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Is the UK’s position as a global innovation leader at risk?

New research shows that a majority of UK organisations suffer from “innovation inertia” or a lack of consensus in where to invest their resources. Does the UK need to re-focus its efforts so as not to be left behind?

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The research from Hitachi Data Systems found that 75 per cent of organisations are being hampered in their investment decisions by a lack of clarity and access to business data. Additionally, a staggering 90 per cent of IT leaders believed their organisation was not in a position to respond to rapid change in it industry.

Although there is a much-increased volume of data available to business leaders, it appears that many are not being able to leverage this effectively. From a long-term point of view, this leaves British organisations potentially lagging behind their global competitors.

Lack of Investment

Alongside the “inertia” caused by a lack of organisational investment appears to be a significant decrease in investment in innovation at a national level.

The Confederation of British Industry (CBI) has revealed that the UK spent the least on innovation and science of any of the G8 nations in the past year, with only 0.49 per cent of GDP invested back in these areas.

The CBI also argued that more Governmental support was required in order to make innovation more attractive for businesses, a stronger framework and a re-thinking of business rates two of its key suggestions.

Industry leaders have also warned that innovation could be harmed should the Department for Business, Innovation and Skills change innovation and R&D grants from the UK Government, to loans.

Representatives of the aerospace, automotive and pharmaceutical industries have warned that this could lead to fewer R&D projects in the UK, and organisations shifting new R&D projects abroad.

Falling Behind?

Although there is much talk about the UK falling behind, the situation is perhaps less perilous that it seems.

The 2015 Global Innovation Index (GII) places the UK as one of the world’s top five most-innovative nations, both from a volume and quality point of view. This ranks the UK alongside economic peers such as Sweden and the USA, as well as being ahead of Germany and growth economies such as China and Brazil.

It could be argued, based on the comments from the CBI, that an increase in investment in innovation is required to keep the UK in its current position, rather than have the country play catch up with its global peers.

Ambition is Key

Yet, the UK and UK-based organisations need to continue to innovate and create in order to maintain its position. How best, though, to kick-start more innovation projects?

Richard Jones, pro-vice chancellor for research and innovation at the University of Sheffield, believes that universities will play a major role in rebuilding the UK’s innovation programmes.

In a speech to the Association for University Research and Industry Links’ annual conference, Professor Jones argued that universities needed to see what they could contribute to wider society and be more “ambitious” to achieve their goals.

Lead by Example

In the past 12 months, two of the UK’s most famous innovators, James Dyson and Richard Branson, have both invested in programmes to help boost innovative and entrepreneurial activities in the country.

Having figureheads leading by example, as well as investing time and money into this, could potentially give the UK the lift it needs in the coming years to keep its place at the top of the tree.

Do you think the UK needs to be more innovative? Is the country at risk of falling behind, or are the reports over-stated? Start the discussion on Procurious!

Stuck for a conversation in the coffee queue this morning? Procurious has gathered all the big headlines in procurement and supply chain for you…

Talk Talk Boss Warns of ‘Arms Race’

  • Talk Talk Chief Executive, Dido Harding, has warned that all UK companies are under threat of a “cyber security arms race”
  • The hack on the telecommunications company happened last Wednesday and has affected millions of customers, although no losses have been directly attributed to the hack as yet
  • Harding warned that any company in the UK could be vulnerable to a cyber attack
  • She went on to say, “This is happening to a huge number of organisations all the time. The awful truth is that every company, every organisation in the UK needs to spend more money and put more focus on cyber security – it’s the crime of our era.”

Read more at BT.com

London Mayor Contradicted on Garden Bridge Procurement

  • Claims that the procurement process behind the Garden Bridge was ‘robust’ made by London mayor Boris Johnson have been directly contradicted by TfL’s director of internal audit
  • Clive Walker, the man who oversaw mayoral body Transport for London’s internal investigation, conceded that the process was neither ‘open’ nor ‘objective’
  • Critics have suggested that TfL made attempts to ‘water down’ the audit and introduce elements which reflected well on its performance

Read more at Architect’s Journal

Technology Means Traffic Jams Could Be ‘Thing of the Past’

  • Motoring and technology engineers are hard work on the next generation of connected vehicles, which could completely transform British roads.
  • The concept revolves around cars talking to the city and guiding drivers through the busy streets with minimal delay
  • Siemens and NXP are in the process of designing the in-car chips and infrastructure to build ‘intelligent road systems’, allowing drivers to be kept up to date with conditions in real time
  • The technology giants believe the systems will be ready to go in the UK by 2020

Read more at The Express

Hyperloop Test to Start within ‘Weeks’

  • Hyperloop Transportation Technologies (HTT) has announced it will start work on the $6bn Hyperloop test track within the next two to three weeks
  • The Hyperloop system, originally the concept of Elon Musk, has had to overcome a number of issues to get to this stage, aims to create super-fast, cheap transportation between major cities
  • The system, which will be solar powered, could transport over ten million passengers during testing

Procurious Big Idea #45 – Procurement Raising Its Voice

Cath Hill, Group Marketing and Membership Director for CIPS, talks about her idea to get procurement to raise its voice as a profession.

Procurement has long been the unsung hero in the organisation, but now it’s time to make both internal and external people aware of the great work the profession does.

See more Big Ideas from our 40+ influencers.

Like this? Join Procurious for FREE and meet like-minded procurement professionals from across the world.

Future Technology That May Change The World

As Artificial Intelligence and Digital Currencies (like Bitcoin) seek to transform our lives, what effects will these new advances have on commerce and the world’s supply chains?

Future technology that will change supply chains

There’s a change happening on factory floors the world over, as robots and automation increasingly replace the manual (human) workforce of old.

With the recent innovations in artificial intelligence, will the supply chains of tomorrow be at the mercy of robotic overlords? If so, do we have anything to fear?

Elon Musk has previously aired his own warnings while giving a talk to students from Massachusetts Institute of Technology (MIT), saying:

“I think we should be very careful about artificial intelligence. If I had to guess at what our biggest existential threat is, it’s probably that. So we need to be very careful… I’m increasingly inclined to think that there should be some regulatory oversight, maybe at the national and international level, just to make sure that we don’t do something very foolish.”

Of course it’s perfectly natural to fear change. We must also be mindful that artificial intelligence is still very much evolving, and at this stage it’s an unknown quantity. There are some camps that fear the worst, that AI represents the destruction of mankind, with robots and humans embroiled in a bitter battle for survival. Flesh vs. circuits, the human condition vs. sentience…

Future Shocks

Not so according to Mustafa Suleyman – Head of Applied AI at Google DeepMind, who instead believes that this modern intelligence will help tackle some of the biggest problems facing the world today (think access to clean water, financial inequality and stock market risks). Indeed, the work of DeepMind was something Wired Editor David Rowan touched on at Procurement Leaders’ London gathering earlier this year.

David told us how DeepMind had created a “generalised artificial intelligence” – the earliest example of which was able to not only play Space Invaders, but master it to become the best player in the world. While this demonstration is certainly impressive, how can it translate to real-world scenarios?

The answer lies in Big Data as DeepMind observed: “We have global information overload from overwhelming systems complexity – they’re so complex and interlinked it’s possible that the US financial crash in 2008-9 caused the Egyptian revolution” [a time of widespread corruption and a stagnant economy that led to a national bread shortage].

If all of this (Big) Data is just sitting around, waiting for consumption, then why shouldn’t we make it available to robots for analysis and dissemination?

A Calculated Risk

Indeed, the significance of Big Data has not gone unnoticed by procurement’s leading lights…

A 2010 paper entitled ‘Artificial intelligence in supply chain management: theory and applications’ reviewed the past record of success in AI applications to SCM and identifies the most fruitful areas of SCM in which to apply AI.

Similarly, author of Supply Chain Visability.com -Jonah Saint McIntire, observed: “In time, as new generations of the AI are deployed, something truly game changing will occur. This is because machine learning will cross human learning capabilities fairly slowly. Remember that intelligence is modular and, as a result, machines may exceed humans in some forms of learning while lagging in others. The real breakthrough occurs when all necessary forms of learning are dominated by AI rather than human intelligence.”

If AI can help us realise that we have a problem, why then should we be fearful of this new technological dawn?

John McAfee – infamous programmer and creator of the world’s first antivirus software, has long insisted “that if you are a ‘routine cognitive worker’ following instructions or doing a structured mental task,” then it is your job that’s most at risk from the inevitable rise of the machines…

Payments Are Going Digital Too…

Bitcoin is an online payment system that is perhaps more widely recognised as the first decentralised digital currency.

Supported by open source technology, Bitcoin is not owned or operated by one individual or organisation. It is free to use (apart from an optional transaction fee) and can reduce the costs of transactions for merchants compared to credit cards.

The technology behind it is referred to as ‘blockchain’. The blockchain records all the transactions in a publicly available ledger. The ledger keeps track of what users are spending, provides authentication and keeps track of where the currency is.

Safety In (Digital) Numbers

New electronic payment systems and virtual currencies are expected to make paper currency the horse and buggy of the 21st century.

In a report commissioned by HP, the Ponemon Institute has made a number of interesting finds. Its “Security & Compliance Trends in Innovative Electronic Payments” paper reveals that support for digital currencies and new electronic payment systems are perhaps stronger than originally thought. And while 79 per cent of the US organisations that took part in the research plan to adopt digital currencies, a key barrier to the adoption of innovative electronic payments remains. Namely: the issue of security.

While new payment models are evolving, the same security fundamentals for maximum protection in the underlying payment process are still needed. The most critical are one-time passwords or tokens, federated identity and authentication systems and multi-factor authentication.

There is also the perception that the pressure to quickly migrate to the use of innovative electronic payments is making it difficult to address the security and privacy issues.

Digital wallets (or e-wallets) are used to hold virtual currency – and high profile names in technology like Google and Apple already have solutions in place to drive the adaption rate.

In-fact belief is so strong that almost half (46 per cent) of respondents predict that virtual currencies will overtake paper currencies within the next five years.

Perhaps there’s some truth in this… we are increasingly looking to financial institutions and credit card companies to make the inroads needed to take such practices to the next level.

They’ll be the ones to create new approaches to the security and privacy of the electronic payment platform. These organisations are closer to the consumer experience with electronic payment systems and might have a greater incentive to innovate and improve both security and privacy.

Transparency In The Digital Age

Is it such a leap to suggest that Bitcoin technology has the ability to transform the future of digital payments and aid supply chain transparency?

We already know that it’s possible to adapt Blockchains to keep track of what is going into a product, who has handled it etc. Using an app or website, an individual could stand in a shop holding a piece of clothing and be able to trace it all the way back to the farm that supplied the cotton. The information could be used to highlight working practices on the farm, use of pesticides, Fairtrade considerations and more, leading to far greater transparency.

Tracing the supply chain through the use of a ‘product passport’, showing the change of ownership of items through the supply chain and highlighting each step in the process would ultimately help to facilitate an understanding of the transactions from end to end.

What do you make of this brave new world: is more time needed to fully realise the benefits (and drawbacks) of such innovations?

Is there a crisis on the horizon for Asian economies?

The old saying used to be “If America sneezes, the world catches a cold”. Times are changing and now it seems that China has caught a cold, and the rest of the Asian economies may be coming down with something worse.

chinamarket_091815 In 1997, Asia was hit by an economic crisis, sparked by, amongst other things, a series of currency devaluations. When the Thai Government took the decision to unpeg the Baht against the US Dollar, it had a knock-on effect across the rest of the region, with falling stock markets and reduced imports.

 

Back in the current day, similar issues with slow economic growth and currency valuations in the region have many investors worried that a new crisis may be on the horizon. While many economists and experts may disagree with this, there are parallels being drawn between the situation today, and the one nearly 20 years ago.

Market Instability

Asian economies have just experienced their worst collective quarter since the Global Financial Crisis. Not even the Chinese powerhouse is immune to the slump, with its main stock market posting its worst quarterly results since 2008 and growth slowing to 6.9 per cent.

Currency valuations are down too. The Malaysian Ringgit has fallen a massive 26 per cent this year; the Thai Baht has hit a five-year low; Singapore’s central bank is about to undertake its second easing of monetary policy of 2015; Japan is facing another recession.

With export markets weakening, less money available to spend on imports, and China, long since the key customer for many Asian countries, unable to help due to its own perilous situation, there are concerns that it’s only a matter of time before there is a knock-on effect around the world.

Sales Slump

Last week alone saw five major global organisations report a sharp decline in sales, tied to poor sales in Asia, which have lead to falling profits and revisions of growth forecasts.

  • A 4 per cent fall in the sales of Barbie Dolls has hit Mattel profits (down to $223.8m from $331.8m last year), as a strong US Dollar impacts overseas markets
  • Shares in Hugo Boss dropped 10 per cent, with the organisation blaming the deteriorating Asian market; it went on to cut its growth forecast for sales and core profits to 3-5 per cent
  • Shares in Burberry dropped 8 per cent on Thursday last week, with its investors focusing on a dip in Chinese sales as the primary cause
  • Casino and hotel operator, Wynn Resorts, reported a 60 per cent drop in earnings in the three months to September. Its Macau operations, traditionally a major money earner, saw a 37.9 per cent decrease in net revenues for the same period
  • Nestle, still recovering from the Maggi Noodles safety scare, cut its growth outlook to 4.5 per cent, citing slower than expected growth in China

Global Uncertainty

As the situation in Asia develops, investors around the world are nervous about what might be coming next. Decreasing export revenues, in particular to the Chinese market, are set to have an impact on growing economies like Brazil and Turkey.

There are concerns in Europe too, where exports to Asia are big business, as slow European markets aren’t able to pick up the slack in sales. Even in the USA, where growth is much healthier, long-term instability may ultimately cause problems.

Winter of Discontent?

Where does this leave procurement and supply chain? As professionals, we need to be aware of the developing situation, both from the point of view of sales and exports, but also for risk exposure for organisations.

While some organisations may be able to take advantage of the situation by sourcing cheaper products and materials, we need also to be aware of the potential risks of making changes to suppliers and across supply chains.

Where the markets go from here remains to be seen. Investors and economists will both be hoping that the coming quarter brings more stability and wards off any further talk of a second crisis.

Do you work in Asia, or have part of your organisation in Asia? What are your thoughts on the current situation? Get in touch, or leave your comments below.

Meanwhile, Procurious has scoured the web for the top headlines in procurement and supply chain this week…

New Job Creation in UK Automotive Industry

  • Up to 28,000 jobs could be created in the UK automotive industry supply chain over the next five years
  • A report from the Society of Motor Manufacturers and Traders (SMMT) estimates British car production is set to reach a record two million vehicles annually by 2020
  • This boost in output will require an additional 9,500 employees at vehicle manufacturers in the UK, along with a subsequent increase across UK-based supply chains
  • The report comes in the wake of huge investment by car-makers and supply chain companies throughout the UK

Read more at The Birmingham Post

Uber App ‘Does Not Break UK Law’

  • A ruling by the UK High Court has decreed that the Uber app does not break the law
  • The court had been asked to decide whether the company’s smartphones were considered meters, which are outlawed for private hire vehicles
  • The Licensed Taxi Drivers’ Association (LTDA), which represents many of the 25,000 licensed taxi drivers in London, asked the judge to rule it was a meter and ban its use
  • The LTDA now plans to appeal

Read more on the BBC

Nespresso updates on ‘The Positive Cup’

  • CEO of Nestlé Nespresso, Jean-Marc Duvoisin, gave an update on the progress of ‘The Positive Cup’, Nespressos 2020 sustainability strategy
  • Marking one-year since its launch, Duvoisin announced that significant progress had been made towards improving the lives of thousands of coffee farmers, as part of the company’s AAA Sustainable Quality™ Program
  • Over the past two years Nespresso has been working with its partner TechnoServe to help re-build the coffee sector in South Sudan, resulting in the country’s first-ever coffee exports in 2013
  • Nespresso aims to source 100 per cent of its coffee from its AAA Sustainable Quality™ Program by 2020

Read more at PR Newswire

Wal-Mart to add Supply Chain Capabilities

  • The US retail giant will aim to add capabilities to its supply chain in order to improve efficiency in the coming year
  • CFO Charles Holley, speaking at an investors’ day, stated an expectation of an earnings fall in the year to January 2017
  • Wal-Mart plans to extend the capabilities of its distribution warehouses to allow for shipping of individual items, rather than servicing of stores alone
  • It is expected that this will improve accuracy and efficiency, while at the same time reducing costs

Read more at Just Style

How Will Technology Transform Procurement Operations?

New research claims Automation and Internet of Things (IoT) will have biggest technological impact on the function.

How technology will change procurement functions

In its third set of results from its 2015 Global Procurement Study, Xchanging assesses the impact new advances in technology will have on procurement.

Technology Adoption

Savings tracking (77 per cent) and spend analytics (76 per cent) technologies are the most widely implemented, in the context of a tough economic climate where spending cuts and streamlined processes remain top priorities for businesses.

This mirrors respondents’ answers about the KPIs on which their procurement functions are measured – the top four all being cost related (47 per cent cite cost savings realised as their most important KPI, 19 per cent revenue impact, 16 per cent cost savings identified and 14 per cent cost avoidance). 

Over half of companies questioned also already have automation (68 per cent), reporting dashboards (68 per cent), contract management (67 per cent), supplier performance management (64 per cent), market intelligence (60 per cent), eSourcing (59 per cent), predictive analytics (54 per cent) and Internet of Things (54 per cent) technologies in place.

In general, the organisations most likely to have the above solutions in place were:

  • In the U.S.
  • Larger, with 3,000+ employees
  • In retail, consumer goods or manufacturing industries
  • That outsource parts of their procurement operations

U.S. companies are 8 per cent more likely to have all of the listed technologies in place than those in mainland Europe.

Overall, supplier performance management software and predictive analytics are the technology solutions most likely to be implemented in the next two years (both cited by 12 per cent of respondents), whereas 46 per cent claimed they are unlikely to ever implement online auctions.

Technology Impact

Predictive analytics and the Internet of Things (IoT) are expected to be the most revolutionary technologies for supply chain operations, with eight in 10 respondents (80 per cent/79 per cent respectively) stating they will have an impact, and nearly a quarter (23 per cent/24 per cent) expecting them to have a major impact.

A report issued by DHL and Cisco in April this year estimated that by 2020, 50 billion devices will be connected to the internet – an increase of more than 300 per cent from today’s 15 billion – and that IoT will generate $1.9 trillion across the supply chain and logistics operations industry, with warehousing and freight benefitting the most.

Luke Spikes – Xchanging’s Procurement Technology spokesperson, provides the following insights on the research:

On high technology adoption rates:

“When analysing the data, it is key that we consider how ‘technology’ is being interpreted by respondents. It’s surprising that over half of all companies surveyed said they already have the majority of the listed technology solutions.

“A notable 76 per cent reported having spend analytics technology, but we need to question what technology they are actually using. Are they really utilising a solution that analyses all spend data – how much is spent, on what, with whom and by whom – and transforms this data into actionable business intelligence? Or are they simply using Excel spreadsheets?

“It’s also important to note that there is a big difference between having the technologies in place, and using them to their full advantage, to enhance performance and improve the bottom line. There needs to be a drive on education around technology applications for them to deliver real benefits.

On IoT, predictive analytics and future technologies:

“The supply chain landscape is increasingly global, and IoT can enable businesses to track the exact whereabouts and the condition of goods in transit, automatically monitor inventory levels to manage cash flow more efficiently, and remove human error from the process.

“Predictive analytics will drive a far more strategic approach to sourcing – for example, enabling hedging on the price of raw materials to become a daily part of the procurement process – as well as creating further opportunities for automation to increase accuracy and efficiency.

“Procurement leaders ignore technology-driven progress at their peril. If they don’t seize the opportunity, they will quickly fall behind their competitors. The adoption of new technologies – alongside a continued focus on the value and expertise of procurement professionals – will ensure the function remains a strategic, indispensable part of their organisation.”

The study is a major international project that surveyed 830 procurement decision makers across the UK, Europe and North America.

Rethinking Suppliers: Spotting Future Crises

81 per cent of procurement execs fail to include key insights from global suppliers into wider business reporting.

Businesses fail to include key insights from global suppliers into wider business reporting

The latest survey from Proxima reveals that businesses need a rethink on how to better engage suppliers to spot future market crises and opportunities.

The research highlights that many businesses are potentially limiting their capability to gauge market activity using critical insights derived from supplier sentiment.

The research found that news media is a key source with 65.3 per cent of respondents using it to monitor market sentiment. Commodity pricing and currency volatility came in close second and third as key sources with 61 per cent and 57.6 per cent, respectively, of respondents advising that they primarily look to this as an indicator of market movement. 

Although an encouraging 57.6 per cent of procurement respondents indicated that they are looking towards their suppliers for insight into the wider market, a staggering 81.2 per cent confirmed that although they see the value in monitoring market sentiment, they do not include key findings and insights into the reports or dashboards that they present back into the wider business. 

Guy Strafford – EVP, Chief Client Officer at Proxima, said: “This statistic suggests that there is perhaps a slight disconnect between information being collected from suppliers and insight that business leaders need to make strategic decisions. If the procurement team is unable to bridge the two, this insight is often, unfortunately, kept within the procurement department, leaving the rest of the business to their own devices. This often leads to divisional leaders looking externally for the same information.”

7.6 per cent of respondents stated that they did not measure market sentiment at all with 26.3 per cent saying they lacked the necessary resources (budget or people). Of those that do, news media is the single most important source of information (21.7 per cent). A surprisingly small number (8.8 per cent) of respondents indicated that they use the Purchasing Managers’ Index (PMI) as their most important tool for gauging activity on the market.

Strafford added: “The study highlights the overreliance on news media as the primary source of information, when by its very nature, news is an explanation of events that have already occurred. Businesses are therefore making important decisions based on historic data that is not necessarily real-time nor forward-looking. Businesses need to have their fingers on the pulse, and gaining valuable insight from suppliers could significantly help companies to glean sentiment on the ground that ultimately helps them make better decisions in real time.”

Alongside news media, insight from suppliers is the most important source of market sentiment for 21.7 per cent of respondents. It is surprising, therefore, that almost a quarter (24 per cent) engage with their suppliers only once a year or even less frequently. The largest group (28 per cent) gauge market sentiment with their suppliers on a monthly basis. 

Strafford said: “Even though supplier insight is clearly valued as a monitoring tool, the Procurement team is faced with a further challenge that many business leaders simply want to keep suppliers at arms length – either driven by culture, their experiences or for strategic reasons – and will resist integrating suppliers closer to their operations.” 

The results potentially raise questions regarding whether the procurement and supplier management functions currently have the right tools for capturing, and forums for presenting, supplier information back into the business. 

“Less mature procurement functions, defined by their size, scope of influence and heavy focus on savings, will often struggle to connect deeper supplier insights back into other business activities”, added Strafford. “As a result, these functions (not for lack of want) cannot achieve wider benefits such as supplier-led innovation, more flexible terms and faster responsiveness to demands.

‘Uberization’ – Is Any Profession or Industry Safe?

The phenomenal global success of Uber boiled down to a simple premise – that consumers wanted a way to source a traditional service more easily and cheaper than before. Its success has given rise to the so-called ‘Uberized’ economy. But what product or service is next? 

MADRID, SPAIN - OCTOBER 14: In this photo illustration the new smart phone taxi app 'Uber' shows how to select a pick up location next to a taxi lane on October 14, 2014 in Madrid, Spain. 'Uber' application started to operate in Madrid last September despite Taxi drivers claim it is an illegal activity and its drivers currently operate without a license. 'Uber' is an American based company which is quickly expanding to some of the main cities from around the world. (Photo by Pablo Blazquez Dominguez/Getty Images)

Taxis were first, along with hotels (Airbnb), retail (Alibaba), real estate (Suitey) and car sales (Beepi). You can even look at media (Facebook) and freelancing (Upwork) and see similar disruption.

What these new organisations have in common is that they are network based, don’t own any inventory, stock or hard assets, and they all took an existing service and provided a more customer-centric, lower cost service.

Traditional professions like medicine and legal and financial services have been largely sheltered from this disruption so far, but this looks set to change.

End of the Old Guard

For some, these traditional professions have been viewed as ‘untouchable’ (this might be down to them working in these professions and trying to resist this shift), but, for others, the services offered by these professions was ripe for ‘Uberization’.

One profession viewed as ‘untouchable’ was the Legal profession and, more specifically, the provision of legal services. There is an increasing number of online start-ups aiming to provide this more ‘customer-centric’ service than has been available previously.

Not only do these companies offer a cheaper service, but also a simplified purchasing experience for individuals and organisations. Services can be purchased on a task-to-task basis, rather than paying by the hour. The concept of a set fee for services, like the offering from Avvo, is an attractive one, particularly for a procurement department.

Simplified Procurement

An overall spend figure for legal services is hard to come by, but, with global banks spending over £200bn, and spend with the UK arm of global law forms topping £28.5bn, it would be safe to give a conservative estimate of around anywhere between £500bn and £750bn.

In 2013/14, local authorities in the UK spent £156m on legal services. Although these costs were down on the previous three years, it seems there is still plenty of scope for further reduction.

While many procurement teams may have been shut out of the process of purchasing legal services, the ability to reduce the cost, while at the same time retaining the service level required by internal stakeholders, leaves procurement in a powerful position.

Put simply, procurement can make changes for the better and a good place for them to start is with these ‘Uberized’ companies. Not only could costs be reduced, but also time spent on lengthy (and often costly) tender processes.

And next…?

So if one ‘untouchable’ can fall victim to the ‘Uberized Economy’, then which one might be next? Some suggest that Financial Services might be the next profession to be ‘Uberized’.

With many similarities to the Legal profession, there doesn’t seem to be a good reason why you might end up getting your financial services via an app in the not-to-distant future.

And as people move towards vertical marketplaces, where a few things are done well, in depth, rather than the common horizontal marketplace with multiple avenues carried out in less detail, it’s likely that other professions will follow suit.

Now, if only there was a vertical network for procurement that people could take advantage of…

Do you procure legal services for your organisation? How would this impact your job – would it be a positive thing for you? Join us and start a discussion on the future of ‘untouchable’ professions.

While you’re digesting the main event, why not check out this week’s main headlines from procurement and supply chain for your Monday morning tea break…

Police asked to investigate London Garden Bridge Contracts

  • Scotland Yard has reportedly been pressed to investigate allegations the procurement process behind the capital’s planned garden bridge “was rigged”
  • The central allegation is that the procurement process was rigged and that designer Thomas Heatherwick and engineering firm Arup had been lined up to win the contracts before tenders were issued
  • Further revelations have shown that meetings were not recorded in London Mayor, Boris Johnson’s, diary, where go ahead was given for the process
  • There are also questions over how Arup won its contract, and why it was asked to resubmit its bid while other firms were not

Read the ongoing story at The Guardian

iPad Pro Launch Date Leaked

  • According to Mac Otakara, a Japanese blog, the release date for the new product is set for the 6th of November
  • Although a highly guarded secret, the blog spoke with workers in the Apple supply chain in China and gathered information from them
  • Apple still has the iPad Pro listed on their website as “Available November”, and hasn’t commented on the leak

Read more on Ledger Gazette

Demand-Driven Perishables Offer Fresh Look for Groceries

  • Up to 133 billion pounds of food is wasted annually in the U.S. alone – at a staggering cost of $162bn
  • Cognizant has created a new infographic aimed at showing how a demand-driven model can reduce inventory, spoilage and wastage
  • A demand-driven replenishment model can help grocers better anticipate supply requirements, improve storage and maintain food freshness

Check out the infographic on Cognizant

General Mills recall set to impact supply chain

  • FMCG giant General Mills is recalling 1.8 million boxes of gluten-free Cheerios, as they are thought to contain gluten
  • The company said wheat flour had been “inadvertently introduced” into its gluten-free oat flour used to make original and Honey Nut Cheerios
  • The company are unsure how much the recall will cost them in cash-terms, but look set to be the latest organisation to suffer from a reputational hit
  • The case shows that supply chains need to be aware of track and trace systems and the supply chain will be reviewed in light of the incident

Read more at the BBC

Procurement Hero Reaches For The Skies In Aid Of Cystic Fibrosis

He has recorded every single flight he has been on since he was born — an incredible 1232 flights

Every two years Matthias Fuchs has been undertaking a flying marathon challenge. The challenge is supported by Qantas and raises funds for terminally-ill children at the Children’s Hospital Westmead.

This time around Matthias will take on a record 12 days flying in economy class without ever leaving a plane or airport terminal. Qantas has already supplied Matthias with the proposed flight schedule, and we can tell you that it clocks in at around 200 flying hours, over a distance of 167,000km…

During his time spent in the air, Matthias will cross the Pacific Ocean six times, and the Indian Ocean four.

The challenge has been an enormous success in previous years, in 2013 he alone raised a whopping $140k for the Cystic Fibrosis Unit at the Children’s Hospital Westmead. This year Matthias says that the proceeds will be used to maintain the mass spectrometer machine that was bought previously, as well as fund a clinical research fellowship.

Sponsor the challenge here

Matthias says: “This is a cause very close to my heart as my 12 year old daughter Kristen has cystic fibrosis.”

Matthias loves to fly, so much so he’s kept a record of every flight he’s ever taken. That’s 1232 flights…

Will you support the good man in his noble cause, as he attempts the marathon challenge for one last time? To-date $161k has been raised, but he hopes to reach $175k-200k before it’s time to take-off.

What’s more, donate $5k and you’ll get your company logo embroidered on the shirt he’ll be wearing during the challenge.

Come on, dig deep!