Category Archives: Big Ideas Summit

Procurement And Its Role in the Gig Economy

Predictions suggest that gig workers will represent a third of the workforce by 2020. What does the gig economy mean for procurement?

Register as an online delegate for the London Big Ideas Summit 2017 here.

The Gig Economy – an overused buzz phrase, refers to the growing number of people who work on a contingent basis. These people are not on a company’s payroll; they provide services on a consulting, freelance or temporary basis, either full-time or part-tine.

The number of people taking this route, because of a tight job market and pressures on the global economy, has risen dramatically in the past few years.

Millennials love the opportunities it brings and some over 55s are reinventing themselves in a new role. This is the new world of work. It is projected that gig workers will represent a third of the workforce by 2020.

Benefits of the gig economy for companies

Companies are struggling with rising labour costs and they need a workforce that can quickly adapt to market conditions. the benefits of a gig economy include:

  • Easily source skilled workers and experts for projects via on-line platforms or using third party staffing agencies
  • Scale their workforce up and down quickly to meet business demand
  • Increase speed of hiring and mobilisation due to simpler recruitment and faster budget approvals
  • Invest less in training and employee benefits
  • Reduce the cost of administration, office space and facilities

However, this attractive solution to the talent management headache comes with challenges for both Human Resources (HR) and Procurement.

What does it mean for the procurement function?

The procurement function is already benefitting by engaging contingent or temporary staff for its own use but has not fully explored the potential of the gig economy for filling job roles that are not repetitive or are not project-based. CPOs can ramp up their procurement savings and process efficiencies through using contingent workers more extensively.

Procurement  also has a role to play in the wider business, along with HR, to manage this growing trend. The ways of engaging with suppliers of services will change; potentially simpler contracts but using more specialist suppliers and even engaging with individuals.

What does it mean for the HR function?

Line managers will have staffing requirements and demands that HR has not experienced before, attracting and engaging a diverse workforce to satisfy their internal clients will require an adjustment in mind-set. It may help HR to engage with procurement professionals to apply tried and tested stakeholder management techniques.

  1. HR strategies for recruitment and retention will have to change.
  2. Policies for non-permanent employees must be more flexible
  3. Performance management measures such as key performance indicators (KPIs) will have to be adapted to suit the new ways of working
  4. More attention is needed to benchmarking market pay rates
  5. Additional effort is required to engage and motivate people working remotely

Risk and compliance

A bigger contingent workforce means increased risk. How do you manage to control hundreds or even thousands of workers that have access to your systems and technology?

It can become an HR nightmare to ensure compliance with policies and procedures and, at the same time, handle the administration. Specialist recruitment companies and HR service providers are relishing the opportunity and taking up the slack. They have experience in the legal and compliance issues in HR and have more capacity and energy to handle the day to day issues. Who sources and manages the outsourced services? Why, procurement of course!

Experts and advisors

There are also interesting developments among the more experienced and specialised independent consultants offering their services, especially in procurement. These people are not to be found through conventional recruitment channels, they are mobilising themselves into small professional services firms that network and collaborate to provide skilled professionals to commercial companies and government. 

Success factors for managing gig workers

  • Managing a remote and mobile workforce means providing the right collaboration tools and technology to ensure that they can honour their deliverables. Connectivity is the key: wireless links, video conferencing, internet access and suitable work spaces.
  • An organization needs to be agile enough to mobilise new teams and scale operations up or down to adapt to changing business needs. Inflexible polices, fixed locations and traditional office hours do not suit this solution.
  • A robust administration system is needed to manage a contingent workforce – external support may be the answer.

There’s no question that the benefits of the gig economy to an employer are many but it also comes with complexity.   Procurement and HR both need to play roles in this process but can they work together on the best solution?

No budget, no problem! Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Don’t Judge A Procurement Job By Its Cover

Ever been attracted to a new job because of the flashy brand? Graham Lucas warns that you should be looking at the people on the inside. 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Graham Lucas is Managing Director – Procurement & Supply Chain and Logistics at Michael Page. He’ll be speaking at this year’s Big Ideas Summit about procurement  recruitment.  We’ve picked his brain this week to find out what key skills procurement recruiters are fighting over in 2017 and what mistakes job applicants should avoid making.

Who are the best procurement candidates and why?

For me, the best procurement candidates are those that are highly commercial whilst having lots of emotional intelligence. We are also increasingly talking about bravery.

The requirement around influencing, communication skills, and category knowledge are well trodden boards and are still very valid. But the bravery and creativity it takes to innovate is underdone. This is something that we need to see much more of day-in and day-out if the procurement functions are going to end up as overall commercial custodians of their organisations.

What key skills are recruiters fighting over in 2017?

People who can demonstrate an ability to:

  • Deliver value to the bottom line in a dynamic manner and not just reduce costs
  • Unlock competitive advantage from the supply base through true partnership
  • Influence others, both internally and externally
  • Embrace technology that can help us move further, faster
  • Innovate by managing a supply base of experts to help their business compete

What are the biggest mistakes procurement professionals make throughout the recruitment process?

I think many people are keen to talk about the £30m saving they made.  This is great but I do think that, unless you are managing a huge spend, it’s easy to oversell your impact.

Talking about some of the more tangible things that you did, and how you delivered these, is more impressive. I met with a candidate last week who had identified a food material that was being cooled a further four degrees lower than was required before being packaged. He was able to explain the financial benefits across the utility and labour spend which amounted to a £400k saving. All whilst speeding up the manufacturing process, which supports their customer objectives. Evidently, the previous half-dozen people in his role didn’t identify this.

How has the recruitment industry changed during your time at Michael Page?

Fourteen years ago the market was fairly linear. The line manager or their personnel team recruited someone, or an agency did.

Now the market is much more varied, highly competitive and dynamic. Four thousand recruiters started up last year I believe and that’s just in 2016.

Add to that the advances of technology (job boards, linked in etc.) in-house recruitment teams, RPO’s, MSP’s, and we can see that many more commoditised markets have been eroded.

Whilst recruiters are having to evolve and embrace these challenges, I genuinely believe the right specialists, knowledge and strong relationships, have never been more required than they are now.

What two pieces of career advice would you give to any of procurement’s rising stars?

Don’t be blinkered. The more you can understand your broader business, the sector you are in, supplier challenges etc., the more likely you are to progress. Your ability to navigate organisations and departments outside of your own will be essential. That’s the secret to being  highly successful.

Don’t judge a job or organisation on the brand, or value of your category. A great career move tends to be based on the person you will work for, the people you will work with, and how those two things can personally develop you.

How do you identify innovation in candidates?

Someone should be able to clearly and positively explain what they have challenged, changed and most importantly, show what positive impact that has had on customers. For me, the best innovation has the customer at the heart of it, adding value to them even if at times it hasn’t directly benefited the bottom line.

Join the conversation and register as a digital delegate for Big Ideas 2017 

 

It’s Not Your Father’s Procurement Organisation

Procurement organisations of today differs greatly from previous generations.  The Hackett Group’s Chris Sawchuk discusses changes he has witnessed in his seventeen years at the company. 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Procurious are delighted to welcome back Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader at The Hackett Group, to the Big Ideas Summit 2017. Chris spoke last year about why procurement needed to put agility at the centre of all its activities. This year, Chris will be taking the conversation one step further, discussing ways to enable agility through digital transformation and creating an agile team.  We chatted to Chris this week to learn more about his career, The Hackett Group’s journey and how he energises his workforce.

What should procurement organisations be focusing on in 2017?

2017 is the year of digital transformation.  If you or your company isn’t yet focused on it, you will, and need to, be very soon.  Companies and procurement organisations are beginning to re-imagine themselves in a digital world.  They  ask themselves, if I had to build the business or function today from the ground up, would it look the same?

In most cases, the answer is no.  A great first step is to create awareness across the organization of the technologies that are available today and more importantly, emerging.  Ask yourselves, how can these improve and augment our abilities to collaborate, predict, be agile, extract new insights…and ultimately create an advantage in the market.

Can you name a particular accomplishment that has shaped your career?

I am not sure there was a specific accomplishment that shaped my career, but a series.  My career began in the highly technical and analytical field of electrical engineering at United Technologies and IBM. It shifted to more of a business focus as I completed my MBA and began a new phase of my career in marketing & sales.

This phase helped to shape and develop my people-focused skills.  After some time, I found myself desiring to combine the analytical skills in my early career with the people-focused skills I developed in marketing & sales and this led me to consulting.

Having worked in consulting and specifically on procurement & strategic sourcing for many years, The Hackett Group provided an opportunity to help augment their project focused benchmarking and consulting business.  This involved building a global member based advisory business that would provide an opportunity to develop unique intellectual property and research.

After more than 10 years, I am still engaged in that business; leading it’s sourcing & procurement efforts globally.

What skills/talents contribute to an all-round, great team?

  • Diversity in thinking and background
  • Willingness to collaborate and share
  • Similar levels of motivation and drive

How do you energise your millennial workforce?

Understanding that it can be challenging to energize your millennial workforce through traditional advancement opportunities. We need non-traditional methods, particularly in an environment of accelerated millennial expectations.  If you agree that millennials are energised by change and new opportunities, then we need to focus on ways to energise them in an environment where upward mobility may be more limited in an era of flatter organizations.

We challenge individuals with developing new client services, new process focus areas, etc.  The real difficulty is balancing.  We are in a global environment that expects consistent improvement in how we deliver value to clients whilst also delivering new value. Whilst this is difficult, it does provide the opportunity for change that energises millennial workforces…and beyond.

You’ve worked at the Hackett Group for seventeen years.  In what ways have you seen procurement organisations develop over this time?

Wow, great question.  As they say, it’s not your father’s procurement.  Today, we focus much more on business enablement.  As you see, I didn’t say “spend cost savings”.  Now, saying that, we still have a long road ahead of us.  I truly believe if we look at what we do through the business success lens, we will be successful.

Join the conversation and register as a digital delegate for Big Ideas 2017 

Industry 4.0 Will Change the Very Nature of Procurement

Automation and digital technology will change supply chains. But, Industry 4.0 looks set to change the very nature of procurement.

Download your copy of ‘Procurement 4.0 – The Digitalisation of Procurement’ on the Fraunhofer IML website.

So far in this series we have looked at the concepts behind Industry and Procurement 4.0, and the start of procurement’s journey. Now, with the idea that digitalisation is inevitable, we look to explore how it will change the nature of procurement.

As the manual processes are removed, or made more efficient, procurement professionals will tackle a much-changed role.

Setting New Objectives?

The BME study looked at four key areas of procurement that will be impacted by Industry 4.0. These are: technologies and systems; organisations and processes; management and people; business models.

The study highlighted key procurement objectives for leaders within each area.

Technologies and Systems

  • Real-time and better data availability
  • Improved data quality
  • Data access from all locations
  • More transparency of data and across the supply chain
  • Quick response to market changes

Organisations and Processes

  • Standardisation of processes
  • Faster, more efficient processes
  • Increased efficiency
  • More flexibility
  • Better global networking

Management and People

  • Improved human resources planning
  • Strategic placement of procurement within the company
  • Bigger savings
  • Creating synergies
  • Tapping into strategic markets

Business Models

  • Preserving competitiveness
  • Easier communication with customers and suppliers
  • More customer-oriented business models
  • Stronger development into a service provider
  • Creation of new networks

The objectives range from the strategic, to the vague. They also fail to really provide a focus for what procurement needs to achieve. Additionally, the objectives could well have been set without a consideration of the impact of Industry 4.0.

And without due consideration of what the future will look like, procurement seems destined to stand still in a fast-moving world.

Changing Procurement’s Nature

Although it seems to be procurement’s nature to revisit ‘traditional’ objectives, there is a chance that change will be forced upon it. And as the role of procurement changes, so too will the role of the procurement professional.

Prof. Dr Michael Henke,  Head of Enterprise Logistics at TU Dortmund University believes that “Procurement professionals need to move away from old management structures. Procurement 4.0 requires rethinking and thus also a management 4.0.”

Even although there is an inevitability about this change, there is resistance to it. Could this resistance be mitigated, or even overcome, by improving education on benefits and advantages to organisations?

If digitalisation can help achieve proper efficiencies, and help procurement deliver on objectives, then the profession can continue to evolve. But even as procurement evolves, there will still be a place for people in the process.

People’s Place in Procurement

According to the survey, the general feeling is that much of procurement will be automated, and will therefore require fewer people to manage it. Companies may even outsource procurement in a way more commonly seen with services.

However, the smaller number of procurement professionals will be highly skilled, well-qualified, and much sought after. ‘Purchasers’ will work with complex data, and interact with departments more as consultants. But it’s the focus on people that will remain, regardless of other changes.

People will still be involved with negotiations, and in management of relationships. Irrespective of how processes are managed, strategic relationships will underpin procurement activities, and, because of this, will need human involvement.

Exactly how this will look is still unclear. And there is certainly discussion required in this area. Both the human factor, as well as resistance to change need to be considered as the first hurdle for procurement to overcome. That will ultimately give a much more solid platform to develop from.

We will consider the challenges for procurement in Industry 4.0 more closely in our next article.

The Association Supply Chain Management, Procurement and Logistics (BME), founded in 1954, is the leading professional association for supply chain managers, buyers and logisticians in Germany and Central Europe.

Fraunhofer IML, founded in 1981, is a global expert on all fields of internal and external logistics. The Institute also currently heads up the largest logistics research centre in Europe.

To download your copy of the report, visit the Fraunhofer IML website.

The procurement function must adapt and evolve to accommodate technology changes and be ready to embrace what we’re calling Procurement 4.0. The question is: Are We There Yet? Join the conversation and register as a digital delegate for The Big Ideas 2017 in London. 

The Big ideas Summit 2017: Join The Ride

If you’re bursting with questions for our Big Ideas 2017 speakers, now’s your chance to put them to the test and have your voice heard.

Register as an online delegate for the London Big Ideas Summit 2017 here.

There’s less than a week to go until the London Big Ideas Summit 2017 but, there’s still time for you to make your voice heard as a digital delegate. Wherever you are in the world, you can help us to shape the event’s agenda by driving discussions and debate from the comfort of your own office, home or on the go.

Helen Mackenzie attended the event last year and particularly enjoyed the opportunities for meaningful discussion:

The Big Ideas Summit offers a chance to take stock of where things are both in the world we’re operating in and also within the profession itself.  The chance to discuss and debate some of the biggest issues of the day with a fantastic group of senior procurement people is an opportunity not to be missed.

Among our key themes underpinning the 2017 event are:

  • Industry 4.0 and how it’s reshaping procurement
  • Rebuilding your workforce for  Workforce 4.0
  • Procurement in the digital age
  • Authentic Leadership – Inspiring Trust and Driving Change in Uncertain Times

But we need your input too!

Why should I get involved?

Everyone in our 20,000 strong Procurious community has a unique opportunity to put our speakers to the test by asking them the toughest questions. In the Big Ideas Summit 2017 group, the conversation has already begun . Participants are reading exclusive, advance insights from the event’s presenters and contributing to topical discussions.

Your contributions needn’t stop ahead of the event, either. On the day we would love your input on the day’s  key themes and topics, and further questions based on what you’ve been hearing.

If there’s anything you’re burning  to ask one of our procurement thought leaders, please don’t hesitate to get in touch.  This is your chance to connect with our speakers, senior executives, thought leaders and CPOs, thus gaining insights into the future of procurement.

We’ll be monitoring and updating the group and our twitter account throughout the day to feedback your questions.

Who’s answering my questions?

We’ve secured a stella line up for this year’s event and they’re ready and eager to answer the toughest questions you can put to them.

  • James Bannerman, Creative change agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter
  • Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader at The Hackett Group
  • Linda Yueh, fellow in economics, Oxford university and Adjunct Professor, London Business School.
  • Mark Stevenson, Futurist, entrepreneur, and author of global best-seller, ‘An Optimist’s Tour of the Future‘.
  • Paul Blake, Senior Manager, Technology Product Marketing at GEP Worldwide
  • Barry Ward,  Procurement Brand Manager, Global Business Services at IBM
  • Graham Lucas, Managing Director – Procurement & Supply Chain and Logistics at Michael Page
  • Deb Stanton, Executive Managing Director, CAPS Research.

How do I submit a question?

It couldn’t be easier to submit your questions and you’ve got couple options to do so:

You can also stay up to date, and get involved in real time via LinkedIn or Facebook  using the hashtag #BigIdeas2017.

Not yet registered as a digital delegate?

It’s as easy as pie to register as a digital delegate, simply join the group on Procurious and get stuck in.

And, in case you needed any more persuasion, here’s what Chris Cliffe, Director – CJC Procurement Ltd, had to say about last year’s event:

It goes without saying that this is a no brainer event to follow for everyone working, aspiring, thinking about procurement.  The quality, breadth and variety of the content was exceptional.

No budget, no problem! Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Procurement Leaders: Be Bold, But Nice!

According to Deb Stanton, procurement leaders should be bold enough to challenge but amicable enough that people will still want to work with them…

Register as an online delegate for the London Big Ideas Summit 2017 here.

Deb Stanton is Executive Managing Director at CAPS Research and a keynote speaker at Big Ideas Summit 2017. She’ll be speaking about why, and how, procurement teams must focus on the now whilst keeping one eye on the horizon. We caught up with Deb ahead of the event in order to find out what she thinks constitutes a great leader and the importance of research and collaboration.

What 3 attributes make a great leader?

My “attributes” are not the typical leadership attributes.

“Be bold, but be nice” is my favorite motto and advice that I offer all supply chain professionals and procurement leaders.  We need to be bold enough to challenge, ask the right questions, and bring new ideas forward; yet do it in a way that people still want to work with you.  It’s a balance of driving advancements that we, as supply management leaders, recognise as game changers and also taking the time to know and understand the priorities of your internal business partners.

Another important attribute for procurement leaders is the ability to educate and be great storytellers.  Every day that we walk the halls of our companies we are in the role to educate, educate, educate.  We need to create the awareness and tell the story of the great value that supply management brings.

Third is to be passionate.  There is so many great advancements in the programs and processes within supply management.  No matter what company or industry, drive to a level that no one thought possible.

What are you most excited about in 2017 in terms of the procurement and supply chain profession?

There is tremendous advancements in the profession.  Five years ago we were not talking much about big data, data scientists, nexus suppliers, supply chain finance, 3D printing or blockchain.  The role of the buyer has expanded into many strategic roles which means it is a very exciting time for those in the profession.  What an impact SC professionals can make!

Do procurement pros use research enough?

There are two significant types of research.  The research that introduces new thinking and drives great thought leadership for supply management executives to contemplate.  Research helps drive new initiatives and stretch the boundaries of supply management.

Then there is the research that is applied at the commodity management level.  This type of research ensures we are developing the correct strategies for the commodities that we manage.  Both types of research are extremely important and could be leveraged more by procurement pros.

Do you think CPOS collaborate well?

It is interesting to see the different levels of maturity that exist with CPOs and their organizations.  There is a wide spectrum on the supply management maturity curve.  For example, some companies are just beginning to develop the discipline of commodity management. Other companies are pushing the edge on artificial intelligence and robotics.  As CPOs come together and collaborate there is still much to share and learn.

How can procurement encourage more women to join the profession (and stay with it)?

One of my favorite studies by CAPS Research that was completed in 2014 showed that women CPO’s made more in base salary than their male counterparts!  I feel that women executive procurement leaders are highly recruited, so let’s build a big pipeline of talent.

Join the conversation and register as a digital delegate for Big Ideas 2017 

Food, Glorious Factory Food! – Challenging the Tech Status Quo

If procurement continues to accept the technological status quo as some kind of given, we’ll continue to be fed the same poor diet. Paul Blake explains why it’s time to challenge the hard-and-fast rules we’ve adopted for so long without question. 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Have you ever wondered why food made in factories is so awful?

Please don’t assume this is going to be a rant about organic carrots and the danger of the shop-bought cake. Let me reassure you that it’s on the contrary.

There’s nothing quite like a home-cooked meal 

Modern living and demands on personal time mean that conveniently available, ready-to-eat food is a fact of everyday life. Everything from jam to lasagne is made in factories, often with minimal human interaction. This can be a very good thing in many ways.

So, if we accept that industrially manufactured food is a thing, one question still remains. Why is it just not as good as the homemade or handmade equivalent? Again, we should allow for the dependency on precisely whose hands are involved. But, all things being equal, a dish made by a competent cook, from scratch will out-score a factory-made one.

At first glance, it might seem obvious. Factory products resource lower cost raw ingredients, preservatives and flavourings for longer shelf-life. No wonder your canned chilli ain’t a patch on your own efforts. This is basic profit-driven economics. And, it’s true, you get what you pay for.

But there is another, more subtle reason, that factory food doesn’t quite hit the mark. A reason that is in no way immediately apparent. And it has to do with our relationship with technology.

Robots that POUR!

For a dish to be easily manufactured in a factory, in large quantities, on a production line, it is crucial that the components, from raw ingredients to part finished elements, are able to be pumped.

How do you get the meat sauce for your lasagne from its cooking vat to the line where it’s assembled? The sauce, the pasta and the béchamel must be sent through a pipe, and often for a considerable distance. The pumping of certain traditional ingredients, such as butter, is impossible. As such, the food industry has had to identify, develop and sometimes engineer alternatives.

The infrastructure, the routing process has had such limitations that it has defined the very nature of the outcomes that are possible. But, as the presenters of the great BBC technology show of the 70s and 80s, Tomorrow’s World, used to say “that is, until now!”

The food factory of the future will be populated, not by machines that pump – but by robots that POUR. And with that simple change, a whole new world of possibilities opens up.

By analysing how a chef systematically puts a dish together, and replicating that, with industrial upscaling, into a robotic process – and eradicating the notion that the conventional wisdom of “pumpability” was some kind of hard-and-fast rule. This new paradigm in food production could forgo the need for chemically-altered shortening agents. You know those ones that taste terrible (requiring added salt as a mask), have dubious health impacts but which, can  at least,  be pumped along a pipe.

Limitations in procurement

In business, and without doubt in the procurement business, we have precisely that same relationship with the technology available to us. We’ve been limited in the quality of the results we can produce because of how the tools and technologies we use are built.

Until recently, the software used in procurement has restricted the procurement professional to working in ways determined by how the software was written, and not by what is best for the outcome. This means procurement has become attenuated to these limitations and now accepts them as hard-and-fast rules.

A good example of this is the notion of “best of breed”.  This uses the most sophisticated software tool available for each step in the source to pay process. We’re indoctrinated to see lists of features and functions as the sole measure of suitability of software.

Dividing up the entire spend management process from strategy planning to invoice payment into a set of silos, and then equipping each step with the best tool for that task might at first seem to be a sound approach.  But this is only if you look at the steps in isolation. That’s just the same as looking at each ingredient in your recipe and only considering whether you can pump it around your factory.

How can tech make procurement processes more palatable?

In procurement, the separation of sourcing from contract into entirely different systems does nothing to promote positive outcomes and the isolated software components actively compound the difficulty of realizing savings and value.

However, technologies are emerging that are permitting us to look at the entire source to pay process as a single business requirement.  This allows us to consider how the various “ingredients” interact and work with each other to create the optimum result.

In the future, we will no longer be restricted to working the way the software dictates. Whilst a good part of the process may be run automatically, we will get to determine the ideal set of inputs and outputs to suit us.

The emergence of AI founded on big data, mobile, always-on connectivity and, crucially, the unification of strategic procurement and day-to-day purchasing into a single operational environment are changing the effectiveness of the procurement operation.

Challenging the status quo

By accepting the technological status quo as some kind of given, we will only continue to be fed the same poor diet.

Returning to the analogy, we don’t have to reject the notion of manufactured food entirely. Not if we can see that technology can actually make it better, possibly even better than we can do ourselves. There’s a thought!

The same applies completely to the idea of the automated supply chain. It needn’t (and won’t) be the death of Procurement. The smart use of new technology will actually give our industry new lease of life. As long as we stop adhering to the outdated technology rule book.

There is another way. The time is now.

Paul Blake is Senior Manager, Technology Product Marketing at GEP Worldwide. He’ll be speaking at the 2017 Big Ideas Summit next week. Join the conversation and register as a digital delegate here.

How To Hold On Tight To Prospective Procurement Talent

The recruitment process can be brutal. You’ve work hard to identify and attract the best procurement talent. But,  at the last minute, the candidate pulls out leaving you back at square one.  Michael Page’s Graham Lucas has some top tips for achieving a successful recruitment process.

Register as an online delegate for the London Big Ideas Summit 2017 here.

Procurement has come a long way and holds a position of positive influence within many organisations. The agenda for the Big Ideas Summit  – Procurement in the Digital Age, Rethinking What’s Possible, Building Workforce 4.0, and The View from the Top – shows that there has never been a more urgent need for bigger change and greater evolution.

You need only to look at the progress over the past few years to recognise this. SRM, improved supply chains, driving both value and innovation from suppliers, and category leads shaping strategic agendas are some of the developments we have seen.

Whilst the progress is positive, the evolving shape of organisations and the disruptive nature of technology is only going to increase both the degrees, and speed of change required. I genuinely don’t believe that procurement as a function will continue to exist unless it drives a much greater breadth to its commercial influence over an organisation.

So what affect does this have on talent attraction, acquisition and retention in procurement teams?

The Procurement Talent Pool

It is clear that 80 per cent of the roles on which we are being briefed carry very similar requirements. Organisations are competing for the 20 per cent of  candidates in any potential pool that possess  the key skills needed to help procurement teams deliver that broader value. Influencing skills, communication, being able to connect with stakeholders and suppliers, and driving innovation etc. Most procurement teams will have advertised a role recently specifying many of these requirements.

Identifying the talent you want to hire is only one aspect of the challenge. You’ll also need to ensure that you are able to acquire them. Three in every  four of the offers that our clients are making are being met with counter offers, many of them substantial.  In half of these cases the counter offer is equal to or greater than the offer made by our client.

Fortunately Michael Page are mitigating most of the risks associated with this for our clients.  It’s important to prepare a candidate for what is to come when they resign. We also consider  what they need from the process and screen out those that are not serious. This is all part of what a good recruiter will do. And after that, it’s down to you….

What  can procurement teams  do to avoid losing talent they have worked so hard to identify and attract? It comes down to six key factors. 

Understand key motivators

Understanding candidates’ key motivators is crucial to ensuring that any chance of buy back is reduced, and to make the right hiring decisions for long-term performance and retention. If you have truly understood their motivators you are more likely to run a process that allows them to see how these can be met by you and your organisation. Where these don’t match you can save yourself critical time. This will allow you to focus on better prospects in terms of those that will actually join and, just as importantly, stay.

Get clarity on the full package

Package clarity: as with motivations, it is vital to get into the detail of a candidate’s current package at the beginning of the process so provide a full breakdown of the package and the value of it.

This will allow for an accurate comparison of a candidate’s current situation vs. the package on offer. Bonuses (likely earnings and also when they are paid), pensions, healthcare, car packages…. Not only do they mean different things in different businesses but many people don’t know the details until they are asked to look. Get in the detail early and manage expectations from day one. Otherwise you could be either under offering or underselling your own offer.

Offer a healthy balance

It’s easy to overlook the importance of a work life balance. There’s no point getting into the middle of a process only for a candidate to decide the commute is too tough or expensive. Likewise, what is the realistic work/life balance you can offer  in the new role? What are the candidate’s personal circumstances? Will this impact their final decision? It is crucial to be upfront about this from the start.

Ensure that people want to join your people!

This has a huge impact on candidates but is, strangely, sometimes underestimated. Candidates will form an attraction to a business and a team. This is separate from things like role specification, package, location etc. If you can get your prospective employee to meet people that they believe they can work with, and most importantly learn from, it makes the organisation much more desirable.

People join people more than they join companies.

A competent recruitment process

Candidates often judge businesses by their processes particularly at interview stage.  Make sure there are  clear timelines in place to manage expectations. Does the advised preparation match with the content of the interviews?

Whilst these may seem like small things, they can make a big difference. A company that is well organised, thorough and effective at recruitment, can either impress or put a candidate off. Asking someone to deliver change in an organisation that doesn’t appear able to do what it says it will do sends out the wrong signals.

Make your offer compelling

An offer should always be made based on what the hiring business thinks the candidate is worth, not just on the advertised package. For each role it is worth considering what a compelling offer would be. Both as a statement of intent to secure the candidate and also to ensure your remuneration is in line with the rest of the market. Importantly, this might not just be salary; it could be a bonus, private healthcare package or flexible working hours.

Graham Lucas is Managing Director – Procurement & Supply Chain and Logistics at Michael Page. He’ll be speaking at the 2017 Big Ideas Summit next week. Join the conversation and register as a digital delegate here.

Are You A Procurement Starter Or A Finisher?

Are you a starter or a finisher? According to IBM’s Barry Ward, you’d better be both! Barry discusses the key skills most critical to procurement in the coming years.

Barry Ward, Procurement Brand Manager, Global Business Services at IBM is a keynote speaker at Big Ideas Summit 2017.  He’ll be explaining the big ideas behind Watson and the opportunities that cognitive tech presents to procurement. When we spoke to Barry ahead of the event he was keen to remind us that, despite rapid tech developments, traditional procurement skills are far from being made redundant.

How do you stay productive and current in a world of fast-paced innovation?

  • Collaborating with colleagues
  • Networking with others – using social media and other channels
  • Building and nurturing an ecosystem of organisations that are leading or developing solutions that may have or will have an impact in your function

What key skills are critical for procurement in the next 5 years?

We will always need traditional procurement skills such as the ability to be a strong negotiator, to communicate well internally and externally, to be a starter and a finisher. But, on top of this I think the importance of an open mind and curiosity in terms of the role that technology can play in the future is going to be more important than ever.

There will be an increasing need for project management skills, change management, relationship management skills. This is on top of the usual and still critical traditional procurement skills such as category expertise or negotiation skills. I can also say that there is a growing importance in soft skills: communication, teamwork and collaboration and problem solving.

How has technology, the Internet of Things and e-Procurement affected IBM?

Technology has placed a key role in IBM’s transformation over the past 20 years or so. Its importance is perhaps more critical in the the current phase of our procurement transformation. Understanding how digital technology can transform the supply chain and our source to pay activities is critical in terms both driving our efficiency and effectiveness but also to showcase how procurement can drive value throughout our organisation.

This positions Procurement in a much more strategic role than ever before. Procurement data is much more visible than ever before.  Insights through combining unstructured and structured information augment our knowledge, with alerts being posted to mobile devices instantaneously means that buyers can have much better assurance of supply continuity, of being able to understand price opportunities and to focus their time and energies on higher value activities than ever before. Lower value work will become automated or systems-driven. This is all good news for Procurement.

One clear impact of this transformation is that our key stakeholders now have very high expectations of high performance from Procurement personnel, perhaps more so than ever before, but the rewards are clearly evident in terms of the value that individuals can bring as well as the procurement organisation as a whole.

How valuable have mentors been in your career?

Mentoring is a highly personal thing. Some people need to have guidance and direction particularly in an organisation that may be widely spread and fast-moving, and if you are looking to move around different functions. Similarly for those who are in a smaller organization, mentors can bring an external, broader perspective.

Others are confident of their own abilities in charting a course for their own development and progression. I have had mentors in the past, particularly when I was in the early stages of my career. The more confident you are of your attributes and ambitions the less I have found that I needed mentoring. I spend time mentoring others mainly from within IBM and mainly from other geographies.

How did you first become interested in procurement?

I didn’t know very much about Procurement in my time as an undergraduate. It was not a profession that had much coverage when I was at University, unlike Finance or Engineering.

My first job as a business graduate was as a Purchasing Analyst running Bill of Material queries in a MRP system for a large manufacturer. This brought me into contact with many parts of the organisation including procurement. The procurement manager at the time was quite an intellectual and gave me a broad view of the role that procurement can play in an organisation.

Clearly he influenced me as I have spent my subsequent career in procurement and supply chain roles!

How will cognitive technology impact procurement professionals?

Cognitive technology will transform the role of the procurement professional and the impact that he or she can make for their organisation. It will be able to remove some of the more prosaic parts of the procurement role, such as data gathering and analysis, together with augmenting a buyer’s knowledge thus enabling them to spend more time on higher value tasks and ultimately make better decisions and be more effective.

Procurement professionals will need to understand how cognitive technology works – so they can be alert to potential mistakes that can happen from cognitive solutions, so that data input from these solutions is relevant and accurate.  It will eventually help, and force, them with their career progression as well as developing their expertise.

Join the conversation and register as a digital delegate for Big Ideas 2017

3 Ways to Build a Match Fit Procurement Team

You never know what’s on the horizon, so you need to be prepared for anything. For procurement that means staying agile and always being match fit.

Register as an online delegate for the London Big Ideas Summit 2017 here.

Given the pace of change in the external environment, being agile means constantly changing, never standing still. It’s not about putting out fires, it’s about ensuring that fires never start in the first place.

For procurement, this means creating and maintaining agile teams, and staying match fit for what comes next. Staying ahead of the curve, be it change, risk or technology, is critical for the future of the profession.

Procurious are delighted to welcome back Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader at The Hackett Group, to the Big Ideas Summit 2017. Chris spoke last year about why procurement needed to put agility at the centre of all its activities.

This year, Chris will be taking the conversation one step further, discussing ways to enable agility through digital transformation and creating an agile team. However, to do this procurement needs to ensure it’s thinking ahead, not just looking at the problems it needs to solve now.

Chris outlines three top tips below on how procurement can be prepared to handle any future issues.

  1. Be Match Fit

As we’ve said above, the key to being agile is ensuring flexibility. A quick way to lose agility is to create a rigid environment that doesn’t allow trying new things.

Define what procurement can and can’t control, and what activities it can drive. Make sure that your procurement team is aligned to the corporate strategies and objectives. It’s a good way of making sure that new ideas will be fully considered as part of the overall organisational strategy.

For example, if Procurement decides they want a diversity programme and the CEO isn’t behind it, it will never reach its full potential. The same goes for technology. If the CEO isn’t invested, the project will never get off the ground.

But even if your company isn’t focused on technology yet, you can be sure it will be in the future. It might be six months, or it might be five years, but it’s better not to be forced kicking and screaming into this new era.

Procurement needs to be ready to go when the business is. You don’t want to be asking for six more months of planning if your CEO wants a transition now. Be ready – have a list prepared of the top three initiatives for technologies, and how they will be implemented. That way you won’t be caught short.

  1. Educate Yourself

If you want to be prepared, you need to be in the know. Don’t be scared of new technology and bury your head in the sand – be aware of what’s out there. Have a list of the most relevant and best technology and know what it can do for you.

Part of that awareness is also preparing for new technology. Procurement teams need to know what’s happening in the market place, and how it impacts them. You don’t need to know everything, but you at least need to be cognizant of it.

That way, procurement can look at the big issues in organisations through the lens of how technology can help. Is there a technology out there that could help with this issue?

If global collaboration is a major issue, there are social platforms that could help connect all your teams to each other, and even their suppliers.

Maybe there’s a technology that could augment (not just automate) a procurement activity that you are performing today. You might finally have access to all kinds of data, but it’s about knowing what you can do with it to extract competitively differentiating insights.

  1. Create Agile Teams

If you aren’t agile then you can’t prepare for any of this. In fact, it’s unlikely you’re even in a position to be ready to start preparing.

To create agile teams you need to have the basics in place, get ahead of these issues, and aim to be predictive. If you knew what was going to happen (sadly crystal balls are in short supply), you would have the ultimate level of agility, and be able to get ahead of any issues.

However, it’s critical that procurement retains the ability to deliver against organisational objectives at the same time. There’s no use being agile if it means that procurement fails to deliver on the basic requirements.

If you can’t get the basics done, then there’s no point in even trying the ‘fancy’ stuff.

Reimagining What We’re Trying to Achieve 

The main problem at the moment is that we can’t even imagine what is going to be possible in the future. The pace of change is so fast that technologies are adapting and evolving in a matter of months, rather than taking years as it did in the past.

It is critical that procurement becomes more adaptable, and ensures that professionals are as informed as possible. Until you have this understanding of technology, you’re losing out. It’s not about the problems you want to solve, it’s also about the problems you’ve not even thought about yet.

The future is an ‘Unknown Unknown’, but with a match fit, agile procurement team, at least you’ll be prepared for what comes next.

 Join the conversation and register as a digital delegate for Big Ideas 2017 in London.