Procurement Executive Round Table (PERT) Symposium July 11, 2017

The Procurement Executive Round Table (PERT) met for its 5th meeting on Tuesday 7/11/17 for a day long workshop on “Redefining the Role of the CPO” and based on the energy and level of discussion, it was clearly a “hot” topic. PERT is a relaunch of the highly successful Next Practices Xchange – “NPX”. The Shedd Aquarium was the perfect backdrop for our discussion groups which came up with some great ideas on how to move the CPO agenda forward. One CPO noted – “one of the best values for the investment I made – some great solutions to try back at the ranch.” Results of the Next Practices benchmarking survey prior to the meeting helped set the stage for the discussion. Dalip Raheja, President and CEO and Anne Kohler, EVP and COO of The Mpower Group facilitated the session leading to the following conclusions:

  • The CPO should be developing the Procurement organization as a “talent factory” for the rest of the company
  • Procurement should be part of the Sales team
  • Executives are looking for CPOs to adopt Sales (Revenue) goals to drive:
  • Better alignment with Sales
  • Enhanced credibility with stakeholders
  • Enhanced credibility with customers
  • Integrated planning
  • Changed mindset in Procurement (Cost to Value)
  • Suppliers can and should work with Procurement to increase revenue – we are not taking advantage of this
  • The Chief Marketing Officer is looking for Procurement to move beyond it’s “commodity” approach to develop “outcome based contracts” with its suppliers – this was major Ah Ha for many
  • Procurement should work with marketing suppliers to extract their intellectual property – market intelligence
  • Procurement should take the lead in identifying required competencies within the organization and determining how (perform vs. buy) to fill the gaps – Strategic Workforce Planning
  • Procurement drives strategic planning (workforce planning) and supplier management in addition to Sourcing for professional services
  • Managing supplier risk driven by Procurement can be a competitive differentiator and should be “marketed” as such to customers
  • Procurement should drive corporate risk management to adopt a portfolio approach to risk management

The benchmarking survey revealed a large gap between where most organizations are and…

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