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Glossary: The Procurement & Sourcing Organizations

CPO (Chief Procurement Officer) – An executive-level role that oversees the sourcing, procurement, and acquisition of goods and services from suppliers. The role of the CPO generally has grown in importance in the past decade, and is increasingly seen as a strategic influence within the company. [Refer to: Ardent Partners Report: The CFO & the CPO – One World, Two Worldviews.]

Procurement – The process and activities involved in the acquisition of goods and services. Within a corporate organization, the Chief Procurement Officer and procurement personnel are responsible for the purchase of those goods and services in a way that balances best possible costs, best supplier sources, lowest risk, and reliable quality and performance. [Refer to: Ardent Partners Report: The CFO & the CPO – One World, Two Worldviews.]

Sourcing Center of Excellence - A group, either formal or informal, of sourcing and procurement professionals within an organization having the goal of developing, instituting, and promoting best practices in sourcing strategy, processes, tools and technologies, education and training, and management, as well as tracking, measurement, and reporting. A sourcing center of excellence is also often chartered with standardizing sourcing procedures across many or all spend categories within the organization. A company having a sourcing center of excellence team is often considered as having a “center-led” sourcing culture.

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