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Four Work-Life Questions To Ponder On Vacation This Summer

Going on vacation this summer? Print this out and take it someplace without any Wi-Fi….

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm on 10th August 2017. Register your attendence for FREE here

You packed your favorite journal and a couple of pens. You planned some time on the beach, or left an afternoon empty to find a table at an outdoor cafe where you can grab an ice-cold drink and just think. This vacation, you’ve told yourself, you’re finally going to be able to take a break and get some clarity.

But clarity about what, exactly?

It’s true that vacationing can hold some unexpected career benefits, in addition to letting you recharge your batteries and do some self-reflection about your working life, your personal life, and your overall goals. But musing on these big-ticket themes isn’t something many of us have a lot of practice doing. When you finally get a chance to do it, you might find your thoughts a little unfocused. That’s fine—mind-wandering is sort of the point here. But in case you need a little more structure, these are four questions to let your mind wander over.

1. Stresses and worries aside, am I happy at work?

One question worth asking is whether you’re happy with your job on a day-to-day or week-by-week basis. You may find some workdays pretty stressful, and that’s normal, but do you generally find your job fulfilling to do?

Vacation is a great time to really step back and consider that, because it’s one of those rare occasions when you can step back to monitor your own reaction to being away from work. A change of pace is always nice, but at the end of your vacation, are you excited to get back to the projects you’ve been working on? If you totally dread the end of vacation, it might be time to start looking for something else.

When you’re away from the office, you can also think about which aspects of your job are most rewarding. By identifying the tasks that excite you, you can lay the groundwork to pursue opportunities that let you do them more often.

2. Where am I headed?

One of the most aggravating questions hiring managers like to ask on job interviews is, “Where do you see yourself in five years?” Lots of people find that hard to answer, in part because a lot of the time they don’t honestly know.

That’s understandable. It can also be difficult to do long-range planning when you’re buried in the daily grind, when your goals are changing, when your industry is evolving at a breakneck pace, or all of the above. Taking some time off lets you think about whether your career is headed in a direction you’re generally happy with. To get a handle on a big-ticket question like this, try to think specifically about the skills you feel you still need to acquire to succeed.

In other words, you may not be able to see the future, but you can still think like a futurist when it comes to your own career planning. Are there people who might be good mentors (including of the unofficial kind) to help you fill in those skill gaps? Maybe it’s time for some more education. Going back to school for another degree may be daunting, but you can always start by taking a couple of professional development courses. Or maybe you just need to do a little more networking to brush up on the latest goings-on in your field.

Many companies have some form of educational benefits that lots of employees don’t know much about, let alone actually use. Maybe this vacation is the time to figure out which opportunities you can ask your HR team about once you’re back in the office. In fact, even companies that don’t offer a standing set of training resources may be willing to cover some of the cost of professional development you pursue on your own.

This is one of those items that way too few employees actually negotiate for, beyond compensation. Use a few spare hours this vacation to come up with some training options you’d like your company to help you go after.

3. Who don’t I know

You have more colleagues than just the ones who work for the same company as you. There’s a whole community out there of professionals who do much the same kind of work, but most of us don’t spend enough time getting to know them. After all, networking is a tedious chore and often completely fruitless.

And sure, sometimes that’s true. But there are a few things you can do to expand your connections in ways that don’t feel like networking. One of them is pretty old-school: Join a professional society. They’re often a great source for the latest developments in your field, sparing you the need to scroll LinkedIn for industry news. And they often have local meetings where you can meet people dealing with the same issues you are, rather than blindly scouring a random mixer for them.

There are also “networking” opportunities that might be lurking in your average workday—chances to connect with valuable people you haven’t had a chance (or a non-awkward pretext) for to strike up a conversation with yet.

You’re on vacation, though, so all this will have to wait, right? Technically, yes. But one of the reasons so many people procrastinate on (or just downright avoid) networking is because they haven’t given much thought to who’s missing from their contact lists, let alone what the best strategy might be for filling those gaps. Your vacation is a great chance to consider that. Based on where you are in your career and where you’d like to be before long (see above), think about the ideal connections you’ll need to make. Here’s a handy guide for figuring out who’s most important to you at the moment and where can you find them.

4. What’s Missing?

Work is great, but there’s more to life than the things you do to make your company money. In high school and college, you might’ve spent a lot more time doing things you were passionate about—or things that helped you discover what you’re passionate about. After hitting the workforce, most of us start to shed extracurriculars. If you look back, you may see a graveyard of discarded instruments, sports, clubs, and volunteer work stretching out in your wake.

It’s great to draw a sense of purpose and fulfillment from your full-time job, but those outside activities can also be powerful sources of energy. What’s more, they can be the steam valves that give you much-needed emotional release when the pressure at work builds up. Vacation is a good time to re-engage with old hobbies and pursuits you’ve left behind. Pull that old French horn out of the closet. Brush off your tennis racquet. Find a local dog shelter that needs another pair of hands. (Puppies are always a great cure for whatever ails you.)

Don’t feel guilty about carving out a little more time away from your work to pick up these side gigs and activities. Not only will they give you a chance to develop your other interests, they’ll also give you people to hang out with who aren’t all focused on the same set of work issues that you are.

And hey, you never know; over winter vacation about 16 years ago, I started taking saxophone lessons. Not only has it been great fun, I’m now in a band!

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm on 10th August 2017. Register your attendence for FREE here

This article, written by Art Markman was originally published on Fast Company.

Art Markman, PhD is a professor of Psychology and Marketing at the University of Texas at Austin and Founding Director of the Program in the Human Dimensions of Organisations. Art is the author of Smart Thinking and Habits of Leadership, Smart Change, and most recently, Brain Briefs, co-authored with his “Two Guys on Your Head”co-host Bob Duke, which focuses on how you can use the science of motivation to change your behavior at work and at home.

Out Of Office: Your Career Break (Through)

Sick to death of the daily grind? A well-earned career break might be just the ticket!

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm BST on 10th August 2017. Register your attendence for FREE here

It was once considered a career kamikaze but taking time out mid-career is a growing trend. Nowadays, it is often supported, and  even encouraged, by employers to help retain, refocus and re-inspire their employees.

In 2010, 4 million people in the UK took a career break in one form or another, a number that continues to increase. One in four employees work for companies that offer sabbaticals and these companies represent 34 per cent of the “Best Places to Work in Europe”.

Turn a mid-career break into a career break through!

Do you ever wish that you had the guts to bite the bullet and embark on the adventure of a lifetime? Or perhaps you’re on a career break that wasn’t self-imposed and you’re desperate for it to end.  Maybe you’re coming to the end of a life-changing sabbatical, currently on parental leave or stuck betwen jobs…

The future is uncertain; you don’t know what your options will be when you return to work or how you’ll explain a stonking great gap in your CV to the recruitment agency.

But help is at hand! Whatever the scenario, we’ve got a solution. Whether you’re considering a complete career make-over or simply taking a few weeks to hang out in a hammock this summer, Procurious’ latest webinar Out of Office: Career Break (Through) will help you make the most of your precious time out and prepare you for when it’s all over!

What can I expect from the webinar?

Some of our discussion topics will include:

  • How will a career break help or hinder your career in the long run?
  • Once you’ve decided to take a career break, how do you decided where to spend it, what to do and how do you stay sharp?
  • Is there a right or wrong time to take a career break?
  • How to use your career break wisely – advice from the experts!
  • What are some of the unexpected benefits of taking a career break?
  • How do you prepare for your eventual return to work?
  • How employers can support career breaks and retain top talent

Who are the guest speakers?

Ruji Mahmud, Vice President, Sourcing- DSM

Ruji is one of procurement’s  brightest young stars with experience across chemicals, agro-chemicals, and pharma. Ruji put her booming career on hold to take stock during an eight month career break which she credits for making her focused, balanced and, in her own words, invincible!

Ruji is currently working in a project team at DNS to look at how the business can better support and retain women who want to take time out to have a family.

Anne Berens, Principal – AMB ProCures LLC

Previously Senior Director for Global Sourcing and Procurement at McDonald’s Corporation, Anne Berens left corporate life for a career break and to start her own business, AMB ProCures LLC.

AMB ProCures LLC is a consultancy targeting organisations that want improved effectiveness in their procurement function.

Tony Megally, General Manager – The Source

Tony has enjoyed a  long standing consulting career and has had the benefit of working with some of Australia’s most admired recruitment and search firms in the sector.  At The Source, Tony is responsible for leading the overall business into its next phase of growth and future success.

How do I register for the webinar?

Registering for our webinar is as easy as pie, and it’s FREE! Click here to enter your details and confirm your attendence. We’ll send you a reminder email with a link to the webinar page shortly before it goes live!

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still register to access the webinar.  Make sure you are logged into you Procurious account first and then Click here to enrol. We’ll send you a reminder email with a link to the webinar page shortly before it goes live!

When is it taking place?

The webinar will take place at 1pm BST on 10th August 2017

I can’t make it, am I able to listen  to the webinar at a later time?

Absolutely! The webinar will be made available in the Learning area of Procurious shortly after our live broadcasting. If you aren’t able to make it on 10th August, we’ll send you a link to this so you can listen at your lesiure.

Can I ask a question?

If you’re listening live, our speakers would love to hear your questions. Questions can be submitted via the webinar platform, or via Twitter by tagging #OutOfOffice @procurious_ If you think of a question after the event, feel free to submit your question via the Discussion Board on Procurious and we’ll ensure it gets answered for you.

Our webinar, Out of Office: Your Career Break (Through), takes place at 1pm BST on 10th August 2017. Register your attendence for FREE here. 

The Procurement Tipping Point

At what point should a growing business bite the bullet and professionalise procurement? New research from Wax Digital has found that the right time is surprisingly early in a businesses’ growth, but it’s usually done on the back foot. 

As professionals in the sector we tend to think that procurement is the sole domain of large organisations spending millions of pounds on thousands of suppliers. However, new research has found that many smaller and more formative businesses also turn to procurement.

We recently surveyed 260 UK business and procurement experts and asked them at what point organisations needed to professionalise procurement to get a firmer grip on spend, suppliers, sourcing and so on. We were surprised by how many thought the ‘tipping point’ for procurement was relatively early on in a business’ growth. The results were as follows:

  • 75% said procurement was required once a company reaches £50M turnover
  • 77% claimed to need procurement by the time a business has 100 supplier contracts
  • 72% said once 500 invoices per month are being processed, procurement was essential.

Clearly, it seems that many smaller organisations are adopting procurement, so why is this? When asked why they introduced procurement, 68% said that it was due to rising costs, while 45% said that it was due to inefficient and labour intensive processes. Being a successful, up-and-coming business means experiencing rapid growth and significant change in these areas – more so than a larger, more established business.

For example, an organisation may be undergoing a merger or be highly acquisitive, bringing in more complex supplier portfolios or increasing spend overnight. These types of events can force a business to rethink processes like procurement. The very foundations of the organisation could adjust dramatically, and existing resources may simply not be adequate enough to support it.

Quick, someone build us a procurement function

Another interesting discovery in our research was that procurement is often introduced ‘on the back foot’ as opposed to being part of a pre-planned vision. We found that procurement is implemented as a reaction to a negative situation 48% of the time, compared to 31% of the time when it’s rolled out as a proactive and positive step forward. So few businesses planning ahead with procurement suggests that it’s (wrongly) an afterthought for many. Many businesses are ‘reactively’ using procurement, suggesting that they are already experiencing issues such as a lack of spend control or inefficient processes. But pre-planning with procurement could help businesses evolve more efficiently to try and reduce these problems.

That said, rolling out procurement isn’t always plain sailing, and smaller businesses with limited resources may particularly struggle to establish this new function successfully. Gaining senior management buy-in is the most common barrier to adopting formal purchasing processes, cited by 35%. Managing cultural change and a lack of internal knowledge followed, scoring 27% and 19% respectively. Given that they work for a smaller business – perhaps with a less rigid structure – the need for a procurement function might simply not occur to some SME employees, and it may take some time to win the support of colleagues. Those in the business being hindered by the lack of procurement shouldn’t be afraid to make a case for it to senior management.

Make sure the time is right

No two businesses are the same and each will feel the need for procurement at different stages. It’s not right to see procurement as something that should only be introduced when you reach a specific size or stage in the business cycle. Instead, consider when the businesses is feeling a strain that formalised procurement could help with.

It’s time for the procurement community to help strip its perception as a function for the larger business. This way more businesses can realise its effects.

Contributed by Paul Ellis, Managing Director at Wax Digital.

Different Country, Same Procurement Culture?

Heading off to begin a new procurement chapter abroad? Make sure you’re prepared to accommodate, and adapt to, a new culture.

Have you ever wondered what courage it would  take to pack your bags and set off across the globe in order to start an entirely new chapter?

Juggling a new home, new job and a new life isn’t a challenge for the faint-hearted but it’s one you’re unlikely to regret and something that ISM board member, Kim Brown, knows all about!

Throughout her impressive procurement career, Kim has enjoyed roles at Reynolds and Reynolds Company, General Electric, Toys R Us and, most recently, at Dell, Inc as Vice President, Global Materials.

Kim’s lengthy career has taken her around the world so it’s unsurprising that she’s honed and developed her cultural intelligence (CQ) over the years. When we interviewed Kim, we were interested to hear about her global experiences, both what she’s learnt and how she’s adapted to different circumstances, and gain some advice on what it takes to hold a position on a board as noteworthy as ISM.

Procurement around the world

“I’ve lived in quite a few places, four or five US states and two countries,” explains Kim. ” I also did a stint as an ex-pat in Mexico city for a year and spent on year in Singapore.”

Was she able to observe distinct differences in working cultures  during her time abroad? “Very much so, particularly at the beginning of my time in Mexico, which has a very, verY different culture. I was working for General Electric at the time and accustomed to the direct and process-driven culture in the US. In Mexico, the conversations with suppliers, local people and colleagues were very family-based. They wanted to know about me, and understand what my family life was like before doing business with me.”

In Singapore, Kim faced the challenge of managing a widely dispersed and culturally diverse team. “I had team members in 26 or 27 different countries, all of which had cultural nuances.”

Pulling together a strategy for a large team is challenging at the best of times but it becomes even more so when you must be cognisant of how different cultures are motivated by different things. “Something that someone in the US would regard as a very small factor might mean a lot to someone in India, for example.

“Singapore itself was a very different culture.  It seemed at times cautious and a little shyer than in some other parts of the world. I’m the kind of person who says hello to a lot of people, and in Singapore they would look at the floor in response! However, once you get to know them and they get to know you I found the community to be friendly and outgoing.”

This, in a way, is the motto of Kim’s story. Working across cultures and borders requires patience, tolerance, compromise and understanding from both sides.

“As long as you go about making a change in the right way, it will work. When I first started in a global role I tried to supplement it with videoconferencing. I quickly found I was questioned “When are you coming, when will we see you?”  And there is no substitute for that. Employees are often very excited by and enthusiastic about a visit from the regional office – I’d arrive in Malaysia, for example, and find that the room was packed with people who wanted to see me, listen and ask lots of questions.”

What a board wants

If anyone knows the answer to the question “what does a board want?” it’s Kim Brown. As well as being treasurer for ISM, she’s held positions on two additional NFP boards, one of which had 70 board members. “When I went on [the board with 70 people], I wanted to be really involved, to be on the executive committee and be a decision maker, not just a voter. These roles are extracurricular but if you’re going to do it, do it!

“At ISM, we have very robust conversations, which is fun! I learn a lot and have the opportunity to interact with a whole bunch of new network contacts. I try to look positively upon any experience where I can learn something new.”

Kim’s top tips for procurement when presenting to the board:

  • Keep your strategy clear and concise and ensure you know how to sell it!
  • You need goals and objectives; lay out the salient points and present them in a way that makes sense
  • Get your act together! When you’re presenting, make sure it’s in an understandable manner.
  • Do your homework and always  look at alternatives and contingencies.
  • Use your  junior team members! I really like it when CEOs do this. It gives your team an opportunity to showcase the work they’re capable of doing, and allows us, as the board, to show your team that we’ve got confidence in them!

Are You Emotionally Intelligent? Here’s How to Tell

What exactly is emotional intelligence (EQ)? How can you determine if you have those characteristics? And why is it so important?

You’ve probably heard the term “emotional intelligence.” It’s come into vogue in recent years, with numerous books being written about the subject. Businesses are increasingly focusing on emotional intelligence and researchers are increasingly learning its importance.

What is emotional intelligence?

The term “emotional intelligence” (EI or EQ) was coined by researchers Peter Salavoy and John Mayer. Author Dan Goleman made the term mainstream in his book “Emotional Intelligence.”

Typically, EQ includes two related, but distinct items:

  • The ability to recognise, understand and manage your own emotions
  • The ability to recognise, understand and influence the emotions of others

 

The 5 characteristics of emotional intelligence

Emotional intelligence is characterised by 5 distinct characteristics:

1. Self awareness

Those with high EQ are able to recognize emotions in the moment. One of the keys to developing EQ is being aware of feelings, evaluating those feelings and then managing them.

2. Self regulation

Everyone knows that emotions come quickly and with force. It’s rare that you have control over when we are hit by an emotional wave. Even the slightest thing can trigger something deep within you. However, if you have a high EQ, you can control how long that negative experience lasts.

3. Motivation

It’s very difficult to be motivated if you always have a negative attitude. Those who are full of negativity don’t often achieve their goals. Those with a high EQ are able to move toward a consistently positive attitude by thinking more positively and being aware of negative thoughts.

4. Empathy

Empathy is the ability to recognise how others are feeling. This is essential for functioning well in society and excelling in your career. A person without empathy will end up regularly insulting and offending people, while a person with a high EQ will be able to understand what a person is feeling and then treat them accordingly.

5. Social skills

The final characteristic of EQ is having and developing excellent interpersonal skills. It used to be that access to the greatest amount of information would allow you to succeed, but now that everyone has immediate access to knowledge, people skills are more important than ever. Those with a high EQ are able to wisely and skillfully navigate the various relationships that fill their lives.

How can you tell if you have high EQ?

There are various tests that can help you identify your emotional intelligence, such as the Emotional Intelligence 2.0 test. However, these tests have their limitations in that EQ is intangible, making it difficult to precisely measure.

There are a number of markers that accompany those with a high emotional intelligence.

Some of those markers are:

A curiousity about people

Curiosity comes from empathy, which is one of the most significant elements of EQ. If you are curious about people, you will also care about what they feel and how they struggle.

On the flip side, those with a low EQ don’t have any interest in others. They aren’t interested in what others think or feel. Their primary focus is on themselves.

A thorough emotional vocabulary

Remember, EQ is the ability to identify and understand emotions. Research done by Travis Bradberry, who is the author of “Emotional Intelligence 2.0,” suggests that only about 36 per cent of people have this ability.

This is partially due to an inadequate emotional vocabulary that prevents people from properly identifying what they’re feeling. Every negative feeling is simply called, “Bad,” and every positive feeling is, “Good.”

However, those with high EQ can specifically name their emotions, which then allows them to deal with them in the most effective way.

A holistic understanding of themselves

If you have high emotional intelligence, you have a holistic understanding of yourself that goes beyond just feelings. You know what you’re good at and what you’re not. You know the people and situations that frustrate you. You also understand how to avoid or effectively navigate situations that will hurt you emotionally.

If you have a high EQ, you can tap into your strengths and minimize your weaknesses.

Not easily offended

Emotional intelligence involves a thorough knowledge of yourself and the ability to control your emotions. Combined, this makes you difficult to offend. You are confident in who you are and are able to understand when someone is simply making a joke versus when they are degrading you. You don’t let people easily get under your skin.

An ability to judge character

EQ gives you the ability to read and understand people. You are in tune with their emotions, which then allows you to more readily understand their actions. You can tell the difference between someone having a bad day and someone who is a bad apple. The more you develop your EQ, the more skilled you become at making character assessments about people.

Not haunted by the past

A low EQ makes it difficult to manage emotions when they appear unexpectedly. When a past mistake comes to mind, it’s easy to get dragged down into discouragement and despair.

If you have a high EQ, you are able to think about past mistakes without letting the associated emotions overwhelm you.

Giving without expecting

Those with a high EQ are able to give without expecting anything back. Because you are constantly in tune with the emotions of others, you know the effect that a gift will have on someone. When someone needs something, you want to meet that need.

This giving attitude allows emotionally strong people to build deep relationships with other people.

An ability to handle toxic people

Toxic, difficult people will often draw a reaction out of you. You feel surges of negative emotions when you are around them and often lash out, which then hurts both you and them. Lashing out also fuels their toxic behavior even more.

If you have a high EQ, however, you can keep your emotions in check when dealing with a difficult person. You don’t allow your anger to boil over. You’re able to see multiple perspectives, calmly.

As Daniel Goleman said:

“If your emotional abilities aren’t in hand, if you don’t have self-awareness, if you are not able to manage your distressing emotions, if you can’t have empathy and have effective relationships, then no matter how smart you are, you are not going to get very far.”

Janae Ernst (M.S. ’17) serves as the marketing communications coordinator for Cornerstone University’s Professional & Graduate Studies. This article was orginally published on the Cornerstone University blog.

Why Being Reliable Spells Doom to Your Career

Do people in your workplace ever refer to you as reliable, trusty, dependable? That’s got to stop! 

Are you a woman working in procurement? Join Bravo, our specialised group on Procurious. 

Truth or myth

Myth: Having a reputation for being “reliable” and “getting the job done” makes you valuable.

Over the weekend I’ve been helping a friend in a sticky situation. She is downsising her business, which is a smart move.

She has the potential to sell her business, which is a lucrative move.

In either case, she has to make layoffs.

Ouch.

As we strategised together on how to deal with this difficult decision, a staffer’s name kept reappearing.

My friend feels indebted to her for all her years of service.

I asked her what value the woman brought to the team. How does her work enhance results, solve problems, and propel the company forward?

Her answer?

“I don’t know…she just always does what I ask and gets the job done.”

Hire or fire?

We discussed this some more and came to the conclusion that despite her loyalty and workhorse ethic, this staffer would not make the cut and has to be let go.

That’s painful. And I see this a lot.

When I ask women what their special sauce is at the office, I hear “I’m known for my work ethic” or “I always do a good job” or “I’m reliable and get the job done”

I get it. I was once that person, too. And it cost me thousands of hours of my life and hundreds of thousands of dollars that I could have been earning.

Dammit!

Being known for getting the job done is not enough to build value and does not get you the pay scale, nor the flexibility you crave.

And what is even harder to see is that, most likely, working hard feels good. And when something feels good it becomes a hard habit to break.

When you realise how much you’re worth, You’ll stop giving people discounts. – Karen Salmansohn 

There is certainly pride in staying at the office late to produce a stellar result. And it’s nice to be the first one the boss reaches for when there’s a difficult task at hand that will require overtime. Who doesn’t want to feel needed?

Yet, when you are the person who is routinely called in to do the tough jobs that require a maximum time commitment, the only person to blame is YOU.

Sorry.

It’s okay to work an 80 every now and then if you’re in your flow and loving what you do.

And it’s great to commit to a special assignment that will open up doors of opportunity.

But it sucks to work that 80 day-in and day-out while telling yourself “it’s only for a year or two until I prove myself”

Don’t hold yourself back

Finding value in how hard you work is a script from your childhood. And if you’ve watched my master class you know what those scripts do. They hold you back. They make you trade hours for dollars. They keep you from your littles. They pull you off course so you can’t be the real, authentic you.

Defining your value and pouring your heart and soul into developing that is priceless. It’s a linchpin in your ability to create the career you really want.

You just need to hone it, sell it, and make sure the whole world knows your secret sauce solves their acute pain. Now you are simply PRICELESS! (But you already knew that, didn’t you?)

And the best part about this is that anyone can do it. You don’t have to be special, you already are special…you just have to find that special spark inside and nurture it. You don’t have to be lucky, you create your own luck by seizing opportunities and taking a stand for what you care about. And you don’t have to be master craftsman. Women always think they don’t have the skills, experience, or blah, blah to do this. Of course you do!

So when are you going to claim the life you really want? If you’re not living it today, then I suggest now  is a good time, right?

Are you a woman working in procurement? Join Bravo, our specialised group on Procurious. 

This article was oringally published on LinkedIn. In 2003, Kathleen Byars  left her lucrative executive career to go live on an island. Today she specialises in helping corporate women redesign their lives and leverage their talent to create fulfilling, flexible careers without sacrificing the success they’ve earned.

There’s One Key Reason To Buy American In 2017

With the Trump administration’s “Made in America” campaign in full swing, attention has turned to the Pentagon’s global supply chain. The reasons to Buy American might be a little more compelling than you expected….

In 1933 Franklin D. Roosevelt signed into law the 1933 Buy American Act which required the Pentagon to purchase US-manufactured products for anything over a $3,500 threshold. The military supply chain looked very different to today’s, over 80 years later.

The law required that the U.S. military’s entire supply chain be sourced domestically, from the textiles that go into uniforms to the raw materials that are used to create tanks and other weaponry. Roosevelt’s intention was clear: firstly, the law was a patriotic one, with the ‘buy American’ message resonating as strongly in the 1930s as it does among voters today. More importantly, the Act was designed to ensure a strong manufacturing base, critical to the country’s recovery from the Great Depression.

Roosevelt said in 1940: “Guns, planes, ships and many other things have to be built in the factories and the arsenals of America. They have to be produced by workers and managers and engineers with the aid of machines which, in turn, have to be built by hundreds of thousands of workers throughout the land.”

Is Buy American realistic in 2017?

While the 1933 law is ostensibly still in effect, the military supply chain draws heavily on foreign materials and components. In 2013, for example, nearly $20 billion (6.4 per cent of all U.S. military spending) went to overseas entities. This is achieved through the use of exemptions or waivers, which guarantee flexibility and security of supply.

After the White House published a “Buy American” executive order in April, the Office of Management and Budget provided new guidance to federal agencies on enforcing the existing laws, limiting exemptions and maximising the procurement of U.S. products. The Pentagon’s acquisitions office has reportedly instructed its contractors to put in place a training program on how to comply with the 1933 law.

However, there are also a number of materials that simply can’t be found or manufactured domestically, such as the rare earth element needed for flame-resistant rayon fibres used in uniforms (sourced solely from Austria), night vision goggles (91 per cent of which are from China), or lithium ion batteries, semiconductors, microchips and even missile propellant.

Is cybersecurity a reason to Buy American?

Two of the reasons for the 1933 Buy American Act – building patriotism and manufacturing jobs – still remain valid and are a key focus on Trump’s administration, but in today’s world of hi-tech military hardware, there’s a third, critical factor – cybersecurity.

Commentators are alarmed by the presence of Chinese-made microchips in America’s most advanced fighter jets, while components from other foreign entities can be found in American communication satellites, unmanned drones, bomb disposal robots and other gear. Futurist and author Peter Singer, predicted that these microchips could be used to “blow American fighter jets from the sky” if the two countries were ever to go to war.

While very little can be done about the rare-earth materials and metals found only outside of the U.S., it remains to be seen whether the Made in America push will lead to supply chains for vital components including microchips and semiconductors re-shored to the U.S.

In other news this week…

Supply Chain Management software market booming

  • Analyst firm Gartner has announced that the supply chain management (SCM) software market will reach $13 billion by the end of this year, up 11% from 2016.
  • Gartner has also predicted the market will exceed $19 billion by 2021.
  • Growth is being driven by a demand for agility, as vendors move to cloud-first or could-only deployment models, while end-users are becoming more comfortable about cloud security and recognise the benefits of software-as-a-service solutions.

Read more on MH&L news 

When does an SME need a procurement function?

  • New research from Wax Digital has found that having a procurement function is just as vital for SMEs as it is for large corporates.
  • The UK-based survey found that 75% of respondents said procurement was needed once a company reaches a £50M turnover, 77% claim to need procurement by the time it has 100 supplier contracts, and 72% said that procurement was necessary once 500 invoices per month were being processed.
  • Rising costs was the most common reason for introducing procurement, followed closely by inefficient processes and increasing business risk.

For more information visit www.waxdigital.com

Elon Musk’s Hyperloop hits the news again

  • Tech entrepreneur Elon Musk made headlines on Friday when he announced via Twitter that he had “verbal approval” to build a hyperloop – an ultra-high-speed underground transport system – linking New York and Washington DC.
  • If it goes ahead, passengers and cargo would be packed into pods and shot through a system of giant vacuum tubes on magnetic cushions, cutting the current travel time from nearly three hours (high speed train) to 29 minutes for the 355km journey.
  • Musk has also been in conversation with Chicago and Los Angeles officials about hyperloops.

Read more at Financial Review

 

Evergreen Wisdom for a Changing Profession

When was the last time you reached out to a Procurement Guru? Although the battleground is changing, those among us with scars have a lot of relevant insights to share.

We knew we’d be in for a treat when we locked in an interview with ISM board member Ann Oka. Ann is the former senior VP of supply management (CPO) for Sodexo, Inc. in North America where she was responsible for a whopping US$5.5 billion spend.

While working, Ann believed in contributing beyond her formal role, and served on the board of trustees for the A.T. Kearney Center for Strategic Supply Leadership at ISM, the board of the Sodexo Stop Hunger Foundation, and was a member of the executive committee of the GS1 Foodservice Initiative.  She retired in June of 2014, and other than the ISM board, now occupies her time with family and leisure.

Of course, she has a wealth of knowledge to draw from thanks to decades of procurement experience but, interestingly, she’s objective about its value to the next generation of procurement professionals. “Some things don’t change over time; motivating and leading people, looking at evolving tech and enlarging the sources of value. But, whilst there might be a lot of insights those of us with scars can give, the battleground is changing.”

The battleground may well be changing but surely that means Ann’s insights, as a seasoned pro, are all the more significant? As such, we were fascinated to learn how she has seen the profession develop over time and what she believes the future holds.

The evolution of procurement

Ann explains how drastically procurement’s role has changed over the years, both in terms of job responsibilities and external perceptions of the profession. “Where people were once identified as buyers or negotiators, they became category managers as the implementation of strategic sourcing evolved. These developments redefined the role of the average procurement person – they became professionals; their strategic impact increased and they had a broader scope.”

It’s a tricky and lengthy transition to lead any team through. “There’s a big task in the up-skilling of your people, particularly when you want to bring as many of them along with you as you can.”

Of course, some things don’t change. “The major evolution of procurement that we’re currently experiencing is comparable, in many ways, to what happened twenty years ago” Ann begins. “It was in the mid-90s when I first realised the importance of systems, technology and data. There was a tremendous amount of data available to procurement and category management, but harnessing it and getting it into the hands of the supply professionals was the challenge.”

What does the future hold?

Ann believes that the most competent procurement professionals will take the onslaught of Artificial Intelligence entirely in their stride. As she puts it, in a message to “The Change Resistant”:

“The train has come to the station. You have the choice of getting on it – and we’ll help you with the ticket – or you can be run over.”

The bottom line, she says, is that “people may well have been successful in the past, but the world is changing and you need to change with it, or it will pass you by.”

As far as procurement roles being totally displaced by AI, Ann is sceptical at best. “I don’t think the advent of new technology really changes a procurement role. Those with an ability to look at the long-term picture will be able to incorporate that into their strategies. Look at how the future is evolving and the possibilities it presents and work out how you’re going to work with the firm and with your supply base to extract the maximum value.”

Permission To Fail, Please!

It’s apparent that Ann rates a good procurement leader as much as, if not more than, someone who’s AI-ready.  “The harder thing for many organisations is having a management team that allows employees room to stretch and fail, that lets them try new things without instilling a fear of repercussions. There is such a thing as a successful failure. People are loath to say a project they’ve run hasn’t worked  out, fearing they will be judged on its success or failure. But occasionally  encountering a failure is a part of the journey to improvement.”

Procurement leaders can effectively work as safety nets for their teams. They should allow enough flexibility but know when to pull the plug to avoid too much fallout.

“I was in my position at Sodexo for 11 years. It allowed us to do things like put in some industry-leading systems, change the way we worked with suppliers, and harvest a culture of continuous improvement. In this time the continuous improvement team came up with several far-fetched ideas and used the leadership  team as a sounding board. It’s useful to invite new ideas and to have an off-the-wall ways of looking at things.”

Of course, not everyone thinks in this way. The key is finding people who have strategic vision. “Leaders should be on the look out for hires who have an intellectual curiosity and the courage to tickle the edges of things that are scary.  Embracing functional diversity is important in achieving this – perhaps your next star will come from legal, or IT, or straight out of college?”

Once a CPO, always a CPO

She might be retired, but its clear to see Ann still lives and breathes procurement. “I have people from past roles who, surprisingly, come back and approach me for our old heart-to-hearts”. She holds­­ board positions and still mentors younger professionals.  Safe to say there’s a spot for her on our board any day!

We concluded the interview with a final piece of advice from Ann; “If you’re a CPO, think about how you best position your company for tomorrow. Keep an eye on emerging technologies and bring the conversation to the table.” In other words, don’t miss the train!­­

 

Don’t Be Afraid To Kick A Colleague When Negotiating

In a major negotiation, procurement needs to deal not only with the supplier representative on the other side of the table, but with the internal stakeholder sitting next to you. If that person deviates from the script – as they so often do – then don’t be afraid to kick them in the shins. It’s your job!  

Procurious was invited to attend a Negotiation Roundtable organised by CABL (Conti Advanced Business Learning) and facilitated by its Founder, Giuseppe Conti.

Conti introduced the subject by pointing out that in many negotiations, it isn’t enough to negotiate with the suppliers. Usually, there’s a minefield of internal negotiation to get through first.

Don’t enter the maze without a map

Håkan Rubin refers to his company (IKEA) as a “matrix organisation”, and therefore sees stakeholder mapping and management as crucial before any sourcing activity. In his role as Supply Chain Operations Leader (Group Sustainability Innovations), Rubin says that identifying who the key players are internally isn’t always that obvious. “We try to get everyone on board, to make sure that resources are available and that everyone feels they are involved.”

Paul André, Emerging Products & Commercial Supply Director at JTI, built upon Rubin’s point: “I find that even though you’ve carried out your stakeholder mapping and have a joint meeting with key people involved, a lot of discussion happens outside of that meeting. What happens between the meetings is often more important, where people agree on things in one-to-one discussions.”

Overcoming resistance

Kemira’s Senior VP of Global Sourcing, Thierry Blomet, examined some of the typical resistance that procurement faces from internal stakeholders. “They have restrictive time constraints, heavy specifications, and often want to select suppliers based on past history and how comfortable they are with using them. It’s often challenging for procurement to convince stakeholders that there’s a better option against so much resistance, especially in a conservative industry not willing to take on the adventure of new technology or new suppliers.”

Xinjian Carlier (Strategic Sourcing Commodity Manager -Honeywell) shared an example of how she overcame resistance to a request for extra resources to deal with a major issue with significant financial impacts. “The reaction was ‘we don’t have time – I can’t give you the resource.’ I explained that the reason I came to them was that the company including both procurement and engineering would suffer an impact of hundreds of million in sales. Basically, I converted the issue into facts and put both of us in the same boat. This helped the senior leader in engineering understand, and reprioritise his resources.”

Resolving conflicting objectives

Laurence Pérot, Head of Global Supply Chain & Procurement at Logitech, comments that particularly in larger organisations, it’s procurement’s responsibility (and challenge) to juggle differing objectives and agendas from varied teams. “When you’re dealing with different functions, it sometimes isn’t clear what the company actually wants out of the negotiation. It means we [procurement] are unsure what we’re going to ask for. I had an experience where we had to make the decision on our own about the objectives on behalf of the rest of the community, because we couldn’t get alignment between the functions.”

Procter and Gamble’s Global Capability Purchasing Leader, Tamara Taubert, adds that procurement owns the discipline to be able to turn around complex, multiparty negotiation effectively. “To do that, our stakeholders need to get educated on what a negotiation is, the do’s and don’ts, and their role in the negotiation itself. The procurement representative might be the only person sitting at the table across from the supplier, but there are others involved in the negotiation, whether they like it or not. Procurement can lead by connecting all parties together and help them come to a value agreement.”

Staying in control

Blomet has found that engineers are generally happy to be guided by procurement as they’re often less experienced in negotiations and sourcing events. But when senior business stakeholders step in, it’s often more challenging for procurement to keep control of the process. “Business stakeholders are more likely to say that they know how the negotiation should be handled. Procurement may be tempted to back off at this point, but my advice is don’t back off. It’s even more important to help set the scene, do the roleplay, and keep them under control both during the preparation phase and during the meeting itself. And yes, this means it might be necessary to kick someone under the table if they deviate from the script.”

Alessandra Silvano, Global Category Director Capex and MRO at Carlsberg Group, says this has happened to her. “I had to ask someone who was not keeping to the script to leave the room. This person was becoming emotional and I could see we would be left in a bad position. I called a time-out, we took a break, left the room, and the supplier stayed behind. Eventually, we went back into the meeting and said we’d like to continue in a smaller group – leaving out the person who was not playing according to the script.”

Francesco Lucchetta, Director of Strategic Supply at Pentair, noted that although emotion can cause people to leave the script, it’s part of the negotiator’s toolset. “There’s a difference between playing with emotions and keeping negotiations under control. In a supplier negotiation, you’re the customer, so you can be much more emotional than they are. In an internal negotiation, you’re more likely to change a stakeholder’s mind by pointing out the emotional/risk side of the issue, rather than presenting facts around savings.”

Interested in attending a CABL Negotiation workshop? Visit http://www.cabl.ch/ to find out more. The founder, Giuseppe Conti, has over 20 years of Procurement experience with leading multinationals and over 10 years of negotiation teaching experience at leading Business Schools (including Oxford, HEC Paris, IMD and ESADE).

The Brexit Horror Show: It’s Going To Be Rocky!

We all like to watch a good horror show.. but UK customs trying to manually process our imports? Entertainment it is not!

Are you ready to watch the Brexit horror show unfold?

The National Audit Office (NAO) pubilished a report last Thursday reviewing HM Revenue & Customs’ development of the new Customs Declaration Service (CDS).  The system is being developed in an attempt to manage the predicted 255 million UK customs declarations per year (an increase from 55 million)  once the UK leaves the EU.

But, with a significant amount of work still to be completed before March  2019,  many are concerned about what chaos might ensue.

Amyas Morse,  head of the NAO, did little to disguise his own concerns when he briefed the media on the report this week. He warned of a potential “horror show” at customs if the transition to CDS is not made by January 2019.

He said “What we don’t want to find is that, at the first tap, this falls apart like a chocolate orange.”  (Yep, we were confused by this too – it’s well known that Terry’s Chocolate Oranges are not known for their fragility; hence the marketing slogan “Don’t tap it, whack it!”.)

“It needs to be coming through as uniform, a little bit more like a cricket ball” he continued.

What Is The Customs Declarations Service?

The CDS is a new system, which will be installed to manage all imports and exports post-Brexit, replacing existing system, Customs Handling of Import and Export Freight (CHIEF).

CHIEF can currently process only 100 million declarations per year.  This leaves no question that a new system is needed given that HMRC are estimating an increase to 255 million once new trade and customs agreements are made during Brexit.

Completion of the installation is forecasted for January 2019 which doesn’t allow much room for error or delay given that the UK will officially leave the EU in March 2019. Indeed, the report confirms that there is still a “significant” amount of work to complete and a number of vacancies to fill, which means there’s a pretty good chance that the full functionality of CDS won’t be ready in time.

Ironically, in 2016, the UK came fifth out of 160 countries in the World Bank’s ranking of the efficiency of the border clearance process, including customs. Time will tell if this can be maintained post-Brexit!

Why Should Businesses Be Concerned?

The National Audit Office believes the government is only just starting to realise how difficult Brexit will be.  In a worst-case scenario it would become impossible for customs to collect the £34bn of duty, excise, and VAT taken at the border every year.

Customs officials might have to manually process imports and exports if the new electronic system is not in place, which would of course be a nightmarish scenario for businesses and their supply chains.

Mike Cherry, chairman of the Federation of Small Businesses, said “It’s extremely concerning that the UK’s new customs system may not be ready in time for Brexit, potentially resulting in massive delays to trade and leaving thousands of businesses in the lurch.” And hat’s not to mention a lack of confidence businesses will feel in the UK if their flow of goods is disrupted.

“Can government actually step up in these very difficult circumstances and deliver a unified response?” Morse asked. “I’m not seeing it yet.”

The report, and the alarming comments made by Amyas Morse will no doubt increase the pressure on the prime minister to re-evaluate Brexit progress and policy, but will it be in time to stop a customs horror show?

Let us know your thoughts on the NAO report in the comments section below. 

In other procurement and supply-chain news this week….

Bangladesh Factory Blast

  • Major European buyers of apparel supplied by a Bangladesh garment plant have started investigations after a boiler explosion in the plant killed 13 people and injured dozens
  • The explosion occurred during maintenance work at the factory, whose top buyers include Finnish fashion chain Lindex, which is part of Stockmann
  • Stockmann communications manager Anna Bjarland confirmed to SM that the factory supplied garments to both Stockmann and Lindex saying that the company was investigating

Read more on Supply Management

Hazardous chemicals in Tesco’s clothing supply chain

  • Tesco has joined a growing list of major high street retailers in beginning to remove chemicals thought to be hazardous from the supply chain of its clothing brand
  • Greenpeace said Tesco will immediately begin the process of eliminating 11 groups of hazardous substances from its F&F brand, including phthalates, brominated and chlorinated flame retardants, chlorinated solvents and heavy metals
  • Alan Wragg, technical director for clothing at Tesco, said: “This commitment is part of our goal to protect the environment by sourcing products sustainably and responsibly for our customers.”

Read more on Business Reporter 

Could China lead the way with AI?

  • In the battle of technological innovation between East and West, artificial intelligence (AI) is on the front line. And China’s influence is growing
  • China has invested massively in AI research since 2013, and these efforts are yielding incredible results. China’s AI pioneers are already making great strides in core AI fields
  • It is becoming clear that belief in U.S. dominance of the tech world is flagging. As it stands, China is in the driver’s seat

Read more on Venturebeat