All posts by Procurious HQ

7 Procurious Influencers Who Are Smashing Modern Slavery

Not all heroes wear capes! But surely there are few people more deserving of a superhero’s recognition than the procurement pros fighting against modern slavery day in, day out….?

Last week, a heavy-hitting list of 100 modern-day abolitionists was splashed across social media following the 2018 Annual UK Top 100 Corporate Modern Slavery Influencers’ Index Recognition Dinner in London – and the team at Procurious was delighted to see at least seven Procurious members featured in the Index.

Developed by BRE and Sustain Worldwide, the #Top100Index recognises individuals from all business sectors, media and academia who are influential leaders in raising awareness to end modern slavery and labour exploitation; those who advocate for robust ethical sourcing and human rights recognition and practices in UK direct business operations and global supply chains.

The Index was based on a combination of influence on social media (as measured by Klout scores) and advocacy – policy impact, speaking and media engagements – in public life, aggregated via a proprietary algorithm and verified by an independent panel.

Influence is the key word here. While only a few of the Top 100 would be physically involved in busting modern-day slavery at the coalface, this group is arguably making a greater impact through addressing the source of the problem by raising public awareness and getting cut-through with he decision-makers in government and business who can really make a difference.

Procurement and supply management is well-represented in the Top 100, even though the scope of the award went well beyond this profession. This proves, once again, that any efforts to eradicate modern slavery must involve – and often be spearheaded by – procurement and supply professionals.   

Who are the Procurious members in the #Top100Index?

Congratulations to the following members of our online community. Connect with these highly influential professionals here on Procurious by following the links below.

  1. Andrew Wallis OBE of UnSeenUK
  2. Andy Davies of Greater London Authority (GLA) Group
  3. Dax Lovegrove of Swarovski
  4. Katie Jacobs of Supply Management
  5. Professor Jacqueline Glass of Loughborough University
  6. Rob Knott of Virtualstock
  7. Olinga Ta’eed, Entrepreneur

More from Olinga Ta’eed on Procurious:

In other news this week:

Deadline Passes with no renegotiated NAFTA

  • Parties to the NAFTA renegotiations have failed to reach a deal before the Congressional deadline of May 17 passed last week.
  • The deadline was in place due to the upcoming Mexican presidential election, which may introduce a new set of variables depending on the winner’s stance on trade.
  • US House Speaker Paul Ryan has said Congress is willing to vote on a deal within a few weeks, but commentators predict the negotiations are likely to drag on into next year.

Read more: https://www.supplychaindive.com/news/NAFTA-May-17-deadline-talks-extend/523811/

Gig economy in the spotlight

  • New research has revealed the explosive growth of the gig economy in the UK since 2010, with ‘non-employer businesses’ (businesses that only hire on a gig-by-gig basis) growing by 8,431% in the transportation and storage sector, and 1,464% in the accommodation and food service sector.
  • The number of self-employed people in the UK has risen by 41% since 2001, with 15% of the UK labour force classed as self-employed last year. The private sector has seen a 25% increase in non-employer businesses since 2010.
  • Recommendations from the Taylor Review of the gig economy include ensuring a balance between worker’s rights and those that are self-employed, sectoral strategies to ensure people do not face insecurity, and stronger incentives for firms to treat “dependent contractors” fairly.

Read more: https://www.premierline.co.uk/knowledge-centre/the-gig-economy.html

US-China Trade War “On Hold”

  • China and the US have agreed to drop tariff threats while working on a wider trade agreement, according to US Treasury Secretary Steven Mnuchin.
  • Washington has demanded that China narrows the $US335 billion annual US goods and services trade deficit and has proposed tariffs of $US50 billion on Chinese goods. China responded with its own measures targeting US agriculture.
  • The two economies have reportedly agreed to set up a framework for addressing trade imbalances in the future.

Read more: Washington Post

How Digital Transformation Will Shake Things Up In Procurement

Some of the gains brought about by digital transformation will be immediate – including its impact on that all-important bottom line…

Throughout the past few years, many organisations have undertaken a strategy of digital transformation.

These transformations step-change many processes for businesses in order to take advantage of embedding faster, more collaborative and more analytical ways of working to better understand and serve both the business and customers to gain competitive advantage.

By leveraging this, businesses across the globe can enhance their productivity, their agility and in turn, their profitability. Indeed, digital transformation offers the potential to significantly reduce inefficiencies across the entire supply chain.

Let’s take e-commerce as an example. By improving the efficiency of a supply chain beyond brick-and-mortar retailers, wholesalers and manufacturers, it’s possible to collectively obtain a larger profit than each working in silos. By boosting the supply chain at every touchpoint, companies can reduce the overall cost as well as the opportunity loss, and crucially achieve a greater customer satisfaction rate.

On average, 60 per cent of an organisation’s costs are made up of spend on third-party suppliers of materials, goods and services. In turn, these suppliers have suppliers of their own, and so on and so forth. Essentially, everything that an organisation owns or buys is impacted by procurement teams, which means we as a function stand to benefit enormously from digital transformation.

The opportunity for procurement

Far from the persistent fear-mongering that digital transformation will be the death of procurement; this is an incredible opportunity for the function.

Digital transformation is making it easier than ever before for procurement teams to effectively play a significant role in optimising business and its supply chain, while delivering tangible cost savings.

According to The Hackett Group’s recent study, digital transformation reduces strategic sourcing costs and cycle times by 30 per cent and reduces data-collection errors, utimately leading to cost savings.

Automation also helps category managers obtain deeper spend reductions in specific areas and identify fresh opportunities for savings. It helps organisations identify sources of additional value, i.e., through its third-party suppliers, and retain it within the organisation. This translates into further value-add for the business.

Doing more with less

With a better supply chain, determined through strategic procurement technologies, organisations can reap the benefits, from manufacturing to processing.

To return to the e-commerce example; an enhanced supply chain allows for the physical delivery of a product at higher quality and with faster delivery times. This is especially valuable in this instance; as consumer demands continue to increase, businesses are aided through digital platforms that cater to the “right here, right now” mindset — a demand driven supply chain.

Procurement technology

Technology enables productivity and this means that technology enables us to do a lot more with less. If technology is at the heart of productivity, then procurement is the lungs of it.

Because of this, there has been a great deal of innovation in procurement technologies that drive value in both public and private sectors.

In particular, these digital innovations increase transparency and productivity while engaging healthy competition; they foster an environment where  innovation can propser.  Strategic procurement tools provide organisations with an opportunity to streamline processes and increase efficiency that add value to their businesses.

Automation is at the heart of the digital imperative. Digital innovation comes in all shapes and sizes, and those that are proven to impact the bottom-line such as those that increase the productivity of an entire supply chain have the greatest influence in positively contributing towards the growing economy. Forward thinking organisations that make strategic IT investments considerably strengthen their business outlook by opening up the opportunity for greater output at a lower cost.

This article was written by Dan Quinn, SVP Jaggaer MENA.

JAGGAER’s REV International 2018 takes place in Munich on 25th-26th June. You’ll have the chance to listen to a number of industry experts and procurement thought leaders as they share their best practices and the latest in procurement innovation. Register here. 

Agile Procurement Through the Ages…

Agile principles are all about the decision-making process. What changes should you implement to drive greater value at higher speed?

At IBM, we understand agile as a set of principles and values that when thoughtfully considered across the business, enable quality decision making, empower teams, and delight customers.

In procurement, the Category Manager’s role is to enable their internal customers by eliminating any disruption or friction within the business while also managing cost using their category knowledge and procurement skillset. The key here is the category managers’ ability to have deep category knowledge paired with a breadth of understanding for all internal customer profiles and needs.

As a category manager, team members must build a consultative skill set that allows them to identify pain points, use time wisely, and seek feedback. The result is a category manager who works towards customer needs rather than contract expiration dates and the latest price benchmarks. As a guide, we should seek to digitise and automate as much as possible regarding benchmarking, negotiations, RFx process’, contracting, etc., allowing us to give the appropriate attention to discovering internal customer needs including service levels, pain points, and demand.

What we did before vs. what we do now!

Previously, IBM, like most large companies, hosted a heavily layered procurement organisation requiring multiple sign offs and complex processes in order for decisions to be made. Agile principles are all about the decision-making process. Our leadership knew we needed to make some major changes resulting in fewer layers of management, accountable teams with decision making authority, and greater collaboration across the business, allowing them to drive value for our customers at the speeds they expect.

In a traditional procurement organisation, the category manager’s role is to identify where the savings opportunity is and act accordingly. They do this while following age old processes and having little to no interaction with internal customers. Many organisations seek to use poorly participated customer surveys to get a sense of how well category managers are serving their customers.

Yet, the best way is to open the channels of communication and collaborate with the business, whether it be face-to-face or virtually, allowing category managers to make the right decisions.

While cost reductions are still a priority for nearly all organisations, we found that when we work closely and listen to customers, we can eliminate the costs associated with under and over delivering across the business, which in turn, results in lasting cost savings.

The journey

To achieve this transformation, it takes strong displays from leadership of all the principles and values agile organisations are known for, establishing a belief system across the business encouraging category managers to ask ‘why’ when performing a task their internal customers do not care for or need to be successful. Implementing an agile belief system into a large organisation requires a major cultural change that takes time and patience from all parties.

In this new space, the role of a category manager has quickly evolved from contract and cost management to a crucial role that links business needs to the external marketplace for a specific category of goods. To achieve success in this role, category managers must interact daily with internal customers and evaluate each moment of their time spent not serving their customer’s needs.

Even so, many procurement organisations are too deep into spreadsheets and other manual processes to be ready for such an agile way of working. These manual processes make it impossible for category managers to have the time capacity to be a true advocate and trusted advisor for the business. To lift category managers’ heads from the clutter, organisations must invest in digitising their procurement processes where possible and identify the areas where they are not ready and get ready!

This article was written by Shawn Busby, Global Category Lead- IBM and Norman Braddock, Sourcing Consultant – IBM. 

US Intel Chiefs Urge Business Cooperation On Cybersecurity

But what are the trade-offs in terms of privacy and civil liberties? Highlights from General Keith Alexander and John Brennan keynote at #ISM2018.

During the American Revolutionary war, military commanders of the 13 Colonies realised that the conflict could not be won with soldiers alone. Civilians left their towns and farms to swell the ranks to a level where the British could be pushed back and eventually overcome.

Retired four-star general Keith Alexander (former Director of the National Security Agency) tells delegates at #ISM2018 that just as civilians fought alongside soldiers 240 years ago, there’s currently an urgent need for a public and private partnership to defend against cybersecurity breaches. In other words, business and government need to cooperate if the US is to have any chance of defending against offshore cyberattacks and resultant IP theft.

Calling for a partnership

“I think our approach to cybersecurity has to be changed,” says Alexander. “We need a new strategy.” Companies that suffer data breaches tend to fall into two camps – those that have been attacked and know it, and companies that have been attacked and don’t know it. Alexander says that in an environment where “everybody’s getting hacked,” industry has a responsibility up to a certain level.

The issue is that intelligence agencies (such as the NSA) can’t see what’s in the packets of information that pass through cyberspace at light-speed until after the fact, which means they are relegated to reactive incident response. The solution is for companies to help build a common picture by sharing information so the government can then defend effectively. Alexander gives the example of the energy sector, where 18 companies are working together to share information at network speed.

Alexander also raises the issue of companies that have been attacked being treated as a guilty party, with some organisations getting sued after a cyberattack. “If you want industry to work with government and share what’s hitting them, you’ll have to give them liability protection. We also need to incentivise it so it’s cost-neutral to build up your cyber defence.”

Former Director of the CIA, John Brennan, comments that as difficult as counter-terrorism was, dealing with cybersecurity was even more challenging. “The digital domain is 85% operated by the private sector, and there’s currently no consensus on the government’s role in that environment,” he says. The nature of globalisation means it’s not always easy for a security agency to figure out what’s an American company. “The ecosystem is so interconnected,” says Brennan. “You’re not going to stop globalisation, but you need to [respond to it] in a way that protects government and business interests.”

Privacy trade-offs?

Panel facilitator and ISM CEO Tom Derry raised the question of how you can protect privacy and civil liberties while acting to defend against cyberattacks. According to Alexander, you can do both. “If we’re completely transparent in what we share and ensure everybody agrees to it, we can build a picture that defends our nation.” The consolidation that is taking place as businesses increasingly move into the cloud (usually via a managed service) will help in a cybersecurity sense. “It’s going to come down to consolidation,” says Alexander. “The cloud is going to be the future, collective security in the cloud will be so much better, and you’ll be assured that both your data and your privacy are protected.”

Brennan was less reassuring when it comes to privacy trade-offs. “Lots of privacy and civil liberties have been given up already. People would be shocked about how much of their information is being shared online. We need greater transparency and obligations, and need to be aware of the risks and opportunities. You can’t secure your data the same way you can secure a building.”

What can be done?

Most companies, says Alexander, have a firewall and other measures in place to defend against cyberattacks, but he gives the example of a company with 2,500 people and 5,000 systems that was discovered to have 400,000 unpatched vulnerabilities. “Most companies only try to patch the critical ones.”

Alexander and Brennan list the following solutions:

  • An unprecedented level of partnership and information-sharing between government and business.
  • Behavioural analytics, where a system-user’s behaviour raises red flags if it changes dramatically.
  • Freezing or isolating systems when malware signatures are detected.
  • Better hiring practices, training, procedure and policies to protect against the human element (e.g. Edward Snowden’s data theft).
  • Machine learning and AI systems to cope with the sheer size of the challenge.
  • Be clear on policy: what constitutes an act of war in cyberspace?

In other news from #ISM2018:

ISM Appoints First Chief Product Officer

Susan Marty to Lead Member Engagement, Market Development and Growth Initiatives for ISM.

In its mission to reflect the voices of everyone in the supply management community, ISM has appointed Susan Marty as it first Chief Product Officer. Ms. Marty will focus on member engagement, market development and growth for ISM, the leading not-for-profit, independent, unbiased resource for everyone in supply management.

“As Chief Product Officer, I am strongly committed to meeting the current and future needs of all ISM members and constituents in a timely and meaningful way. We will continue ensuring that all our offerings–from education and events, to discussions and publications–enable members to advance professionally while making their organizations stronger and better,” said Ms. Marty.

“Susan Marty is an exceptional leader with a talent for building strong customer, partner and industry relationships, and innovating in response to market shifts. At a time of rapid transformation for supply management, she will help ISM remain vital to our entire industry,” said Tom Derry, CEO of ISM.

In addition to her focus on ISM’s educational offerings, Ms. Marty will concentrate on making ISM a source for compelling, customer-driven content, including research, thought-provoking conversations with subject-matter experts, and issue-oriented articles.

She will also lead efforts to bring supply management leaders and practitioners together with technology providers, analysts, and other members of the broader professional community. Whether online or via social media, she will focus on maximizing opportunities for the profession to access all ISM has to offer.

“We are thrilled to have Susan Marty join the ISM team. She is a high-caliber talent with a wealth of experience to help us deliver superior products that are valued by our customers,” said Debbie Fogel-Monnissen, Chief Financial Officer, ISM.

“Susan Marty is exactly the kind of product leader that ISM needs to fulfill the strategy of increasing engagement with the supply management professional. Her background in creating value offerings and communicating them clearly and through multiple channels will help today’s supply management professional leverage ISM’s vast resources,” said Jim Barnes, Managing Director for ISM.

Ms. Marty comes to ISM after serving as Vice President Marketing, Product Management and Sales at WorldatWork. She previously held senior roles at Inter-Tel (now Mitel), Voice Access Technologies, OmniSky and AT&T Wireless (now AT&T Mobility).

Arianna Huffington: No More Brilliant Jerks In the Workplace

#ISM2018 keynote Arianna Huffington is on a mission to end the collective delusion that burnout is the price we pay for success.

In 2007, Arianna Huffington collapsed in her office. “I hit my head on my desk, broke my cheekbone, and came to in a pool of blood. I asked myself the question: is this what success looks like?”

By any of the usual metrics, Huffington is an undeniably successful businesswoman and a role model for many. The Greek-American author and syndicated columnist has written 15 books and is the co-founder and editor-in-chief of The Huffington Post, later acquired by AOL for US$315 million. She is a regular inclusion in lists such as Forbes’ Most Influential Women in Media, The Guardian’s Top 100 in Media, and Forbes’ Most Powerful Women in the World.

But, as Huffington tells the audience at #ISM2018, having money and power as your only metrics of success is like trying to sit on a two-legged stool. A third leg is required if you’re going to attain balance – and that’s where the concept of “Thrive” comes in.

The size of the prize

We’re currently operating in the midst of a global epidemic of burnout and stress. “What’s sad is that it’s completely unnecessary,” says Huffington. “When we take care of ourselves, we’re more effective in what we’re doing.”

Issues which used to be the province of health magazines are now entering the mainstream. Businesses are increasingly recognising that performance improves when employees take care of themselves. The three pillars of self-care are nutrition, movement and – Huffington’s favourite topic – sleep.

Sleep is the best performance-enhancing drug

Ever heard the phrase “we can sleep when we’re dead”? That kind of attitude, according to Huffington, only brings forward the time when we’ll actually be dead. Sleep affects your well-being, your cognitive performance, and subsequently your company’s bottom line. Not long ago it was common to see business leaders competing in terms of who can operate on the least amount of sleep. U.S. President Donald Trump, PepsiCo CEO Indra Nooyi and television personality Martha Stewart all reportedly operate on 4 hours of sleep or less.

Huffington knows that when she’s exhausted, she is “the least good version of herself”. Lack of sleep translates into lower creativity, a lack of empathy, more reactive behaviour, a greater likelihood that she’ll take things personally and miss red flags. Similarly, former President Bill Clinton famously said that every one of his major mistakes was made when he was tired.

Here’s the good news. High-profile CEOs are “coming out” as champions of a good nights’ sleep, including Amazon’s Jeff Bezos. Bezos wrote a piece about why getting eight hours of sleep is a top priority not only for him personally, but for Amazon’s shareholders, as a well-rested CEO is much more likely to make good-quality decisions.

Fix your culture to reduce attrition

“Taking care of your employees is no longer just a ‘nice’ benefit,” says Huffington. “It directly affects the business metrics.” Burnt out employees are highly likely to change jobs, with their companies bearing the brunt of attrition costs. Lower engagement, reduced productivity and higher healthcare costs are the other risks faced by companies that run on burnout.

When we prioritise a healthy culture, says Huffington, we’re much more able to deal with problems as they emerge, and respond to crises quickly. “A thriving culture means that everybody knows you cannot sacrifice empathy and caring on the altar of hyper-growth”, she says.

Huffington uses Uber as an example, where from her position on the Board she has seen first-hand the negative effects of a hyper-growth culture that is fuelled by burnout. “The idea that everything will be forgiven if you’re a top performer is no longer sustainable. I promised Uber that going forward, no more ‘brilliant jerks’ will be allowed in the organisation. The truth is that no matter how brilliant you are, if you’re not there to support colleagues, be empathetic, and be humane, in the long term you’ll have a deleterious impact on the business.”

Why do people become jerks? “When employees are burnt out,” says Huffington, “they act out.”

Thrive

In the age of machine-learning, artificial intelligence and continuous disruption, it’s more important than ever to protect and project our uniquely human qualities – namely, empathy and creativity. Huffington singles out these two qualities as they cannot be replaced by AI. She notes that although we regularly celebrate advances in the field of augmented reality, we need to prioritise and cultivate “augmented humanity”.

Alibaba Founder Jack Ma spoke in Davos recently where he introduced the concept of LQ (Loving Quotient), or how people treat one another. In business this will become increasingly important as maturity develops beyond IQ, through EQ, and finally to LQ.

Put the smartphone down

“The next stage of technological disruption will involve technology that will help you disconnect from technology,” says Huffington. She speaks persuasively about the negative effect devices have on people’s wellbeing, and the importance of taking the phone out of the bedroom to ensure a proper night’s sleep. “Your phone is the repository of every problem that you’re dealing with,” she says. It certainly shouldn’t be the last thing you see before sleeping, or the first thing you see when you wake in the morning.

“Learning to manage relationships with our phones is key, but putting boundaries on technology doesn’t mean we don’t love technology. At present our culture values people who are always on, always texting back,” she says. “Where we put our attention determines our lives.”

Huffington leaves the audience at ISM2018 with the image of the three-legged stool. The third leg – the Thrive leg, is built from a sense of well-being, connectivity with your own wisdom, giving back, and feeling a sense of wonder about life, she says. “So often, we don’t even look up.”


Are you at ISM2018? Visit Procurious in the Exhibitor Hall – Booth #207!

Don’t miss out on Procurious Founder Tania Seary’s inspirational & informative ISM2018 Session titled “From The Amazon to The Moon: The Possibilities for Procurement” on Tuesday 8th May, 3.45-4.45.

6 Top Tips From 6 Procurement Influencers

We interviewed some of procurement’s most influential leaders to hear their advice for the global procurement community. Here are there 6 top tips…

Are we running out of humans who can get the procurement job done?

Is the future office-free?

Should every procurement team have a Chief Data Officer?

How do you sell yourself, your team and the profession to the stakeholders that really matter?

Can procurement teams make themselves indispensable?

These are some of the questions that we addressed at last week’s Big Ideas Summit in London, where we brought together the top procurement minds to connect, collaborate and innovate.

Couldn’t join us on the day? Not a problem! We’ve documented all of the highlights for our digital delegates and pulled together this list of 6 top tips for procurement pros from some of the function’s most influential leaders.

1.Become an essential partner to the business – Bob Murphy CPO, IBM

IBM’s CPO, Bob Murphy, believes that while procurement leaders “need to be able to use technology to get the insights and knowledge, their focus should be on developing their emotional intelligence (EQ) rather than their IQ, and their ability to talk to clients in a consultative manner. Listening is critical – When we’re talking, we’re not learning.”

“Project management, empathy, innovative thinking and an agile mind-set are also critical skills at IBM.

“You hear a lot of people talk about procurement leaders becoming “trusted advisors” to their businesses, but I think we need to take it to the next level and become ‘essential partners.’

“We should enhance everything that we touch.”

Read more from Bob Murphy in this article.

2. Procure with Purpose – James Marland Vice President, SAP Ariba

James Marland, Vice President – SAP Ariba argued that it is an exciting time to be part of procurement an professionals should seize this opportunity. Procurement professionals are often told that they’re the ones who save the money, deal with suppliers and cut purchase orders.

But now procurement can have a new agenda; bringing to the table initiatives that achieve crucial social goals such as eradicating slave labour, improving sustainability and creating an inclusive and diverse workforce.

Take that opportunity and procure with purpose!

Read more from James Marland in this article. 

3.  Engineer Serendipity –  Greg Lindsay, Urbanist and Futurist

Greg Lindsay, Futurist, Urbanist, Journalist and Author, is a firm believer in the fact that innovation is fundamentally social. Indeed, case study after case study has demonstrated that the best ideas are more likely to arise from a casual chat around the water fountain than in any scheduled meeting.

They are the result of serendipity – a chance encounter at the right time by the right people, regardless of their rank, affiliation, and department or whether they even work for the same company.

The most innovative companies in the world are busy engineering serendipity and harnessing social networks and new ways of working designed to cultivate the discovery of new ideas. And that’s exactly what procurement should be doing!

Read more from Greg Lindsay in this article. 

4. Take More Risks – Professional Poker Player Caspar Berry

Professional poker player Caspar Berry believes “People are broadly hard wired to be risk-averse. It keeps them alive. Its kept our species alive for however many thousands of years.”

“What we call risk aversion is essentially a desire to succeed in the short term. And a desire to succeed is another way of describing a fear or aversion to loss and risk.

“I don’t judge anyone negatively for not being able to push the latitude and risk level but it’s important to engage in a conversation in order to try.

“Its our own results we’re sabotaging, sometimes inadvertently, if we don’t!”

Read more from Caspar Berry in this article. 

5. Gather data and do something with it- Chris Sawchuk, Principal The Hackett Group

Top procurement teams achieve their superior performance because they have higher-caliber people who apply their skills to effectively harness digital technologies and capabilities.

Chris Sawchuk, Principal The Hackett Group discussed the need for procurement professionals to develop two fundamental skills:

  1. Procurement has to get better at gathering and creating big data in order to provide meaningful insights for the business and go beyond the data that we have access to today.
  2. Procurement needs to improve their advanced analytics capabilities, to be able to look at data and draw out the opportunities it offers.

The future of procurement is not about the way we execute processes. It’s really about the insights and intelligence we provide to our organisations to give them an advantage.

Read more from The Hackett Group in this article.

6.  Prepare for the worst – Nick Ford, Co-Founder Odesma

Nick Ford, Co-founder – Odesma discussed how procurement professionals can help turn Brexit into an opportunity for their organisation.

It’s an uncertain time for procurement professionals; who must consider how the function will be impacted by an increase in the cost of imported goods, freedom of movement (or lack thereof!) and a potentially depleted talent pool.

As businesses prepare, the role for procurement teams is increasing dramatically and it’s a real opportunity to put procurement at the front and centre of organisations. We just need to prepare!

Read more from Nick Ford in this article. 

Want to explore more content and video footage from Big Ideas London 2018. Sign up here (it’s free) to register as a digital delegate and gain access. 

Humanity, Environment, Ethics – For A Responsible Supply Chain

Tackling modern slavery might seem like an insurmountable problem for you to tackle alone, but even a reduction of one is huge. 

January: Human Trafficking Awareness Day

April: World Earth Day

In between these two months at the very beginning of the year, and surrounded with newly renewed resolutions, many of us go about our day to day lives.

Negative media and events increase. Technology brings these stories to us, and we “click” on them, but nothing changes.

Years ago it was easy to hide child labor and human bondage. No one paid attention to deep sea fishing trawlers or dingy factory floors in remote parts of the works. But now, this is front page news.

One thing is clear – the number of those in bondage have grown. How could that be? If there is now more exposure, more news, more awareness – how can the number of people enslaved be increasing?

The numbers are staring at us in the face. The International Labor Organisation recently shared that there are more than 45 million enslaved today.

This number grows yearly. Every corporate procurement individual must take responsibility for going beyond audit compliance to drive continuous improvement in our supply chains and eliminate modern slavery. We must go beyond one-off state level (California Transparency Act) and country level (UK Modern Slavery) initiatives to pave the way for a binding international consensus that covers global supply chains and cooperation between countries to accelerate action.

What can supply chain professionals do?

Turn to technology. Technology can help mine, collate, compile and quickly pin point areas of actions

  1. Breakthrough innovations in production and processing including IoT can generate signals that provide advanced warning helping to limit forced labor
  2. Mobile phones can be used to track labor rights violations and working conditions
  3. Blockchain is being used to track labor contracts
  4. Trusted distributed ledgers are also used for tracking at source ‘ethical’ practices
  5. AI/ML can scour through vast volumes of data to generate high intensity negative signal, sifting through noise to help corporate buyers focus on supplier co-development efforts
  6. Procurement networks can help provide visibility to ethical sources of supply, highlighting those companies that do good and establishing solid, long-term relationships for a responsible supply chain

I recently outlined the specific actions procurement can take to generate the much needed momentum to bring forced labor incidences down to zero.

But if you and I, the corporate and personal buyers, do not act on all this information – yet another decade will pass. The numbers of those enslaved might double or triple. Is this the world we want to leave behind?

Tackling modern slavery might seem like an insurmountable problem for you to tackle alone, but even a reduction of one is huge.  Little drops of water make a mighty ocean…

Are you ready to act?

As an individual?

For your team?!

Because as US Navy Admiral, William H. McRaven said in his motivational speech “If you wanna change the world, start off by making your bed”.

This article was written by Padmini Ranganathan, Global Vice President – SAP Ariba.


Procure with Purpose – Join the movement

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability.

Yesterday’s webinar on modern slavery,  Procurement Unchained, will soon be made available on-demand via the Procure with Purpose group on Procurious. Click here to enroll and gain access to this and all subsequent Procure with Purpose events. 

5 Ways Procurement Can Make Brexit A Breeze

So much about Brexit is still a mystery. But one thing’s for sure – procurement pros can help their organisation turn a negative into a positive!

It’s impossible to say precisely what the role of procurement will be in the post-Brexit world; the future is simply too uncertain.

And it’s easy to infer this sense of overwhelming uncertainty in the procurement world if the results of Odesma’s new Brexit survey are anything to go by.

Despite having conducted two surveys several months apart, very little appears to have changed in procurement teams with regards to their action and response plans.

As Nick Ford, Co-founder – Odesma,  admits “the interesting thing coming out of these surveys is that this is without a doubt the biggest negotiation our country is going through in terms of procurement. But it’s still a very uncertain picture. And we’re right in the middle of it.”

Indeed, over 63 per cent of respondents admitted that they have no risk register or contingency plan in place within their procurement teams post-Brexit.

And a whopping 82 per cent of professionals feel that they are under more pressure than before to reduce the cost of third party goods and services.

It’s a complex time for procurement professionals; who must consider how the function will be impacted by an increase in the cost of imported goods, freedom of movement (or lack thereof!) and a potentially depleted talent pool.

On a positive note, 73 per cent of procurement professionals believe their organisation sees procurement as an important part of its post-Brexit preparation process.

At our London Big Ideas Summit, Nick Ford discussed how procurement can help turn Brexit into an opportunity for their organisation. As businesses prepare, the role for procurement teams is increasing dramatically and it’s “a real opportunity to put procurement at the front and centre of your organisation.”

Here a just a few ways that procurement teams can add value:

1.New Negotiations

Worryingly, according to a couple of the delegates at Big Ideas Summit, some suppliers have already started adding a “Brexit Tax” into their pricing, as well as Brexit clauses within their contracts.

Rather than seeing this as a negative, however, procurement can use this as an opportunity to open negotiations with these suppliers and ensure that value is still being delivered post-Brexit and beyond.

2. Enhance procurement position in the organisation

The survey made it clear that Brexit will put procurement front and centre in organisations.

Procurement functions that show more innovative approaches and see this as an opportunity, rather than a risk, to help companies get their act together can steal the spotlight and use it to their great advantage.

3. Focus on Supplier Risk Positions

According to Helen Mackenzie, Head of Procurement in Scottish Local Government, some suppliers have started to “self-select” for contracts and not bid for overseas work in case risks prove too high post-Brexit.

In knowing this, procurement can understand the risk positions of suppliers and account for this in their tenders. This could mean more local business.

4. Re-engage Stakeholders

According to Nick, one of the biggest opportunities for procurement is re-engaging with stakeholders. Linked to enhancing procurement’s position, the profession needs to gather information from all sides and help to drag heads from the sand throughout the organisation.

5. Drives position of supplier portfolios

Brexit is an opportunity to do some supplier clean up and, as part of that clean up, get some leverage to drive costs down. Spreading the risk for procurement by having a diverse portfolio of suppliers (including local, SME and social enterprises) could give a greater foundation in the future.

Nick’s parting words? “The most positive viewpoints on Brexit are coming from companies that are actually getting their acts together!”

“It’s going to be an interesting time over the next couple of years. And we’ll see procurement rising through the organisation.”

Nick Ford spoke at Big Ideas Summit London 2018. Register as a digital delegate to hear more from him catch up on the day’s action. 

A Little Less Hesitation, A Little More Risk Taking

As human beings, we are naturally averse to risk and uncertainty. But our lives are little more certain than a game of poker – and we’d do well to embrace that! 

Caspar Berry, professional poker player extraordinaire,  knows exactly what it means to take risks. But he admits that it can be a scary business.

“People are broadly hard wired to be risk-averse and that’s not a bad thing per se. It keeps them alive. Its kept our species alive for however many thousands of years.”

“What we call risk aversion is essentially a desire to succeed in the short term. And a desire to succeed is another way of describing a fear or aversion to loss and risk.

“It’s a legacy of a period when we were, like almost every other animal, driven by only short term goals; eating, sleeping and procreation. It’s only a problem when we couple this with a desire to achieve long term goals like sales figures.  In this scenario our desire to succeed in the short term, to close every sale we try and make for example, conflicts with this long term goal and it becomes a problem.”

Life is like a game of poker…

Caspar was first introduced to Poker by a friend when holidaying in Las Vegas in the summer of 1999.  “With my background in, and love for, economics, I got it immediately. Poker is just a game of resource allocation on a terrain of uncertainty which, when you think about it, at a fundamental level is all that we ever do in business and life every day!”

And that’s Caspar’s philosophy in a nutshell. He equates the uncertainty of our everyday, working lives to  game of poker to explain our inherent risk aversion whilst encouraging us to challenge that natural instinct to flee from risk. “I try to show in my work how and why the world is more uncertain than we like to think a lot of the time and why we create that illusion – in order to be able to get through the average day.

“We need certainty and we need the illusion of control in order to be able to function. we shouldn’t be too hard on ourselves… it’s in our genes!”

The benefits of risk

If it’s in our genes why on earth fight it? Is there any real benefit to injecting a little extra uncertainty if it pains us so very much to do so?

Apparently, yes! According to Caspar studies show that the more we acknowledge and embrace uncertainty the better our judgement and decision-making apparatus.

“There’s not a lot we can do about most uncertainty: manage risk where we can; mitigate it where possible. But the economics of risk and reward say that resource allocation is most efficient where we can embrace uncertainty, think probabilistically and stop looking for the outcome most likely to succeed.

“By riding the volatility to some extent we can get better ROI as a result.

“Certainty is nice but efficiency and the bottom line is what is important. Take a long term view, accept greater ‘negative’ outcomes’ and ‘negative metrics’ and focus on the metrics that matter.”

Does Caspar believe we should take more risks in our working lives?

“We should. But it’s easy to say. In order to be able to do so we need to be aligned both with our own expectations and those of our organisations.

“It’s no good one person saying they’re going to accept greater volatility for greater long term returns: the person who judges them whether it’s themselves a colleague or boss, also needs to be on the same journey. I don’t judge anyone negatively for not being able to push the latitude and risk level but it’s important to engage in a conversation in order to try.

“Its our own results we’re sabotaging, sometimes inadvertently, if we don’t!”

Caspar Berry spoke at Big Ideas Summit London. Register as a digital delegate to hear more from him and catch up on the day’s action. 

What Is IBM’s CPO Looking For In New Hires?

IBM’s CPO, Bob Murphy, talks soft skills, AI and what he’s looking for in his leadership team at IBM…

This Article was written by IBM’s CPO, Bob Murphy.

Procurement professionals should be excited about Artificial Intelligence and robotic automation.

We’re looking to these technologies to handle the repetitive tasks, the more mundane pieces of work, so that humans are freed up for higher value activities.

Cognitive technologies will also act as advisors enabling procurement professionals with the insights to quickly adapt to changing market conditions.

I learned a long time ago that the key to success is having a great team. And there is a very human element to procurement. There will always be a need for people to handle the relationship management side of the function, with both suppliers and stakeholders and make the strategic decisions.

The acceptance and the excitement around cognitive have grown at IBM as we have educated our employees on the major opportunity that it represents and developed them in preparation for the digital age.

The importance of soft skills in the digital age

As we continue down the digitisation path in the Procurement industry, with more of our transactional functions being automated, there is a greater need for our procurement professionals to increase their soft skills.

When we think of the soft skills necessary for future success in the procurement industry, we focus on building closer stakeholder and supplier relationships. Broadening our communications skills, including active listening is a key enabler to both visibility to value proposition, but also in understanding our stakeholder requirements from their point of view.

Another critical element is having better agility skills; think flexibility, adaptability and speed.

Our requesters who run the IBM business have tremendous demands that can be fluid based upon the market environment. Our procurement professionals need to be able to react in-kind and continue to provide the IBM corporation with the best value and innovation from our suppliers.

Digital credentials have a curriculum of eLearning and experiential training for our procurement professionals to follow as they build their soft skill profile within the procurement context.

Key skills for IBM’s leadership team

In potential members of our leadership team, there are two crucial skills, that we look for.

1) Digital literacy 

Leaders who want to thrive in the procurement profession need to develop an understanding of:

  • Data analytics –we can gather data but how do you use that data to gain insights?
  • Robotic processes – how can you automate tactical processes so human capital is used to the greatest effect?
  • Cognitive computing – understanding how to digitise a process end-to-end so it is interconnected and insightful.

2) Relationship building

While leaders need to be able to use technology to get the insights and knowledge, their focus should be on developing their emotional intelligence (EQ) rather than their IQ, and their ability to talk to clients in a consultative manner. Listening is critical – When we’re talking, we’re not learning.

Project management, empathy, innovative thinking and an agile mind-set are also critical skills at IBM.

You hear a lot of people talk about procurement leaders becoming “trusted advisors” to their businesses, but I think we need to take it to the next level and become “essential partners.”

We should enhance everything that we touch.

This Article was written by IBM’s CPO, Bob Murphy.

Bob Murphy will be speaking at Big Ideas Summit London 26th April 2018. Register as a digital delegate to hear more from him and follow the day’s action live.