CPOs with board ambitions must aim to become Chief Supply Chain Officers

| 0 Comments
DrBoateng.jpg

Without doubt, the Chief Executive Officer (CEO) and other C-Suite organisational leaders (Chief Financial, Operating, Information, Marketing Officers) recognise the strategic value in procurement. However, the global dilemma these decision-makers face is whether current Chief Procurement Officers (CPOs) are equipped with the right strategic and board-level skills to officially be admitted into their high-level discussion forums.

Rather than officially appointing CPOs to the C-Suite of organisational leaders, it is increasingly becoming the norm for companies to appoint Chief Supply Chain Officers (CSCOs) with some understanding of procurement and supply chain management, says SmartProcurement Editorial Board Member Dr Douglas Boateng.

CSCOs.png

Along side is a list of prominent examples from a random survey of global companies with $100s-billions dollars in combined annual revenues.

Examining the list, Dr Boateng noted some interesting facts:

  • Far less than 10% of these global corporations have an Executive Committee (EXCO) representative holding the title CPO or Executive Director of Procurement.
  • Over 50% of the related titles examined included “Supply chain” and not “Procurement”.
  • In organisations where there is a CSCO at EXCO level, there is increasingly no Chief Operating Officer.

He adds that the findings are statistically significant and generally in line with Boris Groysberg, L. Kevin Kelly, and Bryan MacDonald’s March 2011 article in Harvard Business Review ‘The New Path to the C-Suite’.

In conclusion, the random survey suggests:

  • The Chief Supply Chain Officer is progressively becoming the procurement representative among C-Suite leaders, and may be gradually replacing the Chief Operating Officer.
  • The CPO title is politely rebuffed at EXCO level because of varying definitions and sometimes reckless use by lower level and inexperienced practitioners.
  • The rapid acceptance of the Chief Supply Chain Officer at executive committee level is an opportunity for confident, strategically-minded, knowledgeable and value-adding procurement professionals with EXCO and even CEO ambitions… After all, supply chain management has strong historical roots in purchasing and later procurement.
  • The transition by discerning procurers from Management Committee participants to EXCO CSCOs should be much smoother and more importantly authoritatively recognized for strategic value add with the right industry-relevant:
    • educational and training curricula from affiliated institutions of higher learning;
    • comprehensive, thought-leading professional codes of ethics and conduct from the overseeing professional bodies; and
    • executive level coaching.

 

Leave a comment


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the