CEOs have significantly increased their demands on the Procurement team. They’re looking for the leader of their team to bring revenue growth, innovation, speed and increased velocity, as well as cost and value improvement. It’s apparent now that the supply chain of the future will be a linkage of integrated, connected suppliers with alignment on business goals and rewarded on value contribution.
With a distributed group of suppliers in a network, supplier selection was easy, however, as we look to the future, supplier selection will be a part of architecting a supply chain. The move to interlinked supply chains will require a great deal of effort and change. Meeting customer demands for increased value, flexibility, speed to market, innovation, development of bitcoin and block chain technology, supply and reputation risk protection, innovation and revenue become the shared responsibility of all the downstream suppliers. The need for transparency and relationship management has never been more important.
Based on the automation of the supply chain, demand for innovation and value and the continuing impact of digital disruption, the top five concerns of the CPO are:
- The speed at which automation, industry consolidation and customer demand for value is changing the traditional supply chain
- The talent needed to drive strategy and process from distributed supply chain thinking to interlinked, real-time supply chains
- Meeting the current need for cost improvement, while transforming the supply chain
- The ability to keep up with technology
- Getting a seat at the table to influence transformation and change
While the short-term needs for cost reduction take priority, those Chief Procurement Officers without a strategy will not survive. The future for procurement and supply chain management is bright if you have the vision and capability to meet the challenges of change.
Will you be a keeper or killer of your business as a going concern?