All posts by Procurious HQ

Stimulating Competitive Bidding With Traffic Light Feedback

What does a traffic light have to do with the sourcing process? When you’re considering sharing information, it might be a good way to retain a balance.

Traffic Light

RFX processes can be frustratingly opaque for suppliers, particularly in the private sector.

Submitting a bid can be like trying to play a game of darts in the dark. After the dart leaves your hand there’s simply no way of knowing if you’ve hit anywhere near your target. And frequently there’s no response until the buyer informs you that your bid hasn’t been successful.

Don’t Give Away Too Much

Why are buyers typically so hesitant to give feedback? It may be due to a perception that knowledge is power, and giving away too much information will cause you to lose your advantage. To a certain extent, this is true. Too much granularity might allow the supplier to determine the target price necessary to win.

Similarly, giving away too little will cause your supply base to become frustrated and disengaged with the sourcing process. What buyers need to achieve is a balanced response, giving just the right amount of feedback to stimulate the supplier into giving a further discount.

A little bit of ambiguity can go a long way towards stimulating aggressive bidding behaviour, especially for suppliers who are aware that they’re in second or third place.

In a thoughtful article on the pros and cons of supplier transparency, Charles Dominick explains that a high level of transparency (through feedback) will help suppliers focus on what your needs are, instead of having to guess.

Transparency fosters open communication, collaboration and continuous improvement, and will help build your reputation for fairness and impartiality.

Finding a Better Way

Speaking at SciQuest’s Next Level Conference in Nashville, solution consultant Jason Hochreiter explained his organisation’s “Expressive Feedback” feature, which is a part of the Advanced Sourcing Optimizer module.

“Buyers need to get into the mindset of suppliers during the RFX Process”, he says. “Greater visibility of how their bid compares may actually help stimulate competitive behaviour and potentially lower bid prices during a sourcing event.”

SciQuest’s Expressive Feedback is named as such because it’s highly configurable, meaning that the buyer can choose when, how and what feedback to give suppliers during the sourcing event.

For example, the buyer may choose to only give feedback after the second round of bids, either sending out specific comments or using a green, yellow and red traffic light system to show at a glance if the bid is competitive, non-completive or significantly non-competitive.

Using the Traffic Light For Fast Decisions

Colours are a powerful tool to show suppliers at a glance how competitive they are, and if used intelligently, can encourage suppliers to make an impulsive decision to lower their bid.

Green: Consider what you need for the traffic light to show “green” – what does this actually mean? It could signal that the supplier’s price is within 10 per cent (or whatever percentage the user configures) of the target price. Or it could mean that they’re within the top five bids, without giving away their actual ranking.

Keep in mind that you wouldn’t want to alert a supplier to the fact that they are the cheapest, as it would almost certainly stop them from putting in a lower bid.

Yellow: This is where the psychology of feedback comes in. Hochreiter explains that it’s human nature to care about the loss of something (such as moving the traffic light from “green” to “yellow” status). This may prompt a fast decision to attempt to regain that status.

A supplier, seeing that they’ve slipped from the green bracket into the yellow bracket, may quickly submit a cheaper bid without considering the longer term implications of this action.

Red: Hochreiter cautions against using “red” for a supplier that you are interested in retaining. “If they see red, it’s likely that they won’t update their bid but assume instead that they are out of the race. Adjust the range as needed, so they’ll see yellow and will be more likely to compete.”

For more information about Advanced Sourcing Optimizer, please visit SciQuest website or contact SciQuest.

Lisa Malone, General Manager Procurious, was reporting from SciQuest Next Level 2016 last month, bringing you all the best bits.

Time to Panic? Climate Change Driving Coffee and Chocolate ‘Extinction’

Like to start your day with a latte? Make the most of it while it lasts, as climate change threatens extinction of the coffee bean.

coffee climate change

No, it’s not scare-mongering. And yes, there are more important things in the world than a daily espresso. However, the possible extinction of the coffee bean could have a wider-ranging, and more devastating, impact than you think.

And that’s not all. Climate change is also threatening a number of other popular foods and drinks, including chocolate, wine and beer.

Climate Change Destroying Farmland

A new report by the Climate Institute has shed light on a number of worrying facts. They argue that, should global warming continue at the same rate, wild coffee could be “extinct” by 2080.

In addition, rising global temperatures, and increasing pests and funghi could halve the available farmland suitable for growing coffee by 2050.

And it’s not just gourmet beans, and your local Starbucks’ supply of arabica beans that are set to be impacted. With a global temperature increase of 3 degrees as a result of climate change, even instant coffee is going to suffer.

Climate change is also causing the spread of pests and funghi to coffee growing areas not previously affected.  Coffee Leaf Rust, a fungus, and the coffee berry borer, a pest, have destroyed crops in South America, and have started to appear at higher altitudes, impacting a greater number of crops.

Coffee – Supply Chains and Livelihoods

Around the world, people drink more than 2.25 billion cups of coffee each and every day. In the UK alone, 70 million cups of coffee are consumed each year. And by 2020, it’s predicted that there will be 21,000 coffee shops around the country.

Coffee is a major export for a number of developing countries. An estimated 120 million people would be impacted by the total extinction of coffee crops. In countries like Burundi, coffee makes up 59 per cent of its exports, while it accounts for 33 per cent of Ethiopia’s.

However, climate change is already taking its toll in a number of other coffee producing countries. In Tanzania, where 2.4 million people work in the coffee supply chain, output has dropped by 50 per cent since the 1960s.

In 2012-13, the spread of coffee leaf rust in South America destroyed 85 per cent of Guatemala’s coffee crop, caused damage worth $500 million across the region, and cost 350,000 people their jobs.

And while some growers can move crops to higher altitudes to mitigate this risk, it’s not an option for small farmers who make up 80-90 per cent of total coffee growers.

Making a Difference

However, there is still time to make a difference and help sustain the livelihoods of the millions of people who rely on coffee for an income.

Helping to reduce emissions is a good place to start. Limiting temperature rises to 1.5 degrees could make a major difference to coffee producers. On your daily coffee run, use a reusable cup – one paper cup has the equivalent carbon footprint to 811 passenger vehicles.

Consumers can also buy brands that give a good deal to small farmers. These funds can then be used to help the farmers adapt their practices and mitigate future risks.

Not Just Coffee…

Sadly for all the foodies out there, coffee isn’t the only crop that is under threat from climate change. Avocados, chick peas, honey, and bananas are all on the food equivalent of the ‘endangered’ list if current trends continue.

And what’s more, chocolate, wine and beer may also be at risk. Chocolate is suffering from over-demand (70,000 more tonnes were consumed than produced last year), and cocoa supplies could be exhausted in the next 16 years.

As for wine, with current temperature rises, an estimated 73 per cent of land in Australia, and all of the Bordeaux region, will be unsuitable for grape crops by 2050.

As consumers it’s time to change our habits, or face running out of some of our staples and luxuries. It’s high time we all make some changes.

Away from a world without coffee, chocolate and wine, we’ve been collecting the big stories in procurement and supply chain this week…

Hanjin Bankruptcy Continues to Disrupt Supply Chains

  • The fallout from the bankruptcy of South Korean shipping company, Hanjin, has continued throughout the week.
  • Despite a US Court granting Hanjin ships access to ports, there are still concerns that delays will create significant bottlenecks for retailers.
  • Companies including Samsung, Hugo Boss, and Nike have all reported having to source alternative logistics options due to shipping delays.
  • Hanjin Group has made an offer of 100 billion won ($92 billion) to help contain supply chain disruptions.

Read more at The Globe and Mail

Australia Asks Chinese Shipping Company to Pay Clean-Up Costs

  • The Australian government has asked Shenzhen Energy Transport to pay $120 million towards the clean-up of a 100-acre area of the Great Barrier Reef.
  • One of the company’s ships ran aground on the southern edge of the reef in 2010 after going off-course.
  • According to the Great Barrier Reef Marine Park Authority, the ship caused severe physical damage and considerable contamination by toxic chemicals, including the now-banned anti-fouling agent tributyltin.
  • Shenzhen is fighting the bill, arguing the costs are unrealistic, and that the Great Barrier Reef is “self healing”.

Read more at Mashable

UK Local Government “Off Message” on Cloud

  • A new report from Eduserv suggests that UK local council procurement teams are “off message” on the Government’s G-Cloud software.
  • Only one in three councils say they have both a cloud IT strategy and a procurement policy which allows them to use G-Cloud.
  • Over 27 per cent claim they have an in-house procurement policy that doesn’t let them use G-Cloud at all.
  • The report has suggested that councils need to bridge the gap between IT and procurement to drive G-Cloud usage.

Read more at UK Authority

Coupa Moves to Register for Public Offering

  • Cloud-based spend management platform Coupa Software has publicly filed a registration statement with the U.S. SEC for an initial public offering.
  • The number of shares to be offered and the price range for the offering have not yet been determined.
  • The company has announced plans to raise $75 million in IPO.
  • Coupa intends to list its common stock on the NASDAQ Global Market under the ticker symbol “COUP.”

Read more at VentureBeat

Reliance on Outdated Tools Hamstrings International Growth

An over-reliance on outdated tools and processes in the supply chain is harming growth, and cutting competitive advantage.

Outdated Tools

Today’s international business environment is more complex than ever. As this complexity, and volatility, continue to grow, companies need to ensure that processes and tools are up to date. Without doing this, they risk cutting their growth prospects, and erasing their competitive advantage.

Growing global risks, evolving supplier networks, and economic difficulties in key, and traditionally stable, markets all must be factored in. Businesses not taking advantage of Advanced Planning & Scheduling (APS) systems run the risk of much increased costs.

Failure to adapt to new technology also means that companies will be left with limited flexibility to respond to changing market conditions.

Responsiveness and Agility

In the past twelve months, the global economy has suffered from a period of unprecedented, and unheralded, volatility. Events like Brexit, ongoing civil unrest, and the rise of extremist terrorist organisations, have left global supply chains in jeopardy.

Organisations can no longer rest on their laurels and bank on continuing success. Ensuring success in this environment requires robust scenario planning, the ability to adapt quickly to change, and the capability to deal with changing suppliers and business partners.

As many experts have highlighted, procurement and supply chains need to be agile in order to adapt to external changes.

Outdated Tools and Systems

Global supply chain consultancy, Crimson & Co, recently conducted research into the tools and processes organisations were using in their supply chains. At a majority of respondents, they found a continued reliance on outdated tools, and legacy systems.

The research found that over two-thirds of those surveyed still relied upon ERP and spreadsheet systems.

The findings also showed the benefits that an effective APS system could deliver. Respondents highlighted a potential 20 per cent reduction in working capital, 5 per cent increase in service level, 6 per cent reduction in logistics costs, and 3 per cent reduction in the cost of goods sold.

This research has gained more credence in recent weeks, with the bankruptcy of Hanjin shipping, and the associated issues for US retailers.

Failure to Rise to Challenges

Dave Alberts, Director at Crimson & Co, explained:

“A continued reliance upon outdated planning tools like Enterprise Resource Planning (ERP) systems, bolstered by an array of spreadsheets, prevents many businesses rising to these supply chain challenges.

“If supply routes need to change following disaster, or old trade agreements can no longer direct freight transport, businesses leaning on ERP systems can find themselves on the back foot and unable to take advantage of such changes.

“All in all, these outdated tools can result in significantly increased capital and service costs in the case of any changes to the supply chain status quo.”

Alberts also highlighted the need for businesses to update their planning tools in order to remain competitive. Legacy systems inhibit the ability to innovate and improve supply chain processes.

Alberts argues that these companies will likely fall behind more reactive and agile businesses supported by more flexible planning tools.

“There is a clear incentive for businesses to adopt a robust APS system. Through benchmarking of planning and scheduling solutions, companies can quickly work out the systems that need updating and the practices that need improving. They can then work to develop these areas where necessary.

“In most scenarios, the adoption of an APS system can result in reduced overall supply chain costs and greater ability to deal with complex business decisions,” Alberts concluded.

Big Ideas Summit 2016: Big Idea #13 – Maximise Social Impact

Procurement is no longer just about cost. Professionals should be looking put their organisation’s social impact at the heart of purchasing decisions.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Increase Social Impact

Hugh Chamberlain, Commercial Procurement Lead at Johnson & Johnson, challenged procurement professionals to buy from social enterprises in his Big Idea.

Buying from social enterprises allows procurement to add value to society, as well as meet CSR requirements. Hugh argued that buying social can also give buyers immense personal satisfaction, and a feeling they are making a real difference.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 16,000 like-minded procurement professionals from across the world.

Have You Got The X-Factor To Be A World-Class CPO?

Are you part of the herd, or are you leading the pack? Have you got the X-Factor to be a world-class CPO of the future?

x-factor-cpos

Getting to the top of the procurement profession is not about just about doing your job really well. It’s also about having a very specific set of competencies that set you apart from your peers.

Gravitas, creativity, community are probably not on your professional development list today – but they need to be!

We know that remarkable CPOs can get their team to achieve the almost impossible, and deliver measurable competitive advantage to a business. But the ‘must have’ competencies which mark a CPO as best-in-class have never been clearly defined.

However, according to the X-Factor research conducted by The Faculty, there are several areas, other than just functional excellence, in which a great CPO needs to excel.

Beyond the Fundamentals

It goes without saying that you have to get the fundamentals right.  Running a best-in-class procurement operation – or functional excellence – in areas such as your core processes, risk management and compliance is obviously an entry-level requirement and, as they say, “gets you a ticket to the dance”. That is a baseline requirement for being considered a leading CPO.

This may seem fairly self-evident. Let’s look at bit deeper and expose some of the tricker competencies you will need to finesse in order to get to the top.

Gravitas is both one of the most difficult leadership traits to define and to develop! But it would seem one of the most important attributes to realise your CPO aspirations. The X-Factor research showed that high levels of influence, presence and insight, enabled leading CPOs to drive strategy, not just respond to it.

Distinguishing the Best from the Rest

Other leadership attributes which distinguish the best CPOs from the rest were integrity, professional advocacy, innovation, creativity, relationships. You either have integrity or you don’t, so that’s easy.

Building productive working relationships and becoming an advocate for your team, their function and the profession are skills that can be improved over time if you focus on their development.

Innovation and creativity are less straightforward. It’s important to understand that these don’t mean you can paint or create something. It’s more that you are able to “think outside the box” about commercial issues and develop solutions that satisfy a number of different stakeholders’ needs.

Developing your strategic thinking capability will take a concerted effort. It’s not a skill that can be learned overnight. One of the best ways to do this is to learn from others who already have developed this.

As you build more experience in procurement, you’ll start to develop the ability to think strategically automatically. And you’ll also be able to translate this strategic thinking for other business stakeholders.

Commercial Leadership

This leads us to commercial leadership, one of the other X-Factor elements The Faculty identified that sets remarkable CPOs apart from their peers.

We all understand that CPOs need to have commercial acumen and deliver strategic value through great strategy using best practices.  But leading CPOs also have a strong sense of community. They understand the importance of maintaining strong, positive relationships with external audiences.

Suppliers are obviously a key stakeholder. However, increasingly important is the need for procurement to protect and promote their company’s brand reputation in the broader community through responsible sourcing and other initiatives.

The ability to lead a team, adapt to the changing business environment and influence all those you touch are, of course, critical people leadership skills required of a CPO.

But perhaps what will define exceptional CPOs in the future is their ability to actually identify and nurture future X-Factor talent.

CPOs Need to Nurture X-Factor Talent

“In effect, we have profiled the face of the modern CPO,” says Keith Bird, Managing Director of The Faculty. “Fostering procurement talent – equipped with the X-Factor – must surely be a goal for CPOs, the profession and managers alike.”

Keith stresses that the importance of investing in capability and training to increase the prevalence of the X Factor cannot be overstated. “The most effective CPOs are on a never-ending development journey. Self-study, training, experience, coaching and mentoring are all vital components in the creation of remarkable procurement leaders.”

An important insight to come out of the research is that CPOs equipped with the X-Factor not only successfully combine technical and leadership skills, but actively seek to share their passion with others.

“Top-performing CPOs mentor rising stars because they love and believe in what they do”, says Keith. “And that passion compels them to share their learnings with others.”

Professional Advocacy

The key is to find the time to look beyond the day-to-day challenges of your own organisation, and connect with peers and future leaders in the wider profession.

Besides mentoring, X-Factor CPOs share their knowledge and enthusiasm through attending industry networking events, conferences, leadership forums and (most importantly) they promote their passion for procurement through social media.

“The importance of spreading a positive message about procurement can’t be understated”, says Keith. “It’s the responsibility of leading CPOs to get online and share collaborative learnings that will help other functions understand the significant value that procurement can bring to any organisation.”

Are You CPO ‘Fit’?

Having seen the attributes of a world-class CPO, are you able to say that you have the X-Factor? Beyond a passion for procurement, are you sharing your knowledge and enthusiasm for our profession with peers, colleagues, and stakeholders?

If you aren’t currently an X-Factor CPO, then don’t worry. There aren’t currently many CPOs around the world who tick all the attribute boxes. And there are fewer still when you’re looking for a sprinkling of social media magic.

As you grow and develop in your career, great procurement leaders will see potential, and bring high-potential superstars into their teams, providing fantastic opportunities for mentoring.

There’s still time for you to develop these skills. If you want to get started straight away, then look no further than Procurious’ Career Boot Camp.

Over 15 days, we’ll have 15 experts discuss insights aimed at getting you in the best career shape of your life. Don’t miss out – register now, and get on your journey to become an X-Factor CPO.

Request a copy of The X Factor – A Procurement Leadership Whitepaper here

From Drowning in Paper Contracts to CMS Utopia

Lack of visibility, time-consuming manual processes – it’s an all too familiar story in procurement contract management. One university shares their journey from contract chaos, to CMS utopia.

CMS Utopia

There are few procurement professionals in the world who haven’t dealt with paper contracts at some point. And very few, if any, who would look at this experience with any sort of fondness.

For the longest time, contract management has been a labour intensive process, with myriad issues caused by the use of paper contracts.

Every business suffers from the same issues, but not every business takes the steps to make a real change. We can all learn a thing or two from North Carolina A&T State University.

Drowning in Paper

North Carolina A&T starts as an all too familiar story, as you might imagine. NC A&T is one of the USA’s top historically black colleges and universities. It employs over 2,500 people, and educates over 11,000 students at any one time.

With an award-winning faculty, and programmes that focus on community engagement, it’s very much in demand.

However, it suffered from the same issues as many of its competitors. A manual contract management system (CMS), with little or no visibility on contracts, and an average of over 15 days to execute a contract.

At Next Level 2016, Nikki Williams, Director of Procurement Services at North Carolina A&T, talked candidly, and all too familiarly, about her experience of the process.

This included the process of scanning all the pages of a contract, walking (quite literally) to the third floor for signatures, and, of course, the inability to find a contract when it was needed.

On top of this, 99 per cent of the contracts were fully executed by a third party. Although the university would sign the contract, they would never get a signed agreement back from a supplier, and therefore never have a fully executed contract.

Contracts would rarely come back from the third party, and when they did, there was no repository to store, and find, existing contracts.

Chaos to CMS Utopia

Sharing their journey from contract chaos, to contract management utopia, Nikki explains their key goals were to:

  • Optimise the CMS process by:
  1. Eliminating paper contracts – this was an enterprise business goal for the entire university
  2. Reduce contract execution time from 15+ days to 5 days
  3. Reach 100 per cent fully executed contracts, with signatures from both parties
  • Deliver insights into the CMS process with:
  1.  A mechanism which tracked each contract throughout its life
  2.  Creation of a centralised repository for all contracts

Nikki shared the before and after implementation workflow diagrams – and the differences were startling. Rather than a heady mix of workflow rectangles, decision points and dotted lines, today’s contract workflow is a blissfully simple diagram. There are 4 task boxes, one approve or reject decision point, and only forward motion.

Full Steam Ahead

Using these forms, the procurement team can see that the request template is all ticked green. The form ties all the required, and specific, approvers to the workflow. Best of all, it’s fully automated.

The request form confirms that the supplier is not a student nor an employee (who they are not permitted to contract with), then channels it through the various approvers. All requests are also tracked through TCM (Total Contract Manager) by form number.

Once the request form is turned into a contract, a contract number is created, and tied to the forms so that every stage can be linked together. Once the vendor has signed the contract, it returns to TCM, which acts as the central repository. The system even completes basic information such as vendor names, department names, and approvers automatically.

The university now has a fully complete request workflow. The purpose of contract, department, and other information is contained within the request document. The contract goes to the appropriate person to approve or reject, and on that basis, procurement creates a contract. DocuSign is used to get both parties to sign off on the completed contract.

Challenge of Change Management

Asked about the roll-out of the process, Nikki acknowledges it has been a long one.  “We’re not just changing the workflow process, but we’re changing the contract policy at a Trustee level. Changing contract policy is driving the roll out, then we can rock & roll!”

For more information about Total Contract Manager, please visit SciQuest website or contact SciQuest.

Lisa Malone, General Manager Procurious, was reporting from SciQuest Next Level 2016 last month, bringing you all the best bits.

It’s Not About The Money, It’s About the Meaning

Fancy titles, and a big pay cheque isn’t where the action is. You’re going to have to offer something with more meaning if you want to get Millennial superstars on your team.

Meaning Not Money

Kenny Cheung, Chief of Procurement at The World Bank Group, talks about his early career, the importance of setting boundaries, and the skills procurement professionals will require in the future.

Kenny also draws on his experience working for some of the biggest names in Finance, across two continents, about why Millennials care more for the deeper meaning in their job, rather than the big salary or fancy title.

1. What were your first 3 jobs?

  • Retail Project Engineer at ExxonMobil;
  • Strategic Sourcing Consultant at ExxonMobil; and
  • Senior Category Manager at National Australia Bank.

2. What’s one thing you know now, that you wish you’d known at the start of your career?

The importance of setting boundaries personally and professionally. Boundaries are important for getting your priorities right, help manage expectations of others whilst ensuring you don’t get yourselves (and your teams) burned out.

In my pursuit of achievements, I realised I could accomplish more “quality” goals than “quantity” goals, if boundaries were set earlier in my career.

3. How can CPOs attract and retain Millennials?

CPOs ought to understand how to build broader purpose into their team’s mission, as well as the design of individual roles within their teams.

Millennials look for more than a famous brand, an impressive title or a good salary. They look for meaning in their roles, far deeper and holistic than previous generations. 

4. What key skills are critical for procurement in the next 5 years?

Emotional Intelligence, Energy Management, Influencing, Networking, and Innovation.

5. How valuable have mentors been in your career?

Extremely. They provide me with some invaluable golden rules of career management as well as work-life integration fundamentals.

Build your personal workout plan, and get fit to meet procurement leaders’ needs! Take a step toward your next promotion by registering for Career Boot Camp today.

In Search of Your Perfect (Supply) Partner

With an estimated 200 million suppliers operating around the world, how can you be sure you have the perfect partner? Fortunately, here’s where technology can lend a hand.

Perfect Partner Suppliers

Recent estimates put the total number of suppliers operating around the world at a staggering 200 million. To put this in context, that’s like having every person in the UK operating a supply business. Three times over.

The risks for procurement in this scenario are there for all to see. With an enormous number of potential suppliers, how do you know you are dealing with the right ones? Are you getting the best deal you could?

And with the suppliers you do have on board, how are you driving contract compliance? As well as being expected to deliver the value in the contracts, procurement needs to ensure that objectives are aligned with internal stakeholders, including the CFO.

Innovation in ‘Tail’ Suppliers

Common thinking in procurement now is that the profession can no longer ignore small- and medium-sized suppliers. By continuing to use the same suppliers, procurement misses out on innovation opportunities, as well as savings opportunities.

Traditionally these suppliers have been dismissed as ‘tail spend’, and ignored in terms of strategy. As we experience a period of unprecedented market change and volatility, procurement is now looking to these same organisations to help drive efficiencies, and competitive advantage.

The other factor procurement must take into consideration is how to measure the risk within their supply chain. One slight issue from a first, second, or even third tier supplier, could have drastic consequences for an organisation’s reputation.

Technology as Competitive Advantage

If organisations want to thrive in increasingly volatile climates, they need to leverage their technology. Effectively using IT capabilities and procurement technology can help develop a competitive advantage.

More and more organisations are streamlining traditional procurement activities, and freeing up resources for strategic projects. The ability to do this, while sourcing and managing suppliers, requires up-to-date IT capabilities and analytics, as well as best in class procurement technology.

Oracle’s aim is to provide its client with complete, open, and fully integrated solutions which help to reduce both the cost, and the complexity, of the IT infrastructure.

David Hudson, Business Development Director at Oracle Cloud Solutions, believes procurement needs to realise that the future is now.

“Delivering the right capabilities for Procurement professionals to drive greater collaboration, process standardisation, increased efficiency at a reducing cost remains a big challenge.

“At Oracle, we aim to help our customers achieve great cost savings and overall value, while reducing supplier risk, and increasing compliance. Technology, such as our Strategic Procurement portfolio, can help to deliver these key benefits, particularly when integrated throughout the process, as part of a modern Cloud solution,” says David.

Build Your Competitive Advantage

Procurious Founder, Tania Seary, has previously stated that, “Today’s supply chain executives must be brave and bold. They are expected to handle cataclysmic events and act with extreme agility.

“There’s one qualification – and I would go so far as to say that it’s the defining qualification for today’s supply chain leaders – that separates the highest performers from the herd. And that’s courage.”

This courage can be bolstered by understanding the role and benefits of technology, especially Cloud software and platforms, in procurement strategy, planning and decision making. By being more informed, procurement leaders can make these bold decisions, and ensure they are staying ahead of the competition.

Web

To find out more on how procurement can better manage risk and complexity, and integrate technology to help them thrive in a changing world, join Tania Seary and David Hobson for a free webinar on 7th November. Find out more information and register here.

Give Your Career a Cardio Boost With Procurious’ Boot Camp

Do you want to add more value to your organisation? Do you dream of being a CPO? Then Procurious’ Career Boot Camp is for you!

Calling all procurement and supply chain professionals! Are you impatient to add more value to your organisation? Do you dream of becoming a Chief Procurement Officer (CPO) in the future?

With globalisation and technological change disrupting every aspect of our profession, making time to update your skills can catapult you up the ladder.

Get Your Career in Shape

According to Deloitte’s third annual Global Supply Chain Survey, individuals with leadership acumen are in especially high demand.

79 per cent of supply chain executives surveyed by Deloitte said it was very important or extremely important for new hires to have leadership and professional competencies (to help with change management, problem solving, etc.).

In response to this need, Procurious is launching a free, exclusive 15-day Career Boot Camp programme to help high-achieving professionals around the world get in the best career shape of their lives, and upgrade their skills while on the go.

Starting the 19th of September, Boot Camp will feature a short, daily podcast, from a selection of top procurement leaders and business influencers.

But, individuals who wait will lose out! Each podcast will be available for just one day before being replaced by the next one in the series.

Listen, Learn, Discuss – and Advance!

The podcasts will showcase a variety of topics, from being your team’s MVP and networking your way to the top, to incubating your big ideas, all designed to give participants a career cardio boost.

Coaches include:

  • Tom Derry, CEO of the Institute for Supply Management
  • Chris Sawchuk, Principal & Global Advisory Practice Leader, The Hackett Group
  • Dr. Tom Verghese, Principal and Consultant, Cultural Synergies
  • Stuart Brocklehurst, Chief Executive, Applegate Marketplace Ltd
  • Gabe Perez, Vice President, Strategy & Market Development, Coupa Software
  • Sigi Osagie, author, ‘Procurement Mojo’
  • Jon Hansen, co-author, ‘Procurement at a Crossroads’

And that’s not all! Each podcast will be accompanied by a blog article, and vibrant group discussions on the Procurious website.

We’ll also be hosting other articles and thought leadership pieces on every aspect of your career. Plus, we’ll be asking our senior procurement leaders to share the benefits of their career experience in our ’60 Seconds With…’ article series.

Build Your Workout Plan

The key thing to remember is that you can make Boot Camp fit to your schedule, and work for you. The beauty of Boot Camp is that it’s an entirely digital experience, which adds to Procurious’ current eLearning and skills development opportunities.

“The next generation in procurement needs to take the responsibility for their professional development into their own hands,” said Tania Seary, Founding Chairman of Procurious.

“Online learning is the fastest and easiest way to give yourself the skills you need. Just a few minutes a day can make the difference between standing still, or moving quickly into more impactful roles.”

So come on, don’t get left behind by your peers and colleagues. Build your personal workout plan, and get fit to meet these leaders’ needs! If you’re new to Procurious, try one podcast. If you’re a Procurious member, sign up for the whole programme!

Take a step toward your next promotion by registering for Career Boot Camp today.

How to Realise and Unlock the Benefits of Supplier Diversity

New research has revealed the benefits organisations can realise by having a top-performing supplier diversity programme.

Supplier Diversity Programmes

Full Benefits of Supplier Diversity Not Yet Achieved

Historically, supplier diversity programs have focused on a narrow combination of meeting government spend requirements, and participating in corporate social responsibility initiatives with under-represented communities.

For example, survey respondents in The Hackett Group’s 2016 Supplier Diversity Study report that their most important objectives are:

  • Improving the corporate image in the marketplace;
  • Supporting corporate culture around diversity and social responsibility; and
  • Complying with regulatory requirements.
Objectives for Supplier Diversity Programmes
Critical Objectives For Diversity Programmes

However, companies are starting to realise that they will not achieve maximum benefits from supplier diversity programs if their objectives stop there. In fact, by expanding the goals and activities of these programmes, organisations can gain access to new markets, innovative supplier partnering practices and avenues for improved corporate branding.

Several hurdles can prevent procurement organisations from obtaining the necessary support to invest in a supplier diversity programme. Often, business leaders worry that dedicating resources will ultimately mean sacrificing procurement savings.

However, The Hackett Group’s research suggests that not only do procurement organisations with top-performing programmes experience no dip in efficiency, but they extract even more benefits from the programme.

For example, 23 per cent of diverse suppliers often or greatly exceed buyers’ expectations and the majority of remaining diverse suppliers are meeting expectations.

Supplier Diversity Expectations & Ranking
How Diversity Suppliers Rank Against Buyers’ Expectations

Top-Performing Organisations Take Strategic Approach to Supplier Diversity

Supplier diversity is evolving from a check-the-box corporate social responsibility requirement, to a strategic enabler providing access to new and innovative products, and increased market share in new and developing communities.

Top-performing companies recognise this and have begun working toward achieving a broader range of benefits from their programmes. Successful ones typically address three areas: global expansion, supplier partnering and reputation management.

Global Expansion

Supplier diversity programs usually start small and then grow in terms of domestic volume and geographic reach. Our survey found that 76 per cent of organisations have diversity programs that are currently limited to the domestic (U.S.) market.

Of this group, 40 per cent plan to expand their program globally in the next two to three years. Global expansion of supplier diversity brings additional benefits, including investment in global economic development and improved relationships with local suppliers and their communities.

Organisations should be sure to engage the appropriate partners before designing a global expansion of their programme. This can include corporate diversity groups and third-party diversity organisations.

Supplier Partnering

Supplier partnering is the process of developing and enhancing relationships with suppliers. Small and minority-owned businesses can be the source of added benefits, including cost savings, process improvements and product innovations.

Investing in the development of local suppliers helps build productive relationships and prepares suppliers to be successful partners. Buyers should also identify candidates for strategic partnerships.

While this is frequently the most immature area of supplier diversity programs, benefits can be significant.

Reputation Management

Developing a strong reputation for dedication to supplier diversity can result in increased market share and talent retention. There are multiple channels available to facilitate a clear and positive message regarding supplier diversity, including both internal- and external-reaching activities.

Procurement groups should look for reputation management opportunities that align with corporate objectives to increase collaboration between groups.

Organisations with strategic reputation management practices typical utilise some combination of social media and local, in-person interactions to interact with stakeholders and communities.

Programme Objectives Must Come from the Highest Levels of the Company.

Top-performing supplier diversity programs are developed and planned with substantial guidance from executive leadership.

Leaders of supplier diversity initiatives should make it a priority to create a culture supportive of diversity and inclusion, not just in procurement, but throughout the enterprise.

All diversity objectives, including supplier diversity, workforce diversity, and community and market interaction, should have the same strategic objectives in order to take advantage of a larger network and create a more collaborative workplace.

Laura Gibbons is a Research Director for The Hackett Group’s Procurement Executive Advisory Program. She has industry and consulting experience in areas such as purchase-to-pay, strategic sourcing, payment strategies, and organisational and process design. You can contact her on Procurious or via email.

Learn more about Hackett’s Procurement Executive Advisory Program here.