All posts by Procurious HQ

Premium payments are empowering cocoa farmers in Brazil

Under the Cargill Cocoa Promise, the livelihoods of cocoa farmers are being improved.

Empowering Brazil's cocoa farmers

In 2014 a total of $19 million was paid to farmers in Cote d’Ivoire, Brazil, Cameroon, Ghana and Indonesia, bringing the total to $44 million paid to date under the Cargill Cocoa Promise. The premiums, which are achieved by farmers for selling their UTZ, Rainforest Alliance and Fairtrade certified cocoa beans, are funded by confectionery and food manufacturers and retailers and are positively supporting the ongoing development of a sustainable cocoa supply chain.

Premium payments for certified sustainable cocoa are not only helping with meeting the growing demand for sustainably sourced cocoa and chocolate, but continuing to make a significant contribution to improving the livelihoods of cocoa farmers and their communities.

“Premium payments and cocoa certification remain a valuable catalyst in making progress toward a sustainable cocoa supply chain,” said Taco Terheijden, Director Cocoa Sustainability at Cargill – a provider of food, agriculture, financial and industrial products.

“We are proud to be part of this process and to see the positive developments in the sector. Not only are cocoa farmers and their communities benefitting from higher incomes and better health and education, at the same time manufacturers, retailers and consumers can be confident about where their cocoa is coming from and how it is being produced.”

The premium payments are made to certified farmer cooperatives with 50 per cent going directly to individual farmer members, and the remainder being invested in projects by the farmer organisation to boost productivity, farm development and benefit the community. The premiums are an incentive to adopt good agricultural practices and directly support improvements to make a positive difference to local communities.

Demonstrable progress can be observed  in Cote d’Ivoire, where a first of its kind public-private partnership between the Conseil du Cafe-Cacoa, Cargill and CARE has enabled 14 farmer cooperatives to use their premium payments to access additional funding.  With this they have built 11 new schools and three new health centres – teaching over 1650 children and providing access to healthcare for 25000 people.

Supply chain and procurement SMEs must act to future-proof pensions

If you’re doing business in the UK, you might want to heed this new warning issued by Lighthouse Group…

SMEs must act now to secure pensions

Supply chain and procurement SMEs must act fast to untangle payroll data to meet pensions auto-enrolment.

Many of the country’s 1.8 million small employers  approaching their pensions auto-enrolment staging dates are in danger of missing deadlines by underestimating the amount of data needed to complete the process.

According to the financial advisors, tens of thousands of supply chain and procurement SMEs and micro employers are now starting to grapple with the complexities of employer pension schemes for the first time. The Pensions Regulator recently stated that only 29 per cent of those staging in 2016 were fully aware of their date and only 46 per cent of those staging in 2017 were aware of their responsibilities.

Pensions expert Roger Sanders, OBE, cautions business owners to familiarise themselves with the requirements and assess their business as soon as possible, even if their staging date is two years away: “Employers’ auto-enrolment duties go far beyond setting up a pension scheme and enrolling staff in it,” he said. “They must assess their workforce, work out who to enrol and decide how much they and their employees will contribute. They also need to keep records of all this information, together with any changes, all of which represents a significant amount of work for smaller employers.

Roger continues: “However, we are finding many businesses in supply chain and procurement lack the accurate, up-to-date information on employees vital to completing enrolment smoothly. Firms that leave their enrolment preparation too late will be in for a shock when they discover years of payroll and employee data needs to be sorted before they can properly begin.”

Lighthouse advises that employers who use a payroll bureau should ask whether their systems and software are geared up to deal with auto-enrolment, assessing if they can extract needed information easily, in a suitable format, and on a regular basis.

A payroll bureau generally holds information such as an employee’s full name, their salary or wages and National Insurance number, but may not have the employee’s address and other contact details such as email, which is often held by the employer. However, under auto-enrolment all this information needs to be brought together each time an employee is paid, whether monthly, fortnightly or weekly.

SMEs should begin the process at least six months before their staging date, starting with checking what data their payroll function holds and how to export it, as well as what information is missing and must be tracked down. At three months before the staging date, businesses must have a process to collate all the information needed in a suitable format and on a timely basis. Data must be in a standardised format and should cover all employees, even if they will not be enrolled automatically.

Procurement: Is it a young person’s game?

We speak to 30 Under 30 Winner Nicholas Ammaturo on attracting Millennials to the profession.

Nicholas Ammaturo ISM 30 Under 30 Star

Procurious recently quizzed Nicholas Ammaturo on making his mark in the world of supply chain management and procurement.

Nicholas is one of procurement’s rising stars, as demonstrated by his entry into ISM’s 30 Under 30 Program.

Procurious asks: The challenges facing the Millennial workforce. Competition, the contract vs. perm debate etc.

Nicholas: I think the biggest challenge facing the millennial workforce in Procurement, is the misconception about us not working hard. In most examples, Millennials in this industry work much harder than they get credit. They are often generalized based on age and experience. There needs to be more of a sense of development, support as well as recognition.

Procurious: What [skillset] do today’s professionals bring to the table, that perhaps the CPOs of yesterday lack?

Nicholas: In some cases, today’s professionals have been acclimated with technology and are more comfortable with it. This is a mass generalisation, but there is a certain acceptance by younger generations and their approach to technology. Social Media is powerful and I have seen many masters as every age, but it’s more seamless for today’s professionals. A lot of things were previously built on relationships alone; today there are multitudes of tools from e-procurement to BI dashboards for KPI’s, in addition to the importance of relationships.

Procurious: What needs to be done to transform the profession, and bring it up-to-date?

Nicholas: Someone needs to address the Universities.

I made an attempt to connect with all the local schools and preach about Supply Chain/Procurement, but I got little traction.

I would like someone to back me and get more programs created, make this industry more relevant so we can build the bench. I think the industry is “sexy” and up-to-date; we just need to get the word out.

Procurious: Do you think it’s fair to say that most CPOs are running scared of social media?

Nicholas: Too funny, as I read this question and see my response above. I don’t think they are running. I see many of them embrace is. Some are fluent in LinkedIn and Twitter and put me to shame! I think they are the minority, so perhaps there needs to be more CPO’s out there who embrace it.

Procurious: How important is it to have a clearly defined brand today?

Nicholas: This is my goal every day. I am my own company. I happen to provide my services, but at the end of the day, you need to build your skills and advance your career.

Procurious: Let’s talk innovation – who/what is innovating in the procurement technology space right now?

Nicholas: Who isn’t playing in this space today? I can’t tell you how many cold calls I get. The most innovative thing I’ve seen is ScoutRFP. Smart guys who are going to shake the space up. I am looking forward to their success. I think Amazon innovation will drive innovation everywhere. They are continually re-paving some of the landscape in business and others are feeding off them, this will be no different than this industry.

Procurious: Is more innovation needed in the building and maintaining of supplier relationships?

Nicholas: No, I think more communication is needed. A simple phone call can solve everything; sometimes people are so keen to shoot of an email and are lose the personal connection. I think innovation and technology will keep people honest during the process, but communication and transparency are needed to make it more of a partnership than your traditional supplier/buyer arrangement.

Procurious: Would you recommend the ’30 Under 30 Program’ to those looking for a route into the profession?

ISM & ThomasNet’s 30 Under 30 Program is promising for young professionals. They have taken a stance to create awareness around the industry and have continued to make the investment. I was honored to receive the recognition. I think its motivating to see the others who share my passion and regardless of their education or role, they all love what they do. There was certainly a common theme when I reviewed all the winners and met them in person, most fell into the industry by chance and most will never leave it. We love it.

CEO of ISM on the Importance of Social Media in Procurement

Welcome back to the final instalment of our recent chat with ISM CEO, Tom Derry.

Social media is key to procurement's future

 

To wrap up our chat with Tom, we discussed the important role that social media plays in the development of the procurement and supply chains professions.

Procurious asks: At Procurious we’re passionate about how social media and connecting a global network of procurement and supply chain professionals can improve the profile of our function, promote knowledge sharing and ultimately enable people be better at their jobs. Do you see a role for social media in the development of procurement and supply chain professionals?

Tom Derry: I honestly I don’t see how anybody could plan to be an effective professional in our field without using the social media tool kit. There are lots of reasons for this. Social media is a vital part of the way we work. The opportunities for procurement and supply chain professionals in social media are huge.

Social media is critical for connecting procurement professionals. It allows people to share information in a private and confidential manner and to leverage a global knowledge base to get answers to questions you just wouldn’t get otherwise.

Being connected through social media means people can understand and monitor the risks that are present in their markets. I’ve heard stories of our members getting procurement market information off Twitter, learning about labor unrest in their overseas supply chains and fires at supplier manufacturing facilities. All of this information is available in real-time through social media.

Twitter itself is becoming such an important source of data for the procurement and supply chain function.

More and more, we need to be able to contact people and pull on extended networks to gain reliable and current information.

I believe that social networks will continue to grow in importance over the coming years, particularly as younger people, who are more familiar with social media, move into managerial roles.

I really don’t see how you could be an effective procurement or supply chain professional without fully engaging in the social media space.

I think Procurious is right where it needs to be. By connecting procurement people across the globe, you are absolutely building on the right idea at the right time and adding greatly to the function. With the exception of possibly finance, I can’t think of a more globalised profession than procurement and supply chain. I certainly can’t see how procurement and supply professionals could even consider creating a successful career, without having an active presence on social media.

Want to read more from Tom?

Bridging the procurement talent gap with ISM CEO Tom Derry
Tom Derry on Innovating from your supply base

Big Data Will Revolutionise Supply Chains – And Here’s Why…

We know what you’re thinking – “Not another article on data”! But stick with us as, like data itself, the information on it keeps evolving. And can you really ever know all there is to know about data for your business?

Big Data Will Revolutionize Supply Chains - And Here's Why...

Every individual in an organisation comes into contact with data, and is in some way responsible for that data too. We all spend a lot of time with data at home too – it helps to inform our personal purchasing decisions, from coffee to holidays.

Using Data

The main problem, from both a personal and organisational point of view, is how to use the data we have (this is, of course, after working out what data to use first). For now, we’ll just focus on organisational data that can be used to inform procurement and supply chain decisions.

Increasing connectivity, plus an abundance of devices with the ability to collect data, means that decision making and analytics can be carried out with a greater wealth of information. In procurement, this data helps inform spend analysis, identification of correlations and drivers and trends across purchasing activities.

Identification of trends helps procurement create accurate predictions and improve spend management by knowing when and where items are being used and at what rate. This can assist with assessment of requirements, standardisation of products in a catalogue and will ultimately make a positive difference to budgets.

Data Quality

Dr David Hames, Founder of Science Warehouse, believes that data will be a driver in organisations in the future, both in B2B and B2C transactions. Speaking to Procurious at the Big Ideas Summit 2015, he caveated this by highlighting a concern that many procurement professionals have – data quality and integrity.

In order to be used effectively, David states that data needs to be:

  • Cohesive
  • Comprehensive
  • Accurate and detailed
  • Subject to Quality Control from experts

It’s difficult to guarantee all of these, but unless you can be confident in the quality of your data, you can’t be confident in the value of your analytics.

Cyber Security

Data integrity is another concern for organisations. Greater connectivity has lead to concerns that individuals are organisations are more vulnerable than ever to cyber attacks.

Sony Pictures, Ashley Madison, Carphone Warehouse and the US Government – in the past 6 months all of these have been high-profile targets for cyber attacks.

A report by Quocirca this year highlighted the concerns that organisations have around data security and data protection. Only 29 per cent of the organisations surveyed marked themselves as very confident about data security (this figure dropped to 16 per cent across the retail and distribution industries), while 10 per cent they were not confident at all.

Those who were very confident showed common policies around education of employees, defined and streamlined approaches to security and highly co-ordinated approaches to both internal and external threats to security.

The Secret to Good Data

Is there a secret to good data? We’d love to say that there is an easy solution for organisations, but it’s not as straightforward as that.

Good starting points include training and educating employees, having robust processes and policies and having someone who can check the quality of the data in the systems.

And, if you’re using an integrated system for procurement and other departments (e.g. Finance; IT), make sure your data is good before you switch on, otherwise you’re going to be fighting a battle from the off. Good data in, good data out. Bad data…well, you know the rest.

Do you have a secret to good data? A success story of leveraging data in procurement and reducing costs? We’d love to hear all about it, so get in touch.

And to set you up for your water-cooler/coffee line conversations this week, here are all the key headlines in procurement and supply chain.

Coca-Cola bottlers agree three-way Europe merger

  • Three of Europe’s main bottlers of Coca-Cola products are to combine in a $27bn deal to simplify manufacturing at the world’s largest drink maker as it seeks to cut costs at a time when consumers are shifting away from its famous sodas.
  • Coca-Cola Enterprises, the US-based bottler with exclusive Coke licences in several western Europe countries, will merge with its Iberian and German counterparts in the latest consolidation of the Coca-Cola Company’s supply chain.
  • The merger comes as Coca-Cola is confronting a decline in fizzy drinks sales, especially in developed markets, which make up almost 70 per cent of the company’s overall revenues. In response, the drinks group is looking to cut costs to boost profitability. Initiatives have included reducing the size of beverage bottles, generating more profit per ounce, as customers fall out of love with excess.
  • In an internal memo to staff, James Quincey, president of Coca-Cola in Europe, said the deal would improve the company’s ability to respond more swiftly to changing consumer trends. He added that the merger would enable the bottlers to improve efficiency in its supply chain, sales and distribution.

Read more at the FT

Britain in Summer Rush of Supply Chain Contracts

  • Supply chains for two of Britain’s largest defense programs have benefited in the last few days from a rush of production contract awards by industry primes BAE Systems, General Dynamics and Lockheed Martin.
  • By early August, with Parliament on its summer recess and people’s minds here turning to the beach, it’s normally a quiet time on the announcement front for defense. The last few days were different, though. Fourteen contracts from across supply chains that include equipment from Austria, Germany and the US, as well as the UK, were announced for three British programs.
  • The contracts illustrated the increasing globalization of defense supply chains and emphasized the continued willingness of the British to look overseas for equipment. It’s something the British government hopes to see reciprocated more by its allies.
  • International supply chains, and Britain’s role in them, were on British Procurement Minister Philip Dunne’s mind when he visited Washington recently and talked up Britain’s ability as an equipment supplier. “We have been actively encouraging US and other non-UK domicile primes to come into the UK to explore our supply chain,” he said in a speech July 28.

Read more at Defense News

Fast fashion propels Zara into shopping stratosphere

  • Amancio Ortega, the co-founder of Zara, is now the world’s second-richest man, putting him above Warren Buffet and just behind Bill Gates. On Wednesday his Inditex parent company, under which Zara sits, reached a valuation of €100 billion for the first time in its 30-year history.
  • Of the eight brands housed under Inditex, which was founded by Ortega and his former wife Rosalia Mera in 1985, Zara is the flagship and, as of December 2014, represented 66 per cent of total sales.
  • Zara’s in-house design team can have an item in stores within three weeks. That’s three weeks from the beginning of the design process to the time it lands on the shop floor for us to buy.
    Where most companies will lock in 100 per cent of the forthcoming season’s stock six months in advance, Zara only locks in 15 to 25 per cent that far in advance, according to tradegecko.com.
  • By the start of the season that percentage will have increased to 50 or 60 per cent, meaning the remaining 50 to 40 per cent is still up for discussion; if a new trend appears mid-season, Zara has the capacity to follow it and get its interpretation into stores, while its competitors can’t.
  • Similarly, if things aren’t selling, it has the ability to alter them or simply discontinue supply. This is aided by the fact that between 51 and 55 per cent of Zara’s clothing is manufactured in what the company describes as “proximity” markets; Spain, Portugal, Turkey and Morocco, instead of Asia.

Read more at Telegraph

Cargill to map canola oil supply chain

  • Food firm Cargill is to map the supply chain of its high oleic canola oil as part of a transparency initiative.
  • From October, the ‘Knowing Your Roots: from farm to table’ programme will take customers and consumers through the whole supply chain, from seed development and the farmers who grow the canola, through oil processing and packaging, to the food service operators and food ingredient manufacturers who use the product, and to consumers.
  • Cargill said it could provide a transparent supply chain because it is a high oleic canola oil supplier and also a seed company. “Understanding where food comes from is a priority for consumers,” said Kristine Sanschagrin, marketing manager of Cargill Specialty Seeds & Oils. “This initiative offers our customers the opportunity to tell that story.

Read more at Supply Management

Supply Chain Analytics Are ‘Looking In The Rear-View Mirror’

Is this what the future of supply chain analytics looks like?

Supply chain analytics are 'stuck in the rear-view mirror'

A new study that highlights the current and future state of supply chain analytics has confirmed that the future of supply chain analytics is visual, multi-sourced and predictive.

According to the study, the majority of today’s supply chain analytics are “looking in the rear-view mirror” when it comes to evaluating performance, but realise the potential value of adopting advanced analytics.

More than 40 per cent of respondents said they are still almost exclusively backward looking when it comes to data analysis. However, the vast majority expressed the belief that predictive analytics would bring value to users, enabling them to leverage data at the point of decision. Additionally, more than 88 per cent of respondents ranked advanced analytic capabilities as an outstanding or good opportunity for their organisation. Respondents also noted that making improvements in data and analytic capabilities was either a high priority or something they were already focused on doing.

The study revealed that while companies are realising the value and urgency of implementing advanced analytics, few feel they are where they need to be. When evaluating their own current capabilities generally, less than 10 per cent felt they had high levels of user system flexibility and empowerment, data visualisation and supply chain risk management capabilities.

“Despite early stages of maturity, companies see significant potential from improvements in data management and analysis,” said Dan Gilmore, President and Editor in Chief at SCDigest. “Not surprisingly, improved supply chain decision-making tops that list, while similarly, becoming more ‘forward-looking’ was the number one opportunity identified by respondents from improved data management and analytics.”

The Qlik-commissioned study is a result of a global survey launched by SCDigest of its readership around the subject of how companies are planning to leverage their supply chain data, including the capabilities they have in place now or intend to develop over the next few years.

Will Millennials Kill The Email?

Will Millennials kill email?

Millennials on the whole are not fans of email and the formal style it dictates – instead they prefer instant communication platforms such as WhatsApp and Facebook chat, which they have grown up with. However, the challenge this poses for the workplace is whether the social behaviours and technological preferences of Millennials can be incorporated into a business to promote greater collaboration and engagement. With a number of new technologies continuously entering the market, the question is whether and how these new platforms can replace the email? And equally as important is if they should?

Just because a technology works in a social environment does not mean that it will successfully transfer over into the professional sphere. Instant, open communications may be the preferred method for Millennials, but businesses need to consider which tools are best suited to achieve their wider goals.

For some companies, this could well be email due to its established compliance, auditability and control benefits. For firms seeking more free flowing communications, social tools like Yammer and Slack may be more effective. In either case, the first step is to identify the company’s objectives and then implement a solution that meets these.

Businesses want order, not chaos

For most companies, regardless of how flat their organisational structures are, there remains some form of hierarchy that has senior managers monitoring and driving the performance of staff. Where email brings structure, the open nature of social messaging platforms often brings an element of chaos, with message threads becoming long unwieldy streams of unverified “chit chat”, making compliance and measurement very difficult.

There are many examples of SMEs and small teams of up to 50 people using instant messaging and social networks to share information successfully. This is because the small number of users makes this form of communication manageable. Larger businesses, on the other hand, are still communicating in the same way as they did in the 1990s; with email.

Consequently, two key elements of the daily work cycle remain disconnected from each other: the electronic communication between staff and the work output itself. For a typical piece of work to be produced, employees may have an email exchange before deciding upon a course of action, but then switch from email to a file-based working environment to edit a Word, PowerPoint or Excel document, before again returning to email in order to send the completed document for review. This is clearly a tedious process appreciated by few.

Millennials are used to a ‘followable’ environment with seamless, real-time information sharing in their social lives – so why would they want to email their colleagues with a link to a file every time they make a change? If this activity could be carried out directly in a collaborative environment, teams could synchronously work together, removing the version control issues and delays that leave Millennials feeling frustrated.

Communication must lead to work

Business communication is a means to an end, not an end in itself. There is a growing desire amongst business users for improved integration between day-to-day communication and the processes that are needed to get the work done. Getting the work done is the key point – not just talking, but actually producing something.

There is an expanding market of applications available for this purpose, from message aggregators like Slack to social document authoring tools like Quip or GoogleDocs. Millennials are increasingly trying to patchwork together a better, more social way of working that is not entirely dictated by email.

This patchwork quilt remains the preserve of the individual and the SME workplace, however. Even Slack’s high profile growth and media awareness has not established it as a pervasive way of communicating in the enterprise. The same was true of Yammer five years ago, despite being the self proclaimed “Enterprise Social Network”.

What needs to be asked is why these communication platforms are not taking hold in the enterprise. Are email and attachments persisting because work continues to be authored off-line? If so, we need a new way of working, addressing the root cause of off line working, to move forward.

The current situation

Quip is a simple social authoring tool, and its multi-platform, lightweight user interface is certainly easy and quick to adopt. But could an entire enterprise use it instead of Microsoft Office? No. And that is not its intention. GoogleDocs has been adopted by some enterprises, and with its Office style tool set, it offers enough familiarity for workers to perhaps abandon Office. However, workers still end up following their behaviour from before, only now using Gmail instead of Outlook to communicate around the files they have authored.

As an industry, venture-backed start-ups need to focus on taking the time for deep thinking, complex design and substantial build out, not speed to market or speed of growth. Until such a rigorous approach to enterprise software development is taken, Millennials will not be able to drive the change they desire and replace email with a form of communication and style of work that best suits their desires and abilities – at least not entirely.

Written by Tristan Rogers, CEO – Concrete.

Concrete is a global enterprise collaboration platform used by brands including Vans, J Crew, Gap, Kate Spade, Williams Sonoma and Marks & Spencer.

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‘I Look Like An Engineer’… Machismo In The Workplace

As the dust settles around the #ilooklikeanengineer outcry, a poll reveals that macho behaviour, patronising colleagues and safety fears are putting women off working in male-dominated industries.

ilooklikeanengineer

If you’ve been on social media within the last 48 hours you may have noticed #ilooklikeanengineer trending. The trending topic is the result of the sexist reaction a female engineer received after appearing in a job ad for OneLogic.

By way of a follow-up, research conducted by foul weather clothing manufacturer Stormline reveals that a ‘macho’ atmosphere is the characteristic most likely to put a woman off a job in a traditionally male orientated industry. 

The research polled over 1000 women and found that it is the work environment – not the work itself – that has the biggest influence the attractiveness of a job. Pay levels, wording on job adverts and being asked to carry out boring work were found to be less off-putting.

A poll from February 2015 identified the ten industries perceived as most ‘manly’ among UK adults.

Poll about the 'macho' workplace

A separate poll of 1019 women conducted in April 2015 measured attitudes towards jobs in those industries by asking participants to identify the most off-putting characteristic of each industry.

Genevieve Kurilec is a commercial fishing captain and runs the Chix Who Fish Facebook group and website. She believes women are a balancing presence in dangerous, macho environments. “In my experience women tend to be more safety conscious and detail oriented, which makes us an excellent asset to any crew working in a dangerous occupation.

Genevieve says: “There will always be men in society who are patronizing towards women. The camaraderie found in the majority of the commercial fishing industry far outweighs the petty few who do not recognise the capabilities of women employed in marine occupations. If you do your job, put in your time and take care of your vessel you will earn the respect of your fellow fishermen, gender notwithstanding.”

Caroline Livesey is a geotechnical design consultant and often works on engineering projects in male-dominated environments. She believes attitudes to women’s work in general create barriers to participation in the workplace, stating: “I think societal bias tends to pigeonhole women and men into specific roles. The knock on impact of this is that both genders are inclined to assume women cannot make good engineers as it is not a role that we naturally see them in.

“The downside of this is that women continue to have to break down those barriers in order to progress in this industry. On a day-to-day basis for females in civil engineering is that they have to work far harder than their male counterparts to earn respect, to progress, and to be trusted technically.”

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4 Recommendations for Achieving World-Class Procurement Performance

According to newly-published research from The Hackett Group, world-class procurement organisations are now delivering services at 17 per cent less cost than typical companies.

World class procurement findings from The Hackett Group

The research identified that procurement organisations are able to gain an upper hand thanks to their deep understanding of the needs of their business, and in-turn reacting quickly to changing requirements, driving higher overall value and greater stakeholder satisfaction.

To achieve world-class performance, The Hackett Group recommends that procurement organisations take a structured approach to improving the customer experience, focusing in four areas:

Identify stakeholders

First they should identify and understand key stakeholders, and segment their internal customers based on attributes such as importance and level of influence within the organisation. In addition to seniority, issues such as language, culture, and even personality should be taken into account.

On average procurement organisations who’ve improved stakeholder alignment report 28 per cent higher savings than those that don¹t.

Satisfaction surveys

Next, procurement organisations can develop formal customer satisfaction surveys tailored to key stakeholders, taking care to use a variety of ad-hoc and structured approaches to gain deeper insights.

The research indicated that procurement organisations viewed as a true business partner report 68 per cent higher savings than those viewed as gatekeepers, reflecting higher effectiveness at both cost reduction and cost avoidance.

Take feedback onboard

Procurement organisations should also analyse the results of customer satisfaction surveys, and ensure that stakeholders understand their feedback is being valued and utilised.

Self-service tools

Finally, procurement can improve their level of customer service by taking a holistic view, and by implementing self-service tools to answer common inquiries and provide real-time visibility into order status.

Chris Sawchuk – Global Procurement Advisory Leader, notes: “They have increased the scope of their spend influence, the savings they are able to capture, and the value delivered beyond hard-dollar savings, in part by emphasising on-demand analytics and market intelligence, and realigning their service portfolio.”

To view the research in full visit http://bit.ly/1BQOSeJ

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