Chief procurement officer’s top priorities for 2024
From national talent development to a pressing climate action agenda, to economic challenges to complex geopolitics, to fastevolving technologies, a deluge of macro trends has meant public sector entities and businesses in the UAE are putting more focus on a role that can minimise risk and drive value creation: the chief procurement officer (CPO). Once considered a back-office function, the modern CPO can make all the difference to whether a forwardthinking organisation sinks or swims in today's turbulent marketplace.
Here are the five key priorities for CPOS to consider in the year ahead:
Investing in people: The realm of procurement is fast-changing, and national talent needs to be invested in the UAE'S future economic development. This means the CPOS will need to lead their teams with empathy and clear communication, with a focus on current staff becoming future leaders.
It is up to the CPO to conduct a regular review of capacity and capability, with a view to maximising opportunities and growth for Emirati talent. They should specifically communicate the tasks and competencies needed from each role and how they interact cross-functionally.
Leading the climate action charge: To meet the ambitious targets set out in the UAE'S Net Zeo 2050 strategy, the CPO will need to steer the ship on environmental and social governance (ESG), embedding this understanding and best practice across the function and its processes, setting clear, prioritised objectives to drive focus and promote performance. The CPO must clearly define opportunities and measurable goals.
It is crucial that companies are open, honest, and realistic. They should seek to endorse their activity through a clear evidence base, ideally ratified by a recognised reporting body.
Cost optimisation: Increasingly, government bodies need to reduce spend where they can and do more with less to navigate current economic pressures. While the CPO will need to juggle increasingly broader and more nuanced responsibilities, they must remain grounded in the reality of procurement: every penny saved adds to enterprise value.
To achieve this, the CPO must ensure a true procurement performance management culture is embedded, the right partnerships are in place, projects are tracked, and KPIS are measured consistently. Future-proofing against un
known risk: In an increasingly risk-filled world, the modern CPO must be equipped to deal with more than just the now. Organisational supply chains must anticipate any potential disruption on the horizon. This is especially true for Giga and Captial projects. Given their massive scale, complex logistics and investment, the ability to deliver on time and within budget depends on the resilience of the supply chain.
A good starting point for the CPO is to understand the issues faced over the past 18 months. To prepare for what's to come and plan for risk, the CPO should also map out the current supply chain and identify potential failure points. Then, execute a timebound plan to mitigate risks, ensuring the right team and tools are set up for continuous execution and reporting against the plan. Delivering value from tech in
vestments: Investing in technology, particularly artificial intelligence, has been at the forefront of conversation in 2023, and this is showing no signs of slowing down for the year ahead. Staying ahead in this new digital world requires harnessing the right technology and ensuring that implementation turns into effective adoption and benefit realisation – and this depends on a well-managed change journey.
To facilitate this, the CPO must identify the exact requirements and the financial case for investment. A balance must be struck between the vision for where the organisation wants to be and the budget available to ensure there is an adequate return on investment.
The CPO must articulate a bold vision, secure a strong exec mandate to deliver, and rally the team with a united purpose that propels the organisation's teams beyond convention. This includes articulating the function's strategy, as well as risks and opportunities, to all stakeholders, engaging them through strong communication, robust measurement, and performance.