolved over the past decade. In this ongoing series, we revisit what defined procurement and the CPO’s agenda based on responses to Ardent’s annual State of Procurement survey. The series started in 2006, the year I first tackled the the “CPO Agenda” study. While the report titled evolved with my move to Ardent Partners (the report, like this website is called “CPO Rising”), it has always been a fantastic way to get a deep view into the market and understand what is driving the industry each year.
Each week, I will outline the key procurement insights for the next year in this series, culminating in 2025.
Scoring Procurement Performance: Why Metrics Matter More Than Ever in 2012
Measuring procurement performance has never been simple. The function delivers complex, often behind-the-scenes value that is difficult to quantify with a single metric or KPI. Yet, it is essential — perhaps now more than ever — for Chief Procurement Officers (CPOs) to track and assess how their teams perform. This act of “keeping score” is not just about accountability; it’s about building a disciplined, focused, and forward-looking procurement organization that aligns with overall business objectives. A clear and well-communicated set of metrics helps prioritize resources, drive performance improvements, and demonstrate how procurement contributes to enterprise-wide success.
The latest procurement performance report underscores this point. It explores how leading CPOs and their organizations are using measurement strategies to understand, improve, and communicate procurement’s value. Whether a team is in the early stages of building its measurement framework or refining an existing one, the message is clear: metrics matter.
Game On: How Procurement Earned Its Place at the Table
Back in 2012, the procurement function was still solidifying its position as a critical player in the broader enterprise strategy. The global financial crisis of 2008–2009 had left few businesses unscathed, exposing major vulnerabilities in cost structures and supply chains. Many CPOs rose to the occasion, navigating uncertainty with speed and flexibility. Their ability to manage supplier risk, reduce costs, and secure critical supply during times of global disruption earned procurement well-deserved credibility with executive leadership.
And when the economy began to recover, procurement’s ability to pivot again — to manage growth, build supply capacity, and support business expansion — was equally impressive. As one CPO from a U.S.-based tier one automotive supplier put it, “We weathered the downturn in strong fashion in 2009 and started to see things come back quickly in 2010 and 2011. What a difference a year or two makes! We were struggling to manage down capacity in 2009, then struggling to find it in 2011…. Now, we’re bracing for Europe in 2013.” This rapid shift in focus from survival to scaling illustrates the agility and strategic potential that modern procurement teams must deliver — and be able to measure.
Procurement’s New Visibility Comes with New Expectations
Procurement’s strong showing during the crisis years paid dividends. Many procurement functions have since gained greater visibility and influence across the organization, with CPOs taking on more expansive roles in areas like risk management, sustainability, supplier collaboration, and even innovation. But with increased influence comes increased responsibility — and with responsibility, more pressure to perform and prove value.
For high-performing procurement departments, delivering cost savings and hitting KPIs has become table stakes. Leadership expects more: more innovation, more speed, more insight, and more direct alignment with enterprise goals. And yet, for many CPOs, the challenge remains — how to demonstrate the full scope of procurement’s value and potential. While some CPOs have emerged as rising stars within their companies, others continue to struggle under outdated perceptions and limited access to executive sponsorship or resources.
This is where measurement strategy becomes essential. Clear, comprehensive, and business-aligned metrics give CPOs the tools to advocate for their teams, showcase achievements, and guide future investment. Performance metrics serve as both a mirror and a map: reflecting where procurement stands today and pointing the way forward.
Measuring What Matters
The most effective procurement measurement strategies are those that go beyond traditional cost savings to include value-adding areas like risk mitigation, supplier innovation, sustainability, and cash flow optimization. These strategies are deeply tied to enterprise goals and tailored to the unique dynamics of each organization. They also create a culture of continuous improvement, where teams are encouraged to evaluate performance honestly and adapt to changing business needs.
Importantly, these metrics are also a communication tool. They help procurement speak the language of the C-suite, illustrating how sourcing strategies, supplier relationships, and procurement initiatives contribute to top-line and bottom-line performance. This visibility empowers CPOs not only to secure more support and investment but also to shape enterprise strategy from the front.
From the Trenches to the Front Office
While the procurement function has made remarkable progress in recent years, many CPOs still find themselves working tirelessly behind the scenes, with untapped opportunities just out of reach. Measurement is one way to close that gap — to elevate procurement from a transactional function to a strategic powerhouse. As this report shows, the CPOs who embrace performance measurement as a discipline are those best positioned to lead procurement into its next phase of growth and enterprise impact.
The game is on, and procurement’s performance is under the spotlight. Now is the time for CPOs to define the score — and make sure they’re playing to win.
