Procurement teams in top performing companies such as Nike have a high level of strategic business alignment ©Getty Images
Procurement teams in top performing companies such as Nike have a high level of strategic business alignment ©Getty Images

Strategic alignment equals procurement success

7 February 2020

Almost two-thirds of CPOs (62%) have a completely integrated strategic vision for procurement within their organisation, according to the Strategic Procurement Benchmark, a survey of more than 300 European CPOs carried out by CIPS in partnership with procurement services firm WNS (Denali).

The research, presented at the CIPS 2019 conference, draws a link between the level of a procurement team’s strategic business alignment and stakeholder penetration, claiming that this is the “number one indicator” of how well they are performing and how much value they create for the business.

Alpar Kamber, executive vice president at WNS, which works with clients including Nike and Facebook, said: “High performing companies have a higher degree of alignment within the business.” Within these companies, 75% of CPOs focus on category plans, not just savings – only 22% focus on sourcing and savings alone.

Among high performing companies, top KPIs were savings, spend under management, and stakeholder satisfaction, while the top challenges were seen as achieving savings and managing change.

Digitisation is also perceived as key, but is not without challenges: 83% of CPOs have implemented digital tools, but of these 43% are not seeing value. 

“Talent,” said Kamber, “is the new currency with which to move forward and create sustainable change.” Indeed, 75% of survey respondents cited people development as a top organisational priority.

Download the study here.

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