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Calling for Your Questions at Big Ideas 2016

Procurious needs your questions to pose to our speakers at the Big Ideas Summit 2016 and put them to the test.

Your Questions

 

It’s not long to go until 2016’s Big Ideas Summit on 21st April but there’s still enough time to have your voice heard. Procurious are calling for your questions now.

The Big Ideas Summit is open to all of our Procurious members. It doesn’t matter where you are in the world, we want you to help shape the agenda. You can start by registering your attendance in our Procurious Big Ideas 2016 Group.

From new technologies in manufacturing and the true cost of supply chains, to how social media is enabling new conversations and why procurement needs to be more agile, we’ll be discussing it all with help from 50 of the world’s most influential procurement and supply chain leaders and thinkers.

But we need your input too!

Where Do I Come In?

We want the Procurious community to put our speakers to the test by asking them the toughest questions. In the Big Ideas Group, the conversation has already begun – participants are asking questions, vetting their big ideas, and reading exclusive, advance insights from the presenters.

Your contributions needn’t stop ahead of the event, either. On the day we would love your contributions to discussions on the event’s key themes and topics, and further questions based on what you’ve been hearing. We’ll be monitoring and updating the group and our twitter account throughout the day to see what’s being said.

Through this virtual, think-tank event, Procurious’ 13,000+ members will have the chance to interact with our speakers, senior executives, thought leaders and CPOs and with the wider Procurious community, gaining insights into the future of procurement.

Who Will Answer My Questions?

We’ve managed to secure a high calibre list of thought leaders and keynote speakers, including:

  • Dapo Ajayi, CPO, AstraZeneca
  • Christopher Browne, CPO, The World Bank
  • Elizabeth Linder, Politics & Government Specialist, Facebook
  • Gabe Perez, Vice President of Strategy & Market Development, Coupa
  • Tom Derry, CEO, The Institute for Supply Management (ISM)
  • Chris Sawchuk, Principle & Global Procurement Advisory Practice Leader, The Hackett Group

You can find out more about our speakers here.

It’s not only those present at the Big Ideas Summit who will be engaging in debates and answering questions. The entire Procurious community will also be answering questions, and responding to your thoughts and ideas via the group or on twitter, providing ample opportunities to solve procurement problems and drive change.

How Can I Submit My Questions?

Submit your questions and start discussions via our Big Ideas Summit Group.

If you’d prefer to use Twitter you can tweet us your questions via @procurious_ using the hashtag: #BigIdeas2016

You can also stay up to date, and get involved in real time via LinkedIn or Facebook, also using the hashtag #BigIdeas2016.

Don’t forget to visit our bespoke site: www.bigideassummit.com ahead of the event.

The True Cost…Of Everything

Do you know what the true cost of your supply chain is? In an age of ethics and transparency, ignorance and apathy are no longer acceptable, says Lucy Siegle.

Lucy Siegle - True Cost

When it was first released, viewers of the True Cost movie, the award-winning feature length documentary, were shocked and appalled as they learned the true cost of fast fashion.

The human rights and sustainability issues were all there for us to see.

The true cost of most of our supply chains are not fully known and this is a quest for most procurement pros. That’s why we’ve invited Lucy Siegle, broadcaster, writer, journalist, and trail blazer in sustainability and ethical living, to inspire and instruct us on how to be better.

Lucy is at the forefront of the fight for a sustainable approach to supply chains, that protects the planet and its people.

At the Big Ideas Summit 2016, Lucy Siegle will challenge CPOs and experts on how they view their supply chains. She’ll be asking what can be done differently to prioritise sustainability. She says:

I love big ideas – who doesn’t?! But I also like small ideas, incremental steps and ideas that are yet to be fully formed. So what I’m always interested in hearing and alert to is how we can get ideas of all shapes and sizes implemented. And how we can build momentum behind change.

It’s no secret that we face a number of big issues in supply chains from resource scarcity and contraction to degraded human rights (and in some cases slavery) in supply chains. What are the mechanisms for shifting the dial on these issues, and putting these big ideas into motion?

What got you involved/interested in sustainability in the first place?

I guess the idea that you can change negative outcomes. I first heard about women like Vandana Shiva in the 1970s – the original tree huggers if you like. These women protected old growth forests in Northern India, not just by placing themselves between the tree and the logger, but by strategically educating and empowering local people to take a stand.

I was also lucky as a kid that a curriculum experiment in the 1980s meant that I got to take Environmental Science as a subject from the age of 12. I was hooked! Sustainability is the science of resource use, ecology and environmental science mixed with psychology and creative marketing. That’s a heady combination to me!

You spoke recently about the ‘forgotten people’ in the fashion supply chain. Why do you think consumers have lost sight of the origins of their clothing?

Because very simply fashion has become a vehicle for turbo-charged capitalism and globalisation. The problem probably began as soon as the Spinning Jenny (invented in the UK) gave us a fast way of spinning cotton. But the real speed has picked up in the last 10-15 year as fashion’s become the ultimate free market poster industry.

Fast fashion (as we call the phenomenon of high volume, low cost, outsourced production) isn’t just a fashion option, it’s a domineering, all conquering, pervasive model. It wipes out all other production methods (goodbye mid-market, slow fashion), ensures that consumers become addicted to buying cheap and in bulk, forsaking all other previous standards (such as quality, wearability, longevity) and dictates trend, price and lifespan.

The consumer becomes overwhelmed and brainwashed by price, speed and brand. Nothing else matters, least of all the ethics of who made the piece and in what circumstances. Fashion is now made and marketed by big brands as if it’s disposable, and who bothers to invest in the backstory of disposable products?

The True Cost movie highlighted some truly shocking practices in fashion supply chains. What can we, as procurement professionals, do to change this?

Well there’s a lot that can be done. Firstly there’s the reputational lever. The True Cost as a movie exists because the Rana Plaza complex in Bangladesh collapsed, killing over a thousand garment workers.

The director of that movie, Andrew Morgan, was so moved to see TV footage of two small boys searching in the rubble for their garment worker mother that he investigated how this could possibly happen. He had no interest in fashion. So highlighting these supply chain truths is very important.

The risk of reputational damage can really lead to a lot of change. Increasingly we’re also seeing anti-slavery legislation (from Dodd Frank to our own UK anti-slavery bill). There’s a perception that this just means corporations will employ a load of lawyers to get around these rules and regulations. Perhaps the short sighted corporations will, but excellent supply chain professionals have the opportunity to show how these regulations should be used to effect positive change and link compliance to improvement.

I also think there’s huge scope to ally the human with the environmental. We shouldn’t just ever think green, but think holistically ethical – environmental and social justice. That’s the only way to plan for the longterm.

I’m also big into collaborations. I’ve seen some really strange collaborations – including between Greenpeace and fishermen, which I would never have seen coming. In fact they used to be sworn enemies. But these collaborations have ended up being hugely successful in ethical terms. Some of those should be with lawyers.

It’s also worth looking at legal remedies too. We’ve noticed (or rather our lawyers have noticed!) that ironically some of the speed and devil-may-care approach to production in ‘host’ low wage economies are in direct violation of WTO rules.

Have you come across any good examples of good procurement/supply chain practices in the fashion supply chain that we can learn from?

Lots of individual supply chains have great merit. So there are some on leather (an incredibly intensive, impactful commodity – and no, it’s not a harmless byproduct!) that I’ve investigated where climate scientists have worked directly with rancheros in the Amazon and then designers in Italy to create zero deforestation accessories for Gucci.

Or I’ve also investigated a progressive jeans company that’s one of few fashion companies to pay its sewers a living wage. I’ve also worked a lot on brands like Patagonia that explores aggressive transparency and some pretty counter intuitive advertising to get the message across.

And what about the surf-wear brand I came across that spent years working with a  farmer to breed a particular type of endangered sheep?! I’ve come across many examples, from the seriously certified trail-blazers to the certifiable! But what’s difficult is of course scale and outreach.

Lucy Siegle will cover these topics, and more, during her keynote address at the Big Ideas Summit on April 21st.

If you’re interested in finding out more, visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Showcasing Your Big Ideas – Supplier Enabled Innovation

Ahead of the Big Ideas Summit 2016 on April 21st, we’re on the hunt for your Big Ideas. Keith Bird talks about how procurement can “crack the code” on supplier enabled innovation.

At the Big Ideas Summit 2016, which takes place on 21st April,  we will be asking our speakers and attendees to record their ‘Big Ideas’ live on camera for the whole of our Procurious community to see.

But we also believe that every single procurement and supply chain professional has a unique vantage point in the industries, communities and businesses they work in. You have been submitting your Big Ideas to us, and so far, we think they have been great!

Keith Bird, GM at The Faculty Management Consultants

Keith believes that, as the procurement environment changes, organisations need to make sure that they are seeking out new, innovative solutions, or risk falling behind their competitors. A key way of doing this is to work closely with suppliers, and leverage the benefits of supplier enabled innovation.

According to Keith, procurement is uniquely positioned to make supplier enabled innovation a reality. The profession sits in a position to communicate with stakeholders, but also has the ability to focus on new ideas while still focusing on cost consciousness.

Keith also argues that successful SRM is a critical element of supplier enabled innovation, and that leaders should be investing in their teams’ soft skills to aid this.

Connect with Keith at The Faculty website, and follow the company on Twitter: @TheFacultyHQ

How to Submit Your Big Idea

We don’t mind if you film your submission on your phone, tablet, laptop or PC. However, to help you out we’ve compiled a list of some of our recommended methods for reaching out.

Once you’ve completed your film, you can reach us by email (Procurious@Procurious.com); on Twitter (@procurious_) or via Google Drive or Dropbox (using Procurious@Procurious.com).

You can find all the information you need on recording and submitting your Big Idea here.

Want to know more about Big Ideas 2016? Then visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Big Ideas 2016 – Meet Our Speakers: Peter Holbrook

The Big Ideas Summit is just a couple of weeks away! We caught up with Peter Holbrook, CEO of Social Enterprise UK, to discuss the rising prominence of the social enterprise agenda.

Peter Holbrook

Peter Holbrook is the Chief Executive of Social Enterprise UK, the UK’s national trade body for social enterprise. The organisation works with its members to raise awareness of social enterprise, generates political engagement for social enterprises, and works with private sector organisations to explore and connect with social enterprises, helping them integrate these businesses into their supply chains.

Peter is passionate about the potential of communities and non-profit organisations to be much more enterprising and involved in business, and is helping to drive the social enterprise agenda across all sectors and industries.

Peter was awarded a CBE in 2015 for his service to social enterprise.

At the Big Ideas Summit, Peter will join a high-profile panel to discuss social and sustainable procurement and ethics, their impact on the procurement profession, and what procurement leaders could and should be doing to embed these practices. Peter says:

Meeting pioneers and enlightened leaders is always a privilege. Procurement has huge impact, potential and possibility – I’m looking forward to meeting kindred spirits, and agreeing further progress.

Tell us a bit about yourself.

I’m a practitioner, networker and advocate for social business – the growth and innovation in this sector is astounding. I’ve been happy to be a part of it for over 20 years.

What are the main challenges that face social enterprises in the UK?

Public awareness of social enterprise still requires a great leap forwards, and many social enterprises still require greater scale.

What’s the biggest success story in the Social Enterprise industry you have come across?

There are plenty of examples but my current favourite is the FairPhone – a crowdfunded social enterprise that has brought to a much needed market the world’s first fair trade smart phone.

Fairphone is the world’s first modular smart phone. It has been designed to be easily repairable by users, to last years longer than other smart phones, and is free from any conflict materials or minerals in its supply chain.

You can find out all you need to know about the Fairphone here.

Many procurement professionals think that buying social or sustainable goods is more expensive – in your experience, is this true?

Our evidence shows that in over 50 per cent of cases social businesses are more competitively priced than their private sector competitors. It’s about creating added value not necessarily added costs.

What should procurement leaders be doing to help drive the social and sustainable procurement agenda?

Become champions for social procurement! Procurement can ensure your brand and company values are reflected within your supply chain. Be bold!

Peter Holbrook talk about these topics in more detail during a panel discussion on turning social enterprises into your ‘ideas suppliers’ at the Big Ideas Summit on April 21st.

If you’re interested in finding out more, visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Big Ideas Summit 2016: How to Be a Digital Delegate

You’ll have seen announcements for Big Ideas Summit 2016 on Procurious recently. Now, here’s how you get involved as a digital delegate.

Digital Delegate

“Sounds great, but how does this concern me?” you may well ask.

Well here’s how. Just like our event in 2015, we’re billing the Big Ideas Summit 2016 as a ‘digitally-led’ conference, which means you can be anywhere in the world and still get involved as a Digital Delegate. You’ll be able to catch the day’s discussions as they happen. Interactivity is key!

As a Procurious member, you’ve read all about our Influencers, the issues affecting procurement and supply chains and you might’ve even come-up with a question or two. You’re now ready to get really involved and here’s your chance.

How can I participate in the lead up to the event?

  • Join the Group – If you haven’t already, make sure you’ve joined our Big Ideas Summit 2016 Group on Procurious. You can find it in the ‘Groups’ area of the website.
  • Submit your questions now – You can submit questions for the various sessions, and to all our Influencers, in a number of ways. Do this in the event group, or via social media on Twitter, LinkedIn or FacebookDetails of the event’s scheduling are available here, and there’s still plenty of time to come up with a question. But make sure you do so before the event.
  • Check out our related content – In the few weeks before the event, we’ll be publishing a whole host of content, including articles on key themes and topics, interviews with our influencers, discussions, and guest blog posts from our sponsors and delegates.
  • Tell us your Big Ideas – On the 21st, we’ll be asking our influencers to tell us their Big Ideas for the future of procurement. But we’re also giving you the chance to tell us what you think. Very soon we’ll be asking the community to submit their own Big Ideas videos – stay tuned to find out how!

How can I participate on the day?

  • Keep your eyes peeled – The group will be the place for a digital delegate to get updates from London as they happen.
  • Check out our Twitter feed – We’ll be live-tweeting from the event all day, keeping you up to date with all the discussions. Join in by following along with our tweets, and Tweet us @procurious_ using #BigIdeas2016 so we can pick your questions up!
  • Like our Facebook page – If you’re a keen Facebooker you can get all the day’s updates via our Facebook page, including photos of key moments, and of our Influencers in action. If you haven’t already, you can like Procurious on Facebook here.
  • Follow us on LinkedIn – If LinkedIn is your platform of choice, you can follow Procurious, and join our company Group too. We’ll be sharing our content on LinkedIn with our followers and looking for even more people to get involved.

What about after the event?

  • Keeping the discussion going – Following the event, we’ll be sharing all manner of great content on Procurious. This will include blog posts on what happened at the event, footage from each session, and our influencers’ very own 3-minute ‘Big Ideas’ videos. Once again, the only way to access these videos will be to join the Group.
  • Invite others – The more people that join our discussions and get involved, the better! Use the Procurious ‘Build your Network’ feature to send invitations to your colleagues, peers, managers, friends and email contacts. Tweet your Twitter followers (remembering to use #BigIdeas2016), post to your LinkedIn network, or Facebook news feed.

If you’re interested in finding out more, visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Procurement Faces Balancing Act as Business Uncertainty Rises

According to new research from the Hackett Group, procurement faces a balancing act in 2016 thanks to rising business uncertainty.

Business Uncertainty

  • Key issues research shows budgets and staff expected to rise slightly in 2016
  • The Hackett Group recommends that to improve agility and reduce cost, procurement must harness the value of Big Data and control tail spend

According to new Procurement Key Issues research from The Hackett Group, Procurement leaders expect operating budgets and staffing to increase slightly in 2016. This comes at a time as they attempt to balance the need to reduce costs, with the desire to become a better strategic business partners and other priorities. 

Increased business uncertainty and risk are driving a resurgence in traditional cost reduction strategies, according to research. At the same time, the research identified critical development gaps in four key procurement strategy areas:

  • Becoming a better strategic partner to the business.
  • Increasing spend influence.
  • Improving agility.
  • Tapping supplier innovation.

These are seen as important targets for capability development.

Harnessing Big Data

To improve agility, The Hackett Group’s research recommended that procurement organisations become more information-driven and harness the value of ‘Big Data’. Unfortunately, the research found that over half of the study respondents currently lacked a formal market intelligence program, or were only in the earliest stages of adoption.

Study respondents also identified predictive analytics and forecasting as the trend with the greatest transformational impact for procurement over the next decade.

Finally, The Hackett Group’s research recommended that, to unearth new sources of savings, procurement examine tail spend. This is­ the 20 per cent of spend that is spread thinly across up to 80 per cent of suppliers.

This is an area where most procurement organisations have not focused heavily.  But with effort, The Hackett Group estimates that savings of 3-5 per cent for less mature sourcing organisations is possible, in part by identification of high-dollar maverick spending that should have been strategically sourced.

A complimentary version of the research is available for download, following registration, here.

Cost Reduction Pressures

According to The Hackett Group Global Procurement Advisory Practice Leader, Chris Sawchuk, “For 2016, companies are expecting to see business uncertainty and risk increase, along with greater struggles to grow revenue. So the pressure to reduce costs is increasing. At the same time, procurement leaders need to balance this with other more strategic priorities, like becoming a better strategic business partner.

“This is challenging, because for 2016, procurement operating budgets are expected to increase by just 1.1 per cent, and staffing will only grow by 2.2 per cent. So procurement can only afford to fund its highest-priority initiatives. One clear differentiator we saw in the research this year was the recognition of the value of improved market intelligence.

“Procurement leaders are realising that higher-quality information can help them drive greater business value. Big data has been a game changer when it comes to customer analytics, offering an unprecedented ability to quickly model massive volumes of structured and unstructured data from multiple sources. But procurement’s lack of maturity in market intelligence is a significant obstacle that must be overcome,” said Mr. Sawchuk.

The Hackett Group’s 2016 Procurement Key Issues research  is based on results gathered from executives from nearly 180 large companies in the US and abroad, most with annual revenue of $1 billion or greater.

Chris Sawchuk is a keynote speaker at the Big Ideas Summit on April 21st. Chris will be talking about how procurement is applying key agile capabilities in the areas of leadership, talent, service placement and information-driven performance.

If you’re interested in finding out more, visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Modern Slavery Act Will Force SMEs to Step Up to the Plate

With new changes to the Modern Slavery Act coming into effect as of April 1st, we ask how much progress has been made since 2015?

Modern Slavery

At Procurious, we know it’s crucial to continue focusing on the issue of modern-day slavery, both with regard to tackling existing cases, and to encourage and applaud organisations who are making real efforts to end the practice world-wide.

Last week, it was reported that the majority of small firms are ignorant of the Modern Slavery Act and the impact that the law changes will have on them.

On the flip side, it was announced that the Building Research Establishment (BRE) are launching a standard to help businesses tackle risks around modern slavery.

As the Telegraph reports, with the modern slavery laws set to change again as of this April, ignorance is no longer an excuse.

Modern Slavery Act 2016

New UK legislation, effective from 1st April 2016, requires all businesses with a turnover of over £36 million to prove they have taken steps to remove slave and child labour from their supply chains.

It is currently estimated that between 21 and 39 million people worldwide are victims of modern slavery. The changes to the Modern Slavery Act 2015 will force big organisations to fully audit their supply chains.  

It is expected that, as larger companies begin to investigate suppliers throughout their supply chain, there will be a trickle down effect to smaller businesses, who will be expected to prove they are slavery-free.

Chris Ross, founder of J&K Ross, spoke with The Telegraph stating, “ultimately, big companies will not deal with firms of any size that they don’t feel safe with.” With this in mind, he has begun voluntarily auditing the supply chain of his safety equipment business, to ensure it is fully compliant.

CIPS have released guidelines to help companies below the £36 million threshold voluntarily comply with the act.

SMEs Unprepared

According to research released by The Chartered Institute of Procurement & Supply (CIPS), almost two thirds of SMEs are unaware of the Modern Slavery Act and the impact it has on them. The CIPS polled 263 SMEs.

Despite the changes only directly targeting larger businesses, it is expected that there will be a knock-on effect on SMEs. It is these smaller businesses that are particularly ignorant of how the amendments to the law this April will affect them.

Whilst acknowledging that smaller companies may not have access to the same resources as large organisations to tackle slavery, the report asserts that a number of simple measures can be put in place. These include the formation of partnerships between larger corporations and smaller SMEs.

David Noble, Group CEO of CIPS, asserted that, “Ultimately, modern slavery is not an issue confined to the supply chains of large multinational corporations. On the contrary, SMEs can often have long and complicated supply chains themselves.”

Despite many SMEs claiming to not have found any evidence of slavery or forced labour within their supply chains, it seems this is largely due to ignorance and lack of action. Of the SMEs surveyed, 67 per cent admitted to having never taken any steps to tackle the issue of forced labour, and 75 per cent said they would not know what to do if modern slavery was found in their supply chains.

New Standard to Assist Business

Nigel McKay, former procurement head at HS2, is launching a standard with the Building Research Establishment (BRE), which will assist businesses in tackling risks around modern slavery and other ethical labour issues within their supply chains.

The standard will cater to companies of all sizes, and be applicable across varying industry sectors for three tiers of companies – those with a turnover under £36 million, between £36 and £500 million, and those with turnovers of more than £500 million.

Shamir Ghumra, Associate Director, Head of Responsible Sourcing in the Centre for Sustainable Products at BRE, said that the organisation, “recognised that there is a need to strengthen some of [the work BRE has previously done in this area], and since then Modern Slavery Act has come out. It’s not just about how to comply with the Act, but looking at ethical labour issues as a whole.”

McKay believes that nowadays within procurement, people are more socially and ethically aware – “a lot of conversations are now around the social and ethical issues of procurement and how much good your pound does, not just how cheap something is.”

McKay is realistic about the scale of what they are trying to achieve, acknowledging that changing a company’s approach to its supply chain can can several years. He claimed that “Not every company will be able to do everything in the first year. It takes three, four or five years, to re-engineer a supply chain.”

With the law change effective as of last Friday, it won’t be long until SMEs feel the pressure to take action and start voluntarily assessing their supply chains.

We’ve been keeping up with other procurement news around the world, and have picked out the top headlines for you this week…

Ghana Approves Procurement Bill

  • The Public Procurement Amendment Bill 2015 has been passed by the Ghana’s parliament.
  • The bill will introduce a sustainable public procurement framework for contracting and electronic procurement, and will also bring about a more transparent and accountable procurement system.
  • The 2003 Public Procurement Act has been amended to improve public financial management, and now needs to be signed by Ghana President, John Dramani Mahama, to bring it into force.
  • 2003’s Public Procurement Act “exposed some administrative bottlenecks, delays and imbalances in the procurement structure,” the government statement added.

Read more at Supply Management

Brambles’ Sustainability Goals

  • Brambles, a global supply chain logistics company operating primarily through the CHEP and IFCO brands, has announced its Sustainability Goals for 2020.
  • The company’s goals focus on the most material aspects of the Group’s operations and are closely aligned with the United Nations’ Sustainable Development Goals (SDGs).
  • Tom Gorman, Brambles’ CEO said “Brambles has made significant progress in delivering continual improvement through our sustainability objectives over the past five years.”
  • You can view the full details of the company’s 2020 goals here.

Read more at Supply Chain 24/7

Manufacturers Trying to Forge Disruptive Supply Relationships

  • Manufacturers operating in high-value sectors, such as the aerospace and automotive industries, are going all out to forge relationships with businesses in other sectors in order to secure a clear, competitive advantage.
  • These businesses are demonstrating how a bit of lateral thinking and a clear sense of what end users want can create some unlikely and yet productive partnerships.
  • It is now business critical to establish supply partnerships that will enable them to work together to innovate new products and services and bring them to market more quickly.
  • Of course, there are significant risks attached to such supplier collaboration relationships, which some businesses may be reluctant to establish.

Read more at Supply Chain Digital

World Bank Report on East Asian Cites

  • East Asian cities could create more than 7m new jobs each year if they boosted infrastructure and improved skills and the regulatory environment, claims a new World Bank report.
  • The report looks at how the world’s successful cities have achieved their growth. It found cities did best by perfecting existing skills rather than completely overhauling themselves.
  • East Asian cities have grown faster than anywhere else in the world in recent years and are likely to keep expanding.
  • The report said linking infrastructure investments with private sector needs, zeroing in on the skills gaps, and making sure private and public sector industries supported each other were all factors which led to cities becoming more competitive.

Read more at Supply Management

Big Ideas 2015 Flashback: The Disappearing Procurement Function

We’re looking back at some of the most popular ideas from Big Ideas 2015. Peter Smith talks about the disappearing procurement function.

Peter Smith, Owner and Managing Editor of Spend Matters UK/Europe, shared a more controversial view than other delegates for his Big Idea, that the procurement function would cease to exist in its own right in the next decade.

As a former Head of Procurement, and CEO of CIPS, Peter is uniquely placed to share this view of a disappearing procurement function. Peter believes that as organisations realise how much value procurement can add, and how much value they should be getting from it, they will realise that it’s too important to be left as it’s own function.

This will lead to a situation where every manager will be charged with getting the most out of their budgets and out of their activities, and to add value to the organisation.

Peter also argues that as technology advances and makes information more available to a wider audience, it disintermediates the procurement function. By making the data more transparent, it’s not just procurement who have access to it and can leverage it, but the whole business.

 

See more Big Ideas from our 40 influencers from the Big Ideas Summit 2015 on Procurious.

If you’re interested in finding out more about the Big Ideas Summit 2016, visit www.bigideassummit.com. You can also join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Big Ideas in Social and Sustainable Procurement

Considered by many to be the next key frontier for business, Social and Sustainable Procurement are finally getting the attention they deserve.

Sustainable Procurement

Ahead of the Big Ideas Summit 2016 on April 21st, we are taking a look at the key issues facing procurement in the coming years. We have asked experts and influencers in our community to share their Big Ideas on the themes we will be discussing on the day.

Here, our experts and influencers share their thoughts on the Big Ideas impacting organisations in the fields of social and sustainable procurement.

Matt Perfect, Founder of Something Great – “Impact Spending and Social Impact Measurement”

Big Ideas in Sustainable Procurement - Matthew PerfectI believe “Impact Spending” is the next frontier for defining ‘value’ in procurement. That is, spending on goods and services with the intention to generate a measurable, beneficial social or environmental impact, alongside economic benefits.

Some might say that the history of procurement can be traced by our broadening definition of value. In the old days, our decisions were mostly price-based with little regard for ‘value’ at all. The evolution of strategic procurement brought with it a greater understanding of the importance of quality and service and the ‘value for money’ equation was born. Increasingly, risk and innovation have been added to the mix, and evaluation models such as Total Cost of Ownership have become much more sophisticated.

It is becoming increasingly apparent (both in theory and in practice) that organisations can no longer separate their profitability and growth, from the impact their activities have in society. As such, procurement and supply professionals must be able to account for, and measure, the impact of their spending.

There is much the profession can learn from the emerging field of social impact measurement. By incorporating such measures as Social Return on Investment and Theory of Change into spending decisions, we will unlock the next wave of procurement value for our businesses.

Charlotte Spencer-Smith, Marketing at POOL4TOOL

Big Ideas in Sustainable Procurement - Charlotte Spencer-SmithRegulatory pressure on companies to report on CSR criteria in supply chain is increasing – the UK Modern Slavery Act and the Dodds-Frank Act in the US are recent examples. ISO/DIS 20400, currently under development, will provide clearer guidance about what is expected from organisations wanting to implement sustainable procurement.

Improved supply chain transparency will put pressure on procurement organisations to build category-specific strategies and make sourcing decisions with sustainability in mind. Criteria, such as sustainability and labour ethics, will be increasingly included alongside financial and risk data as factors that go into processes like supplier management, sourcing, and contract management.

Extended information and third party content, specialising in sustainability data for supply chains and procurement organisations, are on the rise. But it will soon be indispensable to have this information deeply integrated into people, process, and technology to make CSR-positive sourcing decisions as easy as possible.

It’s a crucial part of the wider picture of value-based sourcing: developing sourcing decisions beyond the purchase price.

Jordan Holzmann, Founder and CEO at Cruxcee

Big Ideas in Sustainable Procurement - Jordan HolzmannIn terms of the now, we are seeing procurement take an interest in what role they play in sustainability. Procurement is realising that they can make a huge impact in the way they source through the supply chain.

This is exciting to procurement professionals as their job now has a new lease on life, and they aren’t just feeling like they are saving money and going through the process of buying stuff. This will shape the procurement profession in the future too, as it becomes more strategic in achieving sustainability goals for the organisation.

In terms of the future, I see the concept of finite resources impacting the way we procure products. Concepts like cradle to cradle and circular economy are driving innovation through material use. Procurement will have to be more innovative than ever as the world shifts to more sustainable materials.

They must be on the lookout for sourcing decisions that make use of alternative resources, reduce waste and reclaim any unused materials. This also goes for materials that are toxic and do harm. Procurement must work to avoid these, and find materials that do not harm the environment.

Do you work in social or sustainable procurement? What are your Big Ideas in this area? Let us know and we could be discussing them on April 21st.

Want to know more about Big Ideas 2016? Then visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.

Big Ideas 2016: Meet Our Speakers – Paul Markillie

The Big Ideas Summit is just a few weeks away! We caught up with Paul Markillie, Innovation Editor at the Economist, to talk about the megatrends transforming manufacturing.

Big Ideas Summit - Paul Markillie

Paul Markillie is Innovation Editor at The Economist. He has covered the automotive and aerospace industries globally and was the magazine’s first Asian-based business correspondent, writing about the rise of China as a manufacturing superpower.

Paul now writes about new technologies and their implications for businesses. He has authored a number of special reports, including “The Third Industrial Revolution” in 2012 and “New materials for Manufacturing” in 2015.

At the Big Ideas Summit, Paul will take us through the megatrends that are transforming manufacturing. He will explain how manufacturing is going digital and how that will disrupt the conventional economics of production and overturn established supply chains. He will give examples of how some companies are responding. He writes:

“I am particularly looking forward to the Big Ideas Summit because many of the things I talk about attract interest and curiosity. That can lead to some lively interaction, from which I often learn things from people who are already having to confront profound changes to the way they will do business in the future.”

According to the WEF, we are now in the Fourth Industrial Revolution – where does that leave businesses?

Four, three or some say half-a-dozen industrial revolutions have occurred. But however you measure these things, this one represents a fundamental shift because, as has happened in other industries – publishing, music, films, electronics, etc – the move to a digital world in manufacturing changes the rules comprehensively.

Developments like new materials, robotics, 3D printing and computer-aided design and simulation demolish the old notions of economies of scale, changing not just where companies locate factories but also how they organise themselves and arrange their procurement and supply chains.

What are the key impacts of new materials science for manufacturing organisations?

A good example is carbon fibre, already common in aerospace and now becoming more widely used in automotive industries. For example, BMW’s i3 electric cars start life in a Japanese rayon factory as a spool of plastic that looks like fishing line. This is carbonised at a plant in America and then shipped to Munich, where it is woven into carpet-like sheets on what appears to be a giant knitting machine.

When the sheets arrive at BMW’s car plant in Leipzig they are cut into shapes, stacked into multiple layers, injected with resin, cured and glued together by robots. That factory is unlike any other car plant I have seen, and so is its supply chain. And there are many other new materials coming that could change other industries just as dramatically.

These developments have increased the pace at which new products are developed – do you think supply chains can keep up with this demand?

If they do not, new supply chains will be developed. Or none at all: Tesla, for instance, is a new carmaker and quite vertically integrated. What suppliers need to remember is that many of these new manufacturing technologies allow a number of components to be integrated into one part.

So, for instance, a company making ceiling panels may decide to integrate thin-films of LED lighting into their product, thus offering a customer a product that no longer requires light fittings to be purchased.

What major changes do you think there will be in procurement and supply chain processes in the next few years?

First-tier suppliers will need to work much closer with companies in the development process. We already see some of this co-development. But there will also be huge opportunities for companies further down the supply chain to innovate. Second-generation robots are more affordable for medium and small companies; 3D printing processes are less wasteful of raw materials and allow greater production flexibility at lower volumes.

I think we will see some companies grasp these opportunities, which could re-order supply chains and lead to some companies that were previously suppliers of components making the leap to become producers of final products.

Paul Markillie will go into greater detail on all of these topics during his keynote at the Big Ideas Summit 2016 on April 21st.

If you’re interested in finding out more, visit www.bigideassummit.com, join our Procurious group, and Tweet your thoughts and Big Ideas to us using #BigIdeas2016.

Don’t miss out on this truly excellent event and the chance to participate in discussions that will shape the future of the procurement profession. Get Involved, register today.