All posts by Procurious HQ

Meeting of minds in pharmaceutical purchasing

The Beyond Group AG (“TBG”) will be launching its 2015 Productivity-in-Pharma Think Tank, building on the success of their 2014 gathering of minds of senior procurement leaders in the industry.

Productivity Think Tank from the Beyond Group

Kicking off in Frankfurt Germany on April 21, three separate day-long sessions (concluding in September) will help frame the discussion of what is the future of Procurement within the Pharma industry over the next several years.

Drawing together a select group of procurement professionals representing 15 of the world’s leading Pharma companies, TBG and its partners (EY [Ernst & Young], Korn Ferry, UBS, and others) will deeply explore the issue of “Transforming the Procurement organization to become a recognised productivity engine”.

The 2015 series promises to be the most intensive, content-packed, and insightful of this groundbreaking series.

Contrasting with the traditional conference environment, TBG’s Think Tank gatherings offer ‘learning collaboration’ through in-depth & insightful exchanges among industry peers, academics, thought leaders and practitioners. These intensive sessions build upon experience, expertise, and research in a closed-door environment where executives can really get into the detail of their challenges and aspirations. From this gathering of minds, TBG publishes key findings, generates new research and creates a close community of leaders who explore the biggest opportunities to develop Procurement’s role.

Conceived by Giles Breault and Sammy Rashed, principals and co-founders of The Beyond Group AG, the Think Tanks have quickly evolved into a new model where “content is king” and outcomes are published and presented to the wider procurement community. Some of the feedback gathered from previous participants include:

“The Productivity Think Tank concept is a great opportunity bringing together a focused group of international peers around a relevant topic. Half-way between a symposium and structured meetings with peers, the Think Tank combines the benefits of both worlds with deep analysis, strong networking, useful outcomes, and applicable takeaways”

“It’s a mix of academic expertise, real world experience and cross-industry best practices which allows us to collectively create solutions that fundamentally change the way we look at procurement and value its contribution”.

This year’s European series is limited to a maximum of 15 member companies. It will be followed a new series for the North American region this fall and expanding to the Asia market in 2016.

For more info please contact us at info@beyondgrp.com or visit our website at www.beyondgrp.com.

DHL talk key packaging trends of 2015

Ahead of the UK’s biggest packaging event later this month Paul Young – Head of Packaging Services at DHL Supply Chain, shared his thoughts on future packaging trends with Procurious. 

DHL packaging innovations

Taking place at Birmingham’s NEC on 25-26 February 2015, Packaging Innovations 2015 will bring together the very best in the packaging and print industry from right across the globe.

Now in its tenth year, the expo will be home to  over 350 exhibitors specialising in all aspects of packaging from materials and design, to machinery, new technologies and equipment.

Here’s what Paul had to say:

 What innovations are enabling new capabilities for packaging?

From the use of new substrates to digital technology, a number of innovations are enabling new capabilities for packaging. Edible and dissolvable packaging are becoming more prominent as companies focus on their environmental agendas, whilst QR codes have created packaging capable of communicating with the consumer in a more interactive way.

It’s important that packaging solutions should fit the product and company values. Creating edible cups, for example, will emphasise a brand’s environmental credentials and reduce waste, whilst packaging that incorporates a digital element can engage consumers with the wider brand on multiple platforms.

What are the key packaging trends of 2015?

A study commissioned by Tetra Pack found that 89 per cent of consumers prefer to buy products in recyclable packages. This is therefore a key trend for 2015. As consumers are increasingly aware of environmental concerns, they wish to make efforts to cut down on their personal environmental impact.

Digital print is another trend to watch. Currently, labelling has been the area most impacted by digital print, however as the quality of products has significantly improved we expect to see more packaging created in this way over the year.

Is sustainable packaging high on the agenda for many customers? 

Sustainable packaging has a number of benefits for customers. It allows customers to demonstrate their environmental credentials and improve brand perception as well as reducing unnecessary, non-recyclable wastage.

Computer manufacturer Dell, have been using bamboo to ship 70 per cent of their laptops and packaging multiple products in the same box where appropriate. This strategy aims to save Dell US$18 million between 2008 and 2018 as well as generating substantial environmental benefit.

Are there any new ways in which packaging waste is being reduced in the manufacturing process?

Minimising the packaging size for any given product reduces packaging waste during the manufacturing process. Recently, Chainalytics, a supply chain consultation and analytics organisation, reduced the size of packaging for a prepared food product by one eighth of an inch and in doing so eliminated 146 tonnes of paper and cardboard annually.

Creating custom sized boxes for less-than-full-case orders is another way in which packaging waste can be reduced with smaller boxes able to compactly hold products, thus eliminating excess wastage.

Which new technologies are increasing packaging efficiency?

Technology, such as ‘on-demand’ packaging equipment, creates custom sized packaging and significantly improves packaging efficiency.

Office giant Staples has been using this cutting edge technology to create 6,000 to 8,000 custom sized boxes each day so that 30 per cent of the orders the company ships are now custom sized. As well as enhancing the consumer’s experience of the package, this has enabled Staples to accommodate more orders in each delivery, transporting products with increased efficiency.

What mistakes are companies [still] making when it comes to choosing their packaging strategy?

Companies are much more aware of the importance of packaging however some mistakes are nonetheless made. For example, online retailers often do not consider the impact of the packaging they choose for specific products. This can lead to potentially harmful situations for the consumer, for example, liquids packaged in basic cardboard boxes, highlighting the need for effective, product specific packaging.

Many companies still need to be aware of what packaging strategy is most advantageous to their business. Whilst sustainable packaging is of importance to many consumers, re-usable packaging may instead reduce waste further and reap financial better benefits.

Generation ‘Why’? Debunking the Millennial Myth

Professional Services firm, PwC estimates that by 2016 almost 80 per cent of its workforce will be Millennials. In light of this frankly staggering statistic we would like to dispel some of the myths that surround the ’next generation’ of procurement professionals.

The rise of the Millennial workforce

Who are the Millennials?

A Millennial is the term attributed to someone born between the early 1980s and early 2000s. You might also know them as ‘Generation Y’.

The stereotype

In recent years Millennials have garnered much criticism from their baby-boomer counterparts. The New York Post even went so far as to label them ‘the worst generation’ ever.

If you believed everything you read in the mainstream media, you’d see Millennials as a generation of entitled, delusional, lazy workers with a penchant for replacing traditional social interactions with a series of web enabled applications.

However, these presumptions that a Millennial workforce is one that is constantly looking for a new job, requires extended holiday leave, possesses an inflated sense of ability and prioritises work-life balance over remuneration, are neither fair nor accurate.

The reality

A recent study by SAP (a German software producer) has gone some way to dispelling the myths attached Millennials, claiming that the ‘next generation’ of worker shares more with the rest of the workforce than many of us first thought.

The study points out that Millennials are in fact no more likely to prioritise workplace ethics, work-life balance or salary expectations in a different way to any other generation.

The report provides the following stats to support these claims:

  • Competitive pay is the biggest motivator for job satisfaction for both Millennials (68 per cent) and non-Millennials (64 per cent).
  • The second biggest motivator for job satisfaction for both groups was a merit based reward system and bonus structure. (55 per cent Millennials, 56 per cent non-Millennials).
  • Despite what stereotypes suggest, fewer Millennials (29 per cent) reported that achieving work/life balance would contribute towards professional satisfaction than did non-Millennials (31 per cent).
  • Similarly, more non-Millennials believe that ‘finding personal meaning in work’ is important (17 per cent) than did Millennials (14 per cent)
  • A meagre one-fifth of each group suggested that making a positive difference in world impacted their job satisfaction.
  • In other stereotype-breaking findings, more non-Millennials (23 per cent) are considering leaving their job in the next six months than are their Millennial counterparts (21 per cent).

Whether our preconceptions were correct or incorrect, the Millennials have arrived. They are the largest generation ever and they possess the greatest collective largest purchasing power in history. What they believe, how they work and the way in which they interact will matter.

Disclaimer – This article was written, edited and posted by a Millennial.

Straw houses: no need to fear the Big Bad Wolf

We’re all familiar with the tale of the three little pigs and how the Big Bad Wolf blew down the first little pig’s house, a questionable dwelling built entirely from straw.

First straw house goes on sale in UK

Apart from having us wonder how it stood up in the first place without a frame, we all grew up knowing that a house made of straw was a bad idea.

However, an engineering research project in the UK is showing that maybe the little pig was ahead of his time in construction innovation. This week, the first straw houses offered on the open market in the UK are up for sale.

So huff and puff as much as you like, but you’re going to have to try harder than that to blow these houses down!

Building with bales

The research project was the brainchild of the University of Bath and Modcell, a specialist architectural firm. The hope is that the research, and the subsequent sale of the houses in Bath, will lead to the wider use of straw bales in construction.

The benefits of using straw are worth noting. Straw bale houses are more environmentally friendly to build and maintain than traditional brick houses and with proper care, the house will last for up to 100 years.

As straw is a natural material, the requirement for the production of raw materials will be reduced. This will in turn lead to a lower carbon footprint for the supply chain as the processes for manufacturing cement and firing bricks, both of which require high energy usage and generate substantial waste, will not be required.

Straw can be sourced relatively easily. Each year, UK agriculture produces an estimated four million tonnes of straw, of which only a small proportion is used, with the remainder just being burned. A new house would require seven tonnes of straw to build, meaning that there would be a potential to build half a million new homes from the straw produced each year.

Not only are the building method and supply chain more environmentally friendly, but also the houses themselves have significantly lower running costs and environmental impact. The bales provide highly efficient insulation and retain heat more effectively than their brick counterparts. The expectation is that the houses in Bath will have energy bills that are up to 90% lower than similar houses in the area.

Innovative construction

In recent years, the construction industry has made significant strides to reduce the environmental impact of and waste in its supply chain. Innovations have included:

  • The ‘house in a box’
  • The use of recycled materials in concrete – leads to reductions in fossil fuel and greenhouse gas production, rain acidification potential and waste
  • Bio-based composite building materials
  • Roof tiles that remove nitrogen oxide from the atmosphere

It’s hoped that these innovations, plus the potential for a wider market for straw houses, could lead to a much more sustainable supply chain and industry as a whole.

For more on the straw houses go to http://www.modcell.com/.

Read on for more of the biggest stories commanding headlines right now:

New guidance aims to keep products of pirate fishing out of UK supply chain

  • Illegal “pirate” fishing damages the environment and human rights, and leads to economic losses of as much as $23.5bn (£15.3 bn) a year, according to fresh guidance which aims to help British businesses keep illegal fish products out of the supply chain and stamp the practice out.
  • A briefing published by retailers, conservation and human rights groups sets out in full how retailers and suppliers should act to end the long-term threat to the oceans, while building up legal and sustainable fisheries.
  • The briefing by the British Retail Consortium, Environmental Justice Foundation and WWF UK is to inform UK industry, retailers and brands of the risks associated with illegal, unreported and unregulated or pirate fishing. It offers advice on risk-assessment and mitigation, and encourages action to prevent illegal fishery products entering UK supply chains. As much as 26 million tonnes of illegal fish products is involved annually.

Read more on The Guardian

Fresh row for Tesco as supermarket giant demands suppliers cut prices as food commodity values fall

  • Tesco risks a fresh dispute with suppliers after it demanded they cut their prices or risk being dropped from supermarket shelves.
  • The grocer has written to suppliers asking them to reflect recent falls in the cost of commodities such as wheat and sugar. In some cases, those who do not decrease their prices have been told they risk being ditched by the supermarket in favour of cheaper rivals.
  • The revelation comes only days after the grocery giant faced a fresh investigation into claims that it bullied firms that it buys goods from. A probe by the supermarkets watchdog the Grocery Code Adjudicator has begun over allegations it charged huge sums to place suppliers’ wares on prominent shelves, even if they were not on promotion.

Read more at This Is Money

How Will Global Supply Chains will be Impacted by Obama’s Budget?

  • In his 2016 budget plan, to be unveiled today, President Obama will propose that U.S. companies’ overseas profits be taxed to fund a major boost in infrastructure spending. These tax proposals could change the way the Tax Efficient Supply Chain (TESC) operates.
  • When highly profitable companies pay little in the way of taxes, negative press coverage can ensue.  But CEOs are asked by financial analysts about their corporate wide effective tax rate (ETR) all the time. This can be a no win situation for a CEO. A company with a high effective tax rate is at a significant disadvantage to industry competitors with low tax rates, particularly in the company’s ability to grow the business. And ultimately a CEO’s tenure is often most strongly impacted by the financial community’s view of his company’s performance.  Not surprisingly, many large companies have restructured to lower their tax burden; it is not unusual for these companies to lower their ETR by about five percent.
  • While supply chain cost savings fall to the pretax bottom line and improve a company’s Net Income position, corporate tax restructuring increases deferred revenues.  Some large corporations are sitting on tens of billions in deferred earnings that can’t be used for stock owner dividends, without being taxed at US rates, but can be used to fund growth and thus future earnings, in a variety of ways.

Visit Logistics Viewpoints to read more

Distribution demands drive investment in logistics properties

  • Ecommerce is fuelling a boom in logistics property investment in Europe, as retailers try to keep pace with changing consumer demands.

  • Investors pumped €19.8bn into properties such as warehousing and distribution hubs in 2014, a seven-year high and a 34 per cent jump year on year as companies scramble to adapt to evolving supply chains and developers position themselves to profit from the thriving sector.

  • The UK led the way, with investment in the sector jumping 65 per cent to €7.9bn, according to Property Data. But investment accelerated on the continent too, as European eretailers expanded and cross-border ecommerce took off.

  • “You’re doing the stuff inside the distribution centres that you used to do inside the shop . . . Companies are having to reorganise their distribution logistics,” said Alan Braithwaite, chairman of LCP Consulting.

Read more at the FT.com

The businessfriend platform offers new way for supply chain execs to do business

  • In a world full of technology, it can become a hectic existence trying to wade through the myriad of business apps as part of your day-to-day working life. But there is a new platform on the horizon which could solve this issue for supply chain executives.
  • Businessfriend is the one-stop communications channel that helps you stay connected with the people and professionals that matter the most to you. Whether that be warehouse operatives, production line managers or managing directors. Consolidating the noise with one effective business communications platform, businessfriend launched on 6 January during the three day CES event in Las Vegas, and it promises to redefine how business is done in the supply chain sector.
  • Glen White, Founder and CEO of businessfriend, said: “On any given day, the typical young professional can have as many as five platforms open to get them through their day. “We offer one complete forum that enables constant connectivity for optimal business communications. One mobile app, one desktop, any device – no more juggling apps.”

Read more at Digital Supply Chain

McDonald’s and the Challenges of a Modern Supply Chain

  • Recently, McDonald’s, the world’s iconic largest food service provider, has been (forgive the cliché) through the grinder. Poor performance has led to the departure of its CEO and plenty of critical attention in the business pages. Part of this story relates to the provenance, or origins, of its products: Chains that provide more upmarket “fast casual” dining such as Panera, Chipotle, and Shake Shack have brands that speak of freshness, health, and trustworthy sourcing.
  • In 2010, I wrote an HBR article predicting increased interest in supply-chain transparency: firms needed to develop strategies for knowing and explaining where stuff comes from. Since then the idea of product provenance has steadily crept up the corporate agenda and is now a compulsory issue for boards and governments. In the UK, for example, legislation is in progress that would build on the California Supply Chain Transparency Act, potentially applying to wider range of firms. Across Europe, the 2013 horsemeat scandal generated widespread panic about contaminated meat. In a wide range of industries — electronics, software, toys, aerospace — provenance is increasingly a critical concern.
  • McDonald’s woes offers three lessons for others about supply-chain transparency. Visit Harvard Business Publishing to read them.

How to reap the benefits of the conference circuit

How to get the most out of conferences

At Procurious, we’re obviously big advocates for online social networking, we’ve outlined the career and personal benefits of partaking herehere and here.

However, we want to use this blog post to remind you all of the importance of incorporating traditional face-to-face events and conferences into your networking program.

Should you need any convincing, we’ve listed some of the benefits you’ll reap from attending conferences and events below.

You’ll get a sense that you are not alone in the world

Lets face it, procurement can be isolating at times. Have you ever sat at your desk and questioned your approach to a certain problem? It could be negotiating new terms with a supplier or trying to get a bigger slice of your CPO’s time. Well chances are in hundreds of offices across the world, other procurement professionals are pondering exactly the same problems. Conferences are an opportunity for you to meet these people, share your challenges and potentially come up with some solutions.

You’ll learn about the full breadth of your industry

At a good conference, everyone is present: be it tech providers, consulting groups, journalists or fellow procurement professionals. It’s incredible to see the diversity of companies and potential careers that are supported by the procurement function.

You’ll be exposed to new technologies

Conferences are a place where technology providers and consulting groups come to pitch their wares. While sales calls from these organisations may be disruptive and tedious while you’re at your desk, at conferences you have the opportunity to sit back and evaluate these solutions on their merit. Not sure about the new supplier relationship management tool you heard about before lunch? Why not find someone from a company that has already implemented the solution and get the inside word?

You’ll get an opportunity to take stock

Taking time away from the office to step back from the day-to-day and engage with other professionals on a strategic level can help to refocus your efforts when you’re back at the desk. Conferences not only provide a new perspective on old problems, they also serve as a great opportunity to reinvigorate your efforts.

It’s an opportunity to position yourself as an expert

Whether it’s a formal presenting role or simply speaking-up during a roundtable discussion, conferences provide a pedestal for you to display your knowledge and expertise. Events are a fantastic opportunity to grow your profile within the function.

You’ll experience a diverse range of opinions

While you may not agree with everyone’s point of view (how boring would the world be if you did?), the opinions of others will challenge your own personal beliefs and may encourage you to tackle issues from another angle. Unless you’re certain there is no way you could possibly improve as a procurement professional, it is definitely worth listening to what others have to say. As Einstein said, “insanity is doing the same thing over and over again and expecting different results.”

You’ll have fun

One Republic will play at Microsoft Convergence this year (maybe that’s not everyone’s idea of fun), Boris Becker presented the trophies at last year’s Procurement Leaders Awards and Bill Clinton is popping up more frequently on the corporate speaking tour. So, despite what many say, conferences can be a great opportunity to have fun! Great food, open bars, hotel rooms and exciting cities – what else do you need?

You can turn it into a vacation

The procurement conference schedule is packed with events lined up all over the world. Savvy conference organisers have figured out that you are more likely to attend events towards the end of the week and have adjusted their timetables accordingly. What this means is that conferences have become a great excuse for you (and your loved ones) to take an extended city break. Further your career and win some brownie points with your spouse in the same week? No brainer!

Remember, at these events engagement is key. Don’t be shy, get out and talk to people, tell them your problems, listen to theirs, talk about the presentations, interact, learn and enjoy. The more conferences you attend, the easier the networking becomes – you’ll feel more comfortable catching up with the colleagues you’ve met at previous events and the benefits of these catch-ups will magnify.

Here’s the problem: convincing you on the value of conferences is the easy part, but ultimately it’s not you we need to convince is it? Your boss holds the budget and has the final say as to whether or not you attend conferences.

Keep an eye on Procurious because next week, we’ll give you a guide on ‘how to ask you boss to pay for your next conference’.

How to navigate the tricky path to procurement accreditation

Procurement accreditation and qualifications

At Procurious, we are all about changing the face of procurement and encouraging and engaging with the next generation of procurement professionals.

Discussion wraps allow us to consolidate the knowledge of the whole community and keep the conversation going on the key issues and themes.

Achieving and Leveraging Professional Accreditation

People are constantly looking to develop personally and professionally. A number of questions have been asked about accreditation – routes for achievement, how it can be leveraged, is it worth it and how to get into it.

There are a few routes for accreditation open to procurement professionals, with the most common being CIPS through study and exams, an MSc through an accredited university or distance learning.

While there was no consensus on the best route to take, there was a consensus that having these qualifications and being a member of CIPS was necessary for procurement professionals and often used as a requirement for recruitment.

Things to consider when selecting a route were:

  • Practical application
  • Acceptability in your organisation
  • Balance of theory vs. practice
  • What your long-term career goals are
  • What you as an individual want to do

One of the agreed themes was that many organisations would sponsor studying through the CIPS route, as they push for their departments to be adequately qualified.

Having achieved MCIPS, or other accreditation, the question was could you leverage it in salary or promotion negotiations.

The consensus from the community was that these qualifications added value to your personal offering, but that having them would not normally lead directly to an increased salary in isolation.

It was important to demonstrate improvements, highlight practical applications and present a track record of accomplishments to managers in order to properly leverage qualifications.

For more on routes to MCIPS, go to the CIPS website: http://www.cips.org/en-GB/membership/What-is-MCIPS/Routes-to-Membership/

For distance learning opportunities, check out the recommendation from the community of Canban: www.canban.org

What is a Purchasing Managers Index? PMI explained

You may have heard of the Purchasing Managers Index (PMI) in the media recently and questioned what it was. The index was used on Monday to show a slowing in China’s manufacturing sector and again on Wednesday when discussing the strength of the Canadian economy.

What is the Purchasing Managers Index

Here is a brief run down on exactly what the PMI is:

PMI is essentially a means for economists to understand economic activity in a particular area based on the outputs of its procurement departments.

The index is generated monthly by surveying purchasing managers activity across five key indicators. These being: new orders, inventory levels, production levels, supplier deliveries and employment environment.

Once the results have been collated, a PMI score is produced. A PMI of above 50 represents an expansion in economic activity over the previous month. Anything below 50 represents a contraction.

The PMI indicator is used extensively by economists because it is thought to be one of the most accurate leading (or predictive indicators) for the future health of the economy.

What’s procurement like in your part of the world?

At the time of writing Procurious boasts members from 100+ countries, is yours represented?

Procurious boasts members from 100+ countries

We’re truly global

Yes we may keep a map of the world on the wall at Procurious HQ… What of it?

From Azerbaijan to Zambia, Procurious members circle the world! If you’re just casually browsing the site, why not join up and stake a claim for your part of the world?

We want to hear your stories! How well is procurement represented, what’s it like being a procurement professional – how does it differ from elsewhere in the world? Drop us a line if you’d like to be featured, just like Helen, Happymore, Hal, and Sergio below:

Exciting times ahead for Scotland

We asked Helen Mackenzie about procurement in Scotland:

“Not sure about the Scottish private sector but public procurement in Scotland is really buzzing at the moment.  The Scottish Government’s just got the new Procurement Reform Act through the Parliament and so sustainable procurement is high up on our agenda.  

There’s never been a better time to be in public procurement.  At last many of us are getting to take up our seat right in the heart of corporate management and decision making.”

Click here to read the rest of Helen’s piece.

Procurement in the USA? A different beast

Flying the flag for the US, Hal Good could only estimate when quizzed on the number of working professionals throughout the 50 constituent states:

“In 2008, according to the Department of Labor, there were 68,000 “purchasing mangers” employed in the US.  The latest Bureau of Labor statistics estimated 504,600 “jobs” for Purchasing managers, buyers and purchasing agents.”

How does it differ exactly? “Contractors doing business with the US Federal Government, are committed to utilization of the FAR program which gave rise to the National Contract Association (NCMA) and its educational programs and credentials.  

This has spawned a difference in terminology and to some extent practices within the profession in the USA itself, as well as with the rest of the world.  That is probably due to the vast influence of CIPS in the international arena.”

See Hal’s answers in full.

What does procurement mean to developing countries?

Procurious member Happymore Mambondiani previously spoke to us about some of the challenges procurement poses in his home country – Zimbabwe:

“Currently procurement is undertaken by unqualified personnel in the majority of organisations in the country be it in the public or private sector.

In Zimbabwe (unlike other countries where procurement has grown as a profession), procurement has not yet developed into a function. Instead it has been lumped into a wing under the finance department – this is true except for all but the biggest firms like Tangaat Hullets (a sugar producing company) in the South East Low veld of Chiredzi/Triangel.

At a National level procurement is undertaken by the State Procurement Board which is under the Ministry of Finance. The State Procurement Board should be a ministry dedicated to the handling of government purchases of goods and services.”

See more of what Happymore has to say here.

Italy: home to some of the best negotiators in the world…

Procurious’ greatest Italian advocate – Sergio Giordano, explains how procurement has been split into two:

“Once Procurement in Italy was ’emotional price negotiation’ the Italian Procurement professional was one of the best negotiator in the world … but nothing else. Today in Italy things are partially changed, there are two distinctly separate worlds in procurement management – 

  • The large national and multinational companies in which the concept of Procurement has evolved (not just negotiating the price but the TCO, the knowledge of local and global market, management of the relationship with suppliers, the use of e-Procurement, Lean Procurement approach, etc…) they use the same “tools” and strategies of the most competitive and advanced European nations.
  • SMEs (92% of the Italian companies). Today SMEs are realising that joining in network can help to become competitive to the market as large companies and things are changing also in the Procurement management.

However, in Sergio’s opinion one distinctive difference will always remain: “during the negotiations Italians tend to play ‘Poker’ instead of ‘Bridge’…”

Hear more from the great man – view his comments in full.

PwC on business intelligence systems and organisational change

50 per cent of the costs of public sector administration and service delivery are incurred through procurement. Contracts are getting more complex. More is expected of them. BiP Solutions know this and as a result have enjoyed considerable success with their Procurex Live brand. 

Procurex Live has announced Southern and Northern dates for 2015

The 2015 dates for these procurement exhibition, conference and training events have recently been announced, use our Events listings to RSVP and secure your place below:

Procurex South Live 2015
Procurex North Live 2015

Both events have been designed to support commissioners and procurement practitioners to meet the ever-increasing expectations of politicians and the general public. They will also offer guidance to SME’s in winning public sector contracts through a range of training and networking opportunities.

Henry Needler – PricewaterhouseCoopers (PwC) Senior Consultant, is set to appear across both dates. In the North, audiences can hear his take on business intelligence systems:

“Generally with business intelligence, we’re trying to understand what the business is doing but also understand where the market is going and anticipate that and forecast it so that they can get the best possible deal in the marketplace. In terms of the alpha aspect, that’s focused on what local SMEs can do for big organisations going out and buying services so that money is invested back into the local economy.”

At the Southern event he will explain how procurement professionals can use and analyse data to make better decisions and optimise value for money for their organisations.

As a senior consultant at PwC, Henry’s role is to help clients implement procurement-led transformation within their organisations. Here he explains:

“It’s about how you can engage local markets best. It’s a case of understanding what that market can provide or what the suppliers can provide and about making sure you do whatever you can to engage a company and ultimately help them survive.”

Henry believes that Procurex Live is a good platform for businesses to learn about the procurement marketplace and how it is set to change:

“I think that it should help them understand where the market is going because consumer retail (you and I) is far more real time now. We can find a product and within a few seconds we can immediately compare prices, identify similar products and get some information so that, without a lot of effort, we can go into a traditional shop already very well informed.

Going forward, client organisations, councils, central government or manufacturers are going to be dealing with somebody in procurement who can immediately compare those prices so they end up in a more dynamic and fast-moving marketplace than the traditional local authority procurement that takes forever and has long-term monolithic deals.

The way forward is going to be smaller, shorter-term deals which are looking to exploit the innovation which the market is generating. That’s exciting for the SMEs as they can see what buyers want and what the customer wants and the larger organisations should also be in a good position to meet those demands.”

For details of Procurex Live and other professional events view our full listings

Super Bowl XLIX: did it pay off for the advertisers?

Feeling a bit tired this morning? You might be one of the estimated 4 million Brits who watched the Super Bowl last night? Don’t worry, no spoilers here for those who have recorded it!

Super Bowl 2015 - how did the advertisers do?

If you did watch the game, or have been following the coverage over the last week, you will have heard almost as many stories about the adverts as you have about the game itself.

The NFL’s marquee event boasts an estimated 112 million viewers worldwide and, with breaks in play every few minutes and an extended half-time interval (complete, this year, with Katy Perry), the 30-60 second advertising slots are like gold dust.

What’s the big deal?

The size of the audience, profile of the game and the advertising tradition are just part of the attraction for big companies. Several studies have proven that 50 per cent of the Super Bowl audience tunes in just to watch the adverts.

Big names this year included Budweiser, Victoria’s Secret, Doritos and many more. From a marketing point of view, there isn’t another event anywhere in the world that gives companies an opportunity to get their brand into the public consciousness in the same way.

Conversations about adverts start weeks before the Super Bowl when the advertising line up is announced, and can last for weeks or months after, particularly if you nail the advert. Check out which adverts have gone down this year here.

Facts and Figures

  • $359 million – the estimated value of all the advertising for the Super Bowl this year.
  • $4.5 million – the cost for a 30-second advertisement at any time during the game. Divide it down and that’s an eye-watering $150,000 per second!
  • $42,000 – what the cost was during the first Super Bowl in 1967. Costs are increasing year on year at a massive rate.

And these costs are only for purchasing the slot from the network. Companies have to factor in creating the advert, with some going really overboard.

Does it pay off?

That’s the $4.5m question and the answer might be yes. In the coming weeks, the best adverts will be featured and shown in full on TV shows, blogged about, discussed and re-watched on YouTube. The PR value generated from this can quadruple the media cost for the advert.

In 2014, a survey of 37,440 U.S. consumers by the tech firm BrandAds found that the average Super Bowl ad increased viewers’ likelihood of buying the product by 6.6 per cent. Larger brands like Hyundai and Budweiser saw increases of 39.5 per cent and 37.8 per cent respectively.

Other companies have seen similar sales increases. Audi, with advertising slots during the Super Bowl since 2006, have doubled their market share, while Skechers (26 per cent) and Chrysler (54 per cent) have seen big increases in sales.

Worth the risk?

It’s still debatable even with figures like those above. There’s no guarantee that your advert will be a success and no guarantee you’ll see similar sales bumps.

But, even with that in mind, would you want to be the one name that wasn’t at the biggest party of the year?

The Super Bowl in Numbers

  • $10 million – the cost of the half-time show, paid for by the NFL. Artists aren’t paid but can expect considerable sales on the back of an appearance.
  • $58,780,000 – the sum total of the basic salaries of the highest paid players for the New England Patriots and Seattle Seahawks
  • $8 billion – the total gambled on the game (worth noting that in most states gambling is illegal)
  • 325 million gallons – the volume of beer drunk during the game
  • 1.23 billion – the number of chicken wings that were eaten in the US yesterday

Read on for more of the biggest stories commanding headlines right now:

Qatar Airways acquires $1.7 billion stake in IAG

  • As part of efforts to enhance operations and strengthen existing commercial ties initiated through codeshare agreements with IAG as well as its membership of the oneworld alliance, Qatar Airways has acquired a 9.99 per cent stake in IAG.
  • Non-EU shareholders of IAG including Qatar Airways are subject to an overall cap on non-EU ownership as a result of the requirement for EU airlines to be majority owned by EU shareholders. Qatar Airways may consider increasing its stake further over time although this is not currently intended to exceed 9.99 per cent.
  • Akbar Al Baker, Group Chief Executive of Qatar Airways, said: “IAG represents an excellent opportunity to further develop our Westwards strategy. Having joined the oneworld alliance, it makes sense for us to work more closely together in the near term and we look forward to forging a long-term relationship.”

Read more at Supply Chain Digital

Ex-Zomato CMO’s Yumist raises $1 million from Orios to deliver food efficiently

  • Yumist, a food delivery startup that started operations in Gurgaon in October 2014 has raised it’s first round of funding from Orios Venture PartnersYumist was founded by Alok Jain, a technology entrepreneur and ex-CMO at Zomato along with Abhimanyu Maheshwari, a seasoned F&B entrepreneur. to provide easy access to tasty and homely daily-meals.
  • A combination of food, logistics and tech, Yumist owns the entire delivery supply chain. It allows customers to place orders in a few seconds through it’s Android app and the meal is delivered hot in under 30 minutes.
  • The investment will be used by Yumist to grow it’s team, expand geographically and build it’s production, technology and delivery infrastructure.

Read more at YourStory

Walmart and Target move forward joint supply chain initiative

  • Walmart, Target and NGO Forum for the Future (FFTF) have set up three working groups to take forward actions agreed at last year’s beauty and personal care product sustainability summit. The groups will focus on aspects of chemicals in products, says Michelle Harvey of the Environmental Defense Fund, co-chair of two of them.
  • During the summit in September, priority chemicals and transparency emerged as one of the main issues to work on, according to an FFTF report. Delegates identified five areas for action. These included:
    • Making disclosure easier and more consistent, building trusted relationships along the supply chain and facilitating a willingness to share information.
    • Reaching alignment on the process of prioritising chemicals.
    • How to facilitate more research and development into alternative chemicals.
    • Exploring what stakeholders can do to contribute toward the industry’s sustainability efforts.
    • Engaging and educating consumers on the science behind priority chemicals in a way that is meaningful and accessible.

Read more at Chemical Watch

DWC unveils plans for aerospace supply chain facilities

  • Dubai World Central’s (DWC) Aviation District has announced the development of new aerospace supply chain facilities as part of its efforts in shaping a comprehensive ecosystem dedicated to the aviation industry.
  • Located at the DWC Aviation District – a 6.7 square kilometre master planned district adjacent to Al Maktoum International Airport – the development will include three facilities spread across an area of 45,000 square metres.
  • Estimated to cost $32.6m (AED 120 million), the project will feature a multi-purpose building for tenants that are a part of the aerospace supply chain and is scheduled for completion in Q1 2016.
  • Tahnoon Saif, vice president, Aviation District, commented: “This project marks the latest milestone in our journey to create value-added infrastructure for players across the aerospace supply chain spectrum.

Read more at Arabian Supply Chain