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Is a chief supply officer similar to a procurement manager?

We have a procurement manager who is in charge of all the supplies, including negotiations. I do not know whether it's the same thing as the chief supply officer, but most of the procurement managers do not understand technology. When you require specific equipment, the procurement officer is focused on saving costs rather than meeting your needs. Being in the IT department, I needed a particular laptop that costs over $2,000. His thinking was, why do I need a $2,000 system? Why not get one that is less than $1,000, or get a renewable product? But I know why I requested that specific laptop. So a chief supply officer must be able to understand the various needs of each department, whether it’s Accounting, Finance, Engineering, etc. Those are some of the drawbacks of just having a procurement manager. They’re concerned about spending and not the reasoning behind it. If you are purchasing a truck for logistics, you should understand why the department needs this transportation. Why do they need this model? Don’t get a cheaper one just to save costs for the organization because, in the long run, you are actually increasing costs.

Anonymous Author
We have a procurement manager who is in charge of all the supplies, including negotiations. I do not know whether it's the same thing as the chief supply officer, but most of the procurement managers do not understand technology. When you require specific equipment, the procurement officer is focused on saving costs rather than meeting your needs. Being in the IT department, I needed a particular laptop that costs over $2,000. His thinking was, why do I need a $2,000 system? Why not get one that is less than $1,000, or get a renewable product? But I know why I requested that specific laptop. So a chief supply officer must be able to understand the various needs of each department, whether it’s Accounting, Finance, Engineering, etc. Those are some of the drawbacks of just having a procurement manager. They’re concerned about spending and not the reasoning behind it. If you are purchasing a truck for logistics, you should understand why the department needs this transportation. Why do they need this model? Don’t get a cheaper one just to save costs for the organization because, in the long run, you are actually increasing costs.
2 upvotes
Anonymous Author
Everyone calls it “the” supply chain, which indicates that there are sequential links within it, and each operates functionally in their own link. The chief supply officer should break down those barriers so the business understands sourcing from a procurement perspective. They may not want to source from China because of the tariffs, for example. The chief supply officer creates those lines of communication. They’re set up to go across all the different functions, and they need to be an exceptional person who understands technology as well as how it can influence supply chain operations. The function is to call to action metrics that can be pulled. For example, is there a cost that we can alleviate? Are there different lead times? What will our overall inventory supply be? They take a holistic approach to determine how different departments need to come together to achieve those. Sales and Procurement may have goals that don't marry well. Or Production may have their own KPIs that don't align with the other BUs when you're trying to save money. The chief supply officer is supposed to orchestrate all of that to make the supply chain an asset to the company and give it a competitive edge, instead of being something that’s done in the background, without people paying much attention to it.
1 upvotes