The most competent CPOs is focused both on boosting the role of shopping today and on directing it towards tomorrow. Addressing one goal without reaching the other is a low-vision approach: strictly prioritizing traditional supply chain concerns – safety and accuracy, efficiency and risk mitigation – is a mistake in establishing the deal. Striving to be innovative and agile without a solid operational foundation is ambitious and hinders long-term growth.
The reality is that to really thrive in today’s business, teams need to address both goals simultaneously. We live in a new world of shopping full of digital technologies where skills and strategies of success are constantly evolving. To stay current, teams need what Gartner has defined as a two-pronged approach to procurement: on the one hand, to avoid risk and reduce costs, and on the other to solve new problems and explore unexploited opportunities.
The art and science of dual approach
Each purchasing team seeks to bring value to their organization through the best shopping strategies. The question is how to do it in the most efficient way, making the value last. Success requires mastering the art and science of shopping with a dual focus on digital strategies, using data and analytics to reduce risk and making better business decisions.
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In general, the key is to create a more cohesive and integrated supply chain that makes use of data that will advance the business. Teams need an approach that offers:
- Powerful and robust analytical systems with improved functionalities that instantly measure performance drive best practices and help strategic decision-making.
- Integrated strategies that provide more control and transparency over the entire procurement lifecycle, while allowing the team to reduce risk and influence innovation.
- A better approach to value generation through the development and automation of supplier relationships.
- Greater visibility, perception, and transparency to improve purchasing decisions, get the most out of the entire procurement process and increase business value.
Purchasing teams have a unique and influential role within the organization. CPOs work with almost every department – marketing, product development, financial, sustainability – and are therefore essential to business success.
At the same time, shopping has the responsibility, with all stakeholders, to support growth through innovation. Leveraging the two-pronged strategies allows purchasing leaders to offer new insights, proactive solutions to problems, and ultimately make documented and secure business decisions that lead to competitive advantage.
Our strategic purchasing platform, Bravo Advantage 17, is a significant step in helping companies to liberalize the power of purchasing and enable dual-focus innovation.Tags: innovative, shopping, strategies