FIVE MINUTES WITH ...
Q . WHAT ' S THE TAKE-HOME MESSAGE OF YOUR BOOK : TRADE WARS , PANDEMICS , AND CHAOS ?
» That we must shed legacy processes , technology , and thinking . Business-asusual has been good for the past 25 years but today ’ s world is vastly more complicated , and full of macro disruptions that turn conventional wisdom on its head , such as the pandemic .
The way businesses operate , and specifically global supply chains , compels us to come up with imaginative new ways of operating that make use of the sophisticated digital technologies available to us .
Q . WHAT ' S THE BIGGEST MISTAKE PROCUREMENT LEADERS MAKE ?
» Not using the power of their platform . Chief procurement officers have the unique ability to bring about change because they control - or at least influence - where an enterprise spends its money . This is a significant role because they can bring ESG progress through the suppliers a company engages .
The other mistake CPOs make is to needlessly hold on to the legacy idea of cost control , instead of value creation . Far too often the focus is on how to control and limit where money is spent , and using legacy technology and processes .
Q . WHY IS PROCUREMENT MORE IMPORTANT THAN PEOPLE THINK ?
» At its core , procurement is about managing third parties . Today ’ s globalised supply chains predominantly consist of third parties . It is not uncommon for large enterprises to have 50k-100k third parties . That means building a secure , efficient , green , socially conscious , and faulttolerant supply chain will require being excellent at third-party management . And who better than procurement to deliver on this promise ?.
Q . WHAT ' S THE BEST PIECE OF ADVICE YOU ' VE EVER BEEN GIVEN ?
» Take care of your people . Your job as a leader is to enable them to do their job . This includes giving them the tools and support they need , and protecting them as necessary .
Q . WHERE DO YOU SEE PROCUREMENT BEING IN 5 YEARS ' TIME ?
» Without a doubt procurement will continue its trajectory to the big leadership table . The profession will be responsible for facilitating value creation with third parties . It will go from serving the business to being the business . Enterprise ESG goals will be owned by procurement , with CPOs adopting the mantle of chief sustainability officers .
And , procurement will provide the first line of defence against enterprise risk .
To make all of this happen , procurement will continue to be at the forefront of digital adoption and innovation .
24 March 2023