the influence needed on the wider business , in an indirect way , to
unlock the strategic objectives and to ensure procurement as a
function plays a wider and more strategic role as a true business
partner . In simple terms , we cannot wait for the invite to come from
the CEO to do something ; we need to ensure we create a natural
path to their door by understanding how the organisation works and
thinks , and how the SRM value proposition needs to be aligned . This
is particularly true when we look at the associations made in the
thought processes of senior management and how people behave .
Those involved in behavioural economics , a practice underpinned
by psychology and decision science , reafirm this in that how
decisions are arrived at … does not follow linear formulaic patterns of
total predictability , but instead is influenced by ‘ rules of thumb ’,
experiences , biases and sometimes instinctive decision - making . The
job of the modern CPO is to understand these better , to position the
function and to articulate the benefits of SRM in a way that will
resonate with senior executives . As the procurement function
evolves from leading on category management and strategic
sourcing into process ownership of the whole supplier management
lifecycle , the skills required will change . None more so than those of
the CPO . David Loseby , group procurement director at Arriva
Best practice : Mel Shutes , head of SRM , State of Flux
Executives need to play two roles : supporting the SRM programme ,
and proactively leading important supplier relationships . The
challenge is to find time within executives ’ already busy schedules .
The key to getting executive time and focus is having a well -
articulated and compelling case for SRM and selling it at the most
senior level . It is only at the very top that such a case can
demonstrate how SRM supports the company ’ s strategic priorities ,
and can thus secure the training , technology and other budgets
needed to support it to its fullest extent . For more detail on what
should be included in a SRM business case , please refer to
www . stateofflux . co . uk / ideas - insights / articles
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