NIGP provides solid perspectives on the role of the public procurement function and how procurement’s overall positioning and the authority of the Chief Procurement Officer are cornerstones of supporting how well the procurement function can deliver against the organization’s mission.
What are the key takeaways?
NIGP lays out five key elements that frame the role of procurement and the best practices therein that position the procurement function to more effectively deliver on the broader organizational mission and drive higher levels of procurement value.
As the NIGP “principles and practices” document states: “This best practice document builds a case for the strategic placement of the procurement function. This positioning maximizes the effectiveness of Procurement within the entity and is critical for the entity to fully benefit from Procurement operations. The following elements equip procurement professionals with support to establish a “seat at the table” with executive level positioning, responsibility, and authority.”
The five identified elements that frame the role of procurement are:
- Element 1: The CPO should hold procurement authority commensurate with a strategic C-level position within the entity and should participate with other executives at the highest level
- Element 2: The professional expertise of the CPO is critical to the success of the entity and best leveraged when Procurement is involved in the development of the strategic plan of the entity
- Element 3: Procurement should be positioned at the executive level of management with a centralized function to allow for best practices and standardization.
- Element 4: The function and agenda of Procurement should be distinct from other departments and are enhanced when Procurement interfaces with other departments or divisions
- Element 5: A strategy should be developed to achieve the optimal positioning, responsibility, and authority of Procurement
Full Article: NIGP
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