Handling supply chain disruptions one by one as they arise is no longer feasible. Supply chains have felt the nearly simultaneous impact of the pandemic, global political instability, climate change, and supply issues across the globe, and the resulting challenges may take years to resolve. Leaders need to take transformative action to create a more resilient and agile procurement function. The resulting improvements will permanently upgrade supply chain operating models.
Now is the time for procurement leaders to show the value of their organization to the C-suite and shareholders alike. This inflection point is clearly a defining moment in a CPO’s career. Procurement leaders who can exhibit and drive EBITDA value to the enterprise are immediately seen as strategic partners to CEOs, CFOs, and COOs.
Faced with the added challenges of shifting supply-market dynamics, changes in ways of working, an increasingly volatile demand, and the need to de-risk their supply chain to make it less vulnerable to disruption, more and more companies are making the strategic pivot to identify new ways of recovering profitability and preserving cash.
Consequently, the procurement function must evolve and transform to successfully drive value to EBITDA, protect margins, contain cost escalation, and dynamically identify and capture opportunities. In response to market dynamics CEOs will begin to shift focus and position their procurement leaders with a clear mandate to protect margins and grow EBITDA. Procurement leaders will then be able to mobilize peer executives for the cross-functional team alignment required to achieve and sustain value.
