Want That Job? 7 Pitfalls To Avoid On Your CV

This seasoned recruiter skim-reads CVs for an average of two to three seconds before deciding whether to read them in their entirety. How can you make sure your CV doesn’t end up in the bin? 

Even with the digital revolution changing the world, CVs are still the Number 1 way to showcase your skills and achievements to a new employer or recruiter.

Before a prospective employer reads a CV they may well have supporting information in the form of a referral,  LinkedIn profile or a cover letter. But however good any supporting information might be, the CV is still the deciding factor when it comes to getting you a face-to-face meeting.

Recruiters have to place even more credibility on the CV than line managers. I have read over 250,000 CVs in my recruitment career and can skim read a CV in two to three seconds to decide if I want to read it in its entirety. If you are reading 100-400 CVs a day, can you really spare the time to read a cover letter as well? The CV is still king!

My goal whenever I am coaching CV writing is:

To make it as easy as possible for the reader to find the information they are looking for.

Worst case scenario: you have two to three seconds to get someone’s attention, so you need to give them the information they need as easily and accessibly as possible. When you think about your CV from this perspective you will need to make sure you identify your audience correctly to ensure it’s hitting their criteria.

Make sure you don’t fall into these traps:

1. Not Making The Most Of Your Success

Most people avoid talking about success like the plague. But if you’re writing a list of your responsibilities, the very least you need to demonstrate is that you have completed those tasks. Ask yourself:

  • Is it obvious I am successful?
  • Did I deliver this bullet point/responsibility?
  • Could a cynic read this and interpret it as failure?

You spent a whole lot of effort and time doing these things. At least take credit for what you delivered.

2. Inducing Claustrophobia

The majority of CVs look cluttered. Not “easy for the reader to find the information they are looking for”. Make it an appealing document to look at:

  • Decrease your margin widths (1” – 1.5” margins are fine)
  • Use white space

-90% of bullet points should be two lines maximum. If most of your bullet points are longer than that, look at splitting them into two points.

-Don’t have massive blocks of bullet points together. Four to five bullet points is enough. If you have any more than that, split them into sensible headings (Responsibilities and Achievements; Categories and Savings; Projects and Delivery etc).

-Have a small space between roles.

  • Font

-Make it an easy-to-read font (Times New Roman, Arial, Calibri, Garamond)

-Don’t worry about size too much. People read CV’s on a screen so can zoom in if they need to. (10 – 12 pt is fine)

3. Contact Details Taking Up Your Prime Real Estate

Geoff Molloy BSc (Hons)

132 Partridge Way, Bishops Stortford, Essex, CM23 3XY

Tel 01279 333 444

Mob 07788 111 222

E-mail Geoff.molloy1956@gmail.com

Most people have their contact details at the top of their CV. You have two seconds to get their attention and you want them to read your phone number? It doesn’t make sense when you think about it unless you think your phone number, address or e-mail address is the single factor that will get them to give you a call!

Move them down to the footer and reduce your address down to town and postcode.

4. Information Above Your Career History/Experience

The problem with adding information above your career history is that it’s hard to make it contextual. Context is the only difference in impact between meeting an

IT Director

or

IT Director for Google

The difference between these two people would probably be significant and, but for a tiny change, you wouldn’t know it.

Try and keep the information above your career history to a minimum. It’s useful to be able to summarise your skills/experience/achievements etc but be aware that it loses impact if it’s not contextualised by the role you were in when you delivered it.

5. Proof-Read, Spell Check

Make sure it’s perfect. Spelling, grammar or punctuation are all indications to the employer. Some people get really irritated by mistakes so make sure you don’t put them off immediately!

  • Your/you’re
  • Were/we’re/where
  • Its/it’s

Get a friend/colleague/pedant to read your CV after you have checked it, and checked it, and checked it.

6. Squeezing Your CV Onto 2 Pages

If your CV is well written, relevant, articulate, demonstrates success and is easy to get the information the reader is looking for, it doesn’t matter how long it is (within reason). “Two pages” is a myth. But, if you’re going over the page make sure you use the next page fully.

If you’re not convinced, look at it the other way. If it’s awful they won’t get to the end of the first page! Make sure your CV is giving them the information they want in an accessible way. They will read it if you are relevant.

7. References

“References available on request” or “Reference Details”. Once you have risen above “School Leaver”, everyone assumes you have references so it adds no value and takes up space. In fact, it probably impacts negatively as it raises some doubt in the reader’s mind. If they want references they will ask you.

About the Author

I set up The Chameleon Career Consultancy to coach CV Writing, Interview Technique and Linkedin Profile writing building on over a decade of corporate recruitment specialising in Procurement and Supply Chain Professionals. During that 11 year period I read in the region of 250,000 CVs (100 a day for 11 years as a conservative estimate!). I made the decision to take a sideways step out of recruitment to help the candidates get the roles they really deserve.

If you would like any advice on any of these areas or more help on your CV feel free to get in touch at andy.wilkinson@thechameleon.org or www.thechameleon.org or our Linkedin page.

You Could Be In For A Nasty Shock This Easter

What’s “shrinkflation”? It’s the practice of selling a smaller product at the same price, and it’s increasingly common in the chocolate industry. Procurious looks at three big stories about Chocolate supply management that have hit the news in the past week. 

Regulation impacts complexity, complexity impacts costs, and costs impact the size of your chocolate bar.

Shrinkflation: Why Brexit means Cadbury chocolate bars will get smaller

It might be time to panic-buy your favourite Cadbury chocolate bars in bulk, because Cadbury UK’s parent company (Mondelez International) has warned that Brexit could lead to higher prices, or shrinkflation.

What’s shrinkflation? It’s the practice of selling smaller products for the same price. Mondelez has done this before, when its new-look Toblerone was revealed to have wider gaps between its iconic chocolate triangles, reducing the weight from 400g to 360g but selling at the same price. A pack of six Cadbury Creme Eggs – an Easter favourite – was also reduced to five eggs with only a slight decrease in the recommended retail price, from £3.05 to £2.85. The company has pointed to rising commodity costs, the falling value of the pound and an increase in cocoa prices, while Brexit is expected to make it increasingly costly to do business with other countries in the future.

Mondelez’s UK boss Glenn Caton told The Guardian that his organisation is watching the Brexit negotiations closely. “First of all [the Government] needs to make sure we have a stable and thriving U.K. economy,” Caton said. “If the economy is growing, all businesses benefit from that. Secondly, ensuring there is no new, more complex regulation and that there is free movement of goods and minimal barriers to trade. Regulation impacts complexity, complexity impacts costs, as do trade barriers and tariffs.”

Mondelez has invested more than £200m in Cadbury UK, including £75m on modernising manufacturing at Bournville in Birmingham, the home of the 193-year-old Cadbury brand. Bournville is also home to the global R&D team, which has grown from 25 to 250 people since Mondelez took over in July 2013.

Mars reinvests US$70 million in US supply chain while president warns of protectionism

Mars is re-shoring its manufacturing operation in a move that will mean over 95% of its chocolate products sold in the US are made domestically.

The investment of $70 million will add approximately 250 new jobs to production sites across the US, including a Mars Food factory in Greenville Missouri which will receive a $31 million injection. Last year, Mars poured US$52 million into its chocolate factory in Ontario, Canada.

The announcement was made on the same day that Mars Good President, Fiona Dawson, told the American Chambers of Commerce to the EU that protectionist trends worldwide are “threatening to undermine global trade and make the world less connected”.

“The absence of hard borders with all their attendant tariff, customs and non-tariff barriers allows for an integrated supply chain, which helps to keep costs down. The return of those barriers would create higher costs, threatening that supply chain and the jobs that come with it.

“If Britain ends up trading with the EU on the basis of WTO rules, ‘Most Favoured Nation’ rates would come into force. In the area of confectionery that alone would mean tariffs of around 30%.” 

Prince Charles seeks to halt chocolate-industry deforestation

HRM Prince Charles, a keen environmentalist, convened a meeting with global cocoa and chocolate companies to target deforestation in the cocoa supply chain. Delegates from twelve major companies, including Hershey, Mars and Nestle, met with senior government representatives from two of the world’s leading cocoa-producing countries, Cote d’Ivoire and Ghana.

In his speech to the attendees, Prince Charles noted that aside from environmental damage, “The most powerful direct reason for action is that deforestation threatens to undermine the very resilience of the cocoa sector itself, and with it the livelihoods of the millions of smallholders who depend on it, due to the increased climate variability that follows forest loss.”

The meeting resulted in a Collective Statement of Intent to end deforestation and forest degradation in the cocoa supply chain.

That’s more than enough about chocolate. In other procurement news this week…

UK Grocery Chain Waitrose introduces trucks powered by rotten food

  • Waitrose has partnered with bio-fuel company CNG Fuels to place an order for 10 flatbed trucks that will be powered entirely by rotten food.
  • The fuel will be sourced from unsold food at supermarkets across the UK. Globally, an estimated one-third of all food, or 1.3 billion metric tons of produce – goes to waste every year.
  • The new biomethane trucks have an average range of nearly 500 miles, with the biofuel to cost 40% less than diesel fuel. The biomethane emits 70% less carbon dioxide than diesel.

Read more on Konbini.

Boeing’s VP Supply Chain nominated for US Deputy Secretary of Defence

  • The White House has nominated Boeing’s Patrick Shanahan as Deputy Secretary of Defence, with a view to tap Shanahan’s knowledge of the business side of military aircraft procurement.
  • In December, Trump rattled Boeing management with a Tweet complaining about the high cost of replacing the presidential plane (Air Force One) and threatening to cancel the program. Since then, the relationship between the White House and Boeing appears to have improved.
  • Under new ethics rules, Shanahan will be required to recuse himself from any Boeing-related procurement contract decision for the next two years.

Read more on Seattle Times.

Best Of The Blog: Can We Agree To Stop Calling Them Soft Skills?

How did soft skills come to be known as this? And does calling them this underplay their importance in the modern procurement world?

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article by Hugo Britt  in which he explains why soft skills are anything but!

The English language is full of misnomers. Just ask the killer whale (actually a dolphin), or the horny toad (actually a lizard). Once a word or phrase has entered common usage, it’s near-impossible to change it, even if the population generally understands that the term is misleading.

Which brings me to “soft skills”. I work for an organisation that provides training for procurement and supply chain professionals. As such this is one of the terms that I hear bandied about many times a week.

My argument is that defining this skill-set as “soft” actually devalues an essential part of every procurement professional’s toolkit.

To quickly summarise, soft skills are those used in dealing with other people. These include skills such as communication abilities, language skills, influencing skills, emotional empathy, and leadership traits. In contrast, “hard” skills – such as tendering or IT competencies – are readily measurable and (importantly) easier to train.

How Did They Come to be Called Soft Skills?

I’d be interested to hear if anyone has been able to pinpoint the first usage of this term.

The concept has been applied to business environments since at least 1936, when Dale Carnegie’s famous self-help book ‘How to Win Friends and Influence People was published. Carnegie’s work, which has sold a phenomenal 30 million copies to date, is essentially the definitive guide to soft skills. However, it stops short of actually using these words.

Recently, there seems to have been an explosion of articles and training courses focusing on soft skills, particularly in procurement. My theory is that procurement – having moved from back-office to business-partnership status only a decade or so ago – is, in effect, late to the soft skills party, and is currently playing catch-up.

It’s possible that the term “soft skills” simply came about as an antonym to hard skills. Perhaps it reflects the “softly-softly” approach, where managers choose to influence, rather than confront, and to make suggestions, rather than issuing orders. Whatever the reason, I believe it’s a misleading term due to the other connotations of “soft”.

These Skills are Anything But Soft

To my ear, “soft” means easy, pliable, or yielding readily to pressure. Yet a procurement professional with excellent communication abilities, who is adept at reading people, will be a “harder” opponent in negotiations, than a colleague lacking these skills.

Similarly, the connotation with “ease” is deceptive when it comes to trying to train for skills like change management or leadership. And quantifying the results of that training is more difficult still. Hence we’re hearing more and more that employers are hiring people based on their attributes (cultural fit, communication skills, willingness to change), recognising that hard skills can be easily picked up later on.

This has changed the approach recruiters are taking in job interviews. There is now less emphasis on hard skills, and more behavioural questions about how you would react in certain situations.

It’s worth considering whether, in the future, soft skills will become so vital, they’ll become a requirement for procurement roles. That situation already exists in some professions. Look at Medicine, where aspiring doctors are interviewed for qualities including maturity, communication, the ability to empathise and collaborate. Hugh Laurie’s Dr House, with his acerbic bed-side manner, would in reality never have gained entry into medical school, no matter how brilliant he was.

There’s a school of thought that when it comes to soft skills, you’ve either got it, or you don’t. Soft-skills training, therefore, is ineffective because you can’t change someone’s personality. Personally, I disagree because I’ve witnessed colleagues who have worked hard to develop skills like effective listening. There’ll always be hard cases, but the days of people dismissing these skills as “fluffy” or otherwise useless are over.

Three Alternative Names for Soft Skills

As I wrote at the beginning of this article, it’s nigh-impossible to change a term once it’s in common usage. However, if professional organisations, training providers, and the like, were to phase out the words “soft skills”, and call them something more accurate instead, we might see this phrase begin to disappear.

Here are three suggestions for a more accurate description of “soft” skills.

1. Essential skills: I’ve borrowed this one from ISM CEO Tom Derry, who also isn’t a fan of the term “soft skills”. Tom used the term “essential skills” when launching ISM’s Mastery Model to describe the many interpersonal attributes required on the journey to achieving accreditation.

2. EQ: “Emotional intelligence quotient” is the technical term for soft skills. I like this term simply because it contains the word “emotional”, which pretty much sums up what soft skills entail. Calling it a “quotient”, however, raises the argument that EQ, like IQ, is something you’re born with, and can’t be improved upon.

3. People skills: The simplest, and possibly the most accurate, alternative for soft skills is “people skills”. After all, every one of these skills involves dealing with people, while hard skills can generally be put to use sitting alone at your computer.

If you have other suggestions, or already use a different terminology in your workplace, please add a comment below!

A Futurist, An Economist, A Professor, A Psychologist and a CFO Walk Into A Bar…

A Futurist, An Economist, A Professor, A Psychologist and a CFO Walk Into A Bar…It may sound like the start of a terrible joke, but in fact, this is the stellar line-up of experts featuring in Even Bigger Ideas. And alright, they didn’t  actually walk into a bar, it was more of a podcast series…

Whether you love learning on the go, at your desk, on your lunch break or from the comfort of your own sofa, Even Bigger Ideas is made for you! The series is free for all Procurious members and can be found in the learning section of the site.

Why not spend 15 minutes with each of our procurement power-players as they highlight the trends disrupting business. Here’s what you can expect:

1. Make Sure You Still Have A Job In 2020

Futurist Anders Sorman-Nilsson warns that unless procurement pros act now, there’s a good chance they’ll find themselves unemployed as early as 2020. It’s time to embrace the gig economy, learn to speak the language of digital and invest in our education.

Listen to Anders’ podcast here or read more here

2. The Unpalatable Update On Thinking The Unthinkable

It turns out that thinking the unthinkable in the current climate is becoming a rather unpalatable affair. Nik Gowing, BBC Broadcaster and Visiting Professor at King’s College, explains why leaders must learn to recognise and handle impending unthinkables or risk going out of business.

Listen to Nik’s podcast here or read more here

3. How Do You Know When Your Idea’s Got Legs?

Creating an encouraging environment for intrapreneurs in the biggest organisations can be tough. Rio Tinto CFO, Chris Lynch, offers advice on fostering innovation and some top tips on assessing when an idea has legs. How do you know if it’s worth investing time, and money, into someone’s idea and what can the biggest companies do to encourage and motivate their employees to think big.

Listen to Chris’ podcast here or read more here.

4. Unleash Your Creative Genius In Fifteen Minutes

Innovation is now firmly on the agenda for businesses worldwide. According to Creative Change Agent James Bannerman, there’s no such thing as a lost cause when it comes to unleashing creativity. It’s simply a matter of re-educating ourselves and learning some tips and tricks to unlock our creative potential.

Listen to James’ podcast here or read more here.

5. Trump & Trade: Hope For The Best & Plan For The Worst

Dr Linda Yueh, a renowned economist, broadcaster and Adjunct Professor of Economics for London Business School, discusses how supply managers can prepare for the major shifts in globalisation, trade and protectionism under Trump. With any luck the potential impacts on our global supply chains are over-exaggerated!

Listen to Linda’s’ podcast here or read more here.

Procurement Rising Stars: What Got You Here Won’t Get You There

Karen Morley realised very early on in her career that her workplace experience would be somewhat different from her male counterparts. Drawing on her wealth of knowledge she offers three key pieces of advice to procurement rising stars. 

Join our Women in Procurement group, Bravo,  here.

Quite early in my career, it became clear that my overarching purpose was to help leaders realise their full potential (although I may not have articulated it quite as clearly as this at the time!). I have a huge and on-going curiosity about people and their motivations. I became a psychologist to explore that further, and my studies and professional identification fed my purpose.

Levelling The Playing Field

As a young woman starting out my professional life, and with an ambition to succeed and achieve well, I was a keen observer of who in my organisation was given the best opportunities and who was promoted, and it didn’t take long for me to conclude that there wasn’t a level playing field for equally talented men and women. This was a big surprise to me and it was disappointing to know that equality efforts still had a long way to go.

And so my purpose has developed over time to include my passion for ensuring women are provided equal opportunity to grow and succeed, and for working with organisations to promote strategies that increase gender balance, and diversity and inclusion in general. To any procurement rising stars,  I offer three key pieces of advice:

  1. Rising Stars: What got you here won’t get you there

This phrase, which comes from Marshall Goldsmith, is a very powerful one. Continuing to do more of what you’re good at is seductive, but limiting, at least if you want to keep rising. And not all organisations are good at making this clear to their newer leaders.

While we know that new roles and increased seniority require new skills and perspectives, I also speak with the leaders I coach about what they need to give up. You need to give up a lot of what you have been recognised for and been good at, once you’re managing a team.

  1. Create strong foundations that will serve your entire career

Notwithstanding that you need take on and give up certain skills and perspectives as your career grows, there are a couple of related foundation skills for leaders that help regardless of the size and shape of your job. I think these are some of the toughest things to manage, but worth it in terms of the payback:

  • Manage your attention – disciplined attention is the currency of leadership. To be successful you need to pay attention to the things that matter most, and sustain your attention on those things in the midst of many distractions.

At increasingly senior levels this intensifies and focusing strategically and productively becomes ever more challenging. How to zone out the minutiae of everyday demands and keep attention on the big picture? You’ve got to be a bit ruthless with your attention and give up any need you might have to be all things to all people, or to be the one who has the right answers. Instead, prioritise what matters most and excel at it.

  • Manage your perspective – being able to manage your attention helps you to manage your perspective taking. And managing your perspective taking helps with important things like enabling others to do their work, and managing complexity.

The only effective way of dealing with complexity is being able to take different perspectives. Instead of managing for certainty, we need to lead for possibility. That can be challenging, and anxiety-provoking, in organisations where the drive is towards certainty. Seeking out the perspectives of people who are different from us, irritate us, or who stretch us beyond our comfort zones, can unlock enormous creativity and power. What questions do/would they ask? Build them into your repertoire to develop greater flexibility in your thinking.

  1. Know your story, and tell it well

How do you want the world to know you, and to understand the leader you are becoming? Spending time crafting your storylines is of critical importance firstly in gaining your own clarity: what’s your leadership purpose, your values and motivations to lead? How readily and clearly can you articulate these?

When you’re growing and developing, your stories may become a little confused, and some of them are changing. You may need to discard some, and find new ones. Working out how to articulate them clearly can help you gain clarity on what they are. Win:win!

I find that women in particular may be reluctant to tell their stories; I often hear ‘I don’t think I have anything interesting to say’. But everyone does. And a story should only take 60 to 90 seconds to tell.

No-one else will be clear about what you stand for if you’re not. Your stories serve to prime you for success. As you tell your stories people come to better connect with you, understand the authentic you, and appreciate your intentions. Help them to see you as the leader you want to be known as.

My Top Tips On Reducing Gender Disparity 

To be successful in shifting the representation of women in senior roles and start to nurture those rising stars, it’s important to nail these four things:,

  • Sincerely champion the value of women in senior leadership, and publicly commit to change; Giam Swiegers, Global CEO of Aurecon, is a wonderful example of this
  • Develop an inclusive culture and supporting practices, including promoting inclusion as an organisational ideal, promoting inclusive practices such as flexible working for everyone, and changing hiring and promotional practices to make them merit-based
  • Collect the right data, make it transparent and hold managers to account; Marc Benioff, CEO of Salesforce and Lara Poloni, CEO AECOM A&NZ are outstanding examples of organisations that transparently reviewed pay data, found gender-based differences, and adjusted the salaries of affected women
  • As a leader, recognise the impact and pervasiveness of unconscious bias, seek to understand it, and improve decision making practices to reduce its impact

Procurious has launched Bravo!, a group that seeks to celebrate and promote women working within procurement. Get involved here.

Procurement Needs People: How To Nurture Your Top Talent

As the global marketplace changes exponentially, the need for both personal and professional development becomes ever more crucial for procurement pros. Jim Baehr explains why  organisations need to invest in their people.

Category Management. Risk Management. Contract Management. Supplier Relationship Management. All are part of the Supply Management vernacular in 2017. They represent best practices. Those who have mastered these competencies are sought by companies wanting to take their Supply Management to the next level and beyond. Yet, step back and look at the big picture. How many Supply Management professionals have the time, the skill or the support to pursue these best practices?

Applying the 80/20 Rule In Procurement

Continuing to look at the big picture, let’s apply the 80/20 principle to this question. Considering all the spend of all companies – large, medium and small – it’s reasonable to believe that 20 per cent of the professionals in Supply Management are managing 80 per cent of spend. (This number may be even more acute based on benchmarking articles found elsewhere at My Purchasing Center.)

Bigger companies have more spend and are more likely to have invested in their organisation as led by a Chief Procurement Officer. The professionals in these organisations are expected to be proficient in these higher-end responsibilities – the Managements (Category, Contract, Risk, Sourcing, Supplier Relationship, etc.). These professionals can practice and hone their competencies daily. This is a good thing. This means that in many ways the profession has taken the lead set by the Peter Kraljic “Purchasing Must Become Supply Management” article found in the September 1983 issue of the Harvard Business Review.

Flipping the principle would make it logical to believe that 80 per cent of Supply Management professionals are handling 20 per cent of the spend. Here’s the challenging part: It is likely that these are the same professionals who are handling 80 per cent of the purchasing churn – dealing with requisitions, purchase orders out the door, tracking delivery, invoice reconciliation, etc.  The result is they don’t have the same opportunity to apply best practices like their counterparts in bigger companies. Not because they don’t want to. They simply don’t have the time. Or, more frustratingly, the ability. But, seeing the articles and blogs – all the attention given to “the Managements” they want to do the same.

Purchasing Vs Procurement

While the terms Purchasing and Procurement tend to be used interchangeably, there is a big difference; moreover, the responsibilities of a Purchasing and Procurement professional are not the same.

Purchasing is operational, process driven,  ordering, receiving and paying for goods or services. Procurement is more tactical, more purposeful. Procurement calls for establishing requirements, performing market research, evaluating/selecting suppliers, and negotiating contracts or purchase orders. (Yes, POs can be negotiated.)

For the purpose of the remainder of this article Purchasing is used as the title for the group that handles  buying, procurement and, in some cases, sourcing.

It’s understood that technology is automating many of these routine functions. It’s agreed that that the developers of these systems are doing their best to “democratise” the technology – making it available, applicable and affordable to all companies – regardless of size. While the technologies are making inroads, there’s still a long way to go. And, when we get there one of two things will happen – positions will be eliminated or, companies will direct their Purchasing professionals to become more Procurement-like. Hopefully, it will be the latter.

Do we need to wait until technologies and automation address operational needs to free up the time for (paraphrasing Kraljic) Purchasing to become Procurement? The answer is “no.” Good Procurement, efficient and effective,  for the foreseeable future, is a people matter.

Is Purchasing Only About Getting The Lowest Price?

Before offering any recommendations, we first must recognise the realities. Purchasing, in many cases, is still viewed as “getting the lowest price”. This perception impacts relationships internally with business units and externally with suppliers. It creates a misunderstanding of purpose. The Purchasing professional is relegated to coordination of buying activities instead of having the opportunity to collaborate with internal clients, and suppliers, to produce value.

If we go back to the 80/20 rule the negative perceptions of Purchasing are conceivably based on the interaction of internal business groups and suppliers with the 80 per cent group. They are the majority population and they drive a perception that Purchasing “gets in the way” rather than adds value. Again, flipping the numbers, 80 per cent of the expectations for Purchasing come from what senior leadership reads or hears about the state-of-the-art techniques that the (upper) 20 per cent apply to the “Managements.” The result is that many businesses think their Purchasing group is not effective.

Research shows that staff and talent constraints inhibit Purchasing professionals from being all they can be and, more importantly, all they want to be. The abilities of these professionals are, and may continue to be, underdeveloped. But, there is an opportunity to build on what they already know and have experienced. We can reinforce what they know and make them comfortable with the basics and then introduce them to the “Managements.”

Personal and Professional Development Is Crucial- So What’s The Solution?

As Purchasing becomes more sophisticated, as business becomes more demanding and as the global marketplace changes exponentially, the need for both personal and professional development becomes proportionately as important. Let’s accept that not all the next generation of Purchasing professionals will come with MBAs from universities with Supply Management programs.-

So, now that the problem has been stated, what’s the solution? Keeping it simple – consider the following:

  • Recognize that the 80 per cent is underdeveloped but able and wants to do more.
  • Accept that this same 80 per cent  is under-appreciated and underserved.
  • Acknowledge that talent management requires talent development.
  • Commit. Business leadership, as well as professional associations, must step up and do more for the 80 per cent.
  • Invest in developing the 80 per cent as the cost pales, in comparison, to the potential return in value.

Here’s the good news: There are companies that already recognise this need. They are making the commitment to invest in their people. But, there must be more – many more. Quoting Eleanor Roosevelt – “Nothing has been achieved by the person who says, ‘It can’t be done.’”

Jim Baehr is the Lead for the Sourcing Strategies Group LLC (SSG).  Currently he is the President of the ISM – Pittsburgh Affiliate, a member of the Board of Governors of the Joint Chemical Group of Pittsburgh and a member of the Visionary Council of Coupa Software Incorporated based in San Mateo, Calif. This article was first published on My Purchasing Center

5 Core Supply Chain Capabilities Everyone Needs

What are the supply chain capabilities that everyone needs? Dave Food gets to the core of the issue…

What are some of the key capabilities for supply chain professionals?  When it comes to acing decision-making, cost effectiveness, forecasting, and productivity you can’t go wrong if you’ve nailed these five things.

1. Capacity Planning

CP is essential to determine the optimum utilisation of resources, and plays an important role in the decision-making process. It is a technique used to identify and measure the overall capacity of production. CP is utilised for capital intensive resource like plant, machinery and labour. Capacity planning also helps meet the future requirements of the organisation; it ensures that operating costs are maintained at the minimum-possible level without affecting the quality, and ensures the organisation remains competitive and can achieve its long-term growth plan.

2. Inventory Management & Optimisation

IMO is a top investment priority for manufacturers. It is driven by a set of values which are typically service level and inventory investment. IO is widely known as a way to free-up working capital or cost-effectively increase service levels. IO can:

  • identify all the stages of inventory
  • point out exactly which stock is excess inventory and where it is stored in the supply chain
  • understand which warehouse space can be freed up (and which shouldn’t be)
  • create a series of “what-if” scenarios based on the organisation’s improvement ideas and alternative configurations.

An IO solution should offer opportunities for supply chain professionals to understand the causes of inventory, accept or reject recommendations, and build trust in fact-based decision-making.

3. Demand Management

Demand Management is a planning methodology used to forecast, plan for and manage the demand for products and services. DM has a defined set of processes, capabilities and recommended behaviours for companies that produce all manner of goods and services. DM outcomes are a reflection of policies and programs to influence demand as well as competition and options available to users and consumers.

4. Master Production Scheduling

Scheduling is the process of arranging, controlling and optimising work and workloads in a production process or manufacturing process. Scheduling is used to allocate plant and machinery resources, plan human resources, plan production processes and purchase materials. It is an important tool for manufacturing and engineering, where it can have a major impact on the productivity of a process. In manufacturing, the purpose of scheduling is to minimise the production time and costs by telling a production facility when to make, with which staff, and on which equipment. Production scheduling aims to maximise the efficiency of the operation and reduce costs.

5. Materials Replenishment Planning

Most MRP systems are software-based, but it is possible to conduct MRP by hand as well. In almost all supply chains, materials need to be stored or buffered. This competency involves different steps, considering aspects of the planning environment/conditions about the product and the supplier. The importance of the companies’ goals/motives for materials supply must also be assessed.

MRP uses global demand plans to create a pull-driven replenishment process; this prevents ordering from the supplier when there is excess stock elsewhere in the supply chain.

Dave Food is a supply chain innovator, a passionate educator, a futurist, a trend-watcher, an insightful consultant and a marketing strategist. This article was originally published on LinkedIn.

Recruitment Insider: Demand For Temporary Workers Fast Outstripping Supply

Demand for workers is accelerating so fast that it’s outstripping supply. How can organisations find the employees they need without racking up a whole load of extra cost?  Jon Milton explains  the elephant in the recruitment room.

A cursory look at REC jobs market figures show that turnover in the recruitment industry for 2014/2015 was £31.5bn, the highest since records began in 2001/2002.

Permanent recruitment revenues have increased by 58.4 per cent from the recessionary lows of 2010/2011. Temporary or contract revenues are up by 60.1 per cent over the same period. Unemployment is exceptionally low.

What this means is;

  • Demand for workers is accelerating
  • Organisations are turning to recruitment agencies to help them meet it
  • The pool from which to draw workers from is receding

Any situation where demand outstrips supply should result in higher costs. These costs may be reflected in margin, pay rate, expenses or even resource commitment as your organisation searches to find the right worker fit. We have, however, gotten used to paying workers at a certain level and it’s possible to secure low margins from agencies.

How do you deal with this challenge without racking up a whole load of extra cost? Not as you perhaps think – and it’s probably worth addressing that particular elephant in the room first.

The Urban Myth: Exchanging volume with a single agency supplier will solve all my problems.

There are c24000 recruitment agencies operating in the UK, employing about 102,000 recruitment consultants. It’s a massively fragmented supply market that has never responded well when customers with diverse needs have attempted to exchange volume with a single supplier.

In the managed service world, some providers have responded to the challenge of keeping margins low with brute force, transferring workers supplied by incumbent agencies to their own books at implementation, and attempting to fill every requirement that comes along. In the long term this approach inevitably drives off contract buying and significantly reduces quality. This will obviously impact organisational output and competitiveness.

Keeping rates sustainable – making it worthwhile for the agency

The rate paid to an agency is sustainable if it covers their cost of sale and generates a reasonable profit. Cost of sale is important here; agencies typically pay their temporary workers at the end of the previous week worked and get paid by the customer in arrears. As such, prompt and efficient payment is crucial; agencies only get paid once they have filled a role successfully. Providing a decent level of opportunity on a level playing field is extremely important; and they are a vital component in delivering the temporary workforce so it is important to allow them to be heard (and not just through email) and responded to.

In terms of return, it’s important to pitch rates at the right level. Instinctively you may distrust agencies if you have stung by high spot fees in the past, but there are boundaries beyond which margins simply don’t work and render the fee payable non-profitable. Clearly it’s important to push these boundaries where the market dictates, but you will need to develop a strong understanding of the market to do so.

In our own managed service model suppler relationship management is a key component of our service and one that has helped us to address these issues. If you’re considering the managed service route, do talk to your agencies and ask them to give their views on different managed service providers – it will be an interesting conversation and one that should form part of your market approach.

Keeping rates sustainable – making it worthwhile for the worker

Whilst demand for skilled workers is currently outstripping supply it’s easy to think that the amount that you pay for those workers will have to go up, but this is not necessarily the case. Whilst pay rate is of course important, a workers decision on where to work is also led by a number of other factors. The includes the work itself, length of assignment, departmental profile and culture, amenities and work-life balance.

Keeping rates sustainable – managing expectations

Over the last 24 months we have been regularly canvassing the views of our agency suppliers to understand market dynamics, and one consistent theme has been of expectations. In an uncertain economic market where there is an abundant supply of skilled workers, the chances of recruiting someone who meets all your criteria are relatively high, so conversely with the market going full circle, expecting the same now can lead to disappointment.

The best way to address this is to allow agencies to manage the expectations of your line managers for you. This will help your managers to focus on their required outcomes rather than their perception of what they need. It will enable them to benefit from the recruiters’ knowledge of the market and what skills are available.

Whether you allow a managed service provider to manage this on your behalf or not, what is of paramount importance is that these relationships are strictly governed.

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Tender Of The Year? Bidding Opens For US-Mexican Border Wall

Tuesday 4th April marks the deadline for companies to submit papers detailing their proposals to build the Trump Administration’s “big, beautiful, powerful” Mexican border wall. But will the massive construction project ever win the funding it needs?

US Customs and Border Protection has issued two 130-page RFPs, offering a glimpse into the Trump Administration’s vision for the 2,000km barrier designed to stop illegal immigration and cut off drug-smuggling routes. More than 1,100 kilometres of the border has already been fenced, but the existing walls are nowhere near as imposing as those detailed in the RFPs.

The RFPs indicate a massive construction project, with specifications including:

  • A 9-meter-high reinforced concrete barrier, extending 2 meters underground to prevent tunnelling.
  • A similar barrier made from durable, see-through material.
  • The wall must be “cost-effective to build and repair”.
  • The barrier must be “physically imposing” and capable of resisting almost any attack by “sledgehammer, car jack, pickaxe, chisel, battery-operated impact tools, battery-operated cutting tools [or] oxy/acetylene torch for a minimum of one hour.”
  • At the same time, the wall must be “aesthetically pleasing”, reflecting Trump’s campaign promise of a “beautiful wall”. Reports note that this requirement only applies to the North-facing side of the wall.
  • Features to prevent anyone from scaling the barrier or attaching grappling hooks to its summit.
  • Incorporation of electronically controlled gates for vehicles and pedestrians.

Customs and Border Protection intends to award multiple contracts based on responses to its request statement. The selection process begins with an initial elimination round, after which the contestants will submit more detailed technical proposals. After a second round of eliminations, finalists will gather in San Diego, California to construct a small-scale “mock-up” of their wall design. Sledgehammer-wielding government representatives will then “test and evaluate the anti-destruct characteristics” of the designs before awarding contracts.

What will the wall cost?

During his presidential campaign, Trump estimated that construction would cost $12 billion, citing his personal involvement as a factor in driving costs down. Republican House Speaker Paul Ryan has estimated $15 billion, while a US Department of Homeland Security internal report indicated the wall would cost as much as $21.6 billion and take over three years to build. A preliminary version of the president’s budget for fiscal 2018, beginning in October, includes $2.6 billion for the first phase of construction.

While the RFPs appear to require a highly-visible and physically imposing barrier, some companies have proposed hi-tech solutions to border security that could provide a 90% saving to the government. Examples include having two chain-link fences with a “no man’s land” in between and intrusion detection systems in place. Other invisible or “virtual” wall proposals would use AI software to analyse satellite and surveillance imagery and alert border guards to area where activity is detected.

An alternative idea for a physical barrier put forward by a Florida architecture firm is to use shipping containers as the building blocks for the wall. This could be a cost-effective and sustainable solution, particularly as the U.S. has a surplus of shipping containers due to the slowdown in global commerce.

Will the Mexican border wall ever be funded?

While Donald Trump famously promised his voters that “Mexico will pay” for the border wall, the Mexican Government has repeatedly stated that it would not do so. The Trump administration is yet to reveal how it would compel Mexico to pay. The budget request for $2.6 billion to begin construction was seized upon last week by Graco Ramirez, the leader of Mexico’s national governors’ association, who claimed this proves that U.S. taxpayers will foot the entire bill.

The proposal is likely to face fierce opposition in Congress, where Democrats and fiscally-conservative Republicans are expected to block expenditure on this scale, particularly if estimates blow out to $21.6 billion.

Who will build it?

Ironically, although Trump may be unable to make Mexico pay for the wall, he could end up paying Mexican businesses to do the work. A report by Quartz found that “of the roughly 700 firms that have expressed interest in building prototypes for the wall, about 10% are Hispanic-owned” or based in Mexico. However, the Mexican government has warned Mexican businesses that it would “not be in their best interests” to participate in the construction of the wall, while the Catholic archdiocese of Mexico issued an opinion that participating would be “immoral” and those involved “should be considered traitors to the homeland”. The considerable political pressure notably caused Mexico’s largest cement firm, Cemex, to announce that it would not be providing quotes for the vast amount of cement the project would require.

As far as U.S. construction firms go, few of the large, multinational corporations that would actually have the capacity to carry out the $21 billion project have indicated interest, presumably due to public opposition to the wall and the difficult path through Congress to funding it. Meanwhile, state representatives and lawmakers are putting in place boycott measures such as California’s “Resist the Wall Act”, essentially a divestment campaign to ensure no Californian money goes towards building the wall.

In other news procurement news this week…

Shocking lack of digital transformation strategies in procurement organisations

  • The Hackett Group’s 2017 Procurement Key Issues research has discovered that nearly 85% of procurement organisations believe digital transformation will fundamentally change the way they deliver services over the next 3-5 years.
  • Despite this, only 32% currently have a formal digital strategy in place, and only 25% have the resources and competencies in place to meet the digital transformation challenge.
  • The research gathered data from executives across 180+ large companies globally, with an annual revenue of $1 billion or greater. Areas expected to grow most dramatically are the use of cloud-based applications, advanced analytics, cognitive computing and robotic process automation.

U.S. Treasury Secretary Steven Mnuchin says robot job displacement “50 to 100” years away

  • In an interview with Axios last week, Mnuchin said the concern about artificial intelligence taking over human jobs is “not even on our radar screen”. When pressed, Mnuchin estimated that concern might be warranted in “50 to 100 more years”.
  • This estimate is significantly out of touch with machine learning experts, who are increasingly vocal about the imminent “national emergency” that will see up to 50% of jobs at risk due to advances in automation.
  • Mnuchin’s apparent disinterest in the AI jobs crisis could be due to an inability to “think the unthinkable” – a phenomenon introduced by Professor Nik Gowing at Procurious’ Big Ideas Summit. It may also reflect Mnuchin’s falling into line with politicised assertions that foreign workers and cheap pay, rather than automation, are responsible for job losses in former factory towns over the past decade.

Read more at Business Insider.

U.K.’s Crown Commercial Service slammed by Public Accounts Committee

  • The U.K.’s Crown Commercial Service (CSS) was set up in 2014 to centralise all purchasing, eliminate duplicate and act as a single entity for central government procurement. It replaced the Government Procurement Service and was expected to manage £13 billion spend across 17 departments.
  • However, a recent report by the Public Accounts Committee (PAC) found that the CCS has only managed £2.5 billion spend across 7 departments, with PAC Chair Meg Hillier calling the results “a dismal showing that calls into questions exactly how willing government departments are to accept the authority of the Cabinet Office in this area”.
  • A CCS spokesperson has responded to the report, saying: “”With an experienced senior leadership team now in place, we are confident in our ability to deliver even greater value for the taxpayer moving forwards through the centralised procurement of common goods and services.”

Read more at Computer Weekly.

Best of the Blog: Beware The Scary Old Word CPO

Is your career in the grips of a scary, old-world CPO? How do you recognise if your boss is one, and what can you do about it?

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting Tania Seary’s top advice on how to avoid the scary old world CPO!

Beware the Jabberwock, my son!

The jaws that bite, the claws that catch! 

– Lewis Carroll, 1871

You’ll know a scary, old-world CPO when you see one.I had almost forgotten about them until I found myself in a meeting with one last week. Somehow in recent times I have escaped the horror of hearing such old-world, closed network thinking like:

  • “I don’t want my team on social media, someone may poach them”
  • “We’re too busy working to be looking at what’s happening in the rest of the world”
  • “We know our business best”
  • “What if my team spends all day on social media?”

To the team at Procurious, these comments are like blasphemy. We’re on a mission to change the face of procurement, and give the images associated with the profession a makeover. We want to replace the old brown cardigan-clad stereotype, with fresh images of procurement as the “smartest guys in the room”.My meeting with this archetypal nemesis reminded me of all the reasons why we founded Procurious. It gave me increased motivation to continue our mission, and gave rise to an overwhelming urge to protect all the amazing rising stars in procurement from the soul-crushing dictatorship of a scary, old-world CPO.

The Old-World CPO

Let’s face it, if your personal characteristics and actions portray an image that you’re living in the past, the chances are good you are. People don’t leave companies, they leave bosses.As such, we want to reward the great bosses, those leading by example, keeping their teams energised, investing in individuals’ careers, and continuously pushing procurement to excel.What are the tell-tale signs of a scary, old-world CPO? The next time you’re going for an interview, or looking at your current boss, don’t fall for the flashy suit, big title, or even the big brand name they represent.If the person opposite you falls into one of these categories, the chances are your career development will come to a screeching halt under such a draconian regime.  

The (Digitally) Invisible Man…or Woman

Check whether this CPO has any sort of online presence. Tell-tale signs of invisibility include profiles with no photos, or inappropriate photos, scant, or no, information, and no visible mentions in a Google search.There may have been a freak internet-cleansing event, wiping out all references to this person, but the reality is that they probably haven’t spoken at any events, written anything interesting, taken the time or effort to understand social media, or understand the fact that you will be researching them online.Also, beware those CPOs who have fewer than 500 connections in their network. Some CPOs do make the case of quality vs quantity. But, if you’re working in a large company, have a large team, and work with an extensive supply base, shouldn’t 500 quality connections be expected?You (and the majority of your peers) want to work for someone who is an influencer. You want a leader with a wide range of connection they can introduce you to, and broaden your horizons. Working with someone with a limited network can be a road to nowhere for your career prospects.

Robinson Crusoe – the Loner 

This CPO really is an island.They don’t believe in networking, collaborating, or outside knowledge flow, and believe information is for their own personal advantage to build their power base. The Robinson Crusoe profile can physically manifest itself as an executive sitting in a corner by themselves, with their back to the team.This information block exists not only within their psyche, but extends to the procurement team itself. This old-world CPO has particularly old-world views, and creates a knowledge hierarchy, where they take all the great (and politically advantageous) ideas as their own.Another problem with this approach is that it encourages working in a closed network as part of the norm. These scary old world CPOs end up staying in the same profession, peer group, company, or industry, invariably associating with people they already know. This peer group continues to reinforce their outdated approach to management, and their thinking is never challenged.The new world CPO is collaborative, a “true influencer” and shares their knowledge freely and widely.My view is that a CPO’s main job is to not only drive change and innovation (and make a couple of deals on the side), but to give their team the opportunity to access tools and discuss ideas with other professionals, thought leaders and experts from around the globe.Yet I still see CPOs encouraging teams to work in isolation, unaware that there is whole universe of knowledge to help them grow and excel in their jobs.

The Devil Wears Prada – The Career Crusher

Their desk calendar reads 2016, but their attitude towards employees is stuck in the 1950s.Yes, your boss should have an overall plan for how their team is delivering against the overall business strategy. But they should also have a plan for you – both for what you need to deliver, and how you need to develop in the future.They should be committed to diversity and promoting young talent, to making sure their team reflects this commitment and is generating opportunities for the next generation of talent.The best CPOs are obsessed with finding the best people and helping them develop. They send their people out to be trained in the skills they need, expose them to new opportunities, and build peer networks that will develop leadership skills.The worst CPOs keep their category managers locked away from the rest of the world in fear that their people will be poached. A great CPO doesn’t need to worry about this. They know that they have developed a great employee value proposition that keeps their team engaged and retained.

Reverse Mentoring

Let’s not be too hard on these talented Heads of Procurement. They can’t all be cut from the same cloth.Why not get on the front foot and try and initiate some reverse mentoring. With a few polite, and well-placed pointers, I am sure you could help turn your scary, old-world CPO into a procurement rock star.Sharing your skills and knowledge could help your CPO become increasingly tech savvy and an advocate for technology, including social media, for procurement. And just in case you need some more points, you can find a 5-point checklist on being a great procurement boss right here.We look forward to seeing you both on Procurious soon!