The CPO Finally Has a Seat at the Table, Shows ProcureCon Survey

From a transactional, back-office function to a strategic business unit, procurement has become increasingly crucial for contemporary businesses.

How has this influenced the function’s leadership?

The role of the procurement leader has also significantly evolved. 

Chief procurement officers (CPO) now have an influential seat at the table and are participating in high-level decision-making, business strategy, technology implementation or transformation and sustainability initiatives. They have emerged as strategic visionaries driving innovation and change.

These are the key findings of the 2024 ProcureCon CPO Report, sponsored by GEP. 

In this report, 46% of survey participants acknowledged greater involvement of the CPO in top-tier decision-making in the past two years.

Added responsibilities on the function also mean that procurement needs to work not just more efficiently but also in a more strategic and intelligent manner. It needs to leverage advanced technology and tools to automate complex tasks and deliver more value to the business. 

Intelligent Procurement is Key to Business Growth  

Powered by data-driven insights, intelligent procurement is set to play a key role in business growth and profitability. It can go beyond just savings and maximize value throughout the source-to-pay process, impacting the bottom line in this process.

Technology deployment is critical to building intelligent procurement, with 35% respondents in the ProcureCon report citing technology implementation or transformation a top priority for the CPO in the next 12 months.

The revamped procurement organization can also promote integrated growth by increasing cross-functional collaboration and breaking down functional silos.

Additionally, by using data-driven insights, procurement can shortlist suppliers who understand and prioritize sustainable operations. In this way, it can help businesses build a supply chain that is both efficient and sustainable. 

The combined focus on profitability and corporate responsibility is sure to be noticed by today’s consumers who are increasingly conscious and expect a lot more from their favorite brands. Intelligent procurement can thus provide the much-needed advantage in a highly competitive market.

Also Read: What Intelligent Procurement Can Do for Your Business

The CPO is Driving Technology Adoption 

Artificial intelligence has emerged as a game-changing technology in several domains including procurement. Procurement leaders are aware of the transformative potential of this technology. As many as 44% of respondents say their CPO has led initiatives to acquire, implement or adopt AI in the past 12 months. 

Citing specific examples of how procurement leadership is leading technology adoption, a respondent outlined the CPO’s role in selecting an AI solution that automated complex functions and enhanced control on the availability of supplies. 

Likewise, another respondent highlighted the impact of technology adoption on the organization’s supplier network.

Another survey respondent suggests that their new AI tool has reduced manual work and made competitive pricing possible.

The CPO is Leading the Sustainability Drive Too  

In addition to technology adoption, CPOs are leading sustainability initiatives in the organization. While 56% of study respondents suggest that procurement leadership currently plays a moderate role in sustainability decision-making, 30% respondents say their procurement leaders play a large role in sustainability decisions. 

In general, there is greater awareness about the role procurement can play in driving sustainability. 

64% respondents say their procurement KPIs are somewhat closely linked to sustainability goals, while 27% say they are very closely linked.

Finally, as they come into the spotlight in many organizations and take on additional responsibilities, CPOs have a brilliant opportunity to advance in their career and move up the corporate ladder. At the same time, they will continue to play a proactive role in domain-specific ground-level operations, including negotiations with suppliers.      

Download the full 2024 ProcureCon CPO Report now.