Deloitte’s 12th annual Global Chief Procurement Officer Survey reveals the priorities of Chief Procurement Officers
For more than a decade, the Deloitte Global Chief Procurement Officer (CPO) Survey has served as an industry benchmark. It reveals insights into the forces shaping procurement, supply chain strategies, and performance.
Following unprecedented supply chain disruption, there is a growing need for procurement to enable growth, mitigate inflation, and drive value.
2023’s study showed that procurement is engaging with more priorities than ever before. With environmental, social, and governance (ESG) and corporate social responsibility (CSR) becoming increasingly important, companies have a lot to consider.
Driving operational efficiency remained the number one priority. Digital transformation was a close second priority, along with ESG and CSR, which jumped up from the seventh spot in last year’s report.
Ryan Flynn, Principal at Deloitte Consulting, said: “Following the COVID-19 pandemic’s unprecedented supply chain disruptions and the rising expectations for procurement to enable growth, CPOs are currently being challenged to do more, and better, with less. As we navigate this pivotal moment for the industry, investment and development of talent and operating models will likely differentiate the CPOs who win from everyone else.”
The role of CPO continues to face intense complexity, balancing unprecedented disruption with procurement’s increasing value proposition.
The study found that CPOs are increasingly taking on leadership roles in collaboratively building an enterprise capability of ‘orchestration.’ When comparing orchestration capability against value delivered, the survey found that the top quartile of CPOs has a 25 percent performance advantage over their peers.
These top quartile respondents were designated as ‘Orchestrators of Value,’ viewing supply chain volatility as an opportunity to successfully deliver on business priorities. High achievers reach this by investing in talent, transforming operating models, and accelerating digital transformation.