How should the procurement manager include the CEO in the procurement activity?

The CEO of a business has asked his procurement manager to source new machinery for the factory. This machinery will help create a new line of products which will give the company a competitive edge. The CEO is heavily invested in this procurement activity as profits have been lower than expected this year and this new line of products could help increase profitability .

How should the procurement manager include the CEO in the procurement activity?
A . It is important to keep the CEO informed of all decisions that are made
B. It is important to keep the CEO satisfied as he runs the business
C. The CEO is a key player- so it is important he is involved early in the process
D. The CEO is a key player- so should be given regular updates on progress

View Answer

Answer: C

Explanation:

The correct answer is ‘The CEO is a key player- so it is important he is involved early in the process’. The CEO has high power and high interest which puts him in the top right-hand corner of Mendelow’s Stakeholder Matrix (p.81). CIPS says Key Players should be involved early in the procurement process (p.82).