How Leaders Can Work with Procurement to Bolster the Business
By Costas Xyloyiannis, CEO of HICX
In recent years, ESG was hoisted to the top of the board agenda. To manage it, leaders had to ensure compliance and readiness across multiple areas were captured, analyzed, and reported.
This job needed an owner. When it came time to delegate, leaders assessed whether a single department with a clear responsibility across all suppliers for all these areas existed. Unluckily, in most cases, it did not. So, management turned to the next best option: procurement.
The function’s leaders, Chief Procurement Officers (CPOs), now had new mandates to meet and quickly sought to apply technology. ‘Point’ solutions, software dedicated to tackling individual use cases, were implemented. Often these tools were standalone. Integrating them with established P2P and S2P suites, used to manage sourcing and supplier relationships, emerged as a challenge.
Today, swapping between these old and new tools is a slow and painful experience for procurement – and all their suppliers. The impact of this digital struggle extends even further to the greater business. So, how does this stack up, and what can business leaders do about it?