The report said there was a 'picture of a very middle-of-the-road set of skills residing within the typical procurement department'. He founded and developed IBM's China Procurement Center, Singapore Trading Center, Singapore Technical Center and Ireland Procurement Center. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[728,90],'cio_wiki_org-medrectangle-3','ezslot_2',138,'0','0'])};if(typeof __ez_fad_position != 'undefined'){__ez_fad_position('div-gpt-ad-cio_wiki_org-medrectangle-3-0')};Ultimately, the procurement function is what develops and executes supply chain management processes, whether the resources used to perform the processes report to procurement or not. Kelly Bengston is senior vice president, chief procurement officer. Exceptional interpersonal and negotiation skills generally are required of successful chief procurement officers. The size and scope of the organization also affect who the CPO reports to. He has streamlined processes in the supply chain as an alternative to asking suppliers to cut their margins. They may be in charge of the contracting services and may manage the purchase of supplies, equipment, and materials. There is an idea in the procurement industry that businesses are no longer trying to ensure future gains, but instead they are only trying to prevent further losses to stay afloat in a poor economy. Certified Public Accountant Her or his staff usually work with the accounting department to ensure that vendors are paid on schedule. He built his career at IBM, however, where he spent 20 years, eventually rising to the role of Director of Global Hardware Procurement. In many ways, the most important working relationship in an organization is that of the CPO and CFO. In these organizations, its common to have a CPO with a different job title, such as procurement director, procurement contract officer, or deputy chief procurement officer. While in that role, he was responsible for a group of 40 procurement professionals who managed more than $1.1 billion in spending. Elshof College Career History: After obtaining a degree in physics from Delft University, Stijn immediately joined the Shell workforce and he fits the mold of the typical work-your-way-up-from-the-bottom success story. How strategic sourcing, cost management, and cost avoidance strategies can be applied to indirect spend. In this role, he provides analysis of panelist data and comments, interprets their meaning, releases the report, and provides commentary and analysis to the financial and economic community. Name: Leslie Campbell Typically, they also are constantly in search of better quality products and better prices. Traditionally, CPOs have had one job and one job only: drive down costs. It is often his or her responsibility to source goods and services and to negotiate prices and contracts. ESG In Supply Chain: Creating a Sustainable Value Chain, How Strategic Procurement Can Give You a Competitive Advantage, ESG Procurement: Sustainability Through Procurement Strategy. In response, procurement executives have established agendas for organizational transformation. The next generation of CPOs will be called upon for innovation, digitalization and to help steer the organization through volatility and complexity. Beyond the procurement function, CPOs will increasingly be called upon to enable digital efforts across the organization, including honing an ability to source in-demand digital products like, Future Ready Teams: Procurement leaders of the future will need to lead a different type of organization. Ryder and Ryder Logo are registered trademarks of Ryder System, Inc. Some organizations give the CPO an alternate title, such as assistant vice president for procurement. This includes working with internal stakeholders from initial needs identification to final goods and services delivery. Prior to joining Starbucks, Kelly gained broad experience in packaging, product development, manufacturing, and project management at Macys, Bensussen Deutsch, Cranium and Hasbro. Prior to joining Delaware North, Harrington spent more than eight years as chief procurement officer at M&T Bank, a leading super-regional financial institution based in Buffalo. Most recently, Kelly served as vice president of Starbucks Global Supply Chains Strategy & Deployment team, a new team created under Kelly to support Starbucks supply chains aspirations of becoming digitized, strategically aligning resources against priorities and building capabilities through long-term capacity planning and supply chain intelligence. Globalization, compliance pressures, supply market risk, and procurement automation have simultaneously elevated the visibility of the procurement discipline within companies and increased supply management challenges. You must be familiar with laws and regulations around procurement in general, and specific to the industry youre handling procurement for. In larger procurement organizations, CPOs commonly oversee procurement teams comprised of an assistant chief procurement officer, purchasing managers also known as procurement managers, purchasing directors, contract administration officers, and others. We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. New technologies could reshape what current procurement teams look like and how the procurement organization is structured. CPOs must navigate a complex web of, Digital Advancement: While prospects of a digital transformation in procurement look promising, the reality is that most organizations have not yet captured the opportunities those tools will deliver. This means understanding the overall business drivers, having a longer-term view and innovating the way the function is running. Whether at a small company or a large one, the chief procurement officer usually provides overall leadership to the purchasing team and ensures that procurement policies and procedures are followed. Name: Rick Hughes UA is committed to providing accessible websites. In a lot of companies, all procurement decisions ultimately end up at the desk of the CPO. Additionally, Mr. Fiore has held senior supply management roles at Terex Corporation, Celanese Corporation, and United Technologies Corporation. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[970,90],'cio_wiki_org-large-leaderboard-2','ezslot_9',119,'0','0'])};if(typeof __ez_fad_position != 'undefined'){__ez_fad_position('div-gpt-ad-cio_wiki_org-large-leaderboard-2-0')}; Technology Helps CPOs be more Strategic[3] It is imperative for leaders to assess how they leverage the procurement function and where they are in terms of maturity of the function, as shown in the Figure below. Fluency in other languages also can be considered an asset, since vendors may be situated in other parts of the world. Procurement is a business function focused on supply management, which by default includes sourcing beyond day-to-day supplier management and transactional activity. Aside from sourcing and negotiating prices and contracts, a chief procurement officer may see to it that files containing all information regarding purchases and services are kept in an orderly fashion. Generally, the CPO reports directly to the Chief Executive Officer (CEO) of a company., And according to Wikipedia, a CPO is, typically the executive of a corporation who is responsible for the management, administration, and supervision of the companys acquisition programs. In this role, Kelly is responsible for enhancing Starbucks enterprise-wide functional strategic sourcing and supplier relationships, creating consistent global sourcing processes, developing a sourcing talent management program and building a values-based approach to working with suppliers across all categories of the business. But forward-thinking CPOs have already moved past the bottom line and "saw that only focusing on cost is definitely not sufficient. Leadership. Projects as CPO: Reed Elsevier is a world-leading publisher and provider of professional information solutions in the science, medical, legal, risk and business sectors. Harrington and his wife, Lori, live in Orchard Park, N.Y., with their children, Keenan and Keira. Chief Technology Officer (CTO) Over the course of his career, Mr. Fiore also served as the chief procurement officer of ThyssenKrupp NA where he was responsible for developing and implementing ThyssenKrupps first consolidated North American supply management program. about us, and our long history of helping companies just like yours. It's way, way, way cooler. These definitions are both vague and redundant because the procurement industry lacks common definitions. Browse hundreds of articles, containing an amazing number of useful tools, techniques, and best practices. case studies, client success stories, and testimonials. Chief Executive Officer (CEO) CPOs also have to source materials in a socially and environmentally responsible way, which can mean monitoring the carbon footprints, fuel consumption or labor practices of suppliers. Career History: Linton took the position of CPO at LGs headquarters in Seoul, South Korea in January of 2008 after the LG CEO said publically that the company would look for the top talent regardless of nationality. Linton previously served as CPO of Agere Systems, and people know him from his work with E2Open, a leading provider of supply chain management solutions. It used to be an area that focused on three core values: cost, quality, and supply. Generally, the purchasing department must play a role in any complex, long-term, or expensive purchases, while end users are allowed to handle one-off transactions that are simple and low cost. To demonstrate your negotiation skills, its helpful to be able to show any past deals youve helped solidify, and how those relationships helped your company grow. source: Russell Reynolds He has 30 years of Global Supply Chain and Procurement experience. We promise! The Deloitte Global Chief Procurement Officer Survey 2018 found that this is very much still the case. He has also been ilinked to research and new business acquisitions in his time at Shell. You must be able to show that youve been able to save a company money, if not just by reducing costs, but also by improving profits through cost avoidance and risk mitigation. His first procurement position was director of indirect procurement at Warnaco in New York City. You must be able to focus on the needs of a customer, anticipating them ahead of time when and where possible to manage risks and effectively handle supplier relationship management. They still have to deliver cost savings, improve working capital, and preserve supplier viability, but they have to do so in a way that helps them gain a competitive edge over the others in their respective industries. As the CPOs mandate continues to evolve and grow, CPOs will soon need new skills to match. He leads the global procurement organization across all three Ryder business divisions: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). The procurement policies and procedures determine which purchases require procurements input, and which ones are handled by end users. Company: Proctor & Gamble You must have experience managing all company spending, no matter what operating model was in place whether you built the strategy or not. While they might not have procurement backgrounds, those are things that can be taught, and she believes these employees will become strong ambassadors for the procurement process, while adding cross-functional experience. According to Business Dictionary, the Chief Procurement Officer, or CPO, is [An] executive level employee whose responsibilities include sourcing, supply management, and procurement for the company. In 2020, she was honored as one of B2Gs 100 Most Influential Women in Supply Chain. The procurement policies and procedures determine which purchases require procurements input, and which ones are handled by end users. Name: Stijn van Els Since joining Delaware North in April 2017, Harrington has led a transformation of the procurement function by launching a strategic sourcing group, an enterprise procurement-to-pay platform and a category management approach. Education: Kelly holds a B.S. Tomorrows CPO: New Responsibilities and Opportunities, How Technology Helps CPOs be more Strategic, 5 Ways CPO and CFO Relations Can Fuel Strategic Procurement, balanced procurement performance scorecard, invest in the correct talent and training, https://cio-wiki.org/index.php?title=Chief_Procurement_Officer_(CPO)&oldid=8937, Innovation: The procurement function is becoming more strategic, and CPOs need to fill those bigger shoes. In his role, he leads all of Delaware Norths $1 billion annual global procurement program while overseeing. This field is for validation purposes and should be left unchanged. 2022 Starbucks Corporation. Northern Kentucky University: Salmon P. Chase College of Law, JD , Law "The CPO is the man or woman who manages that entire organization." They want people who are willing to collaborate across departments to improve company culture, and people who are willing to embrace technology to make procurement processes more efficient and effective. if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[336,280],'cio_wiki_org-medrectangle-4','ezslot_3',128,'0','0'])};if(typeof __ez_fad_position != 'undefined'){__ez_fad_position('div-gpt-ad-cio_wiki_org-medrectangle-4-0')}; Evolving CPO Role: New Responsibilities and Opportunities[2] We saved more than $1 million on our spend in the first year and just recently identified an opportunity to save about $10,000 every month on recurring expenses with PLANERGY. University of Maryland, Munich: AA, Business Projects as CPO: Linton has transformed purchasing at LG into a much more strategic, agile function. These plans incorporate activities to bring more spending under management, enhance the procurement organization's skills and visibility, and increase both internal and external collaboration. Chief procurement officer jobs will always be looking for leadership skills. Your role involves all departments in the company, and you have to be a team player. senior vice president, chief procurement officer, Global Sourcing. In this practice, regional employees around the globe report ideas and ways to improve efficiency directly to the Shell C&P team, which is coordinated by Stijn. Chief Operating Officer (COO) [3] The survey found that: Learn how and when to remove this template message, "Survey uncovers major procurement skills gap", List of business and finance abbreviations, https://en.wikipedia.org/w/index.php?title=Chief_procurement_officer&oldid=1009274811, Articles lacking in-text citations from March 2018, Creative Commons Attribution-ShareAlike License 3.0, making sure that vendors are paid in a timely manner, The average career length to date of a CPO was 22 years, The youngest CPO in their survey was aged 35, This page was last edited on 27 February 2021, at 18:12. She shows this commitment by serving as Board Member and Past President for the YWCA, a Silicon Valley non-profit community service organization, providing programs and services to women and girls. According to Business Dictionary, the Chief Procurement Officer, or CPO, is [An] executive level employee whose responsibilities include sourcing, supply management, and procurement for the organization. Ultimately, the procurement function is what develops and executes supply chain management processes, whether the resources used to perform the processes report to procurement or not. In the Spring of 2022, Lopez was named Top 10 Women in Procurement by Procurement Magazine. That has allowed the CPO job to become a more a "qualitative or communication or a leadership function," said Abe Eshkenazi, CEO of the Association for Supply Chain Management. They may be in charge of the contracting services and may manage the purchase of supplies, equipment, and materials.. They will continue to demonstrate strategic, innovative, determined and results-oriented leadership traits, as well as further develop their political savvy and influencing skills. If you qualify, please, Stephen Harrington serves as chief procurement officer for Delaware North a position based at the hospitality companys global headquarters in Buffalo, N.Y. For instance, you can allow clerical and support staff to order their own basic office supplies, while requiring procurement specialists to be involved in purchasing new servers or SaaS solutions that affect company workflow. Projects as CPO: Because supply markets fluctuate continuously, Stijn and his team have to accurately predict Shell demand to anticipate market movements, and develop the right approach to source goods and services in a competitive way. Often they set up contracts between vendors and the company. Projects as CPO:Hughes took on what was already an active internal cost management program at P&G, but he has helped instill a new, company-wide system that focuses on whats measurable and deliverable. Instead of the CPO being a mostly technical role, artificial intelligence and machine learning have automated many rote procurement processes, such as vetting vendors and negotiating prices. Tous droits rservs. If you have updates or corrections for this site, contactmmusick@alaska.edu. For questions or concerns, please contact the OIT Support Center. The role of a Chief Procurement Officer has become much more complex in todays world. In a small company, the procurement officer may work singly, but often there is a team that executes the purchasing for an organization. Some larger enterprises, particularly those dealing with global procurement, may require a masters degree in any of the following: business, finance, supply chain management, or procurement. Prior to Cisco, Alexandra held executive leadership roles at Fortune 500 companies, including Kaiser Permanente and Hewlett Packard where her focus was on financial and strategic planning and serving as the procurement subject matter expert for key acquisitions. Hughes was assigned to General Manager of Corporate Purchases in 2001, and he assumed his present position as Chief Purchasing Officer in 2004. Organizations need people who can prove theyve been able to transform companies theyve worked with in the past. CPOs are expected to have a bachelors degree at minimum, usually in either business or finance. Many of their priorities and financial responsibilities overlap and if both Finance and Procurement are to be successful in achieving their goals, strong collaboration between both must exist. Harringtons career in procurement also includes serving as director of global supply chain procurement at Chiquita Brands in Cincinnati, where he was responsible for more than $1.3 billion in supply chain indirect spending in overseeing procurement teams in Belgium, Costa Rica and the United States. Many CPOs report to a director or directly to the chief executive officer (CEO) of their company. Chief Marketing Officer (CMO) Twitter. Mr. Fiore holds a masters degree in business administration with a technology focus and a master's in management from Rensselaer Polytechnic Institute, as well as a bachelor's degree in history from the University of Massachusetts in Amherst. LG spends more than $40 billion annually on materials, and Linton helped realign the purchasing system by commodity across five different business units, which were separated among factories and subsidiaries in 110 countries. LG estimated that Lintons proactive response resulted in well over $1 billion in savings. How to report and analyze indirect spend to identify savings opportunities. More strategy, collaboration, and perhaps diversity and inclusion lies ahead for this expanding, and increasingly important, role. University of Notre Dame: Bachelors Degree, Business Administration As a CPO, you must keep an eye on costs, keeping them under control, and doing what you can to reduce them. Its these like-minded individuals that will set the procurement standards of the future and pave the way for others to follow. Kelly attributes much of her success over the years to her ability to create flexible, high-functioning, and creative teams that unlock possibilities through shared value relationships, cross-functional collaboration, autonomy, and supply chain management excellence. He oversaw the initiative to establish processes, governance and internal capabilities to support these efforts with a planned, disciplined and data-driven procurement approach all focused on driving increased value and savings for Delaware North by leveraging the companys scale and strategic supplier relationships. Lowering the cost of supply is achieved through what Shell deems Enterprise Category Management. C-Suite Her executive experience covers a broad spectrum of functions and verticals including operations, sales, marketing, strategic planning, finance, supply chain, transportation, logistics, and banking. According to LinkedIn Economic Graph Research, CPO ranks 11 on the list of fastest growing -C-Suite titles of 2020, with 15% growth (as a proportion of total C-suite hires last year). In addition, they usually keep inventory levels current and take responsibility for forecasting the future supply needs of the company. Industry: Publishing Harrington has also strengthened Delaware Norths capabilities in design and construction management in regard to the companys hundreds of millions of dollars in annual construction in airports, casinos, sports venues, hotels and restaurants. In startup operations and smaller companies, the team typically only includes a few procurement professionals. This means the CPO is the highest-ranking person in the company with the authority to influence the supply and the spending required to acquire the supply, throughout the entire company. Campbell has the background, and more importantly the mindset that is required of a procurement executive. Mr. Fiore has an extensive background in procurement with more than 40 years of experience leading procurement organizations at large global enterprises, including previously being Ryders CPO from 2002-2005. Carlos de Jesus, Operational Director of APCOR - the Portuguese cork association - on how the vision of people 90 years ago created a sustainable industry, FedEx Express opens new South China centre; Amazon Freight extends 3PL offering; Lufthansa strike averted; New record for DP World London Gateway, Accenture report says that adopting AI at scale & making data central to supply chain operations is the route to resilient value chains in time of chaos. He also began overseeing corporate retail initiatives to better align them within category management. The hiring of cross-functional peopleoften referred to as talent managementis another key aspect on a CPOs agenda because there is a direct link between success and the multifunctional skills of procurement teams. Follow @alexmassalopezz on in Management from Central Washington University. Company: Royal Dutch Shell Education: Stay up-to-date with news sent straight to your inbox, Sign up with your email to Chief Information Officer (CIO) She works to build open relationships with her team and suppliers to discuss areas that need development. University of Washington: Bachelors degree, Accounting With advancements in technology, increased social awareness and a precarious economy, however, CPOs must now take on a range of responsibilities. Contract management, category management, data analysis and presentation expertise were rated as average by CPOs, with no competencies achieving a good or excellent rating. This page was last edited on 29 April 2021, at 23:11. Its also beneficial because as Campbell put it, When you start exporting talent, you also become a magnet for talent. At Dell, she was responsible for the indirect procurement teams globally, and most recently led the global platforms procurement team from the companys Austin headquarters. Kelly has held numerous leadership positions during her 8-plus years with Starbucks, including direct and indirect sourcing, store development, and commercialization. If working in for a multinational corporation, the chief procurement officer might have to manage a global team. Her favorite Starbucks beverage is Nitro Cold Brew. In 2009, for example, Linton visited one of the Taiwanese foundries that build semiconductors for LGs products and learned of an impending wafer (large silicon disks on which semiconductors are imprinted) boom. Procurement is a business function focused on supply management, which by default includes sourcing beyond day-to-day supplier management and transactional activity. A new Supply Management report published in July 2011 says that "76 percent of chief procurement officers (CPOs) feel the skills of their purchasing staff either 'need improvement' (65 percent) or display a 'significant gap' (11 percent), according to research from Ardent Partners. Career History: Campbell was Vice President, Worldwide Procurement at Dell, Inc. before joining Reed Elsevier in 2008. Campbell is a strong advocate of exporting strong talent to the business units outside of procurement. In most cases, its usually the innovation that yields the most cost effectiveness anyways. Tim Fiore is senior vice president and chief procurement officer (CPO) for Ryder System, Inc., a leading commercial fleet management, dedicated transportation, and supply chain solutions company. Typically, a CPO is responsible for the management, administration, and supervision of the company's acquisition programs. CPOs of the future need the skills to address the following areas: Embracing the new direction of the CPO is no longer an option due to the competitive forces in every industry today.