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.
CPO Rising 2018: The Dawning of the Age of Intelligence
Throughout history, certain revolutions have redefined the trajectory of human progress. The Agricultural, Industrial, and Digital revolutions each represented seismic shifts that altered how societies functioned and how economies grew. Each revolution was powered by innovation and technology, resulting in significant gains in productivity and reshaping the winners and losers in the global landscape. Today, a new era is emerging — one defined not just by technology itself, but by the intelligence that can be derived from the massive amounts of data technology generates.
Procurement, like every other business function, is not immune to this shift. The proliferation of automation tools, cloud-based applications, mobile solutions, and connected devices has created unprecedented amounts of data. This explosion of information is creating both opportunities and challenges for Chief Procurement Officers (CPOs), and it is ushering in what Ardent Partners defines as the “Age of Intelligence.”
The Rise of Procurement’s Big Data
By 2018, the world had already become fully engulfed in digital transformation, with both consumers and enterprises relying on technology in every aspect of daily life. For procurement, this meant the advent of what can be described as “Procurement’s Big Data.” Every transaction, supplier interaction, and sourcing decision was generating valuable information. Properly captured and analyzed, this data had the potential to become procurement’s most powerful catalyst for change.
Ardent Partners predicted that a new type of intelligence would emerge from this data — intelligence that would allow CPOs to view operations through an entirely new lens. Instead of making decisions based solely on historical performance or limited visibility, procurement leaders could begin to anticipate trends, predict outcomes, and design strategies that were proactive rather than reactive. This evolution would force CPOs to develop new strategies, adopt innovative tools, and embrace new approaches to leadership.
Defining the Intelligent CPO
Intelligence has long fascinated scholars, philosophers, and scientists. While the Oxford Dictionary defines it as “the ability to acquire and apply knowledge and skills,” interpretations of intelligence vary across cultures and disciplines. Similarly, procurement intelligence cannot be confined to a single definition. Instead, it encompasses a broad set of traditional and emerging knowledge areas that together enable success.
Traditional forms of procurement intelligence include expertise in category management, supply markets, and process-based knowledge. Emerging forms, however, extend into data science, predictive analytics, and advanced supply management techniques. A truly “intelligent” CPO is one who can harness both domains — blending foundational procurement knowledge with cutting-edge capabilities derived from data and technology.
At the management level, intelligence requires far more than technical knowledge. Successful CPOs must exhibit strong leadership, effective communication, analytical rigor, and relationship-building skills. They must provide guidance and insight that align with business strategies and enterprise objectives. Just as IQ correlates with personal success, procurement intelligence is strongly linked to the success and career trajectory of a CPO.
Organizational Intelligence: Beyond the Individual
Intelligence in procurement does not stop at the CPO. It extends across the entire organization. Smart leaders understand the need to expand their team’s intellectual capacity and invest in building collective intelligence. This means equipping procurement teams with training, technology, and tools that allow them to not only acquire knowledge but also apply it effectively across operations.
Organizational intelligence includes the ability to harness data from across the source-to-pay process, analyze it meaningfully, and translate insights into action. It requires procurement organizations to be agile, innovative, and collaborative — qualities that become critical in a world where supply markets are constantly shifting and business risks are escalating.
Benchmarking Procurement in the Age of Intelligence
The CPO Rising 2018 report, based on the insights of 324 CPOs and procurement executives, provides a detailed benchmark of the profession during this transformative period. It examines the competencies of procurement teams, highlights the strategies of Best-in-Class leaders, and offers recommendations to help organizations improve their performance.
Among the key findings is the reality that many procurement organizations remain at varying stages of maturity when it comes to harnessing intelligence. While some have embraced automation and data-driven strategies, others continue to struggle with outdated systems, limited visibility, and reactive approaches. The report highlights that CPOs who can integrate intelligence into their operations will be better positioned to capture savings, drive innovation, and deliver measurable value.
The Road Ahead for Procurement Leaders
The Age of Intelligence represents both a challenge and an opportunity. For procurement leaders, the challenge lies in rethinking traditional approaches, investing in new capabilities, and cultivating a culture of intelligence. The opportunity, however, is vast: the ability to drive procurement into a new era where insights, foresight, and innovation create sustainable competitive advantage.
In this new age, procurement leaders will be judged not only by the savings they deliver but by the intelligence they cultivate within their organizations. Those who can successfully leverage data, embrace technology, and lead with vision will redefine what it means to be a CPO. Those who cannot risk falling behind in a world that is moving faster, generating more data, and demanding more intelligence than ever before.
