Chief Procurement Officers: The Newest C-suite Strategist

An emerging role adapting to changing times

- Brian Umbenhauer, Ryan Flynn, and Lee Barter

Last year was characterized by growing global complexity, from trade wars to tariffs and talent shortages. Business became more complicated for the entire C-Suite, including the Chief Procurement Officer (CPO). Ten years ago, the CPO role didn’t exist at many companies, and procurement leaders didn’t report to the C-Suite. But now, as the eighth edition of Deloitte’s Global CPO Survey has found, they’ve begun to play an increasingly strategic role across executive leadership, especially as top-of-mind business issues have become part of the CPO portfolio. CPOs have traveled far over the last decade, but there is still work to be done as CPOs continue to unlock their full potential and become fully strategic business partners.

From Finance to IT to HR, CPOs ultimately touch nearly every element of the business and beyond, reaching into supplier and other third-party networks. Still, only 26 percent of respondents in the CPO Survey highlighted their effectiveness as a strategic business partner as “excellent.” The majority labeled their effectiveness “fair,” signaling that within their organizations, procurement has mixed influence, having stronger relationships with some functions over others.

In today’s increasingly complex and technology-driven environment, CPOs have the power to bring more value to their organizations than ever before, if they can cultivate these relationships and become a leading strategist within the C-Suite. So how do they get started? And, how will the role change and grow in the new year?

CONTINUED COLLABORATION WITH FINANCE AND OPERATIONS