Supply Excellence — We’re in the Same Business

We’re in the Same Business

March 18th, 2008 · by Justin Sullivan · No Comments · best practices, supply management

I’m a consultant and I’m in the same business as a CPO.

Leafing through the archives of CPO Agenda, I came across an executive coaching Q&A, where a CPO asked how to tackle the problem of procurement not being involved with other functions and company decision making. Sound familiar?

Dick Russill’s eloquent and measured response was: sell. Sell to the executives you want to sell on your behalf. Sell to the people whose business processes you need to impact. Sell to people who want to work with you. Sell to people who don’t want to work with you…yet.

Like I said before, we’re in the same business. Just as I have to align my interests with yours so that you can achieve your objectives by working with me, the CPO must align their objectives with the objectives of their company and demonstrate a compelling vision of how their business processes drive that value in the organization. Just as I must understand the objectives of the organization our team serves, the CPO must understand the objectives of finance, marketing, legal and human resources to be able to articulate how the procurement process delivers shared value for all.

Again I say, you and I are the same. We are the same because in order to articulate how my tools and methodologies align to your objectives, I need a keen understanding of them and confidence in my ability to execute. In order for a CPO to articulate the value of the processes they bring to the enterprise, they have to understand the processes and the value that those processes bring to the organization.

Sometimes it is too easy to not take the time to understand; too easy to confuse being able to save money and knowing something about a category with understanding what the owners of those categories are really trying to achieve; too easy to confuse a largely rhetorical X-phase process with really understanding how our organizations execute; too easy to find ourselves praying for the day when the savior “mandate” will come from above and make the need to work with us self evident; and too easy to be content with the mediocre results you achieve while you wait for that day to come.

Right now, there is a lot of uncertainty in the market. The calm seas of low raw material prices, a strong dollar, and easy access to capital have been replaced with a stormy maelstrom. CPOs have the chance to be the Captains who can help companies navigate these seas by understanding their destination and getting their crews in tip top condition, by sharpening their processes and truly understanding the value they provide, and delivering that value each and every day.

Justin Sullivan is a Senior Manager in Ariba’s Spend Management Services group. In addition to his strategic sourcing and technology expertise, Justin worked for a number of years in the White House Office of Management and Budget (OMB) where he analyzed the fiscal implications of Federal policies.

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