I had the opportunity to visit several end-user clients over the last week. I confess that this is one of my favorite duties here at Gartner. Face to face meetings allow an incredibly greater depth of conversation than a phone call, and when I see someone with my own two eyes I feel like I’ve really met them.
In these end-user recent visits I noticed something interesting. In two of seven organizations, the CIO was recently given a second role – hold your breath – Chief Procurement Officer (CPO)! I’ve seen this phenomenon in other companies, and maybe it was just luck of the draw this week that I saw it twice more. Its happened enough over the past year that it seems like we may have a trend.
The two people I met this week with this newly minted dual role work at services companies – one in financial services, the other business services. From our conversations, I could see how this combination makes sense. In services industries, IT spend is often a significant percentage of the overall purchasing budget. And purchasing itself is becoming increasingly supported by technology – witness my role at Gartner!
Even in manufacturers, indirect procurement can be a migratory function. I can remember clearly how in my former alma mater, Bay Networks, indirect procurement in the ‘90s reported to supply chain operations, then facilities, then the CFO, and then finally to a CPO.
CIO- hmmmmm this is interesting.
If the top slot in your procurement organization is open – consolidating the two functions could even be spun as a cost-cutting measure . . . . . .
Read Complimentary Relevant Research
Predicts 2017: Artificial Intelligence
Artificial intelligence is changing the way in which organizations innovate and communicate their processes, products and services. Practical...
View Relevant Webinars
The IoT In Manufacturing Operations: Where Are We Now?
The Internet of Things (IoT) is a paradigm shift for manufacturing operations. Its fanfare creates uncertainty in state-of-the-art technology...
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes, with attribution to Gartner. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.