Chief Procurement Officer

Knowledge Center



Summary, forum, best practices, expert tips and information sources.

 

Summary
Chief Procurement Officer

What is a Chief Procurement Officer? Meaning.

A Chief Procurement Officer (CPO) is the most senior company executive responsible for all decisions related to the acquisition of raw materials, goods and services.


The Chief Procurement Officer is in charge of managing all buying decisions for the firm. The CPO manages extensive research projects about an industry prior to making key procurement decisions. The CPO is responsible for managing relationships with key suppliers and for the entire Purchasing Portfolio of the firm, ranging from strategic items and Co-Creation to bottleneck items and Vendor Managed Inventory to office supplies. Typically he is managing a team or department of purchasing managers.


Over time, due to increasing competition and Globalization, internationalization of business processes and fragmentation of supply chain activities, procurement decisions and strategies became more important in large firms. From an increased importance of procurement derived a need for creating a position that, similarly to other CXOs, could contribute to a company's value creation by optimizing a major corporate function.


The following challenging Demands on Chief Procurement Officers were identified in a 2008 Global CPO Survey by Cap Gemini:

  1. Organization. In order to face globalization challenges, the procurement function needs a matching organizational model. Employees within this function have to adapt to a geographical dispersion of their company supply chain. A commonly suggested model is a Centralization and establishing a centralized procurement department that deals with suppliers globally.
  2. Talent Management. An increased complexity and the strategic relevance of supply chain activities imposes companies to dedicate more efforts on attracting, retaining and developing procurement talents.
  3. Understanding real spending needs. Crucial for a CPO is understanding the real strategic needs of an organization in terms of spending management. The capacity of a company savings is directly related to its profitability to the extent that it doesn’t hurt a company's image or quality level. The improvement of procurement practices doesn’t always involve purchases of lower quality but can also mean an improvement or an integration across the supply chain.

Special Interest Group

Join

Chief Procurement Officer Special Interest Group.



Special Interest Group (71 members)

Forum

New Topic

Forum about the Chief Procurement Officer.


🔥 NEW To Whom Should a Purchasing Manager Report?
What is the best reporting structure for purchasing / procurement managers? Should they report to finance or operations? (...)
7
 
4 comments
Best Practices

Sign up

The top-rated topics about the Chief Procurement Officer. Here you will find the most valuable ideas and practical suggestions.


Expert Tips

Sign up

Advanced insights about the Chief Procurement Officer. Here you will find professional advices by experts.


Information Sources

Sign up

Various sources of information regarding the Chief Procurement Officer. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.



Research Links

Sign up

Automatically jump to further useful sources regarding the Chief Procurement Officer.


News Videos Presentations Books More

News

Videos

Presentations

Books

More


Compare with: Chief Executive Officer  |  Chief Financial Officer  |  Chief Procurement Officer  |  Chief Operating Officer  |  Chief Technology Officer  |  Chief Information Officer  |  Chairman of the Board  |  Corporate Governance

Special Interest Group

Are you interested in the Chief Procurement Officer? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:

 
 

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Supply Chain & Quality


More on Management  |  Return to Management Dictionary  | 

 

This ends our Chief Procurement Officer summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 26-2-2021. All names ™ of their owners.