For companies willing to fulfill their procurement goals and yet not spend a huge sum on the same, onboarding a fractional chief procurement officer is the ideal option. A fractional CPO works as the part-time chief in your company’s procurement department. Medium- to small-scale companies that lack a mature or formal procurement department can now access the services of a fractional CPO who offers expertise similar to that of a full-time CPO but at a much lower cost. So, here’s a look at how a fractional CPO can help your company achieve its business goals!
Who is a Fractional Chief Procurement Officer?
A fractional CPO is a procurement executive who divides their time between multiple organizations, working with each of them for a fraction of his time. These professionals also charge a fraction of what a full-time CPO would. This makes them an ideal solution for startups and growth-stage companies that are facing procurement challenges.
Fractional CPOs have completely redefined the business paradigm. They are flexible alternatives to traditional CPOs who can offer you an independent executive’s experience and a sustainable roadmap to business success at an optimum cost. Fractional CPOs are crucial in industry functions like logistics and supply chain, customer support, etc. They can completely change your business strategies and allow you to stay resilient at all times.
In this rapidly changing business landscape, when companies are exposed to new challenges every day, having a fractional CPO can help businesses scale their procurement and supply chain operations faster. They are able to better adjust themselves to the shifting needs of the marketplace.
Why Should You Consider Engaging a Fractional CPO?
Having a dedicated, high-pedigree chief procurement officer is not feasible for all companies for multiple reasons. That does not make this position any less important. This is why more and more companies are availing of the services of a fractional CPO. This helps them in achieving their procurement goals. Companies are also able to navigate complex challenges related to sustainability ESG, compliance, and ISO accreditation. The fractional CPOs are quite ideal for startups, SMEs, etc. They offer companies with instant access to operational strategies and policy roadmaps without any kind of associated risk or delay. Fractional CPOs also eliminate business risks and the associated consequences.
Fractional Chief Procurement Officer: Associated Responsibilities
Fractional procurement executives mainly take care of handling the various jobs associated with procurement and supply chain. They oversee and manage the company’s strategies and policies on an interim basis. They ensure that the company’s strategies are aligned with its various business goals. They also help optimize the tasks and achieve risk mitigation, leading to enhanced organizational efficiency. Here are some of the major responsibilities of a fractional CPO:
- Procurement process improvement
- Supplier/vendor relationship management
- Budget adherence
- Compliance and ethics
- Developing a procurement strategy
- Marketing
- Risk management
- Strategy
- Supply chain management
Get High-End Business Expertise by Onboarding a Fractional CPO:
The fractional chief procurement officer reports to the top-level management of the company, typically the CEO, COO, CFO, etc. They collaborate closely with the company’s executives and offer them regular analysis, updates, and recommendations on the procurement process. The fractional CPO also leads a team of business professionals. They oversee their training, development, and performance. They are also responsible for ensuring that the various compliance needs are met.
Key Services offered by a Fractional Chief Procurement Officer:
- Providing top-level guidance on product vision and strategies.
- Conducting competitive research, market analysis, and customer insight.
- Developing metrics for product success.
- Advising on product optimization and portfolio management.
- Taking cross-functional initiatives and streamlining the product development process.
- Identifying scope for improvement and expansion opportunities.
- Aligning strategies with the product and business goals.
- Establishing new methodologies and product operations.
- Offering visionary leadership at every stage of the product development process.
Perks of Engaging a Fractional CPO from COHIRE in your Company:
Lowered cost: By onboarding a fractional CPO to your organization, you only pay for the time that you require. You can avoid having to pay full-time salaries and other benefit packages to the fractional CPOs. This flexible model helps you in managing your finances appropriately. You can also use the surplus funds for your core business processes.
Specialized experience: The fractional CPOs have specialized experience. They have already run procurement strategies for leading brands, which makes them a highly desirable option for leading your company’s procurement department. They also offer access to niche-based capabilities that are not available in-house.
Strategy assessment: As an unbiased individual, fractional CPOs assess the existing strategies and identify the scope for improvement. They also make various recommendations on how your procurement processes can be improved without getting into any kind of preconceived notions or internal policies.
Alignment of product strategies with business goals: Fractional CPOs help design procurement strategies that strongly align with your core business goals. They also help maintain an alignment between the company vision and your product vision. This helps you in carrying out your business operations with increased ease and convenience.
Cross-functional initiatives: Fractional CPOs collaborate with executives across various business departments. They also take up a leadership role at your organization and help lead the procurement department in the right direction.
Bringing On Board a Fractional CPO: Steps to Follow
Know your needs: Before you start looking for a fractional CPO, you must have a clear understanding of your business goals. This will help you shortlist the ideal candidate for the job role.
Set aside a budget: Next, you need to allocate a particular sum of money for your fractional CPO. This will ensure that your company goals are met without you having to go overboard with your budget.
Reach out to COHIRE: Once you are aware of your needs and you have a budget fixed, it is time to connect with COHIRE and appoint the ideal CPO for your available job role.
Standard Job Description of a Fractional Chief Procurement Officer
A Fractional Chief Procurement Officer (CPO) is the part-time chief of your organization’s procurement department. They are responsible for managing, administering, and supervising companies’ procurement processes. They also define procurement policies and help fulfil company goals.
What Is the Cost Associated With Bringing In a Fractional CPO?
Fractional CPOs come at a much lower price tag than full-time CPOs. Their salaries are completely flexible and depend on the hours they allocate to your company and their experience. So, you only have to pay for the time that you require from your fractional CPO. This can turn out to be a really good way of budget control for yourself. You can easily achieve what you are looking for without having to spend a ton on the same.
How Do You Hire a Fractional CPO?
By opting for the services of COHIRE, the entire process of engaging with a fractional CPO becomes a lot easier. Here are a few steps that you need to follow in order to onboard your fractional CPO:
Visit the COHIRE website and list your exact requirements. Let us know why you would want to onboard a fractional CPO.
Allow us to narrow down your requirements and help you find the right fractional CPO who meets your exact business needs.
Onboard your fractional CPO and observe noticeable changes in your business processes within a minimum period.
Why is COHIRE the Best Platform to Onboard a Fractional Chief Procurement Officer?
COHIRE simplifies the process of engaging with a fractional CPO. We bring you handpicked talent from multiple industrial niches and help you pick the best-suited fractional CPO for your job. With our services, you won’t have to undergo the extensive process of conducting the recruitment task from scratch. Instead, we will do everything on your behalf. We will help pair the best talent with the required skill set. That way, the entire process of onboarding a fractional CPO will become hassle-free and convenient for you.
FAQs:
1. How is hiring a fractional CPO associated with cost saving?
You will have to pay a fractional CPO only a fraction of what a full-time CPO would charge from you. This can lead to cost saving. These business executives will also help streamline your company’s procurement strategies, leading to business profitability.
2. Are the services of Fractional CPOs suitable for all businesses?
There are multiple industries that can benefit from the services of a fractional CPO like transportation and supply chain.
