All posts by Procurious HQ

Risky Business in Procurement and Supply Management

What sort of fallout can you expect to see from a supply chain scandal? What should you do when a risky event takes place? Tune in to today’s podcast on risk in procurement and supply chain, featuring ISM CEO Tom Derry and Procurious Founder Tania Seary.

Today we’re faced with complex supply chain challenges. In fact, it’s hard to think of an area of the business that modern procurement doesn’t touch, ranging from employment law, to climate change, to human rights.

As the complexity of supply chains continues to increase, so too does the number of issues we need to deal with, which is why supply chain disruption is often quoted as the number one concern of CEOs. They know that supply chain failures can have a dramatic impact on their public reputation – and their company share price.

ISM CEO Tom Derry joined Procurious to discuss how a supply chain disruption can damage an organisation, and what can be done to mitigate the risk.

What kind of fallout is a company likely to see as a result of a supply chain scandal?

Tom: From a Board and CEO point of view, there was an academic study written by a professor out of Georgia Tech a few years back that revealed that if there’s a publicly announced supply chain disruption, that company will experience a lower stock price for at least five years after the event. We’re talking about a catastrophic destruction of market cap and value for companies that experience disruption.

The other fallout is a permanent loss of sales. My 21-year-old daughter makes decisions about the products she buys based on what she knows about the company’s social and sustainability practices. If she hears something about a company that she doesn’t agree with, that company has lost her business for the rest of her life – that could be as much as 80 years of lost sales!

On the other hand, companies that have built up good social equity because of their CSR and sustainability practices don’t tend to suffer the same kind of heavy damage.

What are the common-sense steps to take to ensure your risk management is in order?

Tom: The first thing to understand is this doesn’t require an expensive consultant to run 10,000 Monte-Carlo simulations, give you a probability assessment or sell you a 2×2 matrix.

For procurement and supply management professionals, it’s important to look beyond the first tier of suppliers to where your organisation is really vulnerable – three or four levels down.

You should know every single-source supplier in your supply base, and you should have plans in place for immediately dealing with an issue with one of those sources.

You need to beware of geopolitical risk. If something changes – if an industry gets nationalised or if someone unexpectedly wins an election or referendum – what will your answer be if a scenario like that develops?

Look at the other side of the company. What are the products and services you’re selling, and what in your supply base could put that at risk? We should understand how the activities we are performing help support the business in making its money, and look there for risks that could really disrupt the business. 

How do you minimise fallout from a risk event taking place?

Tom: Wait. In the heat of the moment, it’s a natural human feeling to get defensive when you’re being criticised. An immediate instinct might be to get out there and say that the fault lies with someone else, but that would be a mistake. Don’t give into that instinct to blame, deny and defend. Instead, take a measured view of what’s going on, then accept ownership and responsibility. People will give you a lot of credit for being open, straightforward and transparent about a mistake. If you try to dodge it, it’s going to get worse before it gets better.

Part Five of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss what sort of fallout you can expect to see from a supply chain scandal and what should you do when a risky event takes place? 

How Can We Achieve Our Smart City Goals?

Lately, the public sector has collaborated with the market to launch smart city solutions. How do we achieve our smart city goals?

This article was written by Hanne Lystad.

Norway’s smart cities include everything from drones to surveillance train-lines, learning apps for kids and the world’s first autonomous cars.

But the next step in facing the huge smart city challenges such as meeting climate change targets is for the public sector to cooperate with procurement.

Lately, the public sector has collaborated with the market to launch smart city solutions, which is great. But how do we achieve our smart city goals?

A key way for the public sector to achieve its goals is by using the market forces via public procurement. In this piece I will point to some front-running Norwegian examples.

I work as lead digital for the National Suppliers Development programme in Norway. The programme has collaborated with public institutions in procuring smart city solutions since 2010.

The programme is a joint collaboration by five partners with unique strengths, networks and focus areas – representing both the public and private sector and the research field.

Programme structure

In Norway, public authorities spend approximately 58 billion euros on procurement each year, which amounts to 14  per cent of the Norwegian GDP and 37 per cent of our government national budget. Public procurement accounts for a significant portion of the overall demand for goods and services and is increasingly seen as an attractive instrument for developing society and nation.

Therefore, a simple public procurement policy – such as opening up for innovation – can make a profound impact on a nation or industry.

How does the process work ?

Innovative procurement process

The “normal” procurement process goes as follow: you think you need something , you put out a tender, you get an offer and you write a contract.  But guess what? When you do it the way you’ve always done it, you are likely to get the same product or service you have had before – not innovations.

You might not get what you actually need, and perhaps the suppliers have developed new and better solutions since the last time you asked for the same product.

Because of this, we discourage requesting pre-defined solutions from the market and rather suggest putting more energy into mapping out and defining needs and creating a dialogue.

Creating an enabling environment where procurement and their suppliers can discuss different options and solutions results in relevant innovations and actual uptake.

The programme I work with has been involved in about 200 solutions targeted for smarter cities. Being open about the public needs has resulted in some amazing solutions such as :

… and many more examples within welfare, tech, digitalisation and sustainability.  Take a look at this film if you’d like more examples.

From pilots to scale

It goes without saying that these new smart city solutions are a great thing, but we have to stop obtaining them one by one, pilot by pilot. At start of our programme, we supported processes where a single public agency was involved. We gained valuable insights and know-how, but saw that the majority of products and services developed ended up as prototypes and pilots.

Today, however, we are focusing on gathering public agencies with a common agenda from the beginning, so that they together will meet relevant suppliers and developers with a shared need.

One example of this is emmission-free construction sites, which initially had one frontrunning public agency supporting the cause. We realised it would make more impact if we gathered a significant number of public builders from all levels: state, regional and local municipalities. In addition we got environmental NGOs on board, research clusters, and public agencies with an interest in meeting a common goal – in this case meeting climate change targets.

After agreeing on a common goal, or “challenge” to the market, relevant suppliers and developers from the entire supply chain were invited. The purpose of this market dialogue was to

1) Talk about the forthcoming requirement to market actors.

2) Get feedback from them on the barriers to such a development and the factors that would make such a development process attractive for them to join.

The key to creating an enabling environment is ensuring the demand and supply side can actually figure out obstacles and possibilities.

This approach has  several advantages for all parties:

  • Firstly, major challenges – such as meeting climate change targets – can be tackled by gathering a significant portion of the demand side and agreeing on a single approach.
  • Secondly, when the market sees a more clear opportunity for serial production, this triggers their contributions and efforts – both through sheer market volume, but also through a predictability in terms of knowing what they need to prepare for.
  • Thirdly, we also see that it is easier to get funding for these broader initiatives than when we support public agencies one-by-one.

The public agencies have also committed through a joint declaration that they will be requiring emission-free technology in their construction sites.

So after reading this, I hope you are left with the following:

If you are from the public sector, tackling smart city challenges in collaboration with similar public agencies is the way to go!

If you’re from the private sector, collaboration is a huge market opportunity.

This article was written by Hanne Lystad. Hanne works as Lead Digital Innovation in the Norwegian national suppliers development programme, which means counselling public and private sectors in how to achieve innovation through  procurement within the digital field.

3 Steps To Building A Future-Proof Organisation

Automation, artificial intelligence and emerging technologies are changing our world and redefining the future of work. Organisations need to gear up to manage this transition wisely and understand the new rules of the game.

This article was written by Kumeshnee West

The fourth industrial revolution has the potential to disrupt every industry in every country through large-scale automation, adoption of emergent technologies, big data and artificial intelligence. There are many predictions and estimates on how this will affect labour markets, but one thing is certain – the jobs we do, and the skills we need to perform them, will change, and rapidly.

A McKinsey report estimated that by 2030 at least one-third of the activities of 60 per cent of occupations could be automated. This means that globally up to 375 million people may need to change jobs or learn new skills. A World Economic Forum report predicted that current trends in a disruptive labour market could lead to a loss of 7.1 million jobs, two thirds of which are in administrative roles. And a study by Oxford Universityestimated that 47 per cent of total employment in the United States is at risk due to computerisation, given that automation and computerisation are no longer confined to routine manufacturing tasks. Big data and artificial intelligence are allowing a wide range of non-routine cognitive tasks to be performed by machines.

While this may sound catastrophic, the good news is that while large-scale automation may redefine the workplace it does not necessarily mean we will all be out of a job. Changes in technology also create new jobs and spawn new industries. The challenge is going to be ensuring that workers have the skills they need to transition to different jobs. The fourth industrial revolution poses a risk to job security only in the sense that not managing this transition can lead to greater unemployment and social inequality.

In approaching what lies ahead, managers and leaders should consider the following three truths.

1. Talent will be more important than capital

Klaus Schwab, Chairman of the World Economic Forum believes that “in the future, talent, more than capital, will represent the critical factor of production”. To make sure they are ready for a future that is still emerging, organisations and people need to be adaptable, innovative and responsive. If up to 65 per cent of the jobs of tomorrow don’t exist yet – it is impossible to “train” people in the conventional sense. Rather we need to invest in their essential capabilities.

To ensure we build talent that is capable of mastering change we need to invest in resilient leadership. Leadership skills are not tied to particular jobs or industries and solid leadership development provides the kind of transferable skills likely to be needed in the future. The WEFidentified the top ten skills that will be most needed in 2020 as: complex problem solving; critical thinking; creativity; people management; coordinating with others; emotional intelligence; judgement and decision making; service orientation; negotiation and cognitive flexibility. These essential skills have long been part of most good leadership development, MBA and executive education programmes – and they will need to be scaled up.

2. Education needs to be flexible too

The WEF report recommends that organisations embrace talent diversity, leverage flexible working arrangements and incentivise lifelong learning to best manage the changes ahead. Lifelong learning and executive education certainly have an important role to play in a rapidly changing job market, and these programmes also need to be flexible and adaptable to student’s and organisation’s needs.

Massive Open Online Courses (MOOCs) already offer flexible access to lifelong learning and the number of courses available is rapidly increasing to meet demand. Many perceive the downside of online learning to be the loss of face-to-face interaction, which is still regarded as critical to the quality of education – specifically when it comes to learning and practising the essential skills identified by the WEF. Educational institutions are looking to fix this by offering a mix of traditional and online learning to reskill and prepare for workplace transition. There are opportunities for combinations and blends of one-on-one and group interactions at all levels of learning.

3. The link between education and business is a two-way street

The format of what is being taught needs to be flexible but so does the content.

As the WEF report suggests, education systems need to be re-designed if we are going to tackle the transitions ahead. This entails businesses, governments and educational institutions working together to provide curricula that meet current and future needs. The McKinsey report suggests that governments have a role to play in maintaining economic growth, scaling job retraining and workforce skills development, and providing income and transition support to workers whilst retraining. But they cannot do this on their own.

Educators supply industry with critical skills, and industry has a hand in shaping the talent pool and informing educational institutions of the changes they foresee and the skills they wish to develop. Businesses that invest in long-term partnerships with educational institutions to develop skills and respond to changes in the environment will stand a better chance of building a workforce that is future proof: suitably skilled, adaptable and ready for the challenges that we collectively face. As the African proverb goes: If we want to go far, we need to go together.


Kumeshnee West is Director of Executive Education at the UCT Graduate School of Business. This article was originally published here.

Procurement 2030: Time Enough At Last?

With 41 per cent of procurement professionals expecting there to be fewer procurement and supply jobs available in the year 2030, career longevity will be held only by those with the right skills.

Fans of The Twilight Zone will remember the Time Enough At Last episode, where it takes a nuclear apocalypse before a frustrated bank clerk finally has the time to indulge his passion.

For procurementand supply professionals standing on the brink of the robotic era, the coming wave of automation presents an unprecedented opportunity to spend time on strategic and value-adding activities that are often pushed aside in favour of the tactical workload.

Procurious and Michael Page UK’s survey of nearly 600 global procurement professionals revealed the top three activities that people would spend time on if tactical elements of their role were automated:

1. Increasing procurement’s influence in the organisation

2. Developing team and talent

3. Seeking opportunities to contribute to top-linegrowth.

This result begs the question: Why wait? If these are the three key activities that procurement professionals would like to spend more time on, they should be prioritised today.

Time for a brand makeover

As the profession continues to transform and evolve, the procurement ‘brand’ is a recurring topic of debate at conferences around the globe. Is it still relevant today, and does it encompass the many value-adding activitiesundertaken besides sourcing? Results from thissurvey reveal that nearly 72 per cent of professionals believe ‘procurement’ will still be an appropriate term in 2030, despite the expectation that the rate of change will increase over the next decade.

Re-skill to survive

With 41 per cent of surveyed professionals expecting there to be fewer procurement and supply jobs available in the future, career longevity will be held only by those with the right skills.

Critical thinking, problem-solving and relationship-building have been nominated as the key skills for the year 2030.

What would you do with 42 per cent more time?

Level 1 of this four-part series revealed that procurement professionals spend, on average, 49 per cent of their time on tactical tasks. Survey respondents expect 42 per cent of their overall workload to be automated, which raises the question: what will people do with their new-found time by the year 2030?

The top three responses indicate that procurement professionals would spend more time on tasks that generate value for their organisation

.• Increase procurement’s influence through stronger alignment with the business and better communication to enable engagement in strategic decisions.

• Do not rush the development and recruitment of top talent, even if there is a pressing business need to do so. Spending more time (not necessarily more budget) on talent will allow the development of highly-skilled teams that can drive value for the organisation.

• Seek opportunities to contribute to top-line growth. This often requires creative thinking and a thorough review of end-to-end processes, particularly in mature functions where further savings opportunities are becoming difficult to find.

The automation of tactical procurement tasks in your organisation will not take place all at once, but piecemeal automation is already happening. Be ready to seize the opportunity to drive true value as tactical tasks are incrementally automated.

Automate to humanise

Overwhelmingly, procurement professionals believe automation will enable a greater focus on building strategic relationships. While tactical transactions with the bulk of suppliers in the spend tail may well be 100 per cent automated, productive engagement with strategic suppliers will increase with technology.

  • Apps or web-apps will drive collaborative processes through event triggers and notifications.
  • Less time will be spent arguing about data, with trusted data allowing more time to spend on collaboratively finding ways to build value.
  • Expect to see more personal interaction but shorter meetings, as the tactical discussion and low-level relationship management will already have been taken care of.

Interested In Learning More?

This content-packed report also contains links to relevant thought-leadership from Procurious and Michael Page UK, including videos, blog articles, podcasts and webinars.

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVELS 1 to 4

3 Attributes Of The Future CPO

Why are organisations appointing CPOs from outside of the profession, what’s the no. one category that will produce future CPOs and should there be a new label for the role of CPO. 

The modern day CPO is vastly different to the CPO of a decade ago – both in terms of management style and the expectations put upon them by the organisation.

And so we can only assume that CPOs in 10-15 years will be similarly unrecognisable.

Who will get the top job in the future , what sort of professional background will they have ?

Tom Derry, CEO – ISM discusses why companies are appointing CPOs from outside of the profession, the no. one category that will produce future CPOs and a new label for the role of CPO

It doesn’t take a procurement professional to be CPO

There’s been a real trend in recent years of CPOs being appointed from outside traditional backgrounds. A savvy marketing professional or a cost-conscious operations manager could make a very attractive candidate for the role.  Similarly, IT professionals – the innovation scouts who know how to drive change and understand key threats to the business like cyber security – could be chasing the CPO role.

“Requirements of the job and the definition of the job have to evolve over time and in the not too distance future,” explains Tom.

Tom outlines some of the key qualities of the CPO of the future.

Customer-facing expertise

“Customer-facing expertise, the ability to interact with, understand and even anticipate customer needs, is a critical skill”

One of the key themes in a recent CAPS research survey emphasised the importance of a demand-driven supply chain.          “[This] means an orientation toward, and a sensitivity to, the needs and requirements of the customer, flexing to meet the customers requirements and configuring your supply chain and your procurement activities to meeting those requirements.”

Market expertise

It’s so important for future procurement leaders to have clear vision and strategy – a strategy that your team can implement based on what you’ve identified.

“Another way of saying that is market expertise” explains Tom.  “Understanding where your company is, what markets you’re going after and the characteristics of those markets in terms of customer and suppliers [is really important]. [Someone with an understanding] of where markets are today and where they’re headed would be ideally suited to lead the supply chains and procurement activities of the future.”

Leadership

Tom stresses CPOs of the future do not need to be process experts. “We don’t need someone who has grown up in the ranks of procurement and has become very good at RF processes, scouting new suppliers, or understanding supply markets.  These are key skills but they are not the leadership skills that are required to lead the entire companies  effort-  they’re just necessary functional skills.”

So where does Tom think CPOs will come from in the future? “Some will become category managers and then move laterally into different positions, and then move into the top job. But it won’t be a straight-line path. You won’t be climbing a ladder within the function to get to the CPO job. You’ll have to leave the function and come back, or come from outside the function because you’ve got the vision and strategic skills to lead.”

Part Three of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss CPOs of the future and how we might label the profession going forward. 

Big Ideas Zurich: 3…2…1… ACTION!

Big Ideas Zurich is now available to watch on demand. Sign up as a digital delegate to watch the event in full! 

We’re so excited to finally share Big Ideas Zurich with you. This truly digital event addresses what skills you need to perfect in order to drive peak performance in your career; what’s the latest intel on blockchain and how to close the gender pay gap in procurement.

The entire event is now available to stream on-demand via the digital delegates group on Procurious.

Check out the agenda below to see what tickles your pickle and watch some highlight videos from the event:

Tania Seary on Driving Peak Performance

Joelle Payom on Diversity and Inclusion

What is your favourite job interview question?

Big Ideas Zurich is now available to watch on demand. Sign up as a digital delegate to watch the event in full! 

Three Truths For Building Future-Proof Organisations

Automation, artificial intelligence and emerging technologies are changing our world and redefining the future of work. Organisations need to gear up to manage this transition wisely and understand the new rules of the game.

The fourth industrial revolution has the potential to disrupt every industry in every country through large-scale automation, adoption of emergent technologies, big data and artificial intelligence. There are many predictions and estimates on how this will affect labour markets, but one thing is certain – the jobs we do, and the skills we need to perform them, will change, and rapidly.

A McKinsey report estimated that by 2030 at least one-third of the activities of 60% of occupations could be automated. This means that globally up to 375 million people may need to change jobs or learn new skills. A World Economic Forum report predicted that current trends in a disruptive labour market could lead to a loss of 7.1 million jobs, two thirds of which are in administrative roles. And a study by Oxford University estimated that 47% of total employment in the United States is at risk due to computerisation, given that automation and computerisation are no longer confined to routine manufacturing tasks. Big data and artificial intelligence are allowing a wide range of non-routine cognitive tasks to be performed by machines.

While this may sound catastrophic, the good news is that while large-scale automation may redefine the workplace it does not necessarily mean we will all be out of a job. Changes in technology also create new jobs and spawn new industries. The challenge is going to be ensuring that workers have the skills they need to transition to different jobs. The fourth industrial revolution poses a risk to job security only in the sense that not managing this transition can lead to greater unemployment and social inequality.

In approaching what lies ahead, managers and leaders should consider the following three truths.

1. Talent will be more important than capital

Klaus Schwab, Chairman of the World Economic Forum believes that “in the future, talent, more than capital, will represent the critical factor of production”. To make sure they are ready for a future that is still emerging, organisations and people need to be adaptable, innovative and responsive. If up to 65% of the jobs of tomorrow don’t exist yet – it is impossible to “train” people in the conventional sense. Rather we need to invest in their essential capabilities.

To ensure we build talent that is capable of mastering change we need to invest in resilient leadership. Leadership skills are not tied to particular jobs or industries and solid leadership development provides the kind of transferable skills likely to be needed in the future. The WEF identified the top ten skills that will be most needed in 2020 as: complex problem solving; critical thinking; creativity; people management; coordinating with others; emotional intelligence; judgement and decision making; service orientation; negotiation and cognitive flexibility. These essential skills have long been part of most good leadership development, MBA and executive education programmes – and they will need to be scaled up.

2. Education needs to be flexible too

The WEF report recommends that organisations embrace talent diversity, leverage flexible working arrangements and incentivise lifelong learning to best manage the changes ahead. Lifelong learning and executive education certainly have an important role to play in a rapidly changing job market, and these programmes also need to be flexible and adaptable to student’s and organisation’s needs.

Massive Open Online Courses (MOOCs) already offer flexible access to lifelong learning and the number of courses available is rapidly increasing to meet demand. Many perceive the downside of online learning to be the loss of face-to-face interaction, which is still regarded as critical to the quality of education – specifically when it comes to learning and practising the essential skills identified by the WEF. Educational institutions are looking to fix this by offering a mix of traditional and online learning to reskill and prepare for workplace transition. There are opportunities for combinations and blends of one-on-one and group interactions at all levels of learning.

3. The link between education and business is a two-way street

The format of what is being taught needs to be flexible but so does the content.

As the WEF report suggests, education systems need to be re-designed if we are going to tackle the transitions ahead. This entails businesses, governments and educational institutions working together to provide curricula that meet current and future needs. The McKinsey report suggests that governments have a role to play in maintaining economic growth, scaling job retraining and workforce skills development, and providing income and transition support to workers whilst retraining. But they cannot do this on their own.

Educators supply industry with critical skills, and industry has a hand in shaping the talent pool and informing educational institutions of the changes they foresee and the skills they wish to develop. Businesses that invest in long-term partnerships with educational institutions to develop skills and respond to changes in the environment will stand a better chance of building a workforce that is future proof: suitably skilled, adaptable and ready for the challenges that we collectively face. As the African proverb goes: If we want to go far, we need to go together.


Kumeshnee West is Director of Executive Education at the UCT Graduate School of Business. This article  was originally published on the University of Cape Town Graduate School of Business blog. 

Category Management – What’s The State of Play?

Do you know how to measure the performance of category management in your organisation? It might be a top three priority for 85 per cent of leading procurement teams, but only 5 per cent of teams have fully optimised their category management…

Category management, and in particular cross-functional category strategy development, is a central feature within procurement organisations – particularly where there is a desire to transform from a sourcing and price management focus.  This allows teams to work more closely with business stakeholders and co-create visionary category strategies that access the full range of value levers available. This maximises and broadens the range of value delivered in terms of total cost reduction, risk reduction and revenue increases.

Although category management was first introduced 30 years ago in procurement, there has been no playbook for implementing it. Approaches used vary from organisation to organisation and category to category.

Since 2012, over 1,100 professionals from 40 countries have taken part in our three previous global surveys in collaboration with Henley Business School.

Since we began doing this survey, our objective has been to develop this playbook, by identifying what causes that inconsistency and identify which practices are most effective, which are least well used, and how the delivery of results links to these areas. The comprehensive report we produce, is an invaluable guide to procurement teams wherever they are on their category management journey.

What is the survey?

A mobile-friendly 10-15 minute survey with multiple choice questions in five different sections. You can share your views on the current state of category management in your organisation. Your individual responses are collated and drive the report but are not shared with any third parties.

The insights coming out of the analytics will again be developed into a comprehensive actionable report, available early next year and published to participants in advance. You will also receive an immediate benchmark assessment at the end of the survey – comparing your organisation’s category management performance with the other participants.

Why do we do it?

We wish to provide insights that will allow participants to improve their organisation’s category management capability and build a business case for investment if needed. This includes:

  • Identifying the most powerful practices being used by leaders to make category management successful
  • Providing practical recommendations on how to implement the powerful practices identified
  • Quantifying the extra value and savings that category management leaders achieve versus followers

How does the 2018-19 survey and report help procurement leadership teams?

For leadership teams, the survey questions provide a checklist of topics that they should consider as a team when designing their operating model for category management. Topics include:

  • Providing category management awareness training for stakeholders
  • Aligning the category management process with related business processes
  • Prioritising projects to work on jointly with budget holders on an annual basis
  • Securing senior stakeholders as sponsors for key categories

Our experience is that many leadership teams do not formally plan their operating model for category management. The impact of this is that category managers can feel that they are operating in an ambiguous environment that limits their efficiency and effectiveness. Examples include extensive time being required to persuade business stakeholders to participate in cross-functional category teams and category managers being excluded from sessions where fundamental components of category strategies are being worked on by stakeholders.

Procurement leadership teams that invest the time to pro-actively design their operating model create an opportunity to consider the numerous and often interdependent moving parts that impact category management success. They remove ambiguity and address the design issues that often cause category management to operate sub-optimally. They provide a clear structure and defined environment for category managers to operate within. The team become clear on “what good looks like” and performance across the group is more consistent and reliable. Ultimately, they deliver better results than their peers – they are the category management Leaders. The report identifies which are the most important elements of a category management operating model to consider – derived from the survey results and detailed analysis conducted by Professor Marc Day from Henley Business School.

How does the 2018-19 survey and report help category managers?

The results from the last survey clearly demonstrated that category managers need to excel in two dimensions:

  • Behavioural skills: to develop excellent stakeholder relationships.
  • Technical skills: to build excellent category strategies.

The challenges of building excellence in behavioural skills such as building trust with stakeholders, communicating effectively and understanding needs is commonly understood by procurement teams, but the direct linkage to benefits delivered has only recently been evidenced from the analysis of 320+ respondents in our 2016-17 survey.

In the 2018-19 survey we have responded to feedback and have introduced questions that explore the specific attitudes and behavioural skills associated with stakeholder engagement. Our intention is to see which of these capabilities have most impact on business results created through category management.

We have also extended the questions about the technical skills required to create and implement category strategies. These include business requirements development, mapping technology changes, identifying market dynamics and understanding how to apply a range of relevant value levers.

For category managers, the survey and report provides a summary of the key skills that they will require as go-to-market activities get automated and the focus on category strategies intensifies.

Immediate Benchmarking

A new feature in this year’s survey is the ability to give participants instant feedback of their own performance against the other results submitted. For larger organisations, there is also the possibility to create reports focused just on that organisation – from a variety of respondents.

We believe that this survey gives a lot of value back to the category management community, and we’re hoping that a record number of people will support this edition. If you’ve any questions or comments please let me know. Also, please forward this blog to any members of your network that would benefit from participation and the benchmarking assessment.

Procurement Isn’t Lighting Up The World…Yet

“Procurement itself – let’s face it – isn’t going to light the world currently, but I believe it will be the new instrument in 2030 to change the world.” – Olinga Taeed, Visiting Professor in Blockchain at Birmingham City University

As we hurtle towards the new year, you might be starting to look ahead and reflect on your personal and professional development goals.

But why wait until January 1st to put your plans into action?

Next week, we’ll be addressing a huge range of critical areas for procurement and supply chain professionals at Big Ideas Zurich.

And, for the first time ever, we’ll be filming and streaming the entire day’s event via the Digital Delegates group on Procurious.

If there was ever a time to register for one of our summits, it’s now. Featuring presentations and interviews from some of Europe’s top procurement leaders, we’ll be discussing procurement and supply management towards 2030, the future of talent, automation, blockchain, diversity and so much more.

Check out our teaser trailers below for a little sneak peak of what’s to come.

Procurement isn’t lighting up the world

“Procurement itself – let’s face it – isn’t going to light the world currently, but I believe it will be the new instrument in 2030 to change the world.”

Olinga Taeed, the world’s first Professor in Blockchain and Social Enterprise, reveals how blockchain can be used for social good, why procurement isn’t currently lighting up the world and when that’s set to change. 

On December 10th discover…

  • What skills you need to perfect to drive peak performance in your career
  • The latest intel on blockchain 
  • How procurement can close the gender pay gap 
  • The latest updates on game-changing technology 
  • How to develop strategic partnerships 
  • Why supplier diversity is best for business
  • What procurement and supply chain will look like in 2030
  • How to stand on your supplier’s shoulders 
  • How to make your key business stakeholders love you
  • The ways to shift your procurement mindset 
  • The importance of having a digital endgame

Win a Parrot Bebop drone worth £450

We know that everyone loves a prize. And believe us when we say we’ve got prizes falling from the tops of the Swiss Alps.

As a registered digital delegate you’re in with a chance of winning one of eight amazing giveaways including the big-ticket item – a Parrot Bebop drone worth £450.

Plus, we’ve got Patagonia t-shirts, a Fjallraven backpack, stashes of Swiss chocolate and Herschel beanies up for grabs.

We’ll be doing eight prize giveaways throughout today with winners selected every half an hour. To put yourself in the running you simply need to get involved on the digital delegates group – posting your comments, insights and questions.

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Piracy Still Rules On The High Seas

Piracy may not quite be the world’s oldest profession, but for thousands of years plundering and pillaging on the high seas has struck terror into the hearts of more honest seafarers… 
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Piracy may not quite be the world’s oldest profession, but for thousands of years plundering and pillaging on the high seas has struck terror into the hearts of more honest seafarers.

Along the journey – or should we say voyage – these seafaring brigands have developed a cuddly reputation as harmless Captain Featherswords with bushy beards and eye patches, bearing a Jolly Roger for show more than anything.

Even the feared 17th century English pirate Blackbeard was romanticised posthumously after a life of pillaging and murdering in 1718.

Of course, there’s nothing innocuous about latter-day piracy, which remains the scourge of merchant shipping in some of the world’s busiest transit lanes.

For a start, cutlasses have been replaced by high-speed landing boats, automatic weapons and even rocket-propelled grenades.

Modern cargo and tankers might not look vulnerable, but despite their gargantuan size they’re crewed by just a handful of people who – by convention – are unarmed.

The extent of piracy has always ebbed and flowed, but it re-entered the public consciousness when the disintegration of the Somalian state in the early 2000s spurred a surge in piracy across the Indian Ocean and the Red Sea.

Recent activity has focused on the Gulf of Guinea and, more specifically, Nigerian waters.

Other modern piracy hotspots are the Straits of Malacca, Gibraltar and the Philippines. There have even been reports of ‘river piracy’ on the Danube in Serbia and Romania.

The enforcement problem with modern-day Blackbeards is that most of the piracy occurs on international waters, with many countries willing to turn a blind eye.

Over the last 10 years, the trends look to be heading the right way: according to the International Maritime Bureau’s Piracy Reporting Centre, in 2017 there were 180 reported incidents of piracy and armed robbery, compared with 267 attacks in 2007.

Of these, 15 resulted in 91 crew being taken hostage, with another 13 attacks resulting in 75 crew being kidnapped (that is, taken off the boat).

Sadly, three crew members were killed and six were injured.

The IMB’s updated figures suggest some slippage: in the first six months of 2018 there were 107 reports of successful or attempted attacks, compared with 87 for the same period last year.

Of these, 69 resulted in the pirates boarding and 11 in the ships being fired upon.  Across seven incidents, 102 crew members were taken hostage, compared with 63 previously.

Geographically, piracy is an ever-shifting activity: none of the 107 reported attacks was in the old hot spot of Somalia, while 31 were in Nigeria and 25 in Indonesia.

Unlike in Captain Phillips – the 2013 celluloid account of the US mariner’s struggle with Somali pirates in the Indian Ocean – the US navy is unlikely to steam to the rescue.

But the long-term trends suggest increased vigilance on the part of ship owners and a somewhat belated response from navies and maritime authorities.

In a celebrated case, the Malaysian Maritime Enforcement Agency recently apprehended 16 pirates attempting to board a tanker six nautical miles off the coast of Pulau Tinggi.

Given the vastness of international waters and extent of shipping activity, no boat can rely on protection being close at hand, and captains are adopting their own measures to protect crews and cargoes in vulnerable regions.

These remedies include razor wire on decks, hoses converted to sea water cannons, hardened bridges and even the use of mannequins as ‘armed’ guards. The high-end yachting sector has deployed laser dazzlers that can temporarily blind attackers before they board.

Not all of the solutions are high tech. Earlier this year, pirates attempted to board the merchant ship MV Kudos near the island of Sibago in the Philippines. They were fought off after the crew adopted the medieval siege trick of pouring boiling water on the assailants.

Of course, prevention is better than cure and crews in vulnerable areas are advised to maintain a 24-hour watch and radar vigilance.

The IMB’s not-for-profit piracy reporting centre provides an around-the-clock service for Masters to report hijack attempts and suspicious activity, with regular updates.

Despite the distress caused by modern pirates, at least their demands for monetary gains are clearer and easier to accede to than, say, the demands of politically inspired terrorists.

Unlike the chest of gold doubloons in the past, loot can take several forms.

In some cases, the culprits demand hostage money, leading to delicate negotiations as ship owners determine just how ambit the claims are.

(The 2012 Danish movie A Hijacking documents the bewilderment of a ship’s crew as the hijackers and the ship owner’s dispassionate head office bean counters quibble about what their lives are worth).

In extreme cases the pirates hijack the ship itself and take it to a friendly port for a new identity. In other cases, the contents of the ship’s safe and the crew members belonging will suffice.

The resilience of piracy is linked with poverty and upheaval resulting from civil war: they’re desperate acts carried out by desperate people. In the case of Somalia, fishermen became pirates after foreign boats took advantage of the lack of government by overfishing or dumping toxins in the waters.

In other cases, it’s the work of highly organised gangs.

Given the varying motives, we can never quite be sure why pirates are pirates, so let’s just say it’s because they ‘arrrr’.