Celebrating Procurement Professionals
Understanding Procurement Roles
Every Chief Procurement Officer and procurement professional will face challenges specific to their company and industry, but today we will look at the basics responsibilities of a CPO.
Ultimately, the CPO is responsible for managing the company’s spend, leading the procurement department as a team and interacting with the rest of the company to achieve better collaboration.
Managing the Company’s Purchasing & Strategy
Company purchasing requires strategy and guidance to keep spending focused on achieving the company’s vision. The CPO is responsible for negotiating contracts with suppliers, sourcing good quality at a good price, and tracking the correlating finances.
This process can look very different for different companies, but generally these tasks grow with the company and a CPO will likely need to develop a procurement process, technology, and a procurement team. For example, tracking financial documents for every purchase can become an insurmountable task without the right team and technology.
Leading a Team
Whether leading a local or multinational team, leadership skills are key to the success of a CPO.
By building and training a team with the right skills, the CPO can rely on his team’s success as procurement needs grow too big for one person. Communication and negotiation skills are key.
Not only do CPOs negotiate with suppliers, but also they interact with their team and should interface with the rest of the company so that everyone is purchasing in accordance with the procurement strategy.
A key aspect of the CPO role is their responsibility to interact with other departments. They likely are responsible for making sure each department has the supplies they need. Companies find many different ways of fueling this collaboration, but the CPO is ultimately responsible for the success of company-wide procurement.
Chief Procurement Professionals have access to many resources for better procurement. Staying in-the-know on procurement strategies, changes in the economy and procurement technology, CPOs can lead their organization to procurement success.