CFO's think procurement just shops around! ..Seriously!??

Ashokk N Menon
November 14, 2023

"My CFO thinks all procurement does is shop around and find the best quote" said a GM of Procurement.

"We're glorified order-takers."

And sure, for a CFO with no prior procurement experience, this didn't use to be too uncommon.

Especially in change-averse organisations where entire areas of spending are 'off-limits...'

Procurement is supposed to sit on the back bench until they're asked to do something.

But that's a waste.

And since Covid, it's a waste that more and more companies realize they can't afford.

CFOs are seeing the value that procurement brings - not just in finding better prices - but in managing risk, innovating, and delivering the fuel for growth.

Because as revenue declines and supply chains wobble, those procurement back benchers are getting pushed onto the field.

Smart CFOs are bolstering their procurement teams with consultants, funnelling more resources in their direction, and are seeing those 'order-takers' create some real value.

So, CFOs: are you being strategic about how you're using your procurement team? Or are they trapped taking orders?

And Procurement pros: are you creating real value? Or do you belong on the back bench?

About the Author
Ashokk N Menon

For more than 20 years, Ashok has led procurement both in industry and as a consultant. In executing over 100 projects for global brands, he discovered a passion for developing the talents of people early in their procurement careers and unlocking significant benefits for companies and executives