It took an unprecedented global event for many outside of the Procurement function to finally recognize the value that Procurement can offer organizations. And now it’s time for Procurement leaders to cement that position as a new baseline and take the opportunity to further influence their organization’s strategy.
Gartner published a report entitled How CPOs Can Build and Nurture a Base of Supporters to Further Their Agenda that highlights that "continued labor and supply shortages have elevated the role of Chief Procurement Officer, and now is the moment for procurement to take center stage."
Today, senior procurement leaders face inflation running at around 7% overall – and it will be much higher in certain spend areas. But, where price increases are inevitable, there are other approaches that can help organizations preserve value – but it requires influence. Procurement can work with internal stakeholders and their suppliers to implement demand management measures; improve their ESG impact; establish standardized processes that enable and enforce good procurement practices, reduce supply-chain risk and create forward visibility.
Gartner's report states that a procurement leader’s success is directly related to the ability to build and nurture a strong base of influence. According to the 2021 Gartner People and Purpose-Centric Supply Chain Survey, "only 7% of procurement leaders stated that they usually work on their own to complete tasks. Conversely, 88% of respondents cited the need to collaborate with cross-functional teams to solve problems, at least 50% of the time."
The report highlights three key recommendations for leading and executing procurement strategy effectively. “Chief Procurement Officers should:
- Shortlist the cross-functional stakeholders most likely to gain from or contribute to procurement’s mission and initiatives. Map key stakeholders to specific procurement agenda items.
- Assess stakeholders according to their influence and stance. Distinguish those stakeholders who have recently assumed a new position within the stakeholder map, or those on the verge.
- Develop an engagement plan and actively manage the stakeholder relationship map to further build the base of influential supporters of the procurement value proposition.”
CPOs should use this research to cultivate their network of supporters to advance their agenda and solidify procurement’s value in the organization.
View the report here