Introducing the Lavergne Procurement Matrix

Are you a #procurement value-creator, or a cost-reducer? Perhaps you’re neither of these – or both? Procurious member Remy de Lavergne has created a new matrix that shows, among other things, just how far the profession has come. 

“Procurement is the process of finding, agreeing terms and acquiring goods, services or works from an external source, often via a tendering or competitive bidding process. The process is used to ensure the buyer receives goods, services or works at the best possible price, when aspects such as quality, quantity, time, and location are compared.” (Wikipedia)

This definition is clear, but it is not enough for me – and probably not enough for you, either.

I have been purchasing for 20 years now in different countries and industries and I often read and hear very interesting things about procurement issues, but not enough to give me a global picture about the profession’s objectives and  best practices.

So, using PowerPoint, I’ve spent some time brainstorming and have created a one-page puzzle about procurement, keeping two strong ideas in mind:

  • What does buying mean ?
  • How can you be a good buyer ?

After selecting and analysing more than 35 key words (SRB, Networker, Communicator, Excel, …) I settled on  a clear and simple definition :

A buyer is both a value creator and a cost reducer for clients.

It is possible to classify buyers into four separate categories according to their contribution to client value creation and cost reduction.

And with the keywords added:

1. The Bureaucrat:  does not effectively reduce costs or generate value for customers.

Profile: The Bureaucrat prefers to work alone rather than cooperating with internal or external contacts, and often waits to be asked to act rather than taking proactive steps on their own. This professional has no insight into the company, customers, trends, or innovations and prefers to preserve the status quo rather than embracing change.

The Bureaucrat Buyer is likely to be an endangered species, since this person is less and less sought after by organisations. Four solutions are available to address this population of buyers:

  • upskill to one of our other types of buyers,
  • change jobs,
  • retire,
  • remain in place without changing until a planned or negotiated departure.

2. The Cost Killer achieves significant cost reductions but does not generate value for customers.

Profile: The Cost Killer knows supplier markets, has mastered Excel and relevant software, and can create effective supplier cost models. This buyer is proactive, but can be sometimes brutal and act without enough team consultation. Additional skills include intense benchmarking and efficient negotiation.

There are many Cost Killers, largely corresponding to certain types of enterprises. This kind of buyers is unlikely to disappear, even if they become a shrinking percentage of all buyers in the organization. If you are a Cost Killer, consider acquiring new skills to broaden your value to the organization, especially if you want to evolve professionally. Study the skills associated with Innovative Buyers and Business Developers.

3. The Innovative Buyer generates considerable value for clients and sometimes reduces costs, but cost is not their top priority.

Profile: The Innovative Buyer is a natural networker (external and internal) and is always looking for new ideas and information. This professional has both ‘sales’ and leadership skills, which they use to bring together colleagues with very different profiles to build, validate, and implement projects. Innovative buyers adapt well to a number of situations, and are diplomatic in their efforts to maintain good relationships with all stakeholders. Additional skills include an ability to deal with crisis situations, interest in identifying and testing futuristic concepts, and an open mind to the ideas and approaches of others.

The population of Innovative Buyers is still relatively small. These purchasers are particularly useful and adapted to the needs of companies where purchases account for a small part of the total turnover of the company (- 50%) and/or in which rapid innovation is a vital necessity. Given that the pressure to innovate is greater in some industries than others, even for global leaders (such as Nokia), the Innovative Buyer is in high demand.

4. The Business Developer simultaneously creates customer value and cost reduction.

Profile: In addition to having all the qualities of an Innovative Buyer or Cost Killer, this professional also has skills that are not always found in either other desirable type of buyer. They are determined to create value for customers and wealth for the business. The Business Developer is ‘hands on’ and regularly meets with the people who produce, sell, use or benefit from the services, materials, products or services purchased on behalf of the company. This professional likes to communicate in order to establish relationships with people from multiple levels in the company (CEOs, Managers, or Individual contributors) and functions (engineering, sales, finance, legal).

To succeed in their mission, the Business Developer must be emotionally intelligent (i.e. have the ability to adapt to their context). As often as possible, this person works in close collaboration with business colleagues and employees. The Business Developer knows how to define a strategy, how to share it effectively inside and outside of the company. This professional knows how to drive complex projects (in rapidly changing environments with precision and agility, even under pressure. Additional useful human qualities include listening, empathy, humility, availability, humour, persistence, persuasion, intuition, rigour, agility, creativity, resistance to stress, and sociability.

If you’d like to know more about the Lavergne Procurement Matrix and/or use it in your school or company, do no hesitate to contact me via [email protected]

The Lavergne Procurement Matrix is protected by copyright.

Why Don’t You Trust Your Procurement Boss?

Ever feel like you’re being stabbed in the back by your procurement boss? You’re definitely not alone and we have the stats to prove it!

When Procurious put out a call for procurement survey participants, we were delighted when 500+ professionals across more than 50 countries shared their insights and wisdom.

Amongst our most startling discoveries was that over half of those surveyed don’t trust their boss to be proactive about their career progression. This result indicates that professionals need to seize control of their own career advancement, while managers need to be incentivised to support and progress their direct reports.

The Results Explained By Global CPOs

At The Big Ideas Summits in Chicago and Melbourne earlier this year we revealed the results of the survey to our CPO delegates.

We were particularly interested in their thoughts on what procurement managers should be doing in order to regain the trust of their team members. The video below shows a compilation of their responses:

What’s the root cause of these  trust issues?

Why is trust so terribly lacking between procurement professionals and their leaders?  A number of  key factors arose from our research:

Rate of Change – David Henchliffe, Group Manager Procurement OZ Minerals attributes the lack of trust to the astounding rate of change in today’s organisations, “What people seen as firm and certain today, is gone tomorrow. That constant change erodes trust. And it erodes peoples’ view of your genuine-ness.”

My boss doesn’t want me to leave – Many of us can relate to the experience of having an overly protective boss, a boss who is keener to hold on to their talent at all costs rather than priortise career development. Alan Paul, CEO Sourceit, takes his responsibility in this area very seriously, “As a manager I need to demonstrate to my staff that I’m not afraid of them leaving the organisation. I want to develop them I want them to improve themselves.” If employees feel like they are missing out on opportunities because of an unsupportive boss, it’s likely they’ll leave anyway!

My boss doesn’t engage or communicate with me – The value in talking and listening can never be underestimated.  Imelda Walsh, Recruitment Consultant, The Source believes that “fantastic leaders encourage honest and open conversation. If procurement managers can take that step, you’ll naturally build trust”

My boss isn’t helping my career development – If it appears that your boss doesn’t care about helping you to advance your career, of course you’re not going to trust them! Michelle Varble, Procurement Director, United Airlines, asserts that  “we need to take a geuine interest in [our employees] success- we need to take on the roll of mentor even if we havent recieved a specific invitation to be a mentor.”

My boss isn’t ethical – Employees will hold a leader in high regard who both demonstrates good ethics  and demonstrates that they genuinely care about good ethics. People want to work for companies that are not soley motivated by savings and profit, that aren’t covering up immoral behaviour and where they aren’t suspicious of the goings on at the top of the company.

A lack of ethical behaviour at the top sets a terrible example to the rest of the organisation and destroys trust.

What can procurement leaders do to regain trust?

Encourage development – Anna O’Dea, Director and Founder of Agency Iceberg, believes that “a  good employer should encourage the development of their employees. If your employer isn’t investing in your training or opportunities, you could be in a one-way relationship.”

Spend time with your talent – David Henchliffe advises leaders to regain trust by devoting more quality time with employees, “spend time with them, get to know them, admit your mistakes and praise them when they do well.”

Put clear career progression procedures in place – Implementing clear structures within an organisation reassures employees that their progress is being monitored and the value they contribute is recognised.  John Foody General Manager Procurement, U.S Steel explain how his organisation “We’ve put in place some tools that we call Career Ladders, that evaluates and gives feedback to our people. It provides them with feedback on their skills, their capabilities, areas to continue to work on. It gives them a sense of progress as they continue to move through our organisation.”

Take the fear away – Don’t let your employees worry about your lack of commitment to them. Reassure them that you  have their best interests at heart, and not your own!  Alan Paul asserts that “for a manager, a true leader, it’s about taking away the fear that your people are going to leave and trust that they’re going to stay. But also accept the fact that eventually they are going to move on.

How can you advance your career without the help of your untrustworthy boss?

As Procurious founder Tania Seary asserts, “It’s all too easy to find excuses for why your career is not panning out the way you intended. Soft targets for blame include your employer, your peers, your organisation or even your own personal life- challenges for blocking your charge to the top.

“We know there are some significant problems with procurement bosses around the world but…as I have always said, and will continue to say, the only common denominator in your career is YOU.”

So join that professional network, start updating your online CV, enroll on an eLearning course, listen to that podcast series you keep forgetting about  and start connecting with influential peers and thought leaders! The procurement world is your oyster…

How do I download the full Gen NEXT Report?

1. Sign up to Procurious (It’s FREE!)

2. Click on the banner at the top of the page, which looks like this:

3. Your copy of the report will automatically download

The Gen NEXT report, exclusively available to Procurious members, is packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report. Sign up to Procurious to access it in full. 

Three Imperatives Of Every Successful Category Manager

Every leadership role in every business comes with its own set of imperatives, a set of tasks that must be focussed on to guarantee success. But what imperative should a great category manager follow?This article was written by  Lynn Rideout – Director Procurement Services, Denali – A WNS Company.

Entrepreneur and venture capitalist Fred Wilson once described the three tasks that every CEO should focus on, whilst all other tasks should be delegated to their team.

These three things, the CEO imperatives, must include:

  • Setting the overall vision and strategy of the company and communicating it to all stakeholders
  • Recruiting, hiring and retaining the very best talent for the company
  • Ensuring there is always enough cash in the bank

If your CEO can’t excel at all three, the chances are you’ve got some fairly big problems within your organisation.

What if we were to take the concept of the three imperatives, and apply it to category management?

What should you do well to be successful?

What are your imperatives?

And, furthermore, how do you take the basic understanding of category management and enable it across your organisation?

At Denali, we believe the greatest category managers follow these three imperatives.

1. Know Your Stakeholders

First and foremost, successful category managers understand the importance of stakeholder alignment and building positive relationships. Follow these tips to enhance your stakeholder relationships through your category plan:

  • Be with your stakeholders – Spend time (both real and mental) with them every day
  • Intimately know their business objectives – use a consistent framework to correctly identify true requirements, the key enablers, and barriers to those objectives; where value is created?
  • Establish true alignment – establish shared goals and earn trusted advisor relationship
  • Sell YOUR vision – “if not now, then when?”, be aligned and integrated with stakeholders
  • Bring new opportunities to the table vs. react to requests or issues
  • Plant seeds with stakeholders – start one project at a time; build reputation and trust

Remember, to effectively persuade and engage your stakeholders, you must tailor the content for each discussion. Tell your story and help build the business case. Building successful relationships is an evolution. Your stakeholder relationships will grow with time – and so will your credibility with stakeholders!

2. Understand Your Categories

Understanding the internal and external dynamics of your categories drives idea generation and stakeholder engagement. Follow these tips to better understand your categories:

  • Get dirty with the data – become intimate with your category details, but get to true insights – the “so what’s”
  • Be curious – ask why, seek innovation, and develop new strategies
  • Be intentional regardless of the depth and category maturity
  • Be “in the market” – study market drivers/trends, talk to suppliers, participate in market events, read broadly
  • Network with category peers in other industries/organisations
  • Understand your suppliers – capabilities, performance, why you use them, and leverage them

Establish a plan to refresh and maintain category knowledge as part of building your story. Knowledge will grow with time, but it should not delay execution.

3. Deliver Results

Now that you know your stakeholders and understand your categories – it’s time to execute. Use this newfound alignment and knowledge to drive deliberate consideration of a prioritised portfolio rather than executing on strategic sourcing project at a time. After all, category management is MUCH more than simply executing sourcing projects.

  • Take a portfolio approach – Know your targets and have a plan to get there, get many projects teed up, and leverage available resources
  • Eliminate extraneous work – Get comfortable with not doing it all
  •  Press sourcing strategies for greater value (go to auction, demand management, standardisation, supplier innovation, etc.)
  • But don’t let the perfect be the enemy of the good – you must start somewhere
  • Leverage all available resources to reach your objectives
  • Sustain the value by managing supplier relationships and performance

The best way to deliver results is to have a sense of urgency with a bias toward execution.

To learn more about how to a successful category manager and enable a true category management plan, register for our upcoming webinar.

Our webinar, Breaking the Groundhog Day Mentality: Enabling a TRUE Category Management Mind, takes place at 1pm GMT / 8 am EST on 29th November 2017. Register your attendance for FREE here.

Are You Ready For The Procurement Rebels And Revolutionaries In Your Team?

We know Gen Z don’t fit into the traditional workplace – but how can procurement organisations embrace these revolutionaries to benefit from their rebellious nature and leverage their innovative approaches? 

As a procurement manager with very rigid, process driven procurement software in place, how do you plan to manage the potential chaos that will come from the millennials in your current workforce and the Generation Z’s about to enter it?

Firstly, let’s address three ways of dealing with this issue. Do you ignore them, do you suppress them, or do you take time to investigate what these natural rebels and revolutionaries can offer?

Both groups are born entrepreneurs; they mesh work and play together, they’re smart beyond their years and they have a clear picture of what they want from a career.

Technology has been a major influencer in the develop of a new type of professional. It has provided access to vast amounts of information and has become the great equalizer, playing a major role in their disruptive nature at home and at work.

In my experience, I’ve found that both millennials and Z’s are self-starters – they work smarter and harder than you may think and have disproved time and again the “lazy” stereotype. They’re not averse to working outside normal business hours and use their daily commutes or downtime to get work done because they want to complete it promptly.

The tech catalyst

So, we know that millennials and Z’s don’t fit traditional workplace rules, so how can organisations benefit from their rebellious nature?

Technology is the catalyst of this rebellion. It meshes the world of work and play into a single environment; one where users expect the ‘Amazon’ type experience they get at home on Sunday to be mirrored in how they use technology at work on Monday. ­­

What do you say to the team member that walks into your office to tell you that your existing procurement software is drowning the team? They then show you an app they downloaded over weekend that allowed them to create RFQs, connect and chat with suppliers, make decisions and save a ton of their time and your money.

Revolutionaries are born from discontent. They’re frustrated at the status quo, and those who lead them are searching for a better way. It can be a challenging process, but these young rebels – or, to use a modern term: these entrepreneurs – are simply seeking more effective and flexible ways to work.

A new approach

So how would you react to the above scenario? It starts by changing how you approach the thinking behind the solution. This means recognising that innovation is no longer a top-down exercise that remains in the exclusive domain of senior management teams or corporate retreats.

Real innovation today is being driven from the ground up by those rebels within our teams that simply want a better work experience and are not afraid to try new technology or methods to get better outcomes.

It wasn’t that long ago when ‘agile’ was a term used only in software and development teams. I now see sales teams working with scrums and management teams having daily stand ups – it’s just one example of the new way of thinking and doing that is helping business work faster in today’s instant world.

Does this mean that it’s time to let the revolution rise and allow the rebels to take over the organization? Well, not entirely – it’s about getting the balance right.

It’s time for procurement leaders to stop lamenting about being seen as the roadblocks within their organisations and to look to your millennials and Z’s as a talent pool rich with ideas, innovation and passion.

They will challenge, they will make mistakes, but it is time to move beyond the current boundaries you’ve set, and remember – you were a rebel once, too!

About the author

Alan Paul is a thought leader and CEO of sourceit, a technology company that has led the market in the development of simple and easy-to-use sourcing applications for indirect categories.

Sourceit offers three different products for buyers:

  • RFQ – time saving request for quote software for all indirect categories,
  • Market – a specialized procurement and job management application for marketing services, and
  • Catalog – an inventory management and on-demand product/services ordering application.

Visit the website: sourceithq.com

Would You Order A Tesla Electric Semi?

Elon Musk promised that the Tesla Semi reveal would “blow your mind clear out of your skull and into an alternate dimension”. The truck is certainly a game-changer for the logistics industry, but Tesla faces some steep challenges if it plans to win over the commercial market.

We can’t wait to see these trucks on the road. The sleek, bullet-train shaped cab of the Tesla Semis will be instantly recognisable once they hit the freeways in 2020 – if Tesla can overcome the production delays which are increasingly plaguing the organisation.

What can the Tesla Semi actually do?

Equipped with a battery instead of a diesel tank, the Tesla Semi is capable of travelling 804km (500 miles) on a single electric charge – even with a full 36,000kg load. Its autopilot system will go a long way towards eliminating human error in truck accidents, with the ability to automatically:

  • detect instability and adjust each wheel individually to make jack-knifing “impossible”
  • maintain a set speed and slow down in traffic
  • keep the vehicle in its lane with lane detection and lane departure warnings, and
  • lock onto other Tesla Semis to travel in a convoy.

Charging will take place via a planned, worldwide network of solar-powered “Megachargers”, which will be added to Tesla’s existing network of 2000 Supercharger stations which are in place to power Model S sedans. For drivers in a hurry, a 30-minute charge will enable 640km (nearly 400 miles).

Inside the cab, the driver’s seat is positioned in the centre of the space (which has full standing room), allowing better visibility. The seat is flanked on both sides by touch screens that provide blind spot monitoring and navigation. The truck also comes with tracking features to be used by a fleet manager for routing, monitoring and scheduling.

What’s the cost?

Unknown – Musk didn’t reveal the unit price on stage, but claimed the Tesla Semi would cost 20% less per mile than a diesel-powered truck. Whatever the price is, it’s only likely to fall in the future as regulations on diesel continue to tighten, charging infrastructure improves and the costs of batteries fall.

Despite the unknown price, pre-orders have started flowing in from companies including Wal-Mart (15 trucks), Meijer (4 trucks), and J.B. Hunt (“multiple trucks”).

Will we see these trucks on the road in 2020?

“If you order now, you get your truck in two years”, Musk said at the reveal. The company, however, has been known to over-promise and under-deliver when it comes to production deadlines. The Model 3 sedan, for example, has been beset by 18-month delays. While the company’s consumer fans are apparently willing to tolerate delays, commercial trucking companies are likely to be less patient. The Tesla Semi notably represents the company’s first foray into the commercial vehicle market.


In other news this week:

NAFTA Negotiations Struggle Onward

  • Reports from the NAFTA negotiations reveal that little progress has been made on U.S. demands that could potentially sink the 1994 trade pact between the U.S., Mexico and Canada.
  • Officials are currently meeting in Mexico City for the fifth of seven planned rounds of talks. Upcoming presidential elections in Mexico mean that a deal needs to be reached by late March 2018.
  • New U.S. demands include a five-year sunset clause, and tightening of rules of origin to boost the North American content of autos. Other issues discussed include labour, gender, intellectual property, energy, and telecommunications.
  • While Mexican officials have said “the work is moving forward”, Canadian negotiators complained on Friday about inflexibility by the United States.

Read more: CBC News   

Calvin Klein Bypasses Retailers For Holiday Shopping

  • Calvin Klein is offering an exclusive line on Amazon only for Black Friday sales, in a move that reflects the increasing shift away from traditional stores.
  • The company has announced a holiday retail experience called “Calvin Klein X Amazon Fashion”, with underwear and denim available exclusively in an online Amazon brand store and in Amazon pop-up shops in New York and Los Angeles through to December 31st.
  • Amazon’s pop-up stores pose another threat to brick-and-mortar retailers, in additional to the sales shift to online retail.

Read more: Wall Street Journal

New Procurement Benchmarking Report Released

  • APEX Analytix has released its “Procurement Leaders’ Benchmarking Report”, with best-in-class performance data from global organisations with a combined revenue of $2.3 trillion. The report reveals:
  • Only 10% of organisations have a combined P2P organization under common leadership
  • 65% of businesses don’t authenticate vendors against public domain data sources prior to payment
  • Only 14% capture verifiable details of a vendor’s CEO, CFO or principals.

Get the report here.

IT Procurement Without a Tech Strategy Is A Recipe For Disaster

If you’re struggling to effectively run your IT procurement processes, it might be time to evaluate your strategy!
This article was written by Harry Wilson, an IT Consultant. Read more via Leap Consulting.

If procurement is the series of activities and processes required during the acquisition of any IT infrastructure, software and systems, IT procurement and the purchasing of updated systems are essential to any business which uses information systems and digital technology equipment to drive projects, management and processes.

The running of the IT procurement process should be carefully managed and examined to ensure that  purchases provide both a good foundation and high-quality equipment for the future process, in line with the businesses goals.

This requires a dedicated employee in charge (usually the CIO) and an IT strategy to allow a business organisation to reach best practices of IT procurement.

Digital transformation and disruption

Digital transformation and disruption have changed the IT buying process. Traditionally, the CIO had the final say in IT purchasing decisions following consideration of the IT strategy and alignment with business goals.

However, recently it has been found that nearly a third of purchasing power has moved outside of the executive suite into the hands of departmental managers.

Business departments making technology decisions without the CIO can lead to CIOs losing control of the IT then having to deal with issues such as;

  • Lots of different systems running in silos
  • Information sprawl
  • Incompatible systems
  • Gaps in internal information technologies
  • Hindered business growth
  • Loss of competitive advantage

This emphasises the need for an IT strategy as one of the biggest mistakes a business can make is committing to a system or contract without due diligence or consulting the overarching IT strategy to understand how the implementation of the considered technology will impact the operations and systems within the business.

What should an IT strategy include?

An IT strategy can benefit both CIOs and department managers as it encourages collaboration that results in alignment with existing and new investments. A strategy should include up-to-date versions of:

  • A systems architecture rundown of the whole business
  • An inventory containing end-of-life dates, and usage
  • A list of emerging problems recorded by staff and IT team

The rapid speed that these technologies are being innovated is phenomenal, and businesses are being exposed to more technologically advanced IT systems which creates the need to update and adapt to these IT systems regularly.

The benefits of an IT strategy

Despite significant investments in new technologies over the past decade, many organisations are actually watching their operations slow down due to underutilisation of technology and poor user engagement related to technology usage is part of the problem.

Poorly designed applications and a general lack of training causes many employees not to leverage the innovation and drive productivity.

Encouraging effective adoption of new technology requires an IT strategy for organisational change management.

There’s no easier way to manage IT than to work with an IT specialist who can help you manage these IT services and create a more efficiently run business. Many companies are seeking It managed services for a source of competitive advantage, so there isn’t a lack of responsibility or confusion within the company.

By following an IT strategy and understanding the reasons behind process bottlenecks and other errors, enterprises can more efficiently allocate IT and human resources. By partnering with a managed services provider who can create and implement an IT strategy, businesses can focus on their core competencies to cut costs and increase productivity.

This article was written by Harry Wilson, an IT Consultant. Read more via Leap Consulting.

Breaking the Groundhog Day Mentality: Enabling A True Category Management Mindset

Does your category management journey ever remind you of the movie Groundhog Day?  Our latest webinar will advise you on how to break that repetitive cycle!Our webinar, Breaking the Groundhog Day Mentality: Enabling A True Category Management Mindset takes, takes place at 1pm GMT on 29th November 2017. Register your attendence for FREE here. 

The life of a procurement professional can easily descend into a vicious cycle. You’re asked to do more and more, in order to drive bottom line results for the business, but you’re without the time to approach these challenges innovatively.

It’s often something straight out of the movie “Groundhog Day,” where procurement is given bigger and bigger targets, and has to scramble to execute on more projects, touch more spend, react to more stakeholders and more issues, and then simply do it all over again….and again!

The problem is, if our category managers can’t find a way to break the reactive cycle and start taking different approaches, they can’t add value and deliver the best results.

Successful organisations have embraced the request to do more, and have turned it into an opportunity for the function; to increase the strategic role of procurement and make it a destination role within the business.

How do successful organisations navigate this journey? What are the keys to success? And what is imperative for individuals and organisations to do when on this journey to ensure they become closer than ever before to the business?

What content can I expect from the webinar?

We’ll be discussing:

  • What does it mean to have a category management mindset?
  • What key competencies or skills should category managers be developing?
  • How will category management needs continue to evolve over time?
  • How can procurement leaders change the game for category management?
  • What mistakes are category managers repeatedly making?

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

Christophe Ysebaert – Partner, Transitive Management

Christophe Ysebaert is a Partner with Transitive Management with expertise in purchasing strategies, strategic sourcing and project management. He is also a Part Time Teacher at Skema Business School in Lille (France) teaching category management and strategic sourcing.

Prior to joining Transitive Management, Christophe worked during close to 30 years for Dow Corning as a global manager in Supply Chain and Purchasing jobs. He served roles in Global Planning and more recently in Purchasing as part of the Procurement Leadership Team responsible for strategic sourcing and for a global augmentation program with a third party provider. He has also managed a global portfolio of commodities as well as led the European Direct Procurement Group.

Christophe holds a Master of Science in Business Engineering from Mons University and a Post-Baccalaureate Certificate in Logistics and Supply Chain Management from Penn State University.

Alpar Kamber,  Executive Vice President, Denali – A WNS Company 

Alpar Kamber is Executive Vice President at WNS and the BU Leader for Procurement Services. He was the Founder and CEO of Denali Sourcing Services, a next-generation procurement services provider that enables procurement organizations to influence more spend and execute more effectively and efficiently.

In January 2017, WNS, a global business process management leader, acquired Denali Sourcing Services. Prior to joining Denali, Alpar held management positions at Ariba, FreeMarkets, Diamond Technology Partners and E&Y. Alpar leads WNS clients in building scalable sourcing programs and operationalizing their procurement function that drive consistency, repeatable outcomes, and bottom-line value across the organization.

Alpar’s expertise is in procurement value chain, organizational design, change management and global program execution. Alpar holds an MBA degree from Tepper Business School of Carnegie Mellon University. Alpar Kamber was named a 2011 Pros to Know by Supply & Demand Chain Executive. Read more about Alpar Kamber in the HfS Research interview, Meet the sultan of strategic sourcing.

Christopher Eyerman, Senior Director,  Denali – A WNS Company 

Chris Eyerman is the Senior Director for WNS-Denali. Chris leads WNS-Denali’s Solutions and Capabilities group to design, deliver and continuously improve procurement programs that provide real, lasting value and creates permanent change in how our customers conduct procurement business.

He is a senior supply chain and program management executive with more than 30 years of technical and business experience, including 18 years of leading category management, source-to-contract, procure-to-pay and supply chain transformation programs. Prior to joining WNS-Denali, he served roles in program management, business development, product management and operations at FreeMarkets, Ariba and Exostar.

Chris holds a BS degree in Mechanical Engineering from Penn State, an MS degree in Aeronautics and Astronautics from MIT, and an MBA degree from Carnegie Mellon University.

How do I register for the webinar?

Registering for our webinar couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a confirmation email with a link to the webinar platform and a handy reminder one hour before we go live!

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still register to access the webinar via this platform. We’ll send you a confirmation email with a link to the webinar platform and a handy reminder one hour before we go live!

When is it taking place?

The webinar will take place at 1pm GMT on 29th November 2017.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’re listening live, our speakers would love to hear your questions and we’d love for you to pick their brains . Questions can be submitted throughout the live stream via the webinar platform, or via @Procurious_ on Twitter.

If you think of a brilliant question after the event, feel free to submit your question via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Our webinar, Breaking the Groundhog Day Mentality: Enabling A True Category Management Mindset, takes place at 1pm GMT on 29th November 2017. Register your attendence for FREE here. 

Deal Or No Deal? The Brexit Effect

What are the implications of Brexit on Procurement? And how should the function be preparing for the various possible outcomes? 

Zycus’ webinar The Brexit Effect Understanding Brexit and Its Impact On Procurement takes place on Tuesday, 21st November 2017. Register for free here.

On June 23 2016, the world woke up to some very unexpected news.

This was the day around 17.4 million people in UK, by a sizeable margin of 52 per cent to 48 per cent, voted to become the first country to leave the European Union.

As the world looked on in shock, the then prime minister David Cameron immediately resigned, leaving his successor Theresa May to handle proceedings. She soon confirmed that Article 50 of the Lisbon treaty would be triggered and did so in March 2017.

From the time the UK submitted its Article 50 letter to the European Commission, a two year formal process of leaving the EU began.  A number of events were set in motion that cannot now be halted without significant agreement between the two governments.

What will happen in these two years?

Within these two years, the UK and the European Commission will either agree upon an interim agreement or trade will be governed under a pre-agreed set of tariffs. The impact of Brexit on the UK economy will be determined largely by whatever relationship the UK manages to forge with the EU, and this may not become clear for number of years.

In these uncertain and unpredictable times, how can procurement professionals prepare and what risks does the function face? In the EU, the public purchase of goods and services has been estimated to be worth 16 per cent of GDP and it is nearly 20 per cent of UK’s GDP.

Regardless of whether you work in the public or private sector, there is no doubt that Brexit’s impact extends across the entire breadth of the procurement industry. It’s really hard to understand how significantly regulations are going to change for procurement.

The worst case scenario for procurement

  • Cost: The costs to import goods within supply chains are likely to rise, whether it’s due to commodity prices or labour cost. In terms of commodity prices, we cannot know for sure of the impact; there could be a major change depending on the value of the pound or we might see no change at all. Labour cost will be dependent on the new immigration regulations, which could make it more expensive to hire EU nationals in the UK and vice versa.
  • Freedom of movement and supply chain delays: There is a chance that there will be a loss in freedom of movement both in goods and services for UK and European businesses with supply chains operating across borders. There is also a possibility that there will be some disruption in existing supply chains because of time-consuming border checks and paperwork at UK ports, which could increase custom processing time.
  • Procurement recruiting and talent management may suffer: Not only the flow of goods and services will be impacted but procurement talent will also be considerably affected. If the “leave” campaign succeeds in stopping migrants from the EU, there is a chance that the procurement talent pool in UK will be considerably reduced. Many of the EU procurement professionals might not want to be a part of UK given the current instability.

Procurement’s Pre-emptive Action

CIPS recently conducted a survey with 2100+ supply chain managers, which delivered some very interesting results:

  • Around 32 per cent of UK businesses using EU suppliers are currently looking for British replacements
  • More than one third of UK businesses plan to respond to Brexit by beating down suppliers’ process
  • 46 per cent of European businesses expect to reduce their use of UK suppliers

As supply chain complexity increases, many British companies are considering the possibility of shifting supplier base from continental EU to the UK. In the meantime, European companies that have operations in the UK are looking at moving their operations outside of the UK to ease business. This is because UK will become a separate market for EU and therefore like we discussed earlier, the movement of goods across borders with the UK will be deemed as imports and exports, attracting new customs controls. This will become more time consuming and attract paperwork, taxes, tariffs, excise duties and VAT which will have direct implications for revenue and cash flow of businesses.

If trade negotiations fail throughout the Brexit process, businesses inside and outside the UK should be ready to explore new options. Procurement must plan ahead to find alternative suppliers or start work with existing suppliers to put deals in place, soon!

If you are curious to know more about how Brexit will impact procurement, do join our upcoming webinar on Brexit featuring industry experts Mark Webb and Jon Hansen. They will be discussing:

  • The impact of Brexit on supplier risk assessment and management
  • The influence of trade tariffs on cost
  • Increasing demand for procurement talent
  • What is the procurement technology answer to Brexit? 

Speakers:

Jon Hansen – Editor and Lead writer at Procurement Insights

Mark Webb – Managing Director at Future Purchasing, UK

Kanishka Ghosh – Director of Product Management at Zycus Inc.

The Brexit Effect Understanding Brexit and Its Impact On Procurement takes place on Tuesday, 21st November 2017. Register for free here.

Have You Aligned Your SIM & CLM Systems?

Procurement teams with mature SIM and CLM systems can extract greater value from supplier relationships. How can the two be brought into better alignment?

This article was written by Kelly Barner for Determine

Procurement is so accustomed to aligning our technology and processes with the objectives of the business at large that we sometimes miss opportunities to align our own technologies and processes with each other.

Supplier Information Management (SIM) and Contract Lifecycle Management (CLM) provide a perfect case example. Both bring together suppliers and internal touch points, extend beyond procurement’s peak involvement in managing spend categories, and play an important role in addressing (and mitigating) supply chain risk.

Procurement teams that have mature SIM and CLM programs in place reduce their risk, but they also create opportunities to extract greater value from each supplier relationship and reduce confusion within the enterprise.

When we stop and think about how SIM and CLM can be brought into better alignment, three critical shared issues come into focus: information integrity, ownership and actionability.

  1. Information Integrity Through Integration

Information is such an important component of SIM it is included in the name, whereas with CLM the devil is always in the details. An incorrect piece of information in a contract can easily become a legal liability. Both start with essential supplier contact information and metadata and extend to the details associated with supplier onboarding and contract terms. Although the following information is collected for separate reasons, it is critical that it be consistent across SIM and CLM:

Supplier Onboarding

 When a new supplier is on-boarded post award, a standard set of information is usually collected. This includes their contact information, location details, proof of certification, and details regarding the users who will represent the supplier in company systems during the term of the agreement. Making sure as quickly as possible that this information is complete and accurate lays the groundwork for an equally smooth implementation and on-going relationship. Beyond simple collection and centralisation, procurement must also validate supplier information at the time of onboarding – paying particular attention to documentation associated with certifications that were included in the award decision.

Contract Initiation

When creating a new contract, it is natural for procurement to focus on product/service specifications, prices, terms and SLAs, but capturing other more straightforward information is just as important. For instance, specifying a production location might seem like a minor detail — until the supplier makes the decision to outsource their production to another facility, or even another country. Having specified the location in the contract may not prevent the change from being made, but it does create an opening for discussion of the associated quality and oversight expectations. As contracts become an increasingly dynamic part of supplier management, more details need to be incorporated.

  1. Ownership

Since managing risk and increasing performance are at the heart of both SIM and CLM, establishing ownership early on is critical. Who will manage the relationship and who will be the documented owner of the contract? Should it be the same person? Why or why not? Alignment of goals can not be achieved if the individuals associated with each responsibility are not also aligned.

Supplier Relationship Management

Any supplier may have multiple relationships in an enterprise. Procurement is certainly a point of contact, but so are the budget owner and any functions that have a high volume of demand associated with that supplier. Many people may have contact with a supplier in the course of daily business, but information about performance reviews and contract updates should be managed in an organised fashion so that the supplier is kept informed and no one speaks out of turn.

Contract Ownership

 In addition to including a complete set of terms and signatures, each contract needs an owner from the outset. While captured as a simple name field in many CLM systems, a lot of consideration must be given when deciding who will own each contract. The primary value proposition of CLM is that it allows contracts (and the business deliverables they govern) to “leave the filing cabinet” in order to have a measurable impact on the business. Empowered by automated CLM notifications, someone in the enterprise needs to take action based on the information provided; and having an appropriate designated owner from the start provides accountability and ensures a prompt response.

  1. Alignment Actionability

Putting SIM and CLM in place is not about static documentation or information centralisation, but rather the actions each motivates. Unlike information integrity, where consistency is key to alignment, actionability requires each of these systems to “feed” information to each other. There are supplier performance considerations in both systems, and while they are different, it is in their combination that the best result is achieved.

Supplier Performance

SIM systems often include supplier performance details submitted by procurement, as well as the other individuals in the enterprise who come into contact with the supplier’s products or services. In some cases, determinations of performance will be based on buyer perceptions and expectations. This information should be recorded and communicated to suppliers on a regular basis.

Contract Compliance

When viewed through the lens of a contract, supplier performance is about following the “letter of the law.” Just as suppliers can have performance issues that do not rise to the level of legal non-compliance, a supplier can be in perfect standing based on the requirements of the contract and still not meet the expectations of the company. If performance measurement and contract terms are not both aligned and visible, it will be hard for procurement to know the difference and lead the appropriate response.

The full benefits of SIM and CLM alignment are realised over the term of the agreement, as long as 3-5 years in some cases. The sooner the enterprise can achieve alignment in terms of information integrity, ownership and actionability, the shorter the timeframe to evaluate and lower the overall risk.

This article was orginally pubished on Determine. 

Check Out The Keynotes for ISM2018 Nashville

ISM has done it again, with three globally-recognised keynotes announced ahead of its highly anticipated annual conference in Nashville, Tennessee.

About this time every year, the Institute for Supply Management announces its keynotes for its upcoming annual conference. As usual, the lineup for ISM2018 is impressive, with Mitt Romney, Arianna Huffington, and John Rossman set to wow the crowd.

Mitt Romney was the 70th Governor of Massachusetts from 2003 and 2007 and the Republican Party’s nominee for President of the United states in the 2012 election, where he ran against the formidable incumbent, Barack Obama. Romney is also the founder and CEO of Bain Capital.

Arianna Huffington is the co-founder and former editor-in-chief of the Huffington Post, and appears regularly in Forbes’s most influential people lists. Huffington has recently launched a new startup, Thrive Global, focused on health and wellness information.

John Rossman is a former Amazon executive and author of “The Amazon Way: 14 Leadership Principles Behind the World’s Most Disruptive Company.”

Top-tier keynotes at ISM’s annual conference have become something of a tradition. Romney, Huffington and Rossman will join an alumni of household names who have spoken in the past, including:

Focused on “Global Insights, Peak Performance”, ISM2018 expects to draw over 2,500 supply management executives and professionals from around the world. More than 100 interactive sessions are a part of six practitioner-led learning tracks, and will feature executives from firms such as Google, Pfizer, and P.F. Chang’s China Bistro.

ISM2018 will be held from May 6th – 9th 2018 at the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.


In other news this week:

 Economists warn against NAFTA withdrawal

  • A report in the Wall Street Journal has given the probability of a U.S. withdrawal from the North American Free Trade Agreement is roughly 1 in 4.
  • Private-sector forecasters have said that such a move would likely weigh on economic growth.
  • S. President Donald Trump has threatened to pull the U.S. out of NAFTA if efforts to renegotiate it fail. Talks are set to resume on November 17th in Mexico City.

Read more: Wall Street Journal

 

Driverless shuttle hit by delivery truck

  • Only hours after its debut, a driverless shuttle in Las Vegas was hit by a semi-truck, demonstrating that robotic vehicles are still vulnerable to human error.
  • According to reports, the fault lies squarely with the driver of the semi, whose vehicle grazed the front fender of the shuttle. The robot shuttle’s sensors registered the truck and stopped the vehicle in an effort to avoid the accident.
  • None of the shuttle’s eight passengers were injured in the incident, but proponents of the self-driving vehicle revolution are concerned that incidents like this will delay the uptake of robotic vehicles.

Read more: MarketWatch