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 2021: Procurement’s Defining Moment in Crisis
The COVID-19 pandemic was unlike any crisis modern business leaders had ever experienced. In 2020, the state of procurement became synonymous with the state of business itself. Global lockdowns exposed the fragility of supply chains and triggered ripple effects across operations, IT systems, sales, and workforce management. For Chief Procurement Officers (CPOs), this period represented not just disruption, but a defining moment that highlighted procurement’s critical role in business continuity and resilience.
While 19% of businesses cited supply chain disruption as their hardest-hit area, the vast majority (81%) felt greater pain elsewhere, such as cash positions, sales declines, or operational disarray. Yet, regardless of where the impact landed, procurement became central to response strategies, often serving as a stabilizing force in an unstable world.
A Continuation of Momentum, Not a Pause
The pandemic could have derailed procurement’s steady rise as a strategic business partner. Instead, it accelerated its importance. Over the past decade, CPOs have evolved from cost enforcers into value creators with influence in the executive suite. The crisis only amplified this momentum.
For many enterprises, procurement became the go-to function for solutions when traditional levers failed. As revenues fell, cost containment strategies gained new urgency. CPOs deployed tactics, such as extending supplier payment terms, which provided much-needed liquidity when banks and markets tightened. For some companies, these actions meant the difference between survival and insolvency.
This adaptability was no accident. It was built on lessons learned during the Great Recession of 2008–2010, when procurement proved its worth by defending margins and keeping businesses afloat. The pandemic tested those same muscles, and procurement again demonstrated its ability to perform under pressure.
Benchmarking Procurement’s Impact During COVID-19
The CPO Rising 2021 report, based on insights from 351 procurement executives, revealed the extent of procurement’s influence during the crisis. At 52% of enterprises, procurement’s impact was reported as either “game-changing” or “significant.” Another 30% described it as “solid,” with fewer than one in five businesses finding it negligible.
This data underscores a crucial point: Procurement is no longer an auxiliary function, but a core driver of business strategy. Whether managing supply chain volatility, negotiating with suppliers, or preserving liquidity, procurement teams became essential in stabilizing enterprises during one of the most unpredictable business climates in history.
Cash as a Strategic Lever
Perhaps the clearest example of procurement’s expanded influence came through cash management. With traditional revenue streams disrupted, procurement’s ability to unlock working capital became invaluable. Extending supplier payment terms emerged as one of the most effective tactics to generate liquidity.
One procurement leader at a mid-sized consumer goods company explained the stakes: “In response to our customers’ nearly uniform payment term extensions, my procurement leadership team has spent the past two months focused on how to best extend our supplier payment terms. This is our CEO’s top priority.”
The comment reflects a larger trend: procurement was elevated to the top tier of business priorities. No longer a back-office function, it became a critical contributor to executive-level decision-making during the crisis.
Reassessing Supplier Relationships
Beyond liquidity strategies, procurement departments used the disruption as an opportunity to reevaluate supplier relationships. Well-run teams were positioned to identify short-term savings while also exploring long-term strategies for resilience and agility.
Supplier management became more than a transactional exercise. It was about ensuring continuity, mitigating risks, and in many cases, collaborating with partners to navigate shared challenges. For CPOs, this period reinforced the value of trust and transparency across the supply chain.
Lessons for the Future
The pandemic showed that disruption is not a temporary anomaly but a recurring business reality. For procurement leaders, the lessons are clear:
- Agility is non-negotiable. Teams must be ready to adapt rapidly to unexpected global events.
- Cash is king. Procurement’s ability to preserve liquidity will remain a top enterprise priority.
- Supplier relationships are strategic assets. Collaboration and resilience-building matter as much as cost savings.
- Procurement’s seat at the table is permanent. Executives now recognize the function’s role in navigating uncertainty.
The COVID-19 crisis was devastating, but it also proved the strategic importance of procurement in real time. CPOs did not merely respond to disruption — they led their organizations through it. Procurement’s impact during the pandemic was significant at a majority of enterprises, providing cost savings, liquidity, and resilience at a time when businesses needed them most. As global supply chains continue to evolve, procurement leaders are better positioned than ever to guide their enterprises into the future.
