The Evolving Role of the CPO in 2021 and Beyond  

1 February 2021:

Crises are great teachers. One business lesson from 2020 is that while global supply chains may be efficient, they are not always resilient. The COVID-19 pandemic caused so much disruption that it laid bare the inherent risks that exist in a “just in time” supply chain philosophy. This was a blaring wake-up call that supply chain risk must be better managed, and in this, procurement has an essential role.

In the past, procurement has too often been an afterthought in business strategy and planning. Value was sought in the margins, and procurement was primarily focused on transactions, supporting business requests after decisions were already made. With disparate processes and criteria that were often siloed by function or business unit, risk mitigation was more reactive than proactive, which owed in part to limited visibility into the supply chain.

Using legacy, on-premise technology and a patchwork of single-purpose solutions, many CPOs lacked an enterprise-level view of vendor risk management. These challenges persist. Deloitte’s 2020 Chief Procurement Officer Flash Survey found that only half of CPOs enjoy high or very high visibility into tier 1 suppliers, and 90% of organisations rated their visibility into extended supply networks as moderate to very low.

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Source: Supply Chain Digital

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