High-performing CPOs focus on both driving the procurement function today and leading it into tomorrow. Tackling one objective without the other is short-sighted: strictly prioritizing traditional supply chain concerns — safety and accuracy, efficiency, risk mitigation, and lean principles — fails to set the strategic direction of the business, while striving to be innovative and agile without a solid operational foundation is overly ambitious and stunts long-term growth.
The reality is that to truly thrive in business today, teams need to tackle both objectives, simultaneously. We’re living in a new world of procurement filled with digital technologies and where the skills and strategies for success are constantly evolving. To keep up, teams need what Gartner has defined as a bimodal approach to sourcing: one that avoids risk and cuts waste, while also solving new problems and exploring untapped opportunities.
The art and science of bimodal
Every procurement team wants to deliver strategic value for their organizations. The question is how to do it most effectively and make the value last. Success requires mastering the art and science of bimodal procurement with digital strategies, leveraging data and analytics to reduce risk and tapping predictive and artificial intelligence to make better business decisions. Overall, the key is to create a more connected and integrated supply chain that uses data and smart instincts to move the business forward. Teams need an approach that offers:
- Powerful and robust business analytics with enhanced functionalities that instantly measure performance, drive best practices and make smarter, more strategic decisions
- Integrated strategies that give more control and transparency over the entire procurement lifecycle while enabling the team to reduce risk and influence bimodal innovation
- A greater focus on generating value through supplier development and automation with action planning, collaboration and measured follow up
- Extended visibility, insight and transparency to improve procurement decisions, get more out of the entire sourcing process, and drive business value
Procurement teams have a unique and influential role within the organization. CPOs work with almost every department– marketing, product development, finance, sustainability – and are therefore critical for business success. At the same time, procurement has a responsibility to all stakeholders to support growth through innovation. Leveraging bimodal strategies sets procurement leaders up to offer fresh perspectives, proactively solve problems and ultimately make informed and confident business decisions that lead to competitive advantage.
Our newest release, BravoAdvantage 17, is a significant step in helping organizations unlock the power of procurement and enable bimodal innovation. To learn more, please visit the website.