All posts by Procurious HQ

Silo Busting: Using savings management to drive collaboration

In a perfect world, savings management should follow a clear pattern: set targets, identify then prioritise initiatives, track initiatives and, finally, review the targets. However, managers know that in reality, these five steps are beset with difficulty. They have to deal with unknown targets and goals, manual inputting, approval difficulties, siloed projects, sporadic monitoring and, worst of all, focus on the wrong projects.

chompoo/Shutterstock.com

How to bust silos when nothing seems to work

Many of the woes besetting procurement professionals can be traced back to organisational silos, which hamper effective communication, hinder compliance, and impede transparency. You’ve tried everything to improve collaboration – from issuing company-wide news bulletins, increasing the number and frequency of interdepartmental meetings, and even drastically altering the seating arrangements … but sometimes, silo-type behaviour is just ingrained. No doubt, you have wished there was some sort of silver bullet that will do away with silos once and for all.

According to SciQuest’s Karen Sage, there is. Sage is excited about launching a new solution that will bring everyone on board with procurement savings initiatives. “Our new Portfolio Savings Manager (PSM) is really going to hit those organisational silos hard”, says Sage. “It encourages interaction, creating cross-collaboration within the business. You’ll have all of these different silos working together on your procurement savings initiatives, and those frustrating savings management difficulties have been ironed out into a seamless and efficient process.”

SciQuest has been in the spend management space for a long time – 20 years, in fact – and services a wide range of industries and organisations including many of the Global Fortune 500. Customers using SciQuest’s Source-to-Settle Suite wanted a way to track projects in a single interface that incorporates multiple aspects of the procurement process, whether it be savings tracking, project management or workflow management. The company responded with the creation of the innovative PSM, which can be used as a stand-alone product, but its full functionality is revealed when integrated with the existing Source-to-Settle Suite.

The cross-functionality of PSM enables team members in any department, from sourcing and procurement to finance and operations, to:

  • identify potential savings and process optimisation projects
  • approve and prioritise initiatives
  • assign tasks and allocate resources
  • track milestones and results, and
  • monitor progress against forecast and budget.

The system is a project-manager’s dream, automatically determining milestones and tasks required to complete initiatives and allocate resources. PSM replaces tedious manual processes such as spreadsheet inputting, project tracking and database updating. It captures strategies and savings initiatives from inception to realisation, forecasting, scheduling, tracking and reporting savings. Users benefit from historical project and savings visibility, without having to dig into the database or spreadsheets for lost information.

Savings management made simple in five steps

 PSM users follow an intuitive five-step process, with a focus on simplicity throughout:

1. Identification

Users are guided through the completion of a savings initiative creation with the aid of a left-side navigation section that indicates counts and completeness.

  1. Authorisation

Approval workflows are applied to the initiative based on business compliance requirements.

  1. Prioritisation

The user assigns a priority to each initiative on a scale of 1 to 10. Priorities can be adjusted to reflect current business and resource parameters.

  1. Execution

Deliverables and tasks assignees can update their tasks status, mark them in-progress, complete or reset the due date.

  1. Achievement

Reports and graphs are automatically generated and displayed on customised dashboards.

Having the right system in place enables procurement professionals to stop spending valuable time trying to persuade unwilling cross-departmental colleagues to collaborate. Concentrate instead on getting everyone interacting with your new system, see the silos melt away, and watch the savings flow.

SciQuest’s Portfolio Savings Manager will be available for purchase in July 2016. For more information, please visit www.SciQuest.com.

Four tips for working with SMBs from the experts

Procurious caught up with Ed Edwards, Audience Outreach Manager at THOMASNET.com, to discuss his organisation’s recommendations on connecting with small and medium-sized businesses.

ArtFamily/Shutterstock.com

THOMASNET.com knows that it’s tough to connect with SMBs. The product sourcing and supplier discovery platform has been in the business of connecting buyers and suppliers for no less than 118 years. Recently, though, their analysts have noticed a worrying trend. “We run sourcing events through the platform”, says Edwards. “We discovered that large Fortune 500 companies were only getting a 12% response rate when they issued a sourcing event to 100 suppliers. Further investigation revealed that SMBs are increasingly unwilling to engage, and buyers need to make more effort in this respect.”

Why SMBs are important to you

Ignoring SMBs means turning your back on half of the potential supply base – in the US, 49% of manufacturers have between 5-99 employees. According to Edwards, the trend towards supplier consolidation is a false economy. “More supplier choices means less dependency, and therefore less risk”, he says.

It makes sense to source regionally from SMBs. THOMASNET.com’s research shows that 41% of organisations always prefer a local source, while 57% generally prefer a regional source. The further away your source becomes, the more risk and cost are introduced into the supply chain. Edwards explains that when things go wrong, you need to be able to respond quickly and creatively. “Local and regional SMBs can do things better with less resources at a lower cost”, he says. “They’ve got the advantage of being nimble and innovative.”

Working with SMBs is also one of the best ways to reduce costs, as there’s a strong correlation between the size of a company and the average payroll. A US manufacturer with 5–9 employees, for example, has an average payroll of $36,313 per employee, while a manufacturer with 500+ employees pays an average of $61,150. “If you only work with large suppliers, you’re going to be paying for their higher overheads”, says Edwards. “More bureaucracy equals more cost and less innovation – and more people equals more bureaucracy.”

Understand where SMBs are coming from

Small and medium-sized businesses often have an owner-proprietor and operate with limited resources. They generally need to be cautious in investing time and energy in pursuing new business, while running their existing operation. Common concerns held by SMBs around engaging with large buyers are:

  1. Can I fulfil the order?
  2. Am I wasting time bidding on an opportunity with very little chance of winning?
  3. What happens to my other business if I become beholden to a large company?
  4. What if the new opportunity becomes 50% of my business and it dries up?

Four recommendations for improving your relationships with SMBs

THOMASNET.com has worked with suppliers and buyers to create a list of best-practice recommendations for working with SMBs:

  1. Be transparent throughout the process to convey that winning your business is possible.
  • Outline your process upfront
  • Provide a timeline with milestones
  • Be specific regarding vendor selection criteria
  • Divulge who the decision makers are (if not by name, by role)
  • Convey number of suppliers under consideration
  • Provide case studies of similar relationships you have built with SMBs
  • Divulge why you are looking for a new supplier
  • Be specific regarding quantities.
  1. Simplify your process to increase the likelihood that more SMBs participate.
  • Only ask for information that is critical to the specific supplier qualification process
  • Break lengthy supplier questionnaires into smaller chunks.
  1. Humanise your process to build trust and reduce downstream confusion.
  • Leverage phone communication early in process
  • Provide specific Procurement and Engineering contacts
  • Provide feedback
    • Communicate timeline and process changes
    • Let suppliers know if they have been eliminated from consideration along the way
    • Let them know why they were eliminated.
  1. Consider shortening payment terms and offering financing to minimise your risk and ensure your suppliers have sufficient working capital.
  • Create a special program with reasonable payment terms for SMBs
  • Consider adopting a Supply Chain Finance Solution (reverse factoring).

“We’ve become very efficient at communicating in the 21st century”, says Edwards. “But at the end of the day, decisions are made when people connect with each other. That’s why I can’t stress enough the importance of humanising the procurement process if you want to connect with SMBs.”

ED EDWARDSEd Edwards enjoys educating procurement and engineering professionals on how to use THOMASNET.com’s Supplier Discovery and Product Sourcing platform to streamline and improve their work. As part of this mission, he provides customized training to organizations’ engineering and sourcing teams at their offices and online. Ed and his colleagues work together to listen to the challenges facing buyers, and help them address those issues as well as new opportunities.

THOMASNET.com exists specifically to help you find, evaluate, compare and contact suppliers for what you need, where and when you need it. Access 700,000+ North American suppliers in 67,000+ categories – create your free user account today.

*Update: Check out THOMASNET.com’s new eBook The ABC’s Of Making The Shortlist, written to help you shore up any shortcomings that may prevent you from making buyers’ shortlists and put you in position to win more business.

Editor’s Choice: 5 Big Ideas to energise your day

On April 21st, 50 of the world’s most influential procurement minds joined forces with over 14,000 digital delegates to crowdsource Big Ideas for the future of procurement.

By popular demand, we’ve brought together five thought-provoking Big Ideas from some of the biggest names in procurement.

Big Idea – Millennial Talent Response


Nic Walden, Director – Procurement P2P Advisor at The Hackett Group, talks about the greater expectations that Millennials have for job roles.

From expectations about working on CSR projects and building sustainable relationships, to the technology that they will be working with, Nic argues that procurement needs to change the way they engage with the Millennial generation in the workplace.

Big Idea – Maximise Social Impact


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

Buying from these enterprises can help add value to society, the community and the planet, as well as giving buyers immense personal satisfaction.

Big Idea – Everyone Can Contribute


Nathan Ott, CEO e.g.1 Ltd and Director at The GC Index Ltd, argues that while not everyone is a ‘Game Changer’, everyone is capable of making a game-changing contribution, from the top to the bottom of the organisation.

However, in order to do this, organisations need to create a culture where it is safe to fail, and these ‘Game Changers’ are not seen as disruptive, pigeon-holed, or made to conform. Only by doing this can organisations create real step change.

Big Idea – Harness the Crowd


Lisa Malone, GM – Europe at Procurious, talks about how procurement can lead organisations in harnessing the power of the crowd, and the concept of ‘hackathons’ in order to drive innovation.

Hackathons provide an opportunity to work on the business, rather that in the business. They give employees the chance to take time out and come up with new ideas, and communicate and collaborate with people they would not have the opportunity to do so with otherwise.

Big Idea – Challenging Traditional Procurement


Lee Gudgeon, Client Engagement Director at REED Global, says that the increasing role of procurement has highlighted a shortage of candidates with the right skill sets available to come into the profession.

Lee argues that procurement recruiters also need to be up-skilled in order to recognise the relevant skills and capabilities required in procurement, in other functions, and open up the market to people who might otherwise have been overlooked.

Want to see more Big Ideas? Check out our extensive library containing two years’ of Big Ideas from some of the world’s leading thinkers in procurement.

Buying a better future – Procurement’s sustainability leaders recognised

Once seen as a ‘niche’ part of the profession, sustainable purchasing is fast moving into the mainstream. The misbelief that sustainable solutions cost more is quickly giving way as businesses recognise that competitive advantage lies in developing innovative, sustainable supply chains.

Evidence of this came this week with the Sustainable Purchasing Leadership Council (SPLC) recognising 12 organisations and one individual who are using their purchasing power to advance the long term health and vitality of society, economies, and the planet.

Winners were recognised across a range of sustainable purchasing initiatives, including cooperative buying contracts for green cleaning products, a week-long zero waste initiative at the Phoenix PGA Open and supplier incubator programs designed at improving environmental performance.

Background on some of the award winners includes:

Leadership Award for Overall Sustainable Purchasing Program (SPLC’s highest honour), presented to The District of Columbia for having put in place a comprehensive sustainable purchasing program that exemplifies the qualities defined in SPLC’s Principles for Leadership in Sustainable Purchasing. DC conducted extensive market research and stakeholder engagement to develop sustainable purchasing guidance and specifications for more than 100 priority products. Hundreds of employees have been trained on the guidance, which DC shares publicly.

Leadership Award for a Special Sustainable Purchasing Initiative, presented to The Commonwealth of Massachusetts and the Responsible Purchasing Network for leading the establishment of a cooperative contract through which agencies in multiple states can now buy independently certified green cleaning products at favourable pricing and with specialised training and outreach.

Leadership Award for Public Interest Advocacy, presented jointly to International Campaign for Responsible Technology and the GoodElectronics Network for organizing the “The Challenge to the Global Electronics Industry”, which has been endorsed by more than 200 organizations and individuals in 40 countries. The Challenge calls on the global electronics industry to respect human rights, workers’ rights, and community rights, including the right to a safe and healthy workplace, and to healthy communities and a safe environment.

This award was also presented to the Initiative for Responsible Mining Assurance for bringing together a coalition of businesses purchasing minerals and metals, mining companies, NGOs, affected communities, and trade unions in order to promote a world where the mining industry respects the human rights and aspirations of neighbouring communities, provides safe, healthy and supportive workplaces, minimises harm to the environment, and leaves positive legacies. Through the many years of collaboration, IRMA has developed the Standard for Responsible Mining, which is currently being piloted.

Leadership Award for Purchasing Innovation
Two organisations were recognised for leveraging sustainability to find and promote innovation: King County (Seattle, WA) for purchasing battery-electric busses for its Metro Transit fleet and documenting significant cost savings and environmental benefits associated with this new technology; and Philips Corporation for innovative procurements that have enabled the company to achieve carbon neutrality in its North American operations while saving money. The Philips’ Procurement and Sustainability groups have collaborated on energy efficiency, onsite renewables, renewable energy certificates, and long-term Power Purchase Agreements for wind power.

Sam Hummel, Director of Outreach and Operations for SPLC, says that the breadth of award categories demonstrates that sustainable procurement is about more than just buying green. “We are talking about human rights, ethical conduct and supplier diversity”, says Hummel. “Sustainable procurement is a holistic approach.”

In other news:

China mandates renewable energy procurement across 11 provinces

  • China’s National Development and Reform Commission has forced grid companies to buy enough renewable power to enable wind farms to operate at least 1800 hours per year, and solar farms to be utilised at least 1300 hours per year.
  • The mandatory procurement is applicable across 11 provinces, including Xianjing and Gansu.
  • Solar capability in China has increased seven-fold and wind has almost doubled since 2012, with China aiming to generate 15% of its power from renewable and nuclear energy by 2020.

Read more at http://www.bloomberg.com/news/articles/2016-06-01/china-s-order-for-green-power-purchases-lifts-wind-solar-shares

World’s longest – and deepest – rail tunnel opens in Switzerland promising to transform Supply & Logistics in the region

  • The Gotthard rail link has taken 20 years to build, cost more than $12bn (£8.2bn), and is tipped to revolutionise Europe’s freight transport.
  • At 57.1km in length, 4,00,000 cubic metres of concrete were used to create the tunnel, employing 2600 people.
  • Its maximum freight amount is 377,000 tonnes per day, the equivalent of 15,080 shipping containers.

Read more at http://www.bbc.co.uk/news/world-europe-36416506

Human Rights Watch calls for binding global convention on supply chains

  • HRW has released a report calling for governments to effectively regulate business activity to protect human rights in supply chains.
  • The report highlights abuses including child labour, labour rights, environmental damage, and lack of safety.
  • Juliane Kippenberg, Children’s Rights Director at HRW, said. “It’s clear that a binding standard on human rights in supply chains globally is needed to ensure that businesses live up to their human rights responsibilities.”

Read more: http://www.cips.org/en/supply-management/news/2016/may/binding-international-convention-is-required-to-protect-human-rights-in-supply-chains/

Autonomous taxi startup nuTonomy raises $16 million in funding to compete with Uber

  • Autonomous taxi startup nuTonomy hopes to bring self-driving taxis to the road by 2018.
  • The company counts the government of Singapore as one of its main partners. It runs a fleet of R&D vehicles in Singapore and is the first private company approved to test on public roads.
  • The startup is promising to develop the whole suite for driverless taxis, from autonomous navigation software (nuCore), fleet routing and management, remote vehicle teleoperation, and smartphone-based ride requesting.
  • The firm uses retrofitted Mitsubishi iMiev electric cars and is expected to add Renault Zoe EVs in its autonomous cab service later this year.

Read more: http://futurism.com/a-new-uber-competitor-just-raised-16-million-in-funding-for-complete-autonomous-taxis/

7 Ways to Effectively Utilise Big Data in Organisations

The popularity of Big Data is growing as organisations begin to understand how to effectively utilise the volume of information available to them.

Mikko Lemola/Shutterstock.com

The buzz around Big Data is undeniable. Regardless of the size of the organisation, managers can use this information, to help drive better, more effective organisational decision making, as a result of accurate analysis.

But how? Below are seven ways how effective utilisation of big data could become a boon to your business.  

1. Improve Business Intelligence

Business Intelligence is a process of analysing data which helps managers and corporate executives make more sound business decisions. So if you try to put in some extra effort to ameliorate your organisation’s business intelligence, it will result in a more accelerated decision-making process, optimised internal business processes, increased operational efficiency, generation of new revenues, and identification recent market trends.

2. Practical Business Decisions Based On Customer Behaviour

Big Data contains a wealth of information about the way customers of a particular organisation act and behave, like their interests, habits, and demographics in some cases. By analysing sales, market news and social media data, organisations may collect and analyse real-time insights of their customers.

Better marketing strategy can be devised through a careful watch over the customer’s needs, taste, and behaviour.

Big Data Approach
Source: www.cio.co.ke

3. Build Trust Among Customers

It is a well-known fact that the more customer trust and satisfaction an organisation has, the more profit it is likely to generate. Feedback from customers gives organisations the key information to make improvements in products and services.

Organisations can use the information gathered from customer feedback in order to make changes to products and services, showing that they listen to customers, and generating further customer satisfaction.

4. Risk Assessment

Big Data houses a vast amount, and variety, of information which could be used as part of risk assessment activities.

Data from sources like mobile devices, social media platforms, and website visits, and information about credit, legal, e-commerce spendings and other online activities, of a particular person reveals hidden consumer behaviours that may not be otherwise known.

This is advantageous for the banking industry, as big data can help in fraud detection through the use of pattern recognition and by comparing internal and external data of the customers. Organisations like MasterCard already use Big Data to assess whether a certain transaction is legitimate or fraudulent.

This information can play a major role in managing risks and making judgments about credit approvals and pricing decisions, before moving forward with the customer at both an individual and product level.

5. Predictive Personalisation

Predictive analytics creates a huge opportunity for behavioural segmentation of the consumers. It analyses personal information of people on websites, their behaviour, their social data and their browsing data.

Content similar to their interests is then catered to the users, giving them their own personalised space to explore and use the services. In this way, you customise your website to suit the requirements of the individual customers based on their demographics and interests which makes them distinct from the crowd.

There are many companies, like Spotify, who are targeting their customer base providing personalised products as per their needs.

Big Data Drivers
Source: www.thewindowsclub.com

6. Tailor-Made Products and Services

Through big data, we have access to all demographic and personal details of the customers. By matching consumers with the similar products, and the content they have already viewed, personalises their experience on a website.

This method of providing tailor-made services, where customers are connected with exactly those products and services in which they’re interested, may also be known as Digital Hospitality.

This often takes customers by surprise and makes them feel special. However, it would be best to ask for the customer’s consent before using their personal information, as this will make it appear less intrusive.

7. Cost Reduction

Big Data can also be used for automated decision-making systems, where managers can get regular alerts about maintenance support systems and cost cutting opportunities in their business.

For example, Tesco used Big Data to cut its annual refrigeration cooling costs by 20 per cent across 3000 stores in UK and Ireland. Business operations can be optimised without compromising on the quality standards of products.

Since Big Data is, by its essence, huge, taming it can be quite a difficult task because of the continuous generation of data from different platforms in all realms of the world.

With the efficient utilisation of information received, a huge difference can be made to the business operations of an organisation, provided that the information is critically analysed such that it can be transformed into profits.

For this purpose, a good project management tools platform may come in handy for organisations, as managers will be able to keep an eye on the projects concerned with Big Data extraction.

Swati Panwar is a content writer and tech blogger. Writing is her passion and she believes one day she would change the world with her words. She is a technical writer by day and an insatiable reader at night. Her love for technology and latest digital trends could be seen in her write-ups. Besides this, she is also fond of poetry. She’s extremely empathic towards animals and when not writing, she could be found cuddling with her cat.

LinkedIn: https://in.linkedin.com/in/swati-panwar-5030b589

Are Charities & Non-Profit Organisations Getting the Most from Procurement?

We’ve all donated to charities at some point, but do we know where our donation is being spent? How effectively are third sector organisations able to leverage their procurement?

This article was originally written for, and published on, Novo-K.

A bucket in the street. A bake sale or coffee morning. A fun run. A phone call. We’ve all donated to charity at some point in our lives, and we frequently put our money down without thinking about where it goes to. But do you know how your donation is being spent?

With an ever-increasing number of charities in existence around the world, organisations need to be seen to be spending money wisely, or else donors could take their money elsewhere.

It’s not something that immediately springs to mind when you make a charitable donation, but charities and not-for-profit organisations rely on procurement teams in the same way as the public and private sectors. And the role that procurement plays for them is just as valuable.

Procurement Complexity

Despite my experience working in procurement, and the countless conversations I have had with procurement professionals, I will admit to a lack of extensive knowledge on procurement in the third sector. I had also (mistakenly) thought that procurement might be less complex than in other industries such as manufacturing.

However, following some conversations, and giving the subject more consideration, it’s clear that there is just as much complexity as in any other organisation. It’s not just indirect procurement activities as people might think.

In many cases charitable organisations are looking at procurement of a range of services, highly complex machinery, chemicals and drugs, and even construction services for new buildings.

Fighting the Same Battles

I asked the Procurious community whether they thought that got the most from their procurement activities. What struck me was that these organisations face the same issues the wider procurement community, one in particular being maverick spending.

In charitable and non-profit organisations, as with procurement across the world, there is still the need to convince business stakeholders, end users and other functions of the value procurement brings to the organisations.

Traditional mind-sets of, “But we’ve always done it that way”, and “We’ve used that supplier for years”, exist in these organisations. You might think that convincing stakeholders might be easier for a charity – more procurement involvement means better deals, means more money to go on research or helping people.

Effective Procurement

All of this brings me back round to my original question. In truth, as a donor, I don’t really mind what my money is spent on, just that it is being used to support the charity’s cause. As a procurement professional, however, I feel that there is more that could be done to make this more transparent, and also to support these organisations when procurement is less mature or experienced.

There are a number of ways that procurement in charitable and non-profit organisations can be supported. In the UK, the Charities Aid Foundation provides various services on a pooled basis for smaller charities.

There are also opportunities for procurement professionals to work with charities and social enterprises on a pro bono basis. This is a great way for the organisations to access procurement skills, without having to pay for a full-time staff member.

Another option is to expand our procurement networks, getting as many people involved as possible. By creating global networks, procurement professionals can access a wide range of knowledge and experience.

If you have a procurement issue, the chances are high that someone else has dealt with it before. By creating networks, we can help create real value.

All this can help to raise the profile of procurement within charities, educate stakeholders to procurement’s role and value, and make a major difference to how (and how effectively) money is being used.

Coupa R15 – delivering agility and measurable value

David Hearn, former CPO Indirect Procurement at Kaiser Permanente, Sun Microsystems and Juniper Networks, talks to Procurious about how Coupa’s latest product releases (Coupa R15) deliver more value to businesses.

Coupa R15 InvoiceSmash

One of the benefits of being a leader in cloud-based spend management solutions is that you can push innovative enhancements to customers rapidly and efficiently. Coupa does so three times per year, with each release being something of an event as customers eagerly await the latest improvements to the platform.

We’re talking with Indirect Procurement guru David Hearn about which of the more than 45 new features he’s most excited about in Coupa Release 15.

Hyperlocalised Languages and Suggest-A-Translation™ (Patent Pending)

People access Coupa in over 100 countries and more than 20 different languages. Coupa has recognised that their customers have unique language requirements, and also that every organisation has a business language of its own. Hyperlocalised Languages allows customers to modify any of Coupa’s 20+ languages for their own purposes, with changes limited to their organisation only and not impacting other customers. Coupa also added Suggest-A-Translation to collect end-user translation suggestions and route to the customer administrator for real-time updates. This personalises the cloud platform in ways never before seen in this industry and is a key reason for the patent pending status.

David says: “The hyperlocalised language feature helps all users of the platform feel included in the management of the tool which is a huge benefit to getting 100% adoption. Language is important, and if an employee in Japan (for example) thinks that an on-screen word doesn’t fit their organisation’s business vocabulary, they can simply suggest a change to better suit their local business needs.”

Unified Platform Innovations and Enhanced Analytics:

Coupa has updated its sourcing recommendations engine to add real-time monitoring expenses, along with a new supplier risk recommendations engine, an inventory trends dashboard and enhanced embedded analytics functionality that adds more visibility and control. The platform embraces ‘suite synergy’, which means applications are fully unified, and the user experience improves with the use of multiple applications.

David says: “I can’t stress enough the importance of having everything seamless on one platform. Having the Coupa platform provide recommendations across all the ways an employee spends money is a game changer. The entire end-to-end process is electronically sharing data and pro-actively prompting procurement teams with new ideas for better sourcing. This enables those teams to focus on being strategic – and that’s a huge value. These latest updates help companies be more agile and make decisions faster”.

Contract Collaboration

Contract Collaboration is a new Coupa application that brings real-time authoring to contracts and extends Coupa Contract Lifecycle Management. It removes the need to use Microsoft Word for redlining documents passed around via email. The new application provides automatic versioning, captures key terms and conditions and transfers them electronically into the ordering system.

David says: “For as long as I’ve been a CPO, we’ve struggled with the entire lifecycle management of contracts. This latest application from Coupa captures the upfront authoring collaboration and links it to the actual transaction – no one has done this before in a unified suite that captures all spending from expenses, to invoices, to requisitions. There’s no longer a need to manually input the contracts terms and conditions into the system; it auto-fills the whole process. It frees up time to focus on better sourcing instead of clerical duties. It also reduces the risk of contract errors.”

Check out Coupa’s great video on Contract Collaboration (watch for the procurement professional smashing up his keyboard in frustration at Microsoft Word). 

InvoiceSmash

While we’re talking about smashing things, Coupa InvoiceSmash enables suppliers to automatically parse emailed PDF invoices so details are auto-filled into Coupa. One of the most exciting aspects of this product is its machine learning, which ensures the same mistake won’t be made twice and minimises the need for human intervention. The application is currently available in an early access program.

David says: “No one wants to use their limited headcount budget to fund clerical duties of manually entering data from invoices.  It’s archaic. Many have tried using OCR for invoice processing, but this is expensive and the human review and rework on invoices is extensive. InvoiceSmash automates this mundane data entry through accurate digital data extraction and means companies can remove most of their clerical team members and re-invest back into the business.”

Coupa released a clever parody video showing AP and AR professionals on the couch with a relationship counselor – their “marriage” can only be saved by InvoiceSmash.

And much more in Coupa R15:

For the full list of R15 updates, visit http://www.coupa.com/newsworthy/press-releases/release-15/

“The grass is greener where you water it” – Millennial wisdom at ISM2016

ISM and THOMASNET’s 30 Under 30 Supply Chain stars share their views on talent retention, the future of learning, and the importance of mentorship.

ISM CEO Tom Derry is always at his most passionate when talking about millennials in procurement. He’s a huge advocate for young people coming into the profession, and is delighted that the number of millennials attending ISM’s annual conference has swollen by 166% over last year.

You could feel this change in demographics as you walk the halls of the Indianapolis Convention Centre. Excited, eager and engaged young people are networking with each other and taking every opportunity to meet seasoned professionals at the conference. The buzz is also palpable online, where the tech-savvy millennials are continuing the conversation on channels like Twitter, Procurious and LinkedIn.

30 Under 30 Supply Chain Stars

Now in its second year, the 30 Under 30 Supply Chain Stars award showcases millennials who are proactively tackling the ever-changing supply chain challenges facing global companies. The award was the brainchild of a partnership between ISM and THOMASNET.com, who were concerned at the fact that by 2525, 75% of the U.S. manufacturing workforce will be retired and there currently are not enough people coming into the field to backfill these roles. An entire generation of very senior leaders is on the cusp of retiring, and millennials will have to step into senior roles earlier than expected. “ISM and THOMASNET’s mission”, says Derry, “is to help them get ready”.

This year’s group of 30 winners were drawn from a host of diverse organisations, including big players like DuPont, Johnson & Johnson, Chrysler, John Deere, the U.S. Postal Service, Cisco and Shell. Smaller organisations are also represented, along with a smattering of the big U.S. tertiary institutions.

It’s something of a cliché to say that these young people demonstrate wisdom and insight well beyond their years, but they do. You only need to spend five minutes in conversation with these stars to dispel the stereotypes about an entitled and lazy generation. Their enthusiasm is infectious, along with their can-do attitude and eagerness for new challenges.

Here are three of the big issues discussed at ISM2016 by this year’s 30 Under 30 Winners:

  1. How organisations can retain millennials

Amy Georgi, 30 Under 30 Megawatt Winner and Program Manager at Fluke Electronics (Pennsylvania), bucks the retention trend. “I’ve been with the same company for nine years now”, she says. “In your career, you come to decision points – either your company responds well and you stay, or they don’t respond well and you leave”. Georgi also notes that millennials are not concerned with an 8am to 5pm work schedule – it’s all about outputs rather than clocking in, and flexibility should be a given as long as you continue to deliver and achieve.

Aisha Khan, Global Change Management and Communications Lead, Spend Management Strategy, Johnson & Johnson (New Jersey), comments that it’s important to be able to change roles while staying within an organisation. “Technology helps”, she says. “In the past, a lot of knowledge was lost whenever someone changed roles, but now we have databases that manage client and business relationships so successors can step into the role more easily.”

Georgi comments that organisations may complain about job-hopping millennials, but in an atmosphere of layoffs and pay reductions, employees understand that loyalty goes both ways. She does believe, however, that job-hopping isn’t the answer. “In Seattle, for example, it’s very easy to move around between the big organisations – Starbucks, Amazon and Microsoft – but colleagues of mine who have hopped around often find that their expectations are disappointed. I believe that the grass is greener where you water it. If you put a lot in, opportunities will grow and things will work out.”

  1. The changing face of learning

Logan Ferguson, Improvement Leader at DuPont (Delaware), stresses that organisations need to focus on offering millennials constant opportunities to learn and grow. ISM’s Mastery Model and eLearning opportunities, including the newly launched eISM provides the flexibility and adaptability that busy millennials require. “Online learning helps when I can’t make my training dates, and I can skip over content if I’m already confident in that area”, says Ferguson. “But for me, there’ll always be a place for face-to-face training, because some of the conversations that come out of the training sessions are potentially more valuable than the training itself.”

“Sitting in a classroom is very outdated”, says Khan. “E-learning and micro-learning isn’t just for millennials – older people love it, and they’re just as busy as we are. It’s the most effective way to engage and retain information, and that’s important for me in my change-management role.”

  1. The importance of mentorship

Having a mentor appears to be a strategy for success shared by all of the 30 Under 30 Supply Chain Stars. Khan comments that she and her fellow winners wouldn’t be here today without mentorship. “But beyond mentorship, sponsorship is incredibly important. Young people need to find leaders who’ll go into bat for us.” Georgi agrees: “The key is to find the right match for you.”

It’s not only about finding a mentor, but becoming a mentor yourself. Caitlin O’Toole, Associate Commodity Manager at Stryker (California), took great pride in an intern she mentored one summer. “It was amazing to watch her grow”, O’Toole says. “At the end of her senior year, she accepted a full-time job at Stryker and now runs the shipping team as a supervisor. It was great to be a part of her success, and I also learned so much from her.”

Read more about ISM and THOMASNET.com’s 30 Under 30 Recognition Program.

Smarter relationship management with ClientLoyalty

Procurious caught up with Kent Barnett, Chairman and CEO of ClientLoyalty at ISM2016, Indianapolis USA.

CPOs worldwide recognise the need to keep track of supplier relationships to reduce costs, minimise risk, and uncover opportunities to grow their businesses. Voice of the supplier surveys are common, yet the technology employed is often archaic. Typically, stand-alone web-based surveys are sent out, with the results downloaded into spreadsheets and painstakingly interpreted by analysts. Subsequent surveys are often not linked to the ones that have gone before, and even if they are, it’s left to human analysts to make intelligent connections and interpret the trends.

“This is the gap we discovered in the business services space”, says Kent Barnett, CEO of ClientLoyalty. “Organisations rarely use data to manage the voice of the supplier process, and hence miss out on an enormous opportunity to employ a continuous improvement methodology. They also fail to put that data to work by translating the information into meaningful action.”

The potential impacts of failed business relationships are huge. For buyers, it means wasted time and painful switching costs, while for suppliers, it means churn. In Barnett’s words, “a revolving door is never good for business”. That’s why ClientLoyalty’s founders saw a need to create a supplier performance management system that would build long-term, meaningful relationships between buyers and suppliers.

How ClientLoyalty works

The easy-to-use system is built to optimise relationships through transparency. Users can input operational metrics (KPIs), which are reported using a simple green, yellow and red approach. The system gathers direct feedback and social sentiment, using in-built algorithms to scan the web and track suppliers’ reputation ratings.

The data is delivered in the form of alerts (risk flags), dashboards, and report-out tools. “We call it a data-driven solution”, says Barnett. “The system uses NPS (Net Promoter Score) and the AI generates recommendations on how to reduce detractors and raise your score. Six Sigma is another important part of our measurement methodology – it’s all about smarter relationship management.” All data is benchmarked across ClientLoyalty’s growing client base, showing the low end, high end, and where your supplier falls.

The artificial intelligence kicks in with recommendations on how to improve performance, and is one of the most valuable aspects of ClientLoyalty’s system. This aspect addresses the major gap and frustration many CPOs have with voice of the supplier surveys – there’s really no point in gathering data on relationship strength if you are not going to do anything with that information. ClientLoyalty’s automatically generated recommendations provide a factual base to create a targeted action plan that will improve supplier relationships and save you money.

The results

“We’re creating a business culture that’s based around accountable performance, one company at a time”, says Barnett. “The key is having clear and transparent communications, with the ultimate goal of turning business relationships into business partnerships.”

ClientLoyalty is software that optimises relationships between B2B buyers and suppliers, helping organisations continuously improve by analysing direct feedback, social sentiment and operational data to create stronger bonds of loyalty. If your organization is a buyer of goods and services and needs to manage critical supplier relationships, or a supplier of goods and services and needs to manage strategic client relationships, ClientLoyalty can help you connect with your business partners using data-driven management tools.

Alan Mulally – The Secret to Success in One Slide

“This is everything I know, folks” – Former President and CEO of Ford, Alan Mulally, shares the sum of his knowledge in one slide at ISM2016.

Alan Mulally

ISM’s keynote speaker Alan Mulally has one of those CVs that’s exhausting just to listen to. Alongside his nine-year stint as President and CEO of Ford, he served as Executive Vice President of Boeing, and CEO of Boeing Commercial Airplanes.

He was named to the Google board of directors in July 2014, served on President Obama’s US Export Council, and the advisory board of NASA.

He was named in Fortune’s 50 Greatest Leaders list, voted one of Time Magazine’s 100 most influential people in 2009, and voted 2011 CEO of the Year by Chief Executive magazine. Mulally is also a fellow of the UK’s Royal Academy of Engineering. 

One Slide to Say it All

“If it isn’t a Boeing, you shouldn’t be going”, says Mulally. He worked at Boeing for no less than 37 years, notably as a chief engineer for the avionics and flight management systems for a number of major Boeing projects, including the 747 and 777. As CEO of Boeing Commercial, he launched the 787, and was at Boeing during the 9/11 attacks, horrified to see a commercial airplane being used as a weapon.

Boeing was shaken to its core by the event, with production dropping from 620 planes a year to 280. “Not many companies can sustain a loss like that and remain viable”, says Mulally. Eventually, Boeing returned as the number one avionics organisation in the world.

The average airplane has about four million parts, and at the height of a new project, you might have over one million people working on the design. This is where Mulally learned how to develop a skilled and motivated team, and his principles and practices around working together led him to success after success at both Boeing and Ford.

Mulally brings up a one-page chart with 11 bullet points.  “This is everything I know, folks”, he tells the audience, and he means it. Whenever an audience member asks a question, he brings this chart back up on screen, selects the relevant point, and talks to it. Here’s the list in full:

Principles and practices around working together:

  • People first
  • Everyone is included
  • Compelling vision, comprehensive strategy and relentless implementation
  • Clear performance goals
  • One plan
  • Facts and Data
  • Everyone knows the plan, the status and areas that need special attention
  • Propose a plan, positive, “find a way” attitude
  • Respect, listen, help, and appreciate each other
  • Emotional resilience – trust the process
  • Have fun – enjoy the journey and each other.

Making sure “everyone knows the plan” is achieved through colour-coded project charts. “Every Thursday morning, we’d link up everyone around the world and colour-code the charts”, Mulally says. “Red means we’ve identified a problem – which is great – and we’re working on it.”

Ford Motors Turnaround

Mulally took these colour-coded charts over to Ford when he took on the role of CEO at the behest of Bill Ford, grandson of Henry. There he found a very different culture, and at first, people didn’t “get” the colour coding. “We had about 320 different charts”,

Mulally says, “I explained the coding, and the business leaders went away and had their charts colour coded. At the following meeting, I was surprised to see chart after chart all colour-coded green”.

The organisation was forecast to lose 17 billion that year, yet there wasn’t any red or yellow to be seen. The problem, Mulally discovered, was a culture in which business leaders would hide problems, making issues disappear rather than highlighting them as opportunities.

When a leader named Mark Fields was finally brave enough to place some red on his chart (due to a major production issue), Mulally responded by clapping in the leadership meeting. “People were looking at me, looking at Mark, waiting for him to be fired”, he says. “They thought the clapping was a signal for some bouncers to come in and remove Mark from the room!”

But Fields wasn’t fired. Instead, Mulally treated the production issue as a rallying point, showing Ford’s business leaders how to come together to figure out the problem, and also demonstrating that he valued Mark’s honesty by seating him next to the CEO at each subsequent meeting. Mark’s charts went from red, to yellow, to green.

And the following week? 320 beautiful, rainbow charts.

Deep Trouble

When Mulally took over at Ford, the company was in deep trouble with the aforementioned $17 billion loss in 2009. Ford was sized for 26 per cent market share in the US, but only had 16 per cent, losing money on every brand and vehicle. Mulally responded by focusing on the Ford brand over all others and consolidating the nameplates down from 97 to 15.

He launched a restructuring plan to turn around the losses and market share, and his cost-cutting initiatives led to the company’s first profitable quarter in two years.

In 2006, Mulally led the effort for Ford to borrow $23.6 billion, mortgaging all of Ford’s assets to overhaul the company and protect it from recession. This decision meant that Ford was the only company of the “Detroit Three” (Ford, GM and Chrysler) that did not have to take a government loan during the automotive industry crisis of 2008–9.

Value of Procurement

Mulally recognised the enormous value of procurement, especially in his aggressive cost-cutting endeavours. He promoted procurement to a leadership position within the company – something which had never been done at Ford – and ensured all of the business units around the world were working together with procurement.

Suppliers were also a major part of Mulally’s turnaround, and Ford rose from a position of second-last preferred customer, to number three today.

Today, Ford is the number one brand in the US, and the fastest-growing car manufacturer globally. It builds the first, third and sixth best-selling vehicles in the world presently. Mulally attributes this success to his eleven-point slide – in the end, it’s all about building the right culture and motivating your people.