There is no question that these are challenging times for Chief Procurement Officers (CPOs). To name a few issues currently being faced: the hype around digitisation of procurement, new tariffs around the world-shattering supply chains and continued increase of material costs. While concentrating on these new challenges, there is a risk that a more basic requirement – namely to focus on continuously optimizing the spend volume, is lost. This is especially true for more complex spend categories. In many companies there is no comprehensive procurement strategy for MRO services and spare parts which often leads to fewer service providers competing for the work, poor decision-making and ultimately untapped savings.
January 31, 2019