This year’s global chief procurement officer survey provides insight into how the procurement operating model is shifting toward more flexible procurement strategies. Explore how chief procurement officers (CPOs) who aim to be digitally enabled “complexity masters” can deliver value in lockstep with the business, no matter the challenges ahead.
From trade wars, climate change, and digital disruption to talent shortages and regulations, procurement organizations today are facing increasing complexity on all fronts. This complexity has only amplified challenges for chief procurement officers. In addition to delivering sourcing-centric cost savings, they’re also expected to enhance their influence with C-level peers and extend their business impact into strategic areas such as procurement risk management, corporate development, and innovation. However, more often than not, chief procurement officers are asked to do all of this with fewer resources and thinner budgets.
While many chief procurement officers may feel like they could drown in a sea of complexity, they can still find ways to stay afloat—or even identify new opportunities to move their organizations forward. This year’s Global Chief Procurement Officer Survey explores how CPOs can change their lens on improving core value chains and organizational resources. The report also provides insights on tapping transformational digital capabilities to revolutionize the procurement industry. And finally, it details how CPOs can become “complexity masters” who are able to turn the risks apparent in complex business scenarios into value creation opportunities.
We examine procurement complexity in four areas:
At the end of each chapter, we offer three key action items for CPOs as they consider how to tackle complexity within their own organizations, including a recommendation for “going digital” as part of a larger digital supply network transformation effort.
The takeaway: Respondents agreed that they could decrease damage to their organizations in a potential economic downturn by utilizing the procurement strategies they employ in their day-to-day jobs.
The takeaway: There’s a significant need for procurement to maintain functional alignment, both as a service provider for stakeholders and as a business partner in strategic planning.
The takeaway: CPOs must tackle the industry-wide shortage of analytical and technical skills needed for success but also embrace new ways of thinking about talent.
The takeaway: CPOs must rely on a core set of technologies that automate tactical, low-value work and enhance the function’s ability to focus on more strategic efforts.
Since 2011, the Deloitte global chief procurement officer survey has been providing exclusive insights into the key challenges and opportunities shaping the course of procurement, serving as a global benchmark of sentiment about the function. Over the years, these insights have helped members of the C-suite, procurement leaders, business partners, suppliers, and supporting technology providers further their ambition, strategies, and performance.
The 2019 survey was conducted in association with procurement market intelligence firm Spend Matters and Odgers Berndston. In this year’s survey, 481 procurement leaders from 38 countries took part, representing organizations with a combined annual turnover of US $5 trillion.