How To Set A Procurement Strategy Part 1: What You’re Currently Doing Wrong

How do you set a strategy for your procurement function? Discover what not to do. 


In 2020, we’re all au fait with the word ‘strategic.’ Procurement needs to be strategic, metaphorically yells every advice piece we read. What’s the strategy behind that, what’s your function’s strategy, what’s the strategy this year? Exclaim C-suite executives we run into; or perhaps a strategy consultant they’ve engaged. 

But when it comes to procurement – what does a strategy even mean? 

As an internal function, a procurement strategy is a complex idea. As procurement’s purpose is inherently to serve our stakeholders, should our strategy simply be to do just that? Or should we set a separate procurement strategy, based on best practice we observe in our particular function, elsewhere? Both approaches have their benefits, but also significant downsides. So which one is it, or is it neither? Here’s a detailed explanation of the two different ‘strategies’ that most procurement teams execute, and exactly why they may not be the best choice going forward: 

Bad strategy #1 – The ‘Your Wish is My Command’ Strategy

What is the ‘Your Wish is My Command’ strategy? 

Ken had not long been in his role as CPO at a utilities company when a meeting entitled ‘Procurement Strategy’ appeared in his diary. He hoped – and assumed – that the meeting would be about the business’s long-term strategy, which he would then translate into a roadmap for his team. 

But he was wrong. 

Alison, the company’s CEO, told him that he need not bother himself with strategy, because ‘that’s what I’m here for.’ She said, unapologetically, that the job of internal functions like procurement was to ‘keep all internal stakeholders happy’ and that she expected his team to ‘do whatever was required’ to do just that. 

‘That was the problem with the last CPO,’ she told Ken, ominously. ‘She was always on a different wavelength, always chasing her own version of success. But while she did that, no one here was happy. Don’t repeat that same mistake.’ 

Why is the ‘Your Wish is My Command’ strategy so appealing? 

The ‘Your Wish is My Command’ strategy, or the idea a procurement function exists to simply do whatever is required by stakeholders within the business, is frighteningly common. This is because the basic premise of this strategy – the idea that internal functions are created to serve the wider corporation – is in fact correct. Many CEOs believe that the business units that create products or support customers should be supported by internal functions. While this is true, it can also be deeply frustrating for functions that need – and deserve – to create their own strategy. 

But the problem with the ‘Your Wish is My Command’ strategy runs much deeper than just frustration. 

What’s the problem with the ‘Your Wish is My Command’ strategy? 

The ‘Your Wish is My Command’ strategy works in theory only; as many CPOs will have now no doubt learnt. By granting ‘wishes’ – so to speak – to a multitude of different commanders, without any regard for what to prioritise or how to allocate resources, staff quickly become overworked, resources get spread too thin, and stakeholders are often underwhelmed. All decisions become reactive and nothing is done well, meaning that the all-important procurement influence is lost, with little room to show value added. Business units start ‘insourcing’ – either doing part of procurement’s job themselves, or looking for cheaper, external resources to do it for them. 

Overworked staff, insourcing and little value perceived to be added leads the C-suite to fundamentally question whether procurement is ‘worth it,’ meaning ever-more pressure on cost savings, and eventually, redundancies. 

The ‘My Wish is Your Command’ strategy is something that Dave Pastore, Senior Director, Sourcing Operations at Corcentric, has seen too many times – but, in his opinion, it never works: 

‘Any strategy that reduces the procurement function to a shared service without providing it with the ability to challenge the organisation is a squandered opportunity at best, and a self-inflicted wound at worst.’

On the surface, the ‘Your Wish is My Command’ strategy seems to make sense. But dig deeper, and it’s a deeply fraught concept that deprives procurement as a function of fundamentally doing what they need to do – adding value. 

Bad strategy #2 – ‘Market Leader’ Strategy

It’s clear that the ‘Your Wish is My Command’ strategy is no way forward. So is the opposite strategy, one whereby procurement makes clear choices that set the company apart vis-a-vis other procurement functions externally, the better choice then? 

Not quite… 

What is the ‘Market Leader’ strategy? 

As a new CPO in one of the world’s fastest growing tech companies, Karen thought she’d secured her dream role. And in her first few months on the job, that seemed to be the truth. 

As someone who was quite entrepreneurial and strategic herself, Karen knew that to become a ‘market leader’ in procurement, the company needed to invest heavily in tech. The CEO, himself a young entrepreneur, gave Karen the green light to do whatever she needed. ‘Just make sure we’re the best,’ he said, while signing off on a budget that made Karen’s eyes water. 

But as time passed by, problems materialised for Karen. It turned out that being ‘the best’ wasn’t as easy as emulating best practice in the marketplace, for a number of reasons. 

Why is the ‘Market Leader’ strategy so appealing? 

For ambitious CPOs, the chance to implement the ‘Market Leader’ strategy can feel like a career-defining moment. Firstly, it treats procurement with the respect it deserves, and places it equally with the rest of the business in terms of power and importance. Secondly, it just seems like the right thing to do. If you’re trying to be ‘the best,’ why not look for an example of that and then try and do the same? 

Creating a ‘market leading’ procurement function may well look good on your CV. It may be the case study that nets you media coverage; that amplifies your personal brand and that makes you an authority in the space. But at the same time, there’s every chance it will fail within your organisation. 

Why? 

What is the problem with the ‘Market Leader’ strategy? 

The ‘Market Leader’ strategy seems perfect until you consider one thing: context. And given that procurement is not separate to an organisation, but an integral part of it, context is hugely important. 

Take the example of Karen detailed above. What evidence did she have, beyond the fact that she was working for a tech company, that investing heavily in tech was what was needed for her function? Precisely none. Many procurement leaders have chased ‘best practice’ before, only to discover that what might be best in the marketplace may not suit their organisation for a number of reasons. 

Jennifer Ulrich, Senior Directory, Advisory, at Corcentric, believes that the idea that you have to be a ‘market leader’ in all aspects of procurement is misguided: 

‘You don’t have to be a market leader on every aspect of procurement in order to generate a competitive advantage to the organisation. 

‘Doing what is right for the business will put you in a winning position more often.’

While market-leading strategies look externally focused, they actually function more like internal monopolies, where procurement serves themselves, rather than the needs of the business leaders around them. As a result, the function falls victim to the typical problems experienced by monopolies, including arrogance and overresoucring. Managers within the business complain that resources are being used for ‘show’ as opposed to invested in things that would actually give the company a competitive advantage. 

As a result, backlash ensues. The ‘value’ added by procurement is again called into question, and the function is seen as the exact thing it is trying to rebel against: burdensome cost. 

So how should you set a procurement strategy? 

If a ‘Your Wish is My Command’ strategy doesn’t work, and neither does a ‘Market Leader’ strategy, then how should procurement create a meaningful, long-term and effective strategy? 

Diego De la Garza, Senior Director, Global Services, at Corcentric, recommends you begin by doing the following: 

‘Start with defining what success should look like for procurement in your organisation, finding those answers early is a relatively easy way to build a strategy that will drive healthy support across the organisation.’ 

Want more detail? Discover exactly what to do in our next article: How to Set a Procurement Strategy Part 2: What to do. Join Procurious now to be notified immediately when it’s published.

How To Navigate Office Politics (Without Selling Your Soul To The Devil)

How do you play office politics to your advantage? Here’s four skills you’ll need to do so. 


Let’s face it, no one, bar perhaps a few actual psychopaths, goes to work because they love the politics of it. In fact, toxic office politics is often cited as one of the key reasons people quit, and is also associated with low levels of engagement and productivity, and on the more serious side, mental health issues and stress complaints. Does this mean that politics should be avoided altogether? 

Absolutely not. 

Whether you like it or not, office politics are unavoidable. Even worse, if you do choose to try and avoid them, there’s a lot at stake. In most offices, politics are akin to the workplace’s unwritten rules, and they have the power to dictate how people should act, who gets promoted, and ultimately who enjoys career success and who doesn’t. Many successful people will tell you that politics can be even more important than merit – so it’s important to understand how to play them to your advantage. 

Yet for many of us, politics and ‘playing the game’ feels like a dirty concept. Is there a way that we can advance our own interests without making our colleagues collateral damage? In other words, is there a way to play the game without selling our soul? 

Knowing the difference between good and bad politics 

Although many people inherently think of office politics as a bad thing, political scientist and cultural researcher Harold Laswell doesn’t believe they have to be. In fact, Laswell encourages all people to think about politics as simply ‘the way things are done around here’ in any particular environment, and as such, know the difference between what ‘good’ and ‘bad’ politics might entail. 

In any organisation, and in any role, a degree of self-promotion in order to advance interests is needed. Good politics, then, is where you do so, but not at the expense of others or your organisation’s legitimate interests. For example, good politics may involve strategically making connections with important stakeholders or deliberating making an effort to better engage C-suite executives. Good politics, otherwise known as being savvy, well-networked, influential, an intelligent communicator and even a little charismatic, serve a higher purpose in that they help you get ahead – but don’t sacrifice others in the meantime. 

Bad politics are the opposite of this, though, and something we’ve all been a victim of. Bad politics are when you backstab, create rumours, or do something that you’d otherwise consider sneaky and immoral in order to advance your position. In other words, you advance yourself by sacrificing someone else. Bad politics feels bad because it is – and no amount of telling yourself that it’s “worth it” or they “deserved it” should help you feel better. Unfortunately, bad politics can help you get ahead, but the success that ensues is often short-lived. 

In reality, bad politics co-exists alongside good politics in most organisations. But in the best organisations, bad politics are stamped out and only good politics remain. And if you’re able to hone your good political skills, success can easily be yours. 

Honing your political skills 

The politics of the office are a far-cry from the politics of Downing Street or the White House. Yet are the skills required to play office politics that different? Not really. Here’s what culture researcher Gerald Ferris recommends are the essential skills make office politics work for you: 

  1. Social astuteness: Social astuteness is the next step beyond one of the most essential workplace traits: self-awareness. When you’re socially astute, you’re not just aware of yourself and your own strengths and weaknesses, but you’re also aware of how others perceive you and how your behaviour impacts them. For example, if you’re socially astute you’ll understand that Karen from HR doesn’t think too highly of procurement, and you’ll be proactively working to change that. 
  1. Interpersonal influence: We’ve talked extensively here at Procurious about why influence is important and we’re not going to stop anytime soon because it’s so true – your interpersonal influence is everything. Influence, defined as your ability to affect how and what others think, is essential in managing politics. But before you dive in to influencing your own agenda at work, it’s important to understand others and specifically, what their preferences and goals are. This way, you can personalise your approach to exact the greatest level of influence. 
  1. Exceptional networking: Networking skills are another of Procurious’s favourite topics for good reason – they are essential to success. As we’ve always maintained though, networking within an organisation needs to be a two-way street, and you need to ensure that you’re creating mutually beneficial relationships with people with whom you expect support from. 
  1. Sincerity: Politics has received such a bad rap before because people think it’s inherently dishonest. But to the contrary, good politics requires sincerity, honestly, and openness (or at least the appearance thereof, where complete transparency isn’t possible). If people around you perceive you as sincere, they’re more likely to trust and believe in you, which can help with advancing your cause. 

Politics may well be a dirty word, yet the outcome of playing good politics certainly is not. A plethora of research shows that having the above mentioned skills enhances not only job performance and satisfaction, but influence, salary, opportunities and advancement. So even if politics has never been your game, it’s time to participate to the best of your ability – your career success depends on it. 

What has been your experience with office politics? Do you typically see more bad politics than good politics? Let us know in the comments below.

Buying The Cheapest – The Biggest Myth About Procurement

Writing off Procurement as the department that finds things for the cheapest price is to write off a complex and important decision-making mechanism that expertly considers several vital factors over “buying cheapest”.


It is saddening how some organisations still think the only idea of Procurement is to buy the cheapest. This leads to numerous erroneous opinions about Procurement function and profession in general. Because of this myth, other departments within organisations try to avoid Procurement department while making strategic decisions. Consequently, in many instances those departments face numerous problems, such as poor service, substandard deliverable, late performance and even disappearing vendors.

It is important to instruct our colleagues and duly inform them about the role and significance of Procurement function in any organisation. It is important to bust Procurement myths.

First, in Procurement profession we do not even use the words “cheap”, “cheaper” or “cheapest”. These are banned words. Because the word “cheap” reflects many attributes, including quality. We say “lower in price” or “lowest-priced” or “less expensive” or “least expensive”.

Second, we never look at the price of goods, works or services, if we are not satisfied with the quality. Even if the price is $0.00. We are simply not interested in seeing the price of a bad quality product.

Third, we do not consider price if delivery schedule and delivery conditions are not what we requested. I.e. if medicines or other vital products are going to be delivered long after they are needed – why do we bother about the price at all?

Forth, most often we give zero attention to price if the company offering products or services is not qualified and reliable. Some exceptions might apply for new technologies, know-hows and monopolies.

Fifth, we do not consider price if a bidder disagrees with terms of the contract we envisage.

Only after all these criteria are met, Procurement starts reviewing, comparing prices.

So, in practice, we might review the prices of only 4 offers out of 20 offers received. The remaining 16 would be filtered out because of the criteria above that come before price.

But, there is “one more thing” (© Steve Jobs). Even comparing the prices at this stage does not mean the contract will be awarded to the lowest-priced offer. Buying organisation might have several other preferences, for example awarding the contract to a greener or more sustainable enterprise, or giving a preference to an SMEs, or local business, or businesses run by women, etc.

In other words, price is just one of those numerous factors Procurement considers.

Additionally, it is vital to acknowledge that while sourcing best value for the organization, Procurement wears two hats:

The first hat is for dealing with the final recipient of the product or service. Procurement needs to listen carefully and understand all the details and peculiarities of the final deliverable. The price of a mistake here is too high. Any concerns or alternative solutions should be properly discussed before going to market.

The second hat is for dealing with vendors. Here procurement needs to obtain the maximum value for the organisation, while keeping the vendors interested and motivated.

Negotiating in two fronts is difficult, but no one said Procurement is easy. Procurement is a complex and important decision-making mechanism that evaluates risks and offers solutions to guarantee the best value for money. It is certainly more than just buying the cheapest.

This article is based on series of lectures by Levon Hovsepyan organised in 2008-2014

This article was originally published on June 9th, 2020. Source: Procurement.org and has been republished here with permission.

5 Traits You’ll Need To Succeed At Contracting

What traits are required to succeed as a contractor? Here are the 5 must-haves.


For those of us that have only ever had full-time, permanent jobs, the idea of contracting may seem scary or strange. Why put yourself through all that uncertainty? What do you do when it ends? What if you fall in love with the company but can’t stay? These are the many questions that we might ask ourselves. And given the current economic climate, now might be time to start seeking the answers. But as it turns out, contracting is the answer to much more than those questions.  

At various times throughout our careers, whether it’s because of a global pandemic, a recession, an industry disruption or the fact that we’re just plain burnt out, we may decide or be forced to include contracting or consulting in our work histories. Contracting can have so many benefits that we may never have considered, for example, they allow us to experience new projects and challenges, forge new connections, and trial businesses and bosses to ensure they’re the right fit. Having the breadth of experience can also make us more marketable and hireable, and expanding our network can help us access ever more opportunities.  

In other words, contracting can be a great career asset – especially post COVID, as there will be more contracting opportunities than ever. Yet at the same time, contracting isn’t for everyone. So how do you know whether it’s for you? Here’s five traits you’ll need to succeed at contracting: 

Trait #1: The ability to influence others

Having placed hundreds of successful contractors over his nearly three decade career as a supply chain recruiter, Tim Moore, President of Tim Moore and Associates, believes that there is one trait that is, without doubt, the most important trait you’ll need to succeed as a contractor. And that trait is the ability to influence others. He says: 

‘As a contractor or consultant, you’re called in to solve issues. It could be relatively minor, involving a single department or concern, or it could be monumental and systematic, affecting the entire company. The bottom line is that fixing it is up to YOU.’ 

Given the focus on fixing things, many people mistakenly think that good qualifications and good experience count for more when you’re contracting. But that certainly hasn’t been Tim’s experience: 

‘Time and time again I’ve seen a great candidate, someone highly educated with a Masters degree, several professional delegations and years of dedicated experience, I’ve seen them not succeed at all at contracting.’ 

‘These people may have great potential on paper, yet they’re not totally effective because of a lack of ability to communicate and ultimately influence others.’ 

But what does totally effective look like? It’s certainly a high bar, Tim believes: 

‘As a contractor, if you can’t elicit the burning desire, conviction and approval of others toward a common vision, goal or operating solution, no amount of planning, networking or knowledge will suffice.’ 

‘You need to be able to influence others in an effective manner, not through coercion, but by projecting and justifying a vision or solid course of action toward an acceptable solution.’ 

Trait 2: The ability to create trust

Being as persuasive as Tim describes can certainly feel like a tall order. But it isn’t as hard as it seems, if you possess another trait which is essential in contracting and that is: the ability to create trust. 

Trust is the backbone of all good relationships and as such, the more you focus on it and deliberately work to develop it, the easier it will be to influence others. But how do you create trust? There are a few specific things you can do, Tim says: 

‘If you’re looking to create trust, it’s so important to “walk the talk.” Be honest with your communication and with all of your decisions and motives … even if it’s bad news, unfavourable, or a tough decision.’ 

‘Consistency is also important. Be reliable and supportive.’ 

As great as this all sounds, any of us who have worked in challenging cultures or with difficult stakeholders know that it can be easier said than done! But that’s all part of the challenge of being trustworthy and influential, Tim believes. And realistically, it may involve overcoming previously held fears: 

‘As a consultant or contractor, you can bring fresh perspectives. Yet still it can be scary to speak up, especially if it’s an unpopular perspective or contrary to the status quo.’ 

Tim likens this fear to the famous story, Hans Christian Anderson’s The Emperor’s New Clothes. In the story, two weavers promise an emperor new clothes, but say that they will be ‘invisible’ to people who are incompetent or unfit for their positions. In reality, the weavers make no clothes at all, but when the emperor parades his clothes, everyone, fearful for their jobs and status, are too afraid to say anything. In the end a child, who doesn’t share the same fear, cries out ‘but he isn’t wearing anything!?!”

For Tim, an exceptional contractor is one who plays the role of the child in challenging situations: 

‘The difference between a good contractor and an exceptional one is the ability to tell the truth to power … regardless of popular opinion.’ 

Trait 3: The ability to convey empathy 

By now, you’re probably pretty clear on the fact that as a contractor, you’ll need to influence others by first gaining their trust, which, in many cases, may involve breaking with the status quo. But for any of us that have tried to do this, we know that it’s often not well received. Is there a better way, then, to share unsavoury views and opinions? 

There is, according to Tim. And the secret is empathy. 

‘When you speak the truth without empathy, especially when it’s critical in nature, it can be non-productive and can build barriers to creating trust and influence. You must develop the ability to detect other’s emotions and understand their perspective, whether right or wrong.’ 

‘Being non-judgemental and listening enables others to feel accepted and understanding where they are coming from validates their opinion.’ 

To convey empathy, you always need to listen before you speak. And to get the information you need to convey empathy, you may need to dig a little deeper than simply asking for your stakeholder’s opinions, Tim says: 

‘You can convey empathy only after you truly understand your stakeholders. And to do this, you need to ask them about their priorities and preferences, you need to understand their motivations and how they fit into the project you’re working on.’ 

‘In order to garner this deeper understanding, make sure you give stakeholders your full attention. Simple things like eye contact and ensuring you’re not multitasking show that you respect them.’ 

Trait 4: The ability to research properly and fully engage others

As a contractor, you’re often in the hot seat when it comes to solving problems and giving advice. And given your experience, you should be. But does this mean that you should go in guns ablazing and start firing off your expertise before doing your research and engaging others?  

Absolutely not. 

In fact, according to Tim, the fourth critical trait you’ll need as a contractor is the ability to fully engage with your stakeholders and proactively seek opinions and information before you make any judgement. Prior to positing any solution, you should ensure you’ve identified and fully explored all available options. 

Doing your research in this sense in so important, so when you’re active listening, ensure that you’re also engaged, says Tim: 

‘Engaging others is NOT a spectator sport. You have to get involved, get to the root of the problem, and do so in a non-threatening manner. It’s only then that you can seize the opportunity to educate others about your supply chain perspective and responsibilities.’

Trait 5: Being an expert in your profession

Have you noticed a trend with the traits we’ve listed above? Yes, you’re correct – they are all ‘soft’ skills, which, especially in the brave new world of procurement and supply chain that is starting to emerging post-COVID, are particularly important. 

Given the complexity of our profession, though, naturally one final trait is important, and that is: the ability to be an expert in our profession. And when it comes to contracting, it’s important to figure out exactly what you’re an expert in. To do this, Tim recommends reflecting on your last couple of work assignments and asking yourself the following yourself what you might be known for: 

‘Of everything you’ve achieved, there’s probably one or two things you’ve performed particularly well in. Perhaps you’re really good at cost savings, negotiating, or transitioning legacy IT systems to  leading edge capabilities. Whatever it is, pick a couple and run with them.’ 

Contracting skills = career assets

As the world begins the slow recovery from the pandemic, there will be more and more contracting opportunities as businesses look to hire in specialist skills and undertake new and exciting projects. So even if you’ve never contracted before, now could be the time to give it a try, as you’re likely to be able to garner some unique experiences, and perhaps even career-defining opportunities. 

Regardless of the opportunities, though, one thing is for sure: the traits you’ll need to succeed as a contractor are equally important in any role, so developing them in any way you can will represent a distinct career advantage. 

What other traits do you think are required to succeed as a contractor? Let us know in the comments below. 

Suppliers: Who And Where Are Your 1%?

You might think that your most strategic suppliers are the ones you spend the most with. But supply chain crises may shine a light on which suppliers are actually strategic.


Modern-day supply chains are truly global, highly complex and getting longer and longer. 20 years ago, most of a company’s suppliers were probably within a very short radius. Today they could be on the other side of the world.

The reality is that organisations have more difficulty than ever keeping track of their entire supply chain – from Tier 1 all the way down to the smallest supplier organisations. This poses enough challenges for organisations when it comes to issues like environmental performance or modern slavery, let alone with supply chain efficiency or continuity of supply.

With so many suppliers to keep track of, organisations have to make decisions about who their strategic suppliers really are. Traditionally, organisations (and their procurement departments) have fixated on the suppliers with the largest spend volumes. In reality, they should be most concerned about a supplier’s risk profile.

This risk profile is thrown into light at times of crisis in global supply chains. This may come from volcanic eruptions disrupting global flights and travel, or from a global pandemic, such as COVID-19.

What Does the 1% Look Like?

All suppliers are unique, bringing different things to an organisation beyond the goods and services they provide. When assessing which suppliers to manage as ‘strategic’, procurement departments have traditionally focused on their visible suppliers. This usually is defined by spend profile and determined using traditional methods such as the Pareto 80:20 principle.

However, it’s the less visible, hidden suppliers that are often the most strategic. These are the 1%.

This group is made up of the suppliers who are easiest to ignore as they supply something low-cost and apparently trivial to the organisation. In truth, this trivial component may be manufactured from an expensive or rare raw material, be a proprietary item, or come from a supplier who has a monopoly or dominance in the market. Despite this item costing very little, the likelihood is that it is difficult, if not impossible to replace. This makes the potential impact on the supply chain huge should the supplier fail to deliver.

Assessing these suppliers using another procurement favourite, the Kraljic Matrix, they would fall into the ‘non-critical’ or ‘bottleneck’ categories (see below).

Figure 1 – Kraljic Matrix via Forbes.com

However, in many cases, the risk aspect of supply is downplayed or removed entirely, leaving the focus solely on profitability. This is where the issues with your 1% lie.

The Role of Technology

In times of supply chain crises, every supplier – even your ‘transactional’ and ‘bottleneck’ suppliers – need the same attention in order to ensure you’re not missing something. What may have once seemed like an impossible and highly inefficient task has been aided considerably by the advancements in procurement solutions and technology.

Organisations have gone from a reliance on their transactional systems, such as their ERP, and the knowledge and experience of their procurement teams to manage their suppliers. This has left organisations exposed through a lack of data to define and manage strategic suppliers, as well as the loss of knowledge when people leave to join another organisation.

Procurement technology and solutions have developed to the extent that they can help provide the necessary foundation for tracking an entire supply base. This has moved the profession from a position of weakness, to a position of strategic responsibility. In the current climate, people are now actively talking about supply chains and procurement’s role now and in the future.

Therefore, the profession cannot undermine itself by failing to manage its 1% effectively. Even big organisations, with highly developed supply chains can be caught out, as we can see below.

Real World #1 – Keeping Supplies Zipped Up Tight

The fashion industry has taken some very public, very high-profile hits for its supply chain. Organisations have a uniquely complex situation to contend with – finding suppliers who are flexible, reactive and usually low cost on one hand, while on the other ensuring that the highest ethical standards are still achieved.

Suppliers can frequently be small, family-owned and geographically challenging too. However, you might consider an everyday item on many items of clothing a product of a 1% supplier – the zip.

You might overlook it, but a zip is a critical item for manufacturers and designers. The market is dominated by two major suppliers, YKK and SBS, but there are other players there too. However, the majority of these are geographically focused in Asia – specifically Japan and China. Switching supply is unlikely to be easy, so all it takes is a supply chain crisis in this region, say a lack of key raw materials or alloys for production, and supply could be disrupted, without viable alternatives.

Low value compared to other items in the fashion design process, but very high risk.

Real World #2 – Bearing the Risk

Manufacturing is another industry with highly complex and multi-layered supply chains to manage. In automotive manufacturing, supply chains have moved towards the ‘Just-in-Time’ method pioneered by Toyota, making continuity of supply and supplier reliability critical at all times. It’s no use having 99% of the parts available to use, when the 1% is stuck in its factory, two tiers down your supply chain.

As such, a greater focus on quality over price is required, but even this is not fool proof. Fiat Chrysler announced in February that it was halting production at one of its factories in Serbia as it couldn’t get parts from China. Manufacturers who would traditionally hold minimal stock to remain competitive and agile are faced with a situation where that very strategy could pose a huge risk to their organisation.

As the impact of COVID-19 related factories closures around the world continues to grow, even large manufacturers may actually stock out before there’s a chance to re-align. And these items could be as simple as ball bearings for wheels – very low value, but huge risk at this time.

De-risking the 1%

Is there a solution that overworked procurement professionals can take advantage of in the face of a supply chain crisis? When it comes to supplier risk, there are a number of actions that may be taken immediately in order to reduce this.

According to KPMG, these can include setting up a response team to manage the flow of information across key stakeholder groups, reviewing key contracts with customers and suppliers to understand liability in the event of shortages, and conducting a full risk assessment to provide a list of actions to take, which may include shortening supply chains and assessing alternative options.

In the long-term, however, the focus needs to be more on supplier management and the creation of truly ‘strategic’ relationships, built on risk profiles rather than value. This should be done across the entire supply chain and aim to go down through the various Tiers that exist in it. This is defined as ‘Holistic Supplier Management’, a concept explored in more detail by JAGGAER in their latest whitepaper.

JAGGAER’s research uses a similar model to the Kraljic Matrix for supplier positioning, but with the key difference that it focuses on risk and cost to the business (rather than cost of supply) in the event of supplier failure.

Figure 2 – JAGGAER Supplier Positioning Matrix

A concept is all very well but being able to deliver Holistic Supplier Management and manage suppliers on risk and cost requires being able to access data on current performance, the impact of an individual supplier on your organisation, as well as the value that they deliver. This is where technology comes to the aid of procurement and it’s what is offered within the JAGGAER Supplier Management solution.

The solution not only provides the data and analysis that is required by procurement for key decision-making, but also gives a deeper understanding of suppliers to help construct better contracts that deliver greater value to the organisation. By using technology like this, procurement can effectively and efficiently de-risk their supply chains, keeping them better prepared for managing crises when they inevitably hit.

Don’t Get Caught Out

The key message, as every procurement professional knows, is that good communication is key to maintaining a strong and stable supply chain. However, as supply chains grow more and more complex, geographically dispersed and multi-tiered, individual procurement professionals and departments need to make use of all the resources at their disposal.

Holistic Supplier Management can help procurement be better prepared, mitigate risks and start to understand what strategic procurement and strategic suppliers really are. You can find more information on the JAGGAER website, or by downloading their latest whitepaper, ‘How To Achieve Holistic Supplier Management: Orchestrating Supplier Management for Maximum Benefit’.

No matter how safe you think you are, how stable you believe your supply chain is and how strong your links are with your strategic suppliers, there is always an inherent risk within that 1%. By being better prepared and truly understanding your supply chain, you can avoid being caught out in time of crisis.

How To Get Your Suppliers On Board With Your New Tech

Careful planning and a willingness to adapt help ensure that your key suppliers stay with you when you’re implementing a new tech system


Implementing a new tech solution can be like a voyage into a new world. There is the promise of efficiency, the draw of increased margin, and the assurance of better working relationships.  But much like a voyage, reaping the benefits of process automation in procurement means that all parties must be fully on board – including suppliers.

Implementation is a complex process in itself, with many important steps to take before the new system is in place.  Even if companies implement the best available solutions for their processes, their biggest obstacle is often the resistance of their suppliers to implement the new cloud system. 

Visibility is important to any journey.  When it comes to supply-chain collaboration, companies don’t just need a supplier or vendor, they need a trusted partner to accompany them.  But how? Here are three steps to help you make sure your suppliers are on board with you on your voyage to new tech.

1. Get organised and build a strong message

You know your destination, but does your entire crew?  The success of your implementation will depend on how well you communicate the changes – and proper expectations – to your suppliers.

When building your case, you’ll need to consider which suppliers you want to get on board.  Don’t overwhelm your resources, have a manageable list of targeted suppliers and ensure that all of your supplier contact information is up to date.  While this process can be time-consuming, it’s crucial that you begin with an updated supplier database to ensure efficient and effective communication.

Once you have your crew accounted for, create a detailed communications plan that includes messaging before, during and after the implementation of your new cloud system. Your messages should build a sense of urgency and excitement about the implementation, as you’ll want suppliers to get on board in a timely fashion to not cause any delays.

Sharing the value proposition will help encourage suppliers to actively participate in the onboarding process.  Catering your communication to each specific population, you should focus on answering a few key questions:

  • What’s in it for them?
  • Which option is right for their organisation?
  • What steps do they need to take right now?

Build a supplier-facing portal where suppliers can get their questions answered quickly.  Realize that no matter the incentive to your suppliers, building a united front may mean burning some bridges  – you can’t start your campaign with offering a contingency plan for those that don’t adopt.  Enforce the mandate and don’t look back.

2. Take the helm…but first, delegate

One of the most common pitfalls in supplier onboarding is when a client takes on too much or do not properly define roles and responsibilities.  Not only is this bad optics for your project, but it discourages suppliers, making it more difficult to achieve your enablement goals.

Once you have a clear communications plan in place, it’s necessary that you determine who is responsible for what during your voyage.  Have a defined escalation process with clear roles and responsibilities.  Make sure buyers and category managers are on board with your plan and create a step-by-step process defining who will do what when a supplier declines to enroll.

This will hold all parties accountable, including your suppliers, and avoid unwelcome surprises or project launch delays.

3. Remain consistent, realistic, and optimistic

Once the voyage to the tech new world has started and implementation is underway, make sure you monitor progress. 

Stay consistent in your message but be open to the fact that some supplier populations may need more time and support than others – or may not reach your destination at all.  Offer incentives along the way to increase the perceived value of your system and encourage higher rates of adoption.

Keep in mind that when implementation ends, the process is not necessarily over.  To continue to ensure that suppliers are being added to the platform, you’ll need to develop a long-term plan and dedicate resources to manage the solution after it’s implemented.  Perhaps consider making the roles you have defined or the standard procedures you have created permanent.  Individuals that are responsible for enablement will be able to look at data regularly to identify changes in volume, follow-up with suppliers, and make adjustments as needed.

With these strategies in place, you can embark on your procurement tech voyage ensuring that you and your crew stay the course to success – and can reap the benefits promised at your destination.

Did you know that Matt has teamed up with Procurious to launch ‘Major Tech Fails’ – a series looking at everything from implementations to getting buy-in. Register here

Finding Your Voice: Writing Brilliant Blogs

When done right, creating content can be an amazing tool to grow your personal brand. So, what makes brilliant thought leadership content? Let’s take a look…


Do you dream of being the world’s number one procurement influencer or one of our profession’s Gamechangers.  Well, blogging is an important step in raising your profile.  Here’s how to find your voice…

On the internet, content is king. So wrote Microsoft founder Bill Gates in an influential and still oft-quoted essay in 1996. Content informs and entertains. It can move people to action, whether that’s visiting a different website, buying a product or service or changing their thinking and behaviour. It is enormously powerful, done right.

But with millions of pieces of content added to the internet daily (four million videos are uploaded to YouTube every day, to give just one example!) how can you as a procurement professional stand out?

Start with these top tips for finding your voice, building your personal brand and creating brilliant thought leadership content online…

Who are you?

You might think that’s an easy question to answer. But when you’re considering your online presence, it requires a bit more thinking to create a personal and professional brand that will help you stand out from the crowd and be seen as influential and credible. Ask yourself the following questions:

What do I want to be known for?

Who is my audience?

What is my unique selling point? Why should people listen to me?

Once you’ve answered those questions, you’ll have a clearer idea of the topics you should create content on, the style of content you want to create and also the kind of things you want to stay away from. You can’t do everything, so pick your niche and stick to it.

Know your angles

Any content you create needs to have an angle. If you’re writing a blog post or thought leadership article, your angle is the clear theme or point that you want your readers to take away from your piece. An article without an angle is unfocused, unclear and uninteresting.

The best way to identify your angle is to think about the headline of your piece. How can you best sum up your idea into a short, compelling statement that will make people want to read the whole piece? Often a good idea is to answer a question that people might have or to offer a series of tips. For example: ‘How to build brilliant stakeholder relationships remotely.’ ‘Five creative ways to make cost savings in indirect procurement.’

Writing great copy

So you’ve got your angle, how do you write a great post? When it comes to online content, the best approach is to keep it short (fewer than 1,000 words unless you’ve designated it a ‘long read’), punchy and accessible. Our attention spans are getting shorter by the year – thanks internet! – and people do not have the patience to engage with overly long and complex material online. Break up your article with sub-heads, use bullet points or pull out a few top tips at the end.

If it’s getting too long and complicated, why not break it up into a series of pieces? This will also encourage people to keep coming back to you for insight.

And it might seem obvious, but remember to proofread your work. Your ideas might be fantastic but you’ll be far less credible if your pieces are riddled with spelling errors and misplaced apostrophes!

Keep it consistent

Consistency is a critical pillar of building trust, and you want to be a trusted voice and expert on your chosen topic. Being consistent means committing to putting out content regularly – not spamming people but making sure you are continuing to put out a regular stream of interesting and insightful pieces. If you are starting to blog, you can’t just post something every six months. Instead commit to at least once a month.

Consistency also relates to your voice and subject matter expertise. People should know what to expect from you. That doesn’t mean you can’t mix things up and be creative, but don’t just write about something for the sake of it or because everyone else is doing it. Being consistent means being genuine, authentic and true to yourself and what you stand for.

Know your channels

If a procurement professional writes a blog, but no one reads it, was it even worth writing? Think about the channels you can use to amplify your voice. Twitter and LinkedIn are great tools to publicise your work but also to ensure you are consistently sharing relevant content by others that relates to your interests and the personal brand you have created. Using a platform like Procurious is great because it has a readymade engaged audience eager for insightful content.

And think about format as well as channel. Is written content best for this message or could you get creative with video or audio? Should you embed infographics or imagery? Have fun with it and your audience will enjoy it as well.

Join Procurious to connect with 40,000 other ambitious procurement professionals and get free access to networking, industry news, training and much more. 

5 Ways To Stay Connected During COVID-19

We all know networking and creating connections with the people around us is important, but how do we do at the moment? Here’s how. 


Any successful person will tell you that it isn’t what you know, but who you know that gets you ahead. Forging new connections and fostering existing connections can help you broaden your horizons, discover new opportunities, and even secure a much sought-after promotion. Often though, creating these important relationships happens in person. Whether it be via a kitchen chat at your workplace or at an industry-specific event, great connections often start with a personal conversation, a handshake and perhaps an impromptu coffee. 

Yet unfortunately, with the world the way it is at the moment, the face-to-face option is not appropriate and in many places in the world, not even possible. So does this mean that networking needs to stop? Certainly not. Here’s five creative ways to stay in touch with your connections, new and old, without ever having to shake a hand.

1. Check in people in your network 

Given that demand for mental health services have soared worldwide, from a care perspective, there’s every reason to check in on people within your network, and a number of ways you can engage with them. 

Connecting or reconnecting with people could be as simple as asking them how their pandemic experience has been, and whether they are, personally, doing ok. Doing so will help them feel supported, and could open up any manner of conversations about future plans or potential opportunities. Connecting certainly doesn’t need to happen in person, but instead should be done via industry-specific networking sites such as Procurious. 

Given the high amount of people who have lost their job or had their hours or pay reduced, it is also a great time to ask others whether you can introduce them to anyone in your network. Well-timed introductions can make all the difference right now, and could be the source of hope and inspiration a colleague needs to get back on their feet.

Finally, it’s been a tough year for everyone, and every extra endorsement can help boost not just someone’s profile, but their morale as well. If you get a chance, give a colleague a recommendation. It could just be the boost they need to secure an opportunity. 

2. Lend a hand – if you can 

The pandemic has been personally and professionally challenging for many of us, but on the flip side, has also brought out the best in people. From Captain Tom Moore raising 32 million pounds for the NHS charities to global fundraisers to buy healthcare workers coffees, many people have gone above and beyond to help those in need. And it’s something you can do, too. 

With the unprecedented number of people out of work at the moment, many may be looking for work for the first time, so offering to look over someone’s CV could be of real benefit. Alternatively, you could direct them to opportunities within your network, or even recommend online events or upskilling options that might help. Helping others in need is what networking is all about – you never know when you’ll need to call in a favour and your connections won’t forget that you helped them out. 

3. Give recognition and show as much appreciation as you can

When it comes to feeling appreciated by our colleagues and managers at work, people typically believe that money speaks louder than words. But research shows that isn’t true. In fact, simply saying thank you can go a long way – and can help deepen your connections with those around you. 

Research conducted by Gallup of over four million employees showed that recognition at work boosts not only someone’s morale, but their productivity and engagement with those around them. In other words, recognition makes us happy! But how do you do it in a sincere and meaningful way? 

One great way to do it is to give someone praise for something they individually contributed. Ideally, do this in a public forum, such as a procurement industry group discussion board. Giving someone praise publicly for their great work will help them amplify their impact. 

4. Recommend learning content 

While many of us in procurement have found ourselves busier than ever during the pandemic, some in certain industries may have found ourselves scratching our heads, wondering what to do. This might particularly be the case if we’ve been furloughed or worse, made redundant. 

But if we’ve found ourselves with spare time, there’s plenty we can do about that! When this pandemic is over, the procurement landscape will look a little (or entirely) different from what it did before. That’s why now is the time to focus on a number of different technical and soft skills, including resilience. Many courses that you might be interested in are inexpensive or even free, and recommending them to other people can help showcase your industry knowledge and give you a reason to get in touch with your connections.

5. Start a group chat (and talk about things besides work)

The point of creating connections is to broaden your network and potential opportunities. But in creating and fostering these connections, sometimes it’s important to talk about everything but work. Plus, having a casual chat and even sharing some humorous banter with colleagues can inject some fun into your day and help you feel less lonely and more connected. 

Whether it’s you sharing cat snap chats or talking about your children or the (limited) activities you’ve been able to undertake during lockdown, bringing your whole self into group conversations can help foster more authentic connections with those around you. 

How have you been staying connected with your colleagues and those in your broader network? Do you have any other suggestions? Let us know in the comments below.

What You Need To Know About Supplier Payments, Bankruptcies And The Financial Impact Of COVID-19

Considering this macro-economic turmoil, new research shows that most contracts and supplier partnerships held strong during the pandemic


The early days of COVID-19 were financially tumultuous and incredibly stressful. For most business executives, uncertainty ruled the day: Would my contracts hold? Will I get paid on time? And will I have enough funds to pay my team and suppliers?

The issue is exacerbated in the supply chain, where late payments and cancelled contracts in one part of the world create chaos for unrelated businesses located millions of miles away. Of course, these short-term concerns were ultimately trumped by even bigger issues relating to bankruptcies, business closures and unemployment.

Considering this macro-economic turmoil, Procurious’ latest research shows that most contracts and supplier partnerships held strong and stood up to the stress test – which is a major testament to procurement’s response and the strength of existing buyer-supplier relationships.

Our survey of 600-plus procurement and supply chain leaders found that nearly 60% of organisations (58%) are still operating and paying their suppliers per their contract. In fact, 14% of organisations are speeding up payments to suppliers and 6% are providing direct financial support. On the other end of the spectrum, 10% said they are delaying payment to all suppliers, and another 11% said they were delaying payments to non-strategic suppliers. Overall, this is positive news – for buyers, suppliers and the broader economy.

However, the longer the crisis plays out, the more financial strain it will cause. Despite the positive news on payments and contracts, there has already been substantial financial hardships and fallout among suppliers. Our research found that as of May 12, 2020:

  • 6% of organisations said they had a key supplier go out of business
  • 11% said they had multiple key suppliers go out of business
  • 20% said they had a supplier declare fore majeure on contract obligations

Our analysis shows that the companies hit the hardest by COVID-19 were more than 50% likely to have multiple key suppliers go out of business compared to other organisations.

The Economic Forecast: Cloudy with 100% Chance of Unpredictability

Predicting what’s next economically is difficult, and possibly even an exercise in futility. We’ve heard it all from the experts, with projections changing by the day: V-shaped recoveries, U-shaped recoveries… and even the swoosh.

What’s not hard to predict: regardless of how fast the economy recovers, the response from procurement teams will continue to play a critical role in ongoing business continuity and financial resiliency. During the pandemic, 65% of organisations had to source alternative supplies for affected categories. Procurement responded quickly and effectively – with 53% able to lock down new suppliers in less than three weeks, and 18% finding new suppliers in a week’s time.

Post-pandemic, it will be interesting to watch if and how contracts evolve, and the weight put behind different conditions and KPIs. We are already expecting macro supply chain strategy shifts , which will naturally impact sourcing decisions and contract negotiations. Expect to see even more emphasis put behind collaborative supplier relationships, and new investments in predictive analytics and supplier risk monitoring, specifically as it relates to financial viability.

The financial picture remains uncertain at best. How are procurement and supply chain leaders responding? Get the latest in our “Supply Chain Confidence and Recovery” Report.


5 Outdated Myths About Blockchain

Is there a compelling reason to use blockchain in the supply chain? We separate fact from fiction.


The supply chain profession is no stranger to blockchain. 

In fact, a survey this year of supply chain professionals showed 80% are familiar with blockchain – a whopping 21% increase on last year.

And almost half of respondents plan to invest in blockchain over the next two years.

Yet for all the ways blockchain is modernising the supply chain, some still view the technology with a healthy dose of scepticism. There’s still a great deal of room to establish what role blockchain plays. Its place in the supply chain toolkit still isn’t fully defined.  

And that leads to ongoing misconceptions.

It’s time to bust some of the myths surrounding one of the most coveted 4.0 technologies.

Fixing weaknesses

Widespread disruption highlighted issues that already existed in the supply chain.

One of the most apparent issues is paper documentation for important processes and transactions. 

Important documents like Bills of Lading and Certificates of Origin are still largely paper-based.

Yet, these documents are often late to the destination port, or even lost – costing businesses $200 billion each year (World Bank).

So why do we still use paper? Because we don’t trust each other, according to the University College London Centre for Blockchain Technologies (CBT).

“Despite…strikingly obvious inefficiencies of paper documentation for international trade, it is still considered to be the industry standard, largely due to lack of trust between different members of the international supply chain,” the CBT notes.

Luckily, blockchain technology could solve this and other trust issues that make it hard to do business internationally.

Blockchain allows companies to track products throughout the supply chain using digital, unchangeable records.

[Need a quick blockchain intro first? We’ve got you covered ]

“A panacea for our ailments”

It’s the logical solution, especially in today’s economy, says Professor Olinga Ta’eed from Birmingham City University.

“Covid-19 has highlighted a crisis of trust in countries, people, organisations, products, and processes,” he says.

“Blockchain has features that do not require trust to operate effectively. Decisions are automated and not dependent on personal relationships, politics, or bias.

“It is thus a panacea for our current ailments, both immediate, but also structurally in a future society.”

Enter blockchain

That might seem counterintuitive. After all, how can a system that doesn’t require trust actually improve trust?

The beauty of blockchain is everyone across the supply chain can access the same information at the same time. They can be confident the information is verified and unchangeable. Just what we all need in this brave new world.

Using blockchain technology lets you track in real time:

·  Where goods are

·  Their physical condition

·  Changes made during the transaction lifecycle

·  Who or what is causing a delay

·  The quality and authenticity 

·  Discrepancies in transaction documents

·  Contractual terms and conditions

That equal access to information fosters trust between business partners. And you can build a lot of great things from a base of trust.

Trust is something we sorely need. So, what’s keeping companies from adopting blockchain more widely?

There is still a lot of misinformation circulating about the technology.

That’s why it’s time to stamp out five of the most common blockchain myths:

Myth 1) Blockchain is bitcoin

One of the biggest scepticisms about blockchain is rooted in its links with bitcoin.

Bitcoin and blockchain are NOT the same thing. Bitcoin is a form of ‘cryptocurrency’. It was invented in 2009 as a way to store value without relying on a central authority (like the government).

But it couldn’t work on its own; it needed new technology to make it work, so blockchain was invented.

That’s how the two are related. Blockchain is the engine that makes the bitcoin car run, but just as you can use an engine in lots of things besides a car, blockchain has more applications than just bitcoin.

Companies are taking advantage of the proven strength of blockchain in solving new challenges beyond financial.

In fact, one of the most celebrated uses of blockchain technology is in supply chain management.

Take the retail giant Walmart, which uses blockchain technology through the IBM Food Trust to track produce from farm to shelf.

The retailer can now trace the provenance of produce in seconds, instead of days. And Walmart certainly isn’t the only one interested in traceability.

Gartner predicts that by 2025, 20% of the world’s top grocers will use blockchain to track food safety.

Pharmaceuticals is also a key area for blockchain technology.

The United States Food and Drug Administration recently finished a pilot programme tracing the full supply chain of prescription drugs using blockchain. The results? It now takes two seconds to track a drug instead of 16 weeks.

And quick thinking during the pandemic led to creation of IBM Rapid Supplier Connect.

It uses IBM’s blockchain network to help government agencies and healthcare organisations source reputable equipment from new, non-traditional suppliers.

As Jason Kelley, General Manager of IBM Blockchain Services, put it: “Finding, vetting and then securing new suppliers takes time, more time than the public authorities and private sector can afford.”

The system allows new vendors to be onboarded in as little as 30 minutes.

“[We] help members of these essential supply chains continue to find the vendors, materials and tools they need so that time and attention can be focused on addressing the current and ongoing requirements as a result of this pandemic,” Kelley says.

Myth 2) Blockchain is only useful for projects that are massive in size and scale

Blockchain makes obvious sense for global retailers with thousands of suppliers.

But what about for smaller companies?

Yes, and it’s a lot easier than you might think to get set up on a blockchain network.

The bulk of supply chains rely on point-to-point communications. Blockchain makes it simple to collaborate using many-to-many communications – giving you a single version of the truth.

That’s something that companies of all sizes need.

And it’s even more practical now that there are blockchains built specifically for enterprise use.

Like IBM’s blockchain network Trust Your Supplier, created in partnership with consultancy Chainyard. This private network delivers the ultimate in supply chain transparency, as buyers and sellers can all access the same end-to-end data in real time.

It eliminates time-consuming admin, like trying to verify supplier identities and track documentation.

Through Trust Your Supplier, businesses of all sizes can validate and onboard suppliers in a secure and efficient way.

Myth 3) It takes a long time to get suppliers set up

Many companies like the idea of blockchain, but they worry about the time and effort of getting suppliers set up.

The reality is it can actually be quite fast.

For example, IBM lets you onboard suppliers in hours versus days or weeks to a permissioned blockchain relationship.

And as we all know too well after recent disruption, speed is everything.

Once set up, companies see quick returns on investment through visible deliveries, reconciled invoices, and better return management.

And not to worry – no advanced computer programming degree needed. Your enterprise blockchain supplier can walk you through the entire process of getting on the network.

Myth 4) You have to abandon systems you already have

Another common belief is you need to throw out all your existing supply chain management systems if you use blockchain technology.

Not necessarily. As IBM puts it, “We believe that traditional methods like EDI, when complemented and extended by emerging technologies like Artificial Intelligence (AI) and blockchain, will be the fastest path to realizing a new era of B2B transaction efficiency gains.”

It’s possible through technology like IBM Sterling Transaction Intelligence Multi-Enterprise Edition. It helps companies leverage EDI investments by bringing important documents into a shared blockchain, giving different parties the same visibility. 

So it’s totally possible to see a fast return on investment without scrapping your current processes.

That said, you may want to consider if your legacy systems are really serving your needs, advises Jack Shaw, a technology futurist and leadership speaker.

“I think most business professionals are far too concerned with trying to use their existing tools, technologies, and processes to solve their immediate, short-term problems to think about how blockchain…could actually help them do their jobs much better both now and in the long-term,” he says.

“This is really a strategic shortcoming as they should be thinking about how the current pandemic necessity could be the mother of innovation, leveraging emerging technologies for strategic benefit.”

Myth 5) There is only one blockchain network

There isn’t one central blockchain network that everyone uses.

There are actually several different types of technology that go by the name ‘blockchain’, and there are public and private blockchain networks.

In public blockchain networks, like the ones used by bitcoin, the data is open for anyone to access. The transactions are still unchangeable, but they are visible for scrutiny.

On the other hand, there are private blockchain networks, like the ones used by IBM enterprise clients. You can place restrictions on who is allowed to participate, and anyone who wants to join needs your permission.

That gives you tighter control on who can see what, while still maintaining transparent records.

Is it time for blockchain?

For all its benefits, blockchain will not magically solve all supply chain issues overnight.

But the ability to strengthen, connect, and improve the resilience of supply chains will be key to recovering from the pandemic, according to Mariam Obaid AlMuhairi of the Dubai Future Foundation.

“If there were any lingering doubts over the value of blockchain platforms to improve the transparency of businesses that depend on the seamless integration of disparate networks, COVID-19 has all but wiped them away,” she said in an article for the World Economic Forum.

“We should look at this healthcare crisis as a vital learning curve that can show us how to build transparent, inter-operable and connective networks.”

For more Industry 4.0 talk, join the conversation in our Supply Chain Pros group

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