As 2022 begins, the high consumer demand requires procurement specialists to fully oversee suppliers, contracts, and progress requests. In addition, managing your companies spending provides a strategic decision-making opportunity across marketing, IT, HR, and more. This year, procurement specialists should get a seat at the table with these critical departments.
According to Deloitte’s recent chief procurement officer (CPO) survey, the procurement offices are going through a widespread change. Supplier chain and labor disruptions have many procurement departments re-evaluating their priorities and focusing on elevating the importance of their departments’ heads working directly with marketing, IT, and HR. As a result, 70% of CPOs in this survey are likely to be involved in these strategic decision-making counterparts. A change from 2021.
As consumers have changed their spending ways, withdrawing from indoors has strained organizations to develop creative solutions to continue providing products and services while monitoring consumer behavior. In addition, procurement leaders should be a part of the upfront marketing discussions of product launches or promotions, team demands, and supplier collaboration, making an organization a high-performing sourcing organization. Organizations grappling with value chains and widespread store closures with local legislation amid the pandemic have little choice to change their approach.
The role of procurement is evolving. As we have stated in the past, specialists need to act as strategic advisors to their organization. Not traditional, order placement. Bottom-up and top-down leadership collaboration and working with key stakeholders can help companies navigate these choppy waters of supply chain management.
A great example of this approach is Ralph Lauren’s recent procurement transformation. Watch Ralph Lauren Global Sourcing Leader, Juan Ahmad, discuss how to accelerate your procurement journey, hosted by Workday here.