A look at CPO Rising 2017: Tools of the Trade
Chapters One, Two and Three of CPO Rising 2017: Tools of the Trade covered a lot of ground, from the current state of procurement to the CPO mindset and what best-in-class organizations are doing differently. Chapter Four – Strategies for Success, the final chapter of the report, gives you hard and fast advice and strategies for taking your procurement organization to the next level, and beyond. Take notes.
The following is an excerpt from the report, but it’s also something of a mantra for procurement to live by:
Procurement agility is dependent upon a technology infrastructure that enables scale and flexibility. User adoption is another fundamental determinant in the overall success of a technology initiative.”
Admittedly, we gravitate towards statements like that because they lay out the points that are most important to an organization like ours, and what we always strive to attain. But, as the first CPO Rising report to really take a technology focus, Ardent Partners must have seen both ends of the spectrum in the discussions they had with the 313 global CPOs and procurement leaders they spoke with. As Ardent mentioned in the report, fully automated source-to-settle still remains the exception and not the rule, but it’s where things are, or should be, headed.
The New Procurement: Process Under Management
Agility has become the adopted byword for procurement in recent years since the function has started its transformation into a more strategic role. As we mentioned in the last chapter blog, spend under management is still a goal, but as it reaches a plateau, the traditional “savings mantra” is giving way to a focus on operational efficiency.
As the table below — The CPO’s Top Goals for Investing in Technology — shows, process streamlining has firmly established itself as the goal most sought after in the next few years. Which makes sense; as previous chapters explored, there are many ways to reach that best-in-class 87% spend under management. Achieving what we at Determine call “Process Under Management” is now top of mind.
So, what do we mean by process?
- A single source of metadata that is controlled and accessible across all solutions – verified data that is shared from sourcing events to supplier onboarding to contract engagement on to purchasing to order, and invoice to and pay.
- Smart workflows that are intelligently designed to minimize clicking and automated to move user tasks through the system to the right people at the right time
- Business process management that seamlessly integrates all those processes so that procurement, legal and finance all provide complete situational awareness, all while making IT confident in the ability to easily support the technology.
- And to top it off, material design principles that make the user experience complete – and hence, adoption – a reality.
Making procurement thrive.
CPO Rising 2017: Tools of the Trade completes this final chapter with a must-read list of recommendations for accelerating your procurement, strategic sourcing and supplier management capabilities. From talent development to functional alignment with other departments – and stakeholders, objectives and more – to personal improvement strategies, this report touches on all the “tools” CPOs and procurement leaders can tap into to fulfill the operational results they are seeking in the years to come.
We’ll leave you with this summary from the report:
The lack of automation across the source-to-settle process constrains procurement’s ability to maintain credibility and optimize operations and performance over the long-term. CPOs who expect to rise in the industry and drive procurement agility can no longer eschew technology”.
If you liked this chapter-by-chapter series covering CPO Rising 2017: Tools of the Trade, don’t miss our live webinar on May 24 with Andrew Bartolini, Managing Partner and Chief Research Officer of Ardent Partners, and Greg Tennyson, CPO of VSP Global.
We’ll be going in-depth to reveal the insights behind the stats, facts and recommendations, so be sure to register now. If you can’t attend live, register anyway and we’ll send you a link to the on-demand video. You can also follow our live tweets –@Determine.