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 2019: Breaking Plateaus Through Value Expansion
In 2019, the procurement profession remains one of the most critical drivers of business performance. Yet, after years of steady progress, many organizations find themselves facing a performance plateau. A decade of Ardent Partners research shows that while procurement has made significant gains, much of the “low-hanging fruit” has already been harvested. Cost savings, process efficiencies, and operational improvements have pushed many teams forward, but repeating the same approaches is no longer producing the same level of results. In fact, stagnation threatens to erode prior gains if Chief Procurement Officers (CPOs) do not chart a new course.
The reality is clear: To stay relevant and impactful, procurement must push past its comfort zone. The definition of insanity for today’s procurement leader is to “stay the course” and expect different results. Instead, CPOs must embrace innovation, adopt new strategies, and discover untapped sources of value. This deliberate push toward reinvention marks the essence of #ValueExpansion.
The Urgency of Breaking Plateaus
Reaching a plateau is not the end of progress — but it is a warning. Procurement organizations must avoid settling into a cycle of diminishing returns, where established tactics no longer generate the same outcomes. Breaking through requires fresh thinking and bold action. New catalysts must be introduced to accelerate agility, expand mastery, and ignite a renewed sense of purpose across procurement teams.
In practice, this means expanding procurement’s definition of value beyond savings. Procurement must help businesses harness supply chain innovation, strengthen supplier partnerships, and mitigate risk in ways that directly impact enterprise growth and resilience. By reframing its mission, procurement can avoid the trap of complacency and instead chart a new trajectory of relevance and performance.
Procurement as a Bellwether of Business Health
In many respects, the role of procurement reflects the health of the broader economy. During times of growth, procurement is asked to drive agility, innovation, and return on investment. When economic conditions tighten, CPOs and their teams are tasked with improving working capital, reducing costs, and shoring up underperforming operations. This dual role makes procurement uniquely positioned at the intersection of business decisions, operations, and results.
An experienced CPO provides insight that few other executives can match. By overseeing global supplier networks, negotiating contracts, and managing spend, procurement leaders gain a perspective that spans internal and external dynamics. In 2019, this visibility makes procurement not only a trusted partner but also a bellwether of future business opportunities and risks.
Land and Expand: Procurement’s Strategic Growth
Procurement’s journey into the executive suite mirrors the historical story of expansion. Much like the rise of railway travel fueled the U.S. westward expansion in the 1800s, procurement has paved the way for modern enterprises to grow, adapt, and thrive. The profession’s transformation over the past generation has been nothing short of remarkable.
Once considered a transactional, back-office function, procurement now plays a strategic, enterprise-wide role. The evidence speaks for itself:
- CPOs are now standard: In 2019, 91% of large enterprises have a CPO or equivalent role, compared to fewer than half just 14 years earlier.
- Centralization is the norm: Procurement has shifted from loosely organized buying groups to centralized, strategic business functions.
- Strategic planning is widespread: Nearly every procurement organization (97%) now has annual or multi-year plans in place, compared to just 40% in 2006.
- Visibility is at an all-time high: Enhanced access to enterprise data, analytics, and supplier insights gives procurement unprecedented influence over risk, performance, and strategy.
These milestones represent how procurement has “landed” its place at the executive table while simultaneously expanding its influence across business operations.
Catalysts for Value Expansion
To break through performance plateaus, CPOs must focus on new catalysts of growth. These include:
- Innovation in technology: Leveraging advanced analytics, automation, and artificial intelligence to uncover hidden opportunities.
- Supplier collaboration: Building strategic partnerships that move beyond cost savings into joint innovation and market advantage.
- Talent development: Equipping procurement professionals with the skills to analyze data, manage risk, and influence stakeholders at the highest levels.
- Risk management: Expanding procurement’s role in mitigating geopolitical, financial, and operational risks that impact global supply chains.
Each of these catalysts requires CPOs to push boundaries and rethink traditional procurement models. Together, they fuel the broader mission of value expansion — ensuring procurement continues to deliver impact that resonates across the enterprise.
A Call to Action for CPOs
The message from CPO Rising 2019: #ValueExpansion is clear: procurement cannot afford to stand still. With momentum on its side, the profession is at a pivotal moment. Breaking free from a plateau requires courage, vision, and the willingness to let go of the familiar.
Quoting William Faulkner, “You cannot swim for new horizons until you have courage to lose sight of the shore.” For today’s CPO, that courage means embracing change, championing new sources of value, and leading procurement into a future where it is not just a support function but a strategic driver of enterprise success.
