All posts by Procurious HQ

How To Get Supply Chain A Seat At The Table

If supply chain pros can secure a seat at the table, it becomes easier to to share insights, challenge processes, support the business and be part of strategy creation – ultimately delivering value.

Laura Faulkner, CPO and Director Supply Chain Management for Nationwide Building Society, is truly passionate about developing the profession in order to raise its value and reputation within the business.

“As a fellow of CIPS I really am very keen to take on an active role in working across all industries; sharing best-practice and learning from the best of who’s out there.”

Laura is a firm believer that  Supply Chain functions act as an extension of the organisation as a whole and in her role at Nationwide Building Society she has led by example, “leading a team that supports the delivery of our business strategy but doing so in a really collaborative way with stakeholders and suppliers. Our suppliers and partners are simply an extension of our own firm . We have the ultimate responsibility and the actions of our suppliers reflect on us.”

Recent events have truly tested this mentality.  The collapse of Carillion, one of Nationwide’s biggest suppliers, in January 2018 hit particularly hard.

“When [Carillion] collapsed on 15th January we really did have only two areas of focus. One was to secure the services which was everything from security, reception, data centers and maintenance.

“But we also had to do the right thing by all of the Carillion staff that had served Nationwide for a number of years. Within six days of the collapse we in-sourced all 300 members of staff and directly contracted with the 160 sub contractors.

“To me sharing this kind of story shows how we can add value not only to our own organisation but also in sharing it across other industries. We’ve all got things we can learn from each other and it’s very key that we play a pivotal role within our organisation. We are that link to the supply chain, we do not outsource the risk that the supply chain brings and we have to take full responsibility.”

Getting (and keeping!) supply chain’s seat at the table

We were really interested to hear Laura’s thoughts on how supply chain professionals can secure a seat at the table.

“Well it’s easier said than done ,” she admits, “and at all the firms I’ve worked with it’s been something we’ve pushed for. We really do need a seat at every relevant table whether that be the investment boards or the strategy committees – you need to be part of the discussion not someone brought in and brought up to speed outside of the meeting.

“It’s easier when you’re sitting round the table to give your insights, to challenge, to support and really be part of either the decision making or the strategy creation.”

But, as Laura points out,  it’s always easier to get that first invite to a meeting.  It’s keeping the seat at the table that’s really challenging. “If you want to be kept at the table,” she suggests “you need to be able to add something and bring some unique, different types of thinking. [Supply chain management teams] are one of the strongest links to the outside world. Use it and you can bring insights and innovation.”

“We’ve just announced at nationwide that we’ll be investing a further £1.3 billion of investment into our new strategy and we are fully engaged in making that happen.

“I’ve been working with the CTO  – we’ve been holding meetings and strategy sessions with all of our key partners and investigating new possible supply chain partners and it’s that engagement and listening to what our suppliers have to say that will really help us develop the strategy further and ultimately deliver it.”

Laura Faulkner is speaking on Day Three of Career Boot Camp 2018. Sign up here (it’s free) to listen to his podcast now.

Transactional Supply Chain Activities: Your Days Are Numbered

The days of transactional activities in supply chain management are numbered and look set to exit our organisations very rapidly…

Chris Crozier, Chief Digital Officer – Orica International has seen first-hand how the perception of supply chain management has changed over the years.

As little as thirty years ago he can remember there being “very little recognition [of the profession] and the nuances around the skillsets required. In fact, most people talked about the smartest people in the room being in marketing and I saw that there was plenty of opportunity around skillset affirmation around supply chain.”

On Day Three of Career Boot Camp we speak to Chris about the evolution of the supply chain management profession, the importance of embracing new technology and implementing digital transformation.

Supply chain management across company borders

As someone whose, very impressive, career has criss-crossed several industries, Chris is a keen advocate for supply chain professionals working across functions.

“Supply chain is such a beautiful function where you do get that end to end view of an organisation,” he explains.  “We need to make sure that we leverage that and the relationships we have with other functions [including] any career opportunities  – not just for ourselves but for our teams.”

He warns against leaders becoming too defensive of their supply chain talent; “I think that’s a real blind spot in some of the supply chain functions as they stand today. So share the talent and surround yourself with highly capable people but be prepared to move them in and out of supply chain.”

In seizing any opportunities to move talent in and out of teams supply chain pros are facilitating the creation of “a really virtuous cycle of understanding” and ensuring that there are “supply chain evangelists in other functions.”

Indeed, working in both tech and supply chain has proved to be the perfect balance for Chris, “one of the things you get from working in supply chain is a broad analysis and encompassing oversight of the organisation and I think that’s what technology also requires. So there was a lovely fit between the technology understanding that was necessary in a CIO role and that broad business perspective you get from [working in] supply chain.

“Having that very broad business understanding meant I could provide that bridge between business requirements and a technology outcome.” 

The impact of technology on supply chain  

As is the case with every single function in every single organisation, supply chain professionals will be significantly disrupted as a result of incoming technologies.

And Chris, a self-proclaimed advocate and evangelist for the technologies coming through his door believes it is imperative for supply chain professionals to have a decent understanding of the latest technology in order to be successful in the long term.

Professionals need to know “how to apply it, where to apply it, how to leverage it most effectively and, most importantly, what’s coming in in the future that can help you to be even better in your role and therefore have a more productive organisation and ultimately underpin the broader company that you work for.”

Chris believes that the days of transactional activities in supply chain are numbered and will exit the organisation very rapidly, which is, of course, bad news for the supply chain professionals who are doing these transactional activities! “We will move to the world of the seamless end-to-end supply chain, which we were talking about in 1998-1999! We were all talking at that stage about real-time supply and demand activity.”

And Chris believes we’re fast approaching that point today with “the compute power that we have available, the network capacity we have available and the technology we have available.”

“People will talk about blockchain and other technologies and, yes, that’s all part and parcel of the way forward. But ultimately supply chain professionals now need to continue to go up the value curve.

“A lot of the things we do around competitor intelligence, around negotiation strategy and so on will be superceded by the technologies coming through the door.”

“Those things are just going to become endemic as tools for professionals in supply chain so we need to be on top of that, prepared for that and able to leverage that because it’s going to hit us very soon.”

Chris Crozier is speaking on Day Three of Career Boot Camp 2018. Sign up here (it’s free) to listen to his podcast now.

The Making of a Supply Chain Leader

What are the key skills  supply chain professionals should be developing in an AI-enabled future?

Ekaterina_Minaeva / Shutterstock

“I’m a great believer in great passion,” says Ron Castro, Vice President, IBM Supply Chain. And it’s just as well given that Ron is responsible for all strategy, execution, and transformation of IBM’s US$70Bn global end-to-end supply chain, delivering to clients across more than 170 countries.

“Always be as bold and as fast as you can,” he says. “I’ve never looked back in a transformation and thought ‘Darn it! I wish I had gone slower.’ There’s always room to be bolder and to go faster.”

On Day Two of Career Boot Camp, Ron speaks to us about the greatest challenges and complexities of his role, the importance of leadership, and the key skills that supply chain professionals should be developing in an AI-enabled future.

Building a cognitive supply chain

“We’re at a point when new technologies are truly enabling us to take advantage of all kinds of data and giving us actionable insights close to real time,” Ron says.

“In our case, it all started several years ago when we built our transparent supply chain across [all] processes and systems, which gave us an excellent platform to apply advanced analytics and manage our business by exceptions. We set a very clear goal to become the first cognitive supply chain. This is based on our strong belief that with machine and human interaction we can truly augment supply chain professionals’ daily decision-making,” he says.

Ron points to several emerging technologies that provide incredible opportunity – AI (Watson, in IBM’s case), machine learning, blockchain, the Internet of Things, virtual reality, and 3D printing.

“Humans and machines always get a better answer than machine alone or human alone. With that principal we’re training Watson with our best supply chain experts [and] letting it observe our decision-making in digital resolution rooms,” Ron says. “Watson is learning in real time with us so it can help us to identify risks, predict issues and, as a trusted advisor, suggest our best course of action. How were similar problems tackled in the past? What are the risks or alternatives? Who should be involved or advise us on what actions we should be taking to manage the situation better and faster?”

“As we map the future of our supply chain it is crystal clear that we are getting the most value of our capabilities as we start to stack technologies together,” he says.

The challenge that’s keeping supply chain leaders up at night

“I have the pleasure of leading one of the most talented supply chain teams in the world,” Ron says. “I really love the adrenaline and all the variables that you need to be able to optimise it and the challenge of ensuring the right balance between demand and supply while [delivering] the highest quality and [focusing] on managing revenue cost.

“We are sensing and responding fast in the most intelligent way to any changes in the supply and demand equation, whether it be the introduction of new products, reacting to a natural disaster, geopolitical issues or supplier constraints,” he says.

But Ron also acknowledges that the tech industry is changing by the minute.

“[T]he challenge that keeps me up at night is are we transforming, are we moving fast enough and, more importantly, are we giving our team the tools they need to be successful?” he asks. “At the end of the day [are we building] an organisational culture that’s primed to leverage new technologies, unleash innovation, and challenge the status quo? Do we truly have the skills for the future?”

The making of a supply chain leader

 Ron always sees the need for strong leaders. “Some of the fundamentals [of leadership] don’t change; passion, perseverance, global and holistic thinking, collaboration and the value of diversity, [and] building a culture of feedback and continuous improvement,” he says.

Ron believes all these factors, indicative of a high-performance culture, will become even more critical in an AI-enabled future.

“We need leaders that take risks and drive a clear vision around digital supply chain and the need to be innovators; leaders that value experimentation over perfection [and] are willing to try new things and correct fast as needed,” he says.

Ron believes that leaders need a deep understanding of technology and where the trends are heading.“Disruptions are coming and they will hit us faster than ever so the ability to react becomes essential,” he says.

Ron advises aspiring supply chain professionals to take a step back and ensure that they are holistic, global, and horizontal thinkers. He encourages them to embrace new ways of working and collaborating with one another in order to become agile thinkers.

“In this new world the basics of supply chain are still critical so you can optimise a supply chain holistically from an end-to-end perspective. But you also need to be technically savvy,” he says. “The machine-human interaction will continue to increase and all these technologies will continue to become even more critical in supply chain.”

Data scientists will also be highly valuable, Ron says, as the ability to gather insights and ask the right questions will become critical for supply chain professionals.

Ron Castro is speaking on Day Two of Career Boot Camp 2018. Sign up here (it’s free) to listen to his podcast now.

Supply Chain Management – Much More Than Just The Wire Between Switch And Light…

Sometimes supply chain is viewed as an abstract part of the business – we’re the wire between switch and the light. But that wire is not always fully understood…

Career Boot Camp 2018 kicks off this week! And this year’s series, Your Supply Chain Career: Accelerated, has been designed to help you sprint outside of your comfort zone and get into the best career shape of your life!

On Day 1, we catch up with Rick Blasgen President and CEO of CSCMP who has a lot of hope for the future of the supply chain profession.

“I think our professions have come such a long way already and have such a long way to go. Procurement and supply chain management will be an embedded feature of every competive global company around the world because they see so much of what goes on.

“[At CSCMP] we see it really growing into the fabric of successful companies. There is so much opportunity before us as our global economies kick in and we use technology and productivity processes to improve our ability to serve customers in markets that are yet to be conquered.”

The value in professional certifications

The debate rages on over the true value in professional supply chain certifications. But Rick is pretty sure they’re here to stay!

“This profession changes so rapidly –  think about risk management or about deliveries by drones or autonomous vehicles. These types of systems or technologies were not even part of our lexicon ten years ago and so certifications allow us to keep fresh, allow us to continue to demonstrate that we have a mastery of the supply chain and procurement professions by being on the forefront of what’s coming down the line that we might be able to use in our professions.

“One of the things important to CSCMP is to advance the logistics, supply chain and procurement professions and the careers of those working in them. The only way we do that is by being thought leaders and thinking about using the new technologies and tools that have never before existed. Our certifications will educate you on these things and then test that you have the understanding and can utilise the complexity within them.

“So I think [professional certifications] are a normal course of continuing to educate yourself and continuing to be knowledgeable about such a dynamic and ever-changing field.”

Upskilling your supply chain team

How does Rick feel about experienced hires versus the value in up-skilling talented professionals from diverse backgrounds?

“There is no reason that someone with a lot of experience in a different field can’t be very successful working in supply chain. If you have the ability to analyse data or if you’re an engineer – those types of talents and skills play a very important role within the supply chain world.

“Sometimes supply chain is viewed as an abstract part [of the business] – we’re the wire between switch and the light. You flick the  switch and the light goes on you don’t call your power company and thank them because you expect the light to go on.

“Well that wire is sometimes not truly understood – supply chain and procurement professions struggle a little bit with awareness.

“But there’s so much opportunity and different types of jobs that folks can come into. If you have a set of skills like great interpersonal skills or great managerial and leadership skills you’re going to do just fine in a supply chain position as long as you can analyse data and think logically about this flow of inventory and information.

“We’ve seen folks come from the medical industry, consumer products, consumer electronics or even different types of functions such as English or History majors who have come and done a wonderful job.

“Is it great to get supply chain education? Sure it is!  Universities these days are doing a great job of explaining modern day supply chain theory. But you can certainly be successful as you fly into this profession with a set of skills that really make a difference.”

Rick’s parting words to any aspiring supply chain professionals?

“Young folks have a great opportunity – I have never seen a hiring market like it is now. If youre looking for a job on another continent I can’t think of another field where you can go ahead move to another part of the world If you so desire and have a very fruitful experience. If you have a global experience or a global mindset  you’ll do very well in supply chain because it is such a global field.”

Rick Blasgen is speaking on Day 1 of Career Boot Camp 2018. Sign up here (it’s free) to listen now! 

The Rise of The Contingent Workforce… And How to Manage It!

Contingent Labour represents an ever-increasing proportion of our workforce, and it’s not hard to understand why. What is challenging for procurement teams, however, is effective management of their organisation’s contingent workforce… 

kurhan/ Shutterstock

“Depending on whose data you believe, the contingent workforce now makes up from 20 per cent [1] to 40 per cent [2] of the global workforce, with some analysts estimating that it will reach 50 per cent by the year 2020,” says Doug Leeby, CEO – Beeline.

Procurious caught up with Doug ahead of his keynote presentation at Big Ideas Summit Chicago to learn more about the state of contingent labour in the workplace today and to pick his brains on how procurement teams can best manage, and leverage, their ever-evolving workforce.

The rise of the contingent workforce

“It’s easy to understand why contingent labour is growing,” explains Doug.  “Most companies are under intense pressure to improve their bottom line and usage of contingent staff, contractors, freelancers, and consultants is an excellent economic model that can be deployed to both accomplish discrete projects and assist an organisation during surge periods of work.”

“There is an enormous economic benefit in being able to ramp up key areas of the workforce during heavy times and down in lighter times.  Additionally, the enterprise can complete important project work by hiring external experts rather than having to bring highly specialised skills into the organisation.  The short-term costs may appear high but the total cost to production can, in fact, be much lower.”

“Traditionally, companies have looked to the contingent labor population for work that is less strategic, saving that for FTEs.  However, more and more, we are seeing a hybrid approach.  Successful companies in which HR and Procurement are working together have figured this out.  Most of us can’t afford a team of data scientists but we can contract a team for a specific goal.  That’s a very strategic example whereas the contingent workforce can produce extraordinary value.”

The challenges of contingent labour

Employing a large proportion of contingent labour to your organisations presents a whole new set of challenges for both procurement teams and HR. But, as Doug advises, it is specifically in-effective management of contingent talent that will lead to enormous problems and risks for your organisation.

“Companies may be operating out of compliance, exposing themselves to severe penalties.  Additionally, improperly managing this talent can lead to overpayment or under-delivery of results. Metrics and KPIs are critical to ensure that the program is properly managed. Everyone has heard about the now-infamous ‘war on talent.’  It isn’t subsiding.  Not having a smooth-running program to manage contingent labor invariably leads to losing great talent to those who do have solid programs.”

Part of the difficulty with managing contingent labour is procurement’s failure to work constructively and efficiently alongside HR departments.

“Asking the two departments to take time to think about optimising their workforce is a tough ask,” explains Doug.

“This is not a small undertaking nor is it something that can be accomplished in one meeting, or even a series of meetings. It is transformational, which means it requires a significant investment of time and resources, but I believe it will happen as the focus on talent comes into greater view at the C-suite. HR has an outstanding opportunity to look at talent holistically and work with Procurement to ensure that it is sourced and managed properly. This will deliver tremendous value to the organisation.”

Using tech to manage contingent labour

“Technology today is an enabler,” Doug explains.  “However, with the progress being made in AI and machine learning, it will soon become far more than just an enabler – it will become an advisor.

“Technology shouldn’t just be about workflow and reporting.  Rather, it should act more as a subject matter expert or concierge helping procurement and HR to analyse their workforce and make strategic decisions.

“The challenge with this transformation is that it depends on organisations getting all their data into the technology and most still have a way to go. At a minimum, they need get all of the contingent labor into the system – complex, statement-of-work (SOW) based, milestone-based services as well as contingent staff.

“VMS technology can manage not only who the contingent workers are, where they are, what they are doing, and what facilities and data they have access to, but also how well they perform their assignments.”

The future of the workforce

“The workplace and workforce model that has been in place since the Industrial Revolution, designed for stable markets and long-term business planning, is giving way to a new model based on constant change and adaptability,” Doug believes.  We asked Doug to outline what he believes will be the key features of the workforce of the future…

1. Talent first

Over time, I believe organisations will adopt a “Talent First” approach that will be led by HR.  Procurement will remain a solid partner, but HR will need to lead the initiative within the organisation. They will work, proactively, with department heads and finance to figure out the best way to achieve desired outcomes.

2. The human touch

Some outcomes will be handled via artificial intelligence and robotic process automation, but much will still depend on people.  Competitive organisations will focus on optimising their workforce.  They will then focus on how to source this talent holistically.

3. Talent pools

Talent sourcing won’t be done in silos anymore.  Organizations will establish private talent pools and work to attract talent, both FTE and non-FTE, to their pools.  Then, they will be able to hire/engage known talent which leads to a higher propensity for success.

4. Self-sourcing

Companies will make use of functionality like our Self-Sourcing.  In other words, they will go directly to the contingent talent rather than through intermediaries.  This is already being done with freelancers, but we will see more of this with contractors and consultants.

Doug Leeby will be speaking at Big Ideas Chicago on 27th September. To  hear more from him and to follow the action LIVE from wherever you are in the world, register as a digital delegate (it’s free!)

Continue reading The Rise of The Contingent Workforce… And How to Manage It!

Making Sustainable Procurement Work

Now, more than ever, it’s important for the profession to put sustainable procurement at the front and center of business.

AYA images/ Shutterstock

Daniel Perry, Global Alliances Director – Ecovadis believes that the role of procurement is evolving. Evolving from being “primarily focused on cost savings and operational efficiency, to a more strategic and central player in risk management and value creation.”

Now, more than ever, it’s important for the profession to put sustainable procurement at the front and center of business.

“Stakeholders, including end consumers, B2B customers, shareholders etc. are demanding that businesses take responsibility for practices all the way into their value chain. They’re driving transparency and, ultimately, a positive impact by working with high-integrity partners. And it’s procurement teams that are in the ideal place to meet these higher stakeholder demands.”

“The power of the spend that procurement controls (often between 50-70 per cent of turnover) puts procurement at the crossroads of not only risk management and brand protection, but also as internal partners for driving value creation. Of course they want the value chain to be resilient – to avoid interruptions or damage to their company’s reputation – but they also want to provide supplier-driven innovation and support for transformative business models and offerings. –

“Procurement teams focused on sustainability do this by selecting and working with the best suppliers in a way that goes far beyond price, quality and delivery, to include performance around environmental, social and labor and ethics practices.”

The value-add of sustainability programs

It’s all too common to hear an organisation defend their lack of commitment and lack effort in this space. “It’s too expensive”, “it’s too difficult”, “it’s too time consuming” or “we’re just not ready” are typical refrains.

The benefits and ROI of sustainability include not only operational savings, but strategic outcomes. A well-developed Sustainability and Corporate Social Responsibility (CSR) program that is integrated into the company values, and is driven with executive support, can drive key business performance metrics such as:

  • Sales and reputation: A burgeoning wave of consumer sentiment is cresting. More and more customers are comparing the sustainability details of products and services, and it is changing their purchase decisions. Companies making the right sustainability investments can realise a possible increase in revenue of up to 20 per cent.
  • Employee morale and productivity: Sustainability programs can do wonders to improve employee satisfaction, reducing a company’s staff turnover rate by up to 50 per cent and increasing employee productivity by up to 13 per cent. Integrating CSR practices in your company and brand also has a hugely positive impact on recruiting.  If your company has a better sustainability reputation, it often generates more interest from applicants, allowing you to be more selective and choose higher quality candidates.
  • Increased market value: Sustainability programs can increase a company’s market value by up to 6 per cent.
  • Innovation: With more power comes more responsibility…and more options. Many companies are pursuing sustainable procurement strategies in order to find innovative suppliers that will help them differentiate their product or service offering.

Dupont, for example, changed its innovation strategy to embrace a “sustainable growth” mission, saying “If we bring the solutions to the market sooner than our competitors do, we will be more successful in continuing to grow the company.”

Making sustainable procurement work

“One of the biggest challenges companies face in sustainable procurement is measuring and understanding current performance within their supply base, in the context of global standards and benchmarks. It can also be challenging to engage suppliers as collaborators in their mission. And to get there requires a mix of expertise, the right technology, change management and process integration backed by executive commitment.

“First, the organisation needs a clear mandate from the executive team, which makes the sustainable procurement program an integral part of the function’s mission and values. This is embodied by investing in change management and communication programs and taking steps towards implementation and company-wide adoption.

“Success also requires reliable, agreed-upon indicators for sustainability performance that both buyers and suppliers can understand, and that are actionable. Many companies collect lots of unvalidated data, but buyers rarely have the CSR expertise or time to validate or interpret it – and this is where a standardised, evidence-based, and analyst-generated rating – like EcoVadis provides – comes into play.

“Additionally, CSR criteria and performance indicators must be integrated across the procurement function and include the use of clear and enforceable codes of conduct, contract clauses and tender criteria. Buyers need to believe in and leverage these criteria in their supplier development and sourcing activities.,  And, procurement groups should agree on, measure and reward on the critical CSR / sustainability KPIs in the same way they track cost savings or other key metrics. These all drive adoption in the organisation and make sustainability inherent to the procurement role.

“Increasing the benefits to a single company, a mutualised platform can make it much easier for suppliers to share the same scorecard results with all their customers, enhancing transparency and collaboration to drive network effects for maximum improvement and impact.”

Daniel Perry will be speaking at Big Ideas Chicago on 27th September. To  hear more from him and to follow the action LIVE from wherever you are in the world, register as a digital delegate (it’s free!)

Read more on this subject from EcoVadis in  Beyond Compliance – The 5 Pillars of sustainable procurement value creation

Procurement 2030: Preparing For The Revolution

Only 7 per cent  of procurement functions are perceived as ‘maturing’ in terms of digital transformation and a mere 38 per cent of teams have the capability to meet the challenges of Industry 4.0. Find out how to address these challenges in our latest report: Procurement 2030: Level 2.

Without careful preparation, revolutions fail.

From Spartacus’ slave rebellion in Ancient Rome, to the Satsuma Samurai uprising in Imperial Japan, to the Boxer rebellion in colonial China, history has shown that a revolution cannot be powered by enthusiasm alone. Successfully landing a change of any significant scale requires strategy, planning, and no small amount of determination to see it through.

The Fourth Industrial Revolution (Industry 4.0) is now upon us, and its effects can be seen in the assembly lines and offices of companies around the globe. Game-changing technology such as 3D printing, the Internet of Things (IoT), and Blockchain will super-charge the supply chains of many organisations, but need to be implemented with care.

Level One of the four-part “Procurement 2030” series by Procurious and Michael Page UK examined the forecast for procurement and the threats and opportunities facing the profession. The latest report, Level Two, shifts the focus to the practicalities of procurement and supply chain management’s evolution – against the backdrop of a technological revolution.

Our survey of 590 global professionals revealed that there is a great deal of preparation to be done before the majority of procurement functions will be equipped to take full advantage of Industry 4.0, particularly in the areas of strategic planning, creating a roadmap that gives priority to the most impactful elements of the digital revolution, and (crucially) having the right talent on board.

Download Procurement 2030: Level 2.

Low Maturity

Our survey revealed that only 7 per cent regard their procurement functions as ‘maturing’ in terms of digital transformation. The factor holding back this maturity would appear to be a lack of support from the wider business, with comments such as:

  • “Management is not interested in a digital transformation journey.”
  • “Our desire to transform is not matched by the business, who do not see the value.”
  • “Digital transformation of procurement is not even on the agenda.”

Some steps that might be taken to improve this situation include:

  • Do your homework and build a rock-solid business case that supports digital transformation. Alarmingly, 43% of survey respondents indicated they do not have a formal digital transformation strategy.
  • Ensure you align each step of your digital transformation journey to an enterprise-level objective.
  • Find a sponsor (a senior person in the organisation) to support your proposal.
  • Have the courage to take a risk – have confidence behind your ideas and be prepared to stand up for them.

Procurement’s Kryptonite

What do you regard as procurement’s greatest weakness? This research reveals that a narrow focus on cost savings and a lack of influence in the wider organisation are two stand-out factors that are holding procurement back.

HSBC CPO Jan Fokke Van Den Bosch shared his opinion of procurement’s greatest weakness in this video interview.

What’s Your Priority?

Moving systems into the cloud and leveraging big data analytics are by far the two most likely technologies to be implemented within the next 24 months by surveyed organisations.

Although AI and cognitive procurement are perceived as two of the most difficult-to-implement technologies, they are also expected to have the greatest impact on organisations. Other high-impact technologies include big data, cloud computing, and robotic process automation.

When prioritising these technologies to create a digital transformation roadmap, take the following factors into account:

  • Enablers – which technologies need to be implemented first to enable others to work successfully?
  • Impact – which technology will make the greatest positive impact on your wider organisation’s goals?
  • Costs and benefits – what is the long-term ROI on this investment? What are the benefits beyond cost savings?

The Right Team For The Job

Our survey-takers believe that on average, only 38% of their colleagues heave the capability required to meet the challenges of Industry 4.0.

For procurement functions on the cusp of a major digital transformation, now is the time to examine the team’s attributes and capabilities and, if necessary, bring in fresh talent with the ability to drive change and reap the full benefit of enabling technology.

While digital skills are a must, candidates should be screened for attributes such as a willingness to embrace change, agility, and the flexibility to make use of new behaviours and technologies.

Another solution to the perceived capability gap is to embrace the gig economy. The future of work will be project-based and outcome-focused. From the employer’s perspective, it will become increasingly important to bring in the right team for the right project.

A higher percentage of contractors in procurement will enable project managers to scale up and down as necessary, with results revealing that employment of contractors is expected to nearly double by 2030.

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.

And don’t forget … parts 3 to 4 of the Procurement 2030 report will be released in the coming months!

  • Part 3: Human vs AI Skill Sets: October 2018
  • Part 4: Procurement Makeover: November 2018

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVEL 2.

Procurement’s Missing Puzzle Piece

How can the missing puzzle piece make it easier for procurement teams to operate sustainably, improve supply chain transparency and eliminate corruption?

As procurement professionals we’re always talking about how leveraging innovative technology can add value to our organisations.

But less frequently addressed is how technology can make it easier for procurement teams to operate sustainably, improve supply chain transparency and eliminate corruption. 

In our latest Procure with Purpose webinar we’ll be exploring how the latest and greatest in technology innovations can not only help procurement pros deliver business value but also drive and enable purpose-led practice.

Join us on October 10th when we’ll discuss the tech that’s helping procurement  teams to collaborate with their suppliers and  improve transparency; how to communicate the importance of using tech to improve purpose-led procurement and why businesses must integrate tech-led purpose-driven practice into all of their decision making.

How do I register for the webinar?

Registering for The Missing Puzzle Piece: How Technology Can Empower You To Procure With Purpose couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

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

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar takes place on 10th October at 10am EDT/ 3pm BST. Sign up or log in via the form above and we’ll be in touch ahead of the event to provide details on how to join the webinar live.

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

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

Can I ask a question?

If you’d like to ask one of our speakers a question please submit it via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

What is the Procure with Purpose community?

Procure with Purpose is a community for procurement pros who want to deliver value beyond cost savings and efficiencies – shining a light on the biggest issues from Modern Slavery to Environmental Sustainability – and on you, our members, who are already driving exponential change.

Webinar Speakers

Oliver Campbell, Director Procurement & Packaging Engineering

Oliver is a Director of Procurement & Packaging Engineering at Dell Technologies.  He has become one of the most influential thought leaders in the packaging industry by combining innovation and supply chain best practices.  Under his leadership, Dell introduced industry changing materials such as bamboo, mushroom, and molded paper pulp for more environmentally healthier packaging.

Most recently, Dell launched Ocean Plastic packaging with the aim of creating an industry response to tackle the task of the ocean plastic crisis.  Through founding NextWave, a cross-industry consortium of like-minded companies, Dell is creating a commercially viable, and scalable, supply chain that is focused on keeping plastics out of the ocean and in the circular economy.

Oliver’s accomplishments have been highlighted for their business and social influence by Fortune in their 2017 Change the World Companies, and by LinkedIn in their 2017 Top Companies to Work For.  Additionally, the 2018 Consumer Electronics Show recognized his pioneering work in Ocean Plastic with a Best of Innovation Award.  Mr. Campbell holds Bachelor and Master Engineering degrees from Cornell University and an MBA from The University of Texas.  In his free time, you can find him training for his next triathlon.

Justin Sadler Smith, Head of United Kingdom & Ireland, Ariba Cloud Procurement at SAP Ariba

Justin Sadler-Smith is head of SAP Ariba UK and Ireland, procurement and supply chain thought leader, and cognitive procurement ambassador. He is one of a growing number of procurement leaders around the world who helps procurement and supply-chain teams ensure that fair labor practices are in play across their global supply chains by harnessing innovative technology and increasing competitive advantage

Padmini Ranganathan, Global Vice President – SAP Ariba

Padmini Ranganathan is Vice President, Products and Innovation for Supplier Risk, Compliance and Sustainability solutions for SAP Ariba.  In this role, she is responsible for product strategy and engineering and leads a team of experts focused on delivering solutions that enable risk-aware, sustainable and ethical supply chains.

Prior to SAP Ariba, Padmini led the Analytics for Industries solutions marketing team at SAP which brought to market the first analytical applications and content for “art of the possible”  industry and line of business application scenarios. Before joining SAP, Padmini worked at Oracle, where she was part of the procurement product management team that delivered the first web-based, self-service applications for procurement and a technical consultant in the areas of order management, inventory & distribution, procurement and manufacturing.

Padmini is a passionate advocate for bringing technology to business users that simplifies and enriches their daily work and decision making. And as the Products & Innovation lead for SAP Ariba’s Procurement with Purpose initiatives, she is dedicated to helping businesses balance their costs with conscience and make an impact on the larger world.

Padmini has a post-graduate diploma in computer science from UC Berkeley, California, and a bachelor’s degree in commerce with a major in Cost & Management Accounting from Bangalore University, India.

Sign up for The Missing Puzzle Piece: How Technology Can Empower You To Procure With Purpose ahead of 10th October. 

Your Supply Chain Career: Accelerated

What do supply chain leaders predict for the future of the profession and how do you ensure you’re prepared seize the opportunities and get the most out of your career?

What is the biggest mistake supply chain professionals make?

What are the five key skills you need to make it to the top?

How should supply chain leaders embark on a major transformation?

Will the profession evolve in the coming years in preparation for an AI-enabled world?

We’ll answer all of these questions and more when Career Boot Camp 2018 kicks off at the beginning of October.

This year’s series, Your Supply Chain Career: Accelerated, has been designed to help you sprint outside of your comfort zone and get into the best career shape of your life!

Featuring tips and tricks from some of the best in the business we’ll be discussing how to make it as a Head of Supply Chain, the true value of professional certifications, how to persevere in the face of adversity and what the future holds for the profession.

Sign up here ahead of our launch on October 1st.

FAQs

What is the Procurious Career Boot Camp ?

Procurious’ Career Boot Camp, sponsored by IBM, is a global professional development event for supply chain professionals. The series, features five, fifteen-minute podcasts that have been designed to help you get into the best career shape of your life.

How do I listen to the Career Boot Camp podcasts?

Simply sign up here and you’ll be re-directed to the Supply Chain Pros group where you can access all five podcasts. You will also join a mailing list, which will alert you each time a new podcast is released.

How will I know when each podcast is published?

The series will run for one week, starting on October 1st, with a daily podcast released on Procurious each day. We’ll drop you an email to let you know as each podcast becomes available.

Is the podcast series available to anyone?

Absolutely! Anyone & everyone can access the podcasts and it won’t cost you a penny to do so. Simply sign up here!

When does Career Boot Camp take place?

Starting on the 1st October, Career Boot Camp will run for five days. The podcasts will be accompanied by daily blogs from our Supply Chain Career Coaches plus group discussions and articles on Procurious. When the series is complete, all five podcasts will be available for registrants via the Procurious eLearning hub, FREE of charge.

Why should I do Career Boot Camp every day?

Dedicating 15 minutes a day to developing and progressing your supply chain career can make the difference between standing still, or sprinting quickly into more impactful roles. At Procurious, we firmly believe that daily procurement learning is essential for career advancement. And Career Boot Camp will help you get into the habit!

Speakers

Rick Blasgen, CEO & President – CSCMP

Rick D. Blasgen has been the president and chief executive officer of the Council of Supply Chain Management Professionals (CSCMP) in Lombard, Illinois, USA since 2005.

Rick Blasgen has responsibility for the overall business operations and strategic plan of the organisation. His efforts support CSCMP’s mission of leading the supply chain management profession through the development and dissemination of supply chain education and research

Ron Castro , Vice President – IBM Supply Chain

IBM Supply Chain Vice President leading a remarkable team through the digital and cognitive journey to an end to end AI-enabled supply chain. Driving adoption of cutting-edge technology and applications inside and outside of the manufacturing walls.

Chris Crozier, Chief Digital Officer – Orica

Chris Crozier is the Chief Digital Officer for Orica International, the world’s largest manufacturer and supplier of explosives for mining and civil construction. In this capacity, Chris’ digital teams supports the global footprint of the organisation across Business, Customer and Manufacturing systems, including governance of Orica’s digital ecosystems, architecture, data and cyber posture. Prior to this, he has held executive roles within Orica as Global Vice President Supply Chain, and BHP Billiton.

Tom Evans, UK Ultramarathon Runner

Tom Evans is a 26 year old professional Trail Runner and Red Bull athlete. In 2017 he discovered ultra running and finished 3rd in the famous Marathon des Sables, which was his first ultra marathon. Since then, he has become a full time athlete. He finished 3rd in the Trail running world championships while representing Team GB. He has recently won the CCC – one of the most prestigious 100km mountain races”

Samantha Gash, Australian Ultramarathon Runner

Samantha Gash, as a World Vision Ambassador, ran 3253 km in 76 days across India, raising over $150,000 to fund education programs. Her other achievements include a 1968km expedition run along South Africa’s Freedom Trail and four 250km desert ultramarathons as part of the Racing the Planet – Four Deserts Grand Slam.

Laura Faulkner, Director Supply Chain Management – Nationwide Building Society 

After graduating from Strathclyde University with a BSc in Technology & Business, Laura joined Polaroid as a Graduate Buyer. Laura then spent time with GSK and Ernst & Young before taking a role with RBS that led to her being appointed CPO in 2014.

Laura is now CPO and Director of Supply Chain Management (SCM) at Nationwide Building Society where she has brought together Procurement, Property Services, Third Party Risk, Vendor Management, Accounts Payable and Offshore Operations.

SCM’skey focus is to maximise the value of 3rd Party Relationships across the Society, leading the Supply Chain Strategy to drive efficient, resilient and innovative solutions for the benefit of all Nationwide Members.

Career Boot Camp, Your Supply Chain Career: Accelerated kicks off on October 1st 2018. Sign up here (it’s FREE!)

How to Keep the Supplier Love Alive

We take a look at some of the ways procurement professionals should manage, and negotiate with, their long-term suppliers when things get tricky…

Nobody said it was going to be easy. Building and, most importantly, maintaining good supplier relationships takes hard work, commitment and focus. And the longer they last, the more they require this careful nurturing to keep the love alive and the flame burning.

But what happens when one half of the partnership doesn’t hold up their end of the deal; taking advantage of a long-term contract or a presumed arrangement which has started to have a negative impact on your organisation?

What do you do when a change of circumstance means you want to re-negotiate your terms?

How do you get yourself out of an undesirable, self-destructive partnership when to change things up could be costly and difficult to implement?

We joined a recent Negotiation Roundtable organized by CABL (Conti Advanced Business Learning), a firm that specialises in Negotiation & Influencing, on the topic of long-term negotiations. We wanted to hear advice from a number of procurement and sales leaders on how to manage those long term supplier relationships.

Giuseppe Conti, the founder of CABL, introduced the subject by highlighting that in long-term relationships there is a risk that one of the two parties take advantage of the situation. He then led the group to discuss a number of different ways for procurement professionals to manage, and negotiate with, suppliers when things get tricky.

Look below the iceberg

 For procurement professionals, this is a tale as old as time – how do you manage a supplier who increases prices without warning, when you were under the impression that you had a long-term agreement. Do you cut and run?

“That depends entirely” argues Laurence Pérot, Global Supply Chain Procurement Head at Logitech, “on the nature and origin of your relationship with that supplier.

“You need to consider how you selected them in the first place. Was there a good cultural fit, what drew your organisation to them? Cost reduction is just the tip of the iceberg.”.

According to Xinjian Carlier Fu, Sourcing Leader at Honeywell, “If you can satisfy all the elements beneath the surface (i.e. risk reduction, security, protecting margins and personal requirements) you will have a much more effective negotiation.”

Believe that you have the power

 It’s easy to be intimidated by suppliers who seem to be calling all the shots in your relationship. Xinjian Carlier Fu believes it’s important to have confidence in your own procurement power. “Don’t be afraid of [your supplier] relationship. They might seem dominating and intimidating but I like to use the analogy of David and Goliath.

“Procurement professionals should think of themselves as David. Don’t underestimate your influence or give up hope for your organisation.  You do have negotiation power. Don’t give up hope.”

“Unfortunately not every supplier is willing to work with you in a partnership. Sometimes not all parties are considered equal,” explains Guillaume Leopold, Former CPO at Coty.

Look for a win-win

Ifti Ahmed, Managing Partner at Titanium Partners, described that tricky situation of inheriting an existing supplier when starting a new procurement job. “This particular supplier wasn’t my first choice but it became my job to manage the negotiations and the budget. I did look for alternatives, of which none were suitable and so I did feel like I was in a tough position from a negotiations perspective. ”

“But we prepared well for these negotiations, ensured we had a greater idea of what they valued; what was annoying for them and what they wanted from the partnership, so we were able to discuss points for improvement on both sides and the new contract ended up as a win-win”

Giuseppe Conti also highlighted the importance of using partnership tools to effectively manage the supplier. This includes a Service Level Agreement with KPIs for both parties, performance reviews, alignment of senior management teams, bonus system, audits, 360-degree feedback. 

Make your position clear

It’s very difficult to build trust in your supplier relationships when staff turnover is high. Indeed, as Alessandra Silvano, Global Category Director CAPEX & MRO at Carlsberg, pointed out “many suppliers try to take advantage of frequent rotations in the workforce. But they need to know that you are aligned. Pricing should be treated in the same standardised way, not matter who you are working with.”

Work at it like a marriage

Regina Roos, VP & Sales Segment Leader Mineral and Mining at Schneider Electric, recommends you approach your supplier relationships like a marriage. “It’s not a one off event. There are levels of commitment and you have to keep working at it. If you’re not prepared and you don’t know what you’re getting into with a supplier it’s your fault. You need to make a commitment, and stick to it.”

Paul André, Director Reduced Risk Commercial Supply at JTI, agrees, arguing that “you need to be very clear on what you’re entering into – and that you don’t have a different expectation of the relationship you are building.”

Get to the crux of the problem

What should procurement professionals do when faced with a seemingly irrational supplier who simply won’t re-negotiate terms or agreements? Xinjian Carlier Fu suggests that you “try to identify the motivations underlying these actions or attitudes. Think about the possible constraints they might be facing. Then test your theories by asking questions – ‘Are you facing pressure to cut costs?’” When you understand what’s driving the supplier’s behaviour, you’ll find it easier to come to an agreement.

Work with suppliers you like

The value of supplier likeability is not to be underestimated according to Francesco Lucchetta, Director EMEAI Supply at Pentair. “Taking company culture into account is so important when it comes to selecting suppliers, particularly if you’re forming a long-term agreement. People are very different and to work with people you like is a really good thing. When the culture is unfriendly it’s hard to build trust in the relationship.”

For more advice on managing your supplier negotiations, check out the first blog in this two-part series – 6 Ways To Prevent A Negotiation Blow Up.