Category Archives: Career Management

The Struggle is Real: Building Effective Procurement Teams

The struggle might be real but, according to VSP’s CPO, the solutions are many when it comes to building the most effective procurement teams! 

The conversation around talent shortages in the procurement space has been going on for five or ten years now. I’ve come to realize that the real problem is not the lack of ready-to-go procurement talent, it is hiring managers’ inability to see a future procurement pro in a law student, a finance professional, an engineer or yes even a sales person.

An investment is required to grow non-traditional sources of talent into procurement professionals, but the end result is often a better rounded team. A procurement team should be comprised of diverse talent by design in order to speak the language of the business.   A homogeneous team will have its own inherent challenges – one being that innovation is harder.

How you build your team depends on the market conditions you are in and the skills or talent profile you are hiring for. Depending on the availability of qualified candidates, you may allow someone to work virtually or look to other disciplines to bring a new resource in and then round them out. But to simply say ‘there’s a talent shortage’ and do nothing about it is a naysayer’s approach. Get creative.

Cross-Functional Procurement Talent

At my prior company, I had an engineer playing a procurement role. I had somebody in finance on the team. I had attorneys on the team. If you restrict yourself to an artificially small portion of the talent pool by insisting upon a fixed skill set you’re naturally going to have hiring challenges. Just keep an open mind.

My philosophy, regardless of the skill set in question, is to hire the best resource you can find, train them, and invest in them. If they stay, they will become successful procurement professionals and if they leave they will be well informed enough to serve as advocates for procurement.

But thinking differently is not just about where we source talent, it affects the skills we are focused on. Procurement will quickly loose relevance if we don’t proactively prioritize soft skills in our hiring practices. Look at the traditional competencies for a procurement professional: the ability to negotiate successful outcomes, the ability to read and redline a contract, the ability to build relationships. In my opinion, soft skills are now more important in procurement than some of the technical skills we have emphasized in the past.

Taking Risks to Incorporate High Performers

All good managers want to put people into roles that will challenge them in a healthy way. I’ve put people in roles that I knew would be hard for them, and I was authentic enough to say, ‘This is going to be a make it or break it situation for you. Grab the opportunity, and I’ll invest in you. If you are successful, wonderful, if not I’ll be your best reference.’ The reality of the situation is that you have to release people if they aren’t a good fit, even when it is a tough decision. But that is not a reason not to make an effort to bring non-traditional backgrounds and approaches into procurement.

In my experience, there is more than one kind of high performing professional. Some lack engagement and become a challenge, but that is not hard to handle. Complacency is a bigger problem. Having a pep talk with people that are no longer motivated is challenging. You have to educate people on what the opportunities are for them. By understanding what’s important to them (work life balance, career development, etc.) you can sort out what motivates them.

The same approach works for building relationships with internal stakeholders. Sit with the business, understand what their challenges are, look at the opportunity from their perspective. I think demonstrating that appreciation makes you more effective. Each of us needs to appreciate the culture we are in and operate within that culture: the culture of procurement, of the company, and of the industry as a whole.

Human behavior is interesting. If somebody has confidence in their ability to do something they’ll gravitate towards it. A lot of individuals are focused on transactions; they are tactical. You can’t just go in and anoint somebody and say, ‘Now you’re strategic.’ You must develop their capabilities and create the expectation that they are no longer in their former role. Otherwise, a week, a year, two years into the process they will gravitate back towards those transactional responsibilities. Being a leader in the procurement space requires us to adapt and be flexible.

What’s Next for Procurement?

I’ve watched procurement gradually shift away from a focus on tactical or technical capabilities to more strategic responsibilities and the development of soft skills. I’ve seen it, and I’ve lived it. The organizations that have not gotten on that bandwagon of their own accord are no longer relevant. That shift has occurred, and technology has been a key enabler in making that happen. When people talk about applying robotic process automation (RPA) or AI within the procurement space, the first steps have already been taken, and we’re trying to figure out how we can further leverage it. Perhaps, through sourcing tools and decentralized buying, procurement’s next incarnation will be as an overseer of technology and broad business outcomes.  Procurement’s role will be centered on value creation in a consultative, advisory role and less about compliance and transactions.

Greg Tennyson is the CPO at VSP Global.  This article was originally published on The Art of Procurement. 

The Value of Social Media Voices in Supply Chain

Social media: It’s vast, it’s unstructured, and it’s overwhelming. But the value for supply chain is there to be extracted!

According to Business Insider, social media sharing outpaces some of the most data intensive B2B activities: Facebook processes 500 times more data each day than the New York Stock Exchange and Twitter exceeds NYSE’s daily data storage by 12 times.

Social media gives voice to anyone looking for a platform: consumers and corporates, individuals and organisations. By enabling the democratisation of instant worldwide communications, services such as Twitter and Facebook have created an overwhelming volume of unstructured data in a short period of time.

While the development of social media voices is dynamic and continues to evolve without pause, businesses have yet to tap into its true power. What happens to these spontaneously created bits of data? Who is listening? Is there actionable value in the voices?

Social media voices are the sum total of all the unstructured data shared around the world.

Social media data may be unstructured, but the voices within it have a perceptible tone. By establishing a baseline and monitoring changes up or down, it is possible to detect shifts in tone and frequency and leverage them as a kind of early warning system. By tracking all of the mentions of compliance and sustainability over a period of time, unstructured data forms a workable trend. With this carefully built intelligence legacy in hand, changes are easier to identify and respond to in near real time.

The challenge of extracting value in social media

The challenge associated with trying to extract value from social media voices is enormous – but so is the associated opportunity. Traditional methods of monitoring company news and developments may work for a limited number of key strategic suppliers, but the scale associated with tracking the entire supply base is prohibitive, let alone looking beyond the first tier. In the absence of a new, technologically enabled approach, it would be impossible to proactively manage risk from a fully-informed position.

Monitoring social media voices makes it possible to remotely audit the majority of a company’s suppliers in a scalable and automated way, requiring limited human resources while still providing constant ’uptime’. For companies competing on a global stage, there is perhaps no greater use case for social media voices than managing the compliance and sustainability of their supply chain.

Compliance incidents among first tier suppliers (and elsewhere in the supply chain) can lead to significant reputational damage and a loss of revenue or company value. IntegrityNext’s Social Media Compliance Intelligence Engine provides the capabilities required to examine thousands of suppliers in real time. The IntegrityNext platform uncovers a wealth of publicly available data on suppliers to better inform the business by crawling approximately 500 million messages per day, revealing key insights by tracking relevant voices and the topics trending among your suppliers.

The power of social media voices is not just for increasing the visibility of decision makers, it enables leaders to draw actionable insights using real-time analytics to manage the compliance and sustainability of the entire supply chain.

The IntegrityNext platform covers all major aspects of corporate social responsibility (CSR) and sustainability requirements, allowing companies to instantly monitor thousands of suppliers and their entire supply chain 24/7 with minimal administration. IntegrityNext brings together pre-built supplier compliance assessments, blacklist and sanction checks, and real-time social media insights in a user-experience driven platform that covers international standards and extends multiple tiers into the supply chain. For more information, click here.  

This article was originally published on LinkedIn

Is Marketing A Procurement Blind Spot?

If your marketing expertise is a little below par, don’t despair! Marketers need your help and luckily there’s a lot procurement can do…

How much do you know about ATL, BTL and TTL? Learning marketing speak is the first step in gaining support of your colleagues over the fence and establishing your credibility.

The marketing services category has always been complex one and a bit of a blind spot for procurement. The learning curve is not only steep, it’s also a moving target. We have to invest considerable time in understanding their issues and concerns before we can provide any meaningful assistance. Category managers need to continuously build and refresh internal relationships at all levels; this requires perseverance, patience and stamina. Procurement veterans are fully aware of stakeholder expectations and the importance of having rock-solid relationships with marketing professionals before launching any sourcing projects.

Problems in sourcing marketing services

  • The decision makers may have entrenched relationships with advertising agencies and media houses, with or without formal contracts
  • There are often too many suppliers for the same or similar services and purchasing outside contracts is commonplace.
  • There may be little focus on achieving value for money or measuring effectiveness of the use of their limited budget.
  • Negotiation skills may be in short supply
  • Pricing models are less than transparent. Traditional agencies have pricing structures that would test the analytical skills of the best procurement professional.   

Some good news

On the upside, there is increased pressure on marketing departments to do more with less budget and they need procurement’s help, especially getting better value for money and formalising supply arrangements.

CMOs are becoming increasingly aware of the need to competitively source suppliers periodically, even if their main objective is to generate new and innovative ideas, rather than make cost savings.

Advertising agencies in their traditional form are disappearing; integrated marketing agencies are offering full-service solutions for all marketing requirements including strategy, brand management, advertising, media buying and the full range of digital and social media services. This is a real opportunity for procurement.

Where procurement can add value

Procurement is advised to pick its battles carefully, working from a firm factual base. The basic principles of spend analysis apply: collect and analyse all the data and know the landscape before tackling your target areas

Benchmarking

  • Develop a skills benchmark for each type of service. Establish what sets of skills are needed and determine fair rates for each
  • Apply supply market intelligence to determine the financial competitiveness of existing suppliers. Evaluate their rate cards and pricing against the market. Are they competitive?

Review existing supplier relationships

  • Identify incentives to improve relationships with incumbent marketing suppliers, and consolidate the supply base
  • Negotiate and improve unsuitable contractual terms and conditions, adjust pricing models and rates in line with benchmarks

Pricing of services

Many agencies use the tried-and-tested approach of consultants: billing is based on time-plus-expenses also erroneously called cost-plus. This is an open-ended billing system based on rate cards that apply hourly or daily rates per each skill level. Problems occur when lower skills are applied to the job while higher rates are billed. Where the scope of work is unclear or subject to change it can work but a cap should be set with only a small percentage  overrun of the budget allowed. Beware scope creep.

It is crucial to gain an understanding of other fees and mark-ups such as media commissions, margins on production costs and printing costs.   Where do rebates end up?

Measuring supplier performance

Managing supplier relationships with marketing firms needs to be focused on minimising bad behaviours and rewarding and incentivising those who deliver as per pre-defined requirements. Marketing departments may not necessarily have targets for upholding quality, reducing costs and measuring process improvements, procurement teams certainly do.

5 Top tips for getting along with marketing

  1. Understand important marketing concepts and terminology and recognize how marketing decisions support the company’s objectives.
  2. Invest time in building relationships and understanding the day-to-day challenges. Category managers should reassure marketing teams that they understand the value of strong relationships with creative agencies.
  3. Pick your battles. Identify areas that procurement can really influence
  4. Know your stuff – drill down into the data and understand the detail so that you can discuss issues intelligently
  5. Procurement should share stories of how they helped other functions in the business in ways that Marketing can relate to. Find ways to translate sourcing ideas into their language.

The ability to tactfully handle supplier/marketing/procurement relationships is the key to success. There are no secret tricks, just applying sourcing and contracting best practices will pay off provided that you prioritise service and performance standards over cost savings.

Do you want to be embraced warmly by marketing?   Know your numbers, respect their skills and ideas and work together to develop solutions that will work for both functions. Many marketing functions trundle along with little or no support from procurement.

Whose fault is that?

Have A Nibble On These Bitesize Videos

Take a 2 minute  break from your hectic schedule to join Tania Seary. She’ll help you to dig a little deeper, inject some sparkle and rise to the top in your procurement career with these new videos.

 

 

Finding and keeping up with the most intriguing, and useful, procurement content online can put you ahead of your peers. But who has the time in their working day to go looking for it, or spend hours at a time absorbing it?

At Procurious, we know and understand your need to prioritise to ensure every minute you spend on social media is a minute well spent, which is why a lot of our online content is concise and gets straight to the point!

That’s certainly the case with our latest batch of eLearning videos, featuring Procurious’ founder, Tania Seary.
In this six-part series of two minute videos Tania offers some top procurement advice on networking, driving change within your team, hiring new talent  and making it to the top!
These videos are perfectly designed to be small enough for you to have a little nibble on at your leisure but guaranteed to fill you up with handy career tips.
Here’s a quick summary of what you can expect:

Network Your Face Off

Tania believes that networking is in procurement’s DNA and a key contributing factor to making it to the top! If you could benefit from a few handy networking tips, take Tania’s advice and get connected to get ahead!

The Disney Approach to Procurement

Is it possible that Disney has the magic formula for driving change management success in your procurement team? Adding a little Disney sparkle to your program might just be the solution to your problems. Here’s how to embrace the book, the film and the ride.

My 5 Killer Interview Questions

If you’re looking to hire new recruits any time soon, this is the video for you! Tania explains the importance of creating a good culture within your businesses. The best way to do that is to find people who are the perfect fit during the recruitment process by asking these five killer interview questions.

You Don’t Have To Be a Genius In Procurement

We all like to think that we’re some kind of procurement genius, that we can solve all of the world’s problems. But in truth, some of these problems are just too big for us to solve alone. Tania explains why collaboration is key.

Five Sure Fire Ways To Become A CPO

If you want to make sure you’re the procurement cream that rises to the top, you need to hear Tania’s five top tips for becoming a CPO. Start out by filling your trophy cabinet…

How To Strike Gold When Seeking A Mentor

This video is all about myth-busting. Tania explains why there’s absolutely no such thing as being too old for a procurement mentor. If you’re  yet to embrace reverse mentoring, now’s the time. Dig a little deeper and you’ll strike gold!

If you’d like Tania Seary to speak at your event, contact Olga Luscombe via [email protected] or visit TaniaSeary.com for more details. 

How To Hold On Tight To Prospective Procurement Talent

The recruitment process can be brutal. You’ve worked hard to identify and attract the best procurement talent. But,  at the last minute, the candidate pulls out leaving you back at square one.  

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article which featured some exclusive insights from Graham Lucas, Managing Director  Procurement & Supply Chain and Logistics at Michael Page. Graham suggests six ways procurement teams can hold on to new talent that they’ve worked so hard to attract. 

Procurement has come a long way and holds a position of positive influence within many organisations but 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.

It’s important to prepare a candidate for what is to come when they resign. We would 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.

Help! A Potential Employer Asked For My Facebook Password

You’re in the middle of a job interview when the recruiter shocks you by asking for your Facebook password, citing “company policy”. Do you: A) Meekly hand it over; B) Kick over your chair and storm out; or C) Politely but firmly refuse?

Have you ever been asked to hand over your social media details in a job interview? Don’t panic – it’s probably just a stress test.

Stress tests are designed to put you under pressure and see how you handle it. They range from grilling you about your weaknesses, to subjecting you to a barrage of quick-fire questions to try to fluster or catch you off-guard.

Heineken took this to the extreme in their viral recruitment video where interviewees are subjected to a range of stressful situations, including a creepy hand-holding interviewer who later feigns a heart attack. While it’s fun to watch, there’s a lesson here – in an age where candidates often give text-book answers to text-book interview questions, recruiters are looking for ways to separate the wheat from the chaff.

“We need your Facebook login details”

Your three potential reactions:

A) Meekly handing over your password: Wrong answer. This shows that firstly, you’re desperate for this job and secondly, you’re a pushover. Is this how you would behave when representing the company in a tough negotiation?

B) Anger: You’ve fallen into the trap. Even though it’s an outrageous demand, getting angry only demonstrates that you won’t be able to remain calm in the face of on-the-job pressure.

C) Politely but firmly refuse: Correct! You were on the lookout for a stress test, and you’ve identified this one as such. This takes the pressure off, allowing you to present a calm and logical response.

Unfortunately, that’s easy to say and hard to do!

How to say “no” politely 

  1. Call them out

If you’ve read the situation correctly, then you could simply respond by saying, “This is one of those stress-tests, right?”, and then launch into a detailed explanation of how you’re able to stay calm under pressure, with examples.

If they still insist, and genuinely appear to be demanding your Facebook login (and you still want this job), then you’ll need an excuse beyond the bare fact that you don’t want them seeing your drunken photos from the big party last weekend.

  1. Privacy

“I have an obligation to protect my friends’ privacy. They have their own privacy policies set on their accounts to safeguard themselves and their loved ones and that’s their right. If I start sharing their information with potential employers then I’ll have broken my trust with them.”

  1. Work/life

“For me, work and home are two separate things. I’m careful to keep work-related posts off my Facebook page, so it’s in no way relevant to any potential employers.”

  1. Direct to LinkedIn

“I think you mean LinkedIn? While I wouldn’t hand over my login details, I’d be happy to connect with you on LinkedIn so you can see how I present myself professionally on social media.”

  1. Show me yours and I’ll show you mine

This one’s a bit more provocative! “Absolutely fine – I think this is a great idea. I’d also like to see the type of team I’m joining, so if you can share your log-in details, along with your director’s and all the team members’ Facebook passwords, then I’d be happy to share mine.”

  1. Throw the question back at them

Whatever you decide to say, it’s vital you do so in a professional, calm and reasonable way. In a stress test, how you say it is more important than what you say. The interviewer will be judging your response, attitude and manner, but you can turn the tables by asking them to put themselves in your shoes.

For example:

  • “I’m sure you would agree …”
  • “I’m sure that if you were in my position…”
  • “From a privacy perspective, my friends wouldn’t be comfortable with me showing their information to people. I’m sure your friends and family would agree.”

Asking someone to put themselves in your position makes it almost impossible to be offended by a calm and rational argument.

In the end, keep in mind that there is no right answer to a stress-test question. It’s designed to judge how you react, so be confident in whichever answer you choose.

The New Age Of Procurement Technology

Procurement technology went full sail and you eagerly jumped on board. But now 90 per cent of all technology is about to become obsolete. Are you prepared for the new age? 

As the vice president of Basware’s Purchase-to-pay solution it goes without saying that I’m involved in a lot of procurement technology selection decisions. And over the years, I’ve noticed a recurring pattern in the process, across numerous organisations. It tends to play out a little bit like this:

A CPO of a large organisation is at the end of their tether thanks to a messy purchase-to pay process. It’s the age-old story with AP and procurement operating independently, maverick spend with unapproved suppliers, late payments and paper absolutely everywhere.

The easiest, and seemingly smartest, solution to the problem is the implementation of a new purchase-to-pay system, which said CPO requires, being extra savvy, to be a Software-as-a-Service solution. The CPO knows they can get a decent ROI on whichever supplier they choose.

So what’s the problem?

Unfortunately, our CPO is only looking 5 inches in front of their face! It’s no exaggeration to say 90 per cent of today’s procurement technologies will be obsolete in the coming years. And so procurement needs to start looking much further ahead!

Remember Siebel? We can’t either…

You’d be pretty hard pushed to find an organisation that uses Siebel nowadays. You might even struggle to find someone who knows what it is!

Siebel was the cream of the Customer Relationship Management (CRM) crop in the late 90’s and early 2000’s. It was the absolute best at its time.  Hundreds of millions of dollars were spent on licensing and implementing Siebel, with the promise of visibility, efficiency, and improved customer satisfaction.

Fast forward a mere ten years and…nobody uses it.  It turned on a dime thanks to Software-as-a-Service and, more specifically, Salesforce. An enormous technology shift took place, and suddenly Siebel and everything like it was utterly obsolete. More than a few CMO’s were fired as a result.

What can we expect from the next tech shift?

What can we expect from the next technology shift? We hear about  AI, machine learning and cognitive computing all the time and there’s a lot of concern amongst procurement professionals that it’s going to displace our workforce.

But it’s coming to procurement whether we like it or not. There’s a glaringly obvious application of AI for procurement professionals.

One word: data.

When today’s CPOs try to objectively evaluate the functionality of potential new solutions, they’re often bypassing  a crucial aspect (opting to solely measure tactical functionality); the game-changing competitive advantage their organisation can achieve through the power of the data.  There are two major considerations to be made here.

  1. Is the system architected for centralised data capture?

    The system should be able to capture your data, the data of all organisations using the solution  and, ideally, be able to connect with other solutions.  The more the system is designed for centralised data capture, the better chance you have of being able to take advantage of the latest  data-driven tech changes.

    My advice is that you eliminate anything that focuses solely on you and your data.  If it’s not central, you can be sure you’ll get stuck behind and end up like one of the organisations using Siebel.   But, of course, design alone is not enough.

  2. Does the system actually capture that data?

To capture all of this data, there are three parties that matter: suppliers, requisitioners, and AP. This is where tons of business cases fall apart.

  • Suppliers: To capture data you have to get all your suppliers on the system. Not just your big sophisticated suppliers, every single one! You have to get them connected, or you will fail, if not today then most definitely in the imminent future
  • Requisitioners: Who are the worst employees when it comes to using a procurement system? It’s fair to say that it’s often the sales and exec teams;  the people driving revenue for the company. These groups are only going to use a new procurement system if it’s the easiest and fastest way for them to get their jobs done, which means it has to fit in seamlessly with how they work.   If you don’t give them a system that they want to use, you won’t have them, and again you won’t be capturing the data from their transactions.
  • AP:  This is probably the most important part but so often an afterthought when looked at from a Procurement perspective. Consider how many hundreds of thousands or millions of invoice transactions are processed within your company. Now multiply that by the thousands of other companies out there and you’ll get a sense of how quickly that data can scale. Most P2P systems can’t process all of those different kinds of invoices. And that’s where we end up in Siebel world, yet again!

By committing to finding and using a system that captures all of this data, and does so not just for your organisation, but in a truly centralised platform, procurement will soon be able to achieve the following:

  • Fraud detection
  • Machines that know when you need something. Doesn’t it seem miraculous when Amazon knows what you need and presents it to you when you login?  Let me tell you that it’s not. It’s data
  • Dynamic discounting marketplaces
  • Exceptions handled without any human intervention, based on patterns of prior behavior in the data. This might not be behavior that humans can readily identify, but machines can with ease by crunching all of that data

Procurement would do well to remember that, In today’s world, the big value is in the data, not in tactical functionality.

Eric Wilson is the head of Basware’s Purchase-to-Pay business for the Americas and APAC. 

Best of the Blog: You Appointed WHO As The New CPO?!

Increasingly, companies are appointing CPOs from outside of the supply management profession. What does this tell us about C-level expectations of procurement, and why are supply management professionals missing out?

Everyone loves a good throwback article, which is why we’re hopping in our time machine to bring you back some of the biggest and best Procurious blogs. If you missed any of the golden oldies, look no further!

This week, we’re revisiting an article which featured some exclusive insights from Deb Stanton, Executive Director of Research and Benchmarking at CAPS Research and former Global CPO of MasterCard. Deb highlights how company expectations for CPO’s are evolving and what this means  for the security of your future jobs!

This is the moment you’ve been waiting for. Years of hard work and a brilliant career in supply management has brought you to within a hair’s breadth of fulfilling your dream – to become the Chief Procurement Officer of your company. Starting at the most junior level, you’ve worked your way up the ladder to your present position as second-in-charge of the procurement function. Your boss announced his retirement last week, and you’re quietly confident your turn has come – after all, there’s absolutely nothing about the organisation’s supply chain that you don’t know.

You step into the meeting room where the out-going CPO and two other executives are seated around a table. Disconcertingly, they stop talking when you walk in and look at you guiltily. Getting straight to the point, they tell you they’re excited to announce the new Chief Procurement Officer is … Jennifer from Marketing.

Is Procurement Being Usurped?

Has this happened in your organisation? There’s every chance that when it comes time to choose a new CPO, the C-Suite will appoint someone from a non-supply background. This means that a colleague of yours in a completely different department may one day swoop in to steal the job that you’ve been working towards for years.

While CEO-level expectations of the CPO continue to blur and broaden, the skill-set required to meet those expectations can now potentially be found in any department. The fact that supply managers are still reporting difficulty in educating their businesses on the value procurement can bring to an organisation doesn’t help the situation. If a CEO (wrongly) believes that a supply manager has spent his or her career focused solely on cost, then they are likely to look elsewhere for candidates for the top job.

Deb Stanton, Executive Director of Research and Benchmarking organisation CAPS Research and former Global CPO of MasterCard, has observed the trend of CPO appointments from outside of the profession. CEOs are no longer as interested in appointing CPOs who possess the traditional skill set that is earnt over years working in supply chain. A savvy marketing professional, or a cost-conscious operations manager who understands how supply management works, makes a very attractive candidate for CPO.

So, what does this mean?

1. CEOs are looking for a different set of skills for the next CPO

The CPO of the future may have little idea how a tender is run, but they must:

  • Be business-savvy and understand the organisation as a whole
  • Know how procurement works from a customer’s perspective
  • Be completely aligned to overall business strategy (not just the supply management strategy)
  • Have a strong knowledge of the business’ finance function
  • Be focused on the core customer and external audiences
  • Embrace changing technology and external disruptive forces
  • Be an influencer and relationship management expert.

Deb referred to CAPS Research’s “Futures Study 2020”, which projects the skills required to manage a procurement function into the future.

2. The CPO doesn’t necessarily need supply management expertise

The complex and varied skill-set picked up through a career in supply management may no longer be enough to satisfy the requirements for the job of CPO. CEOs may even regard procurement’s traditional audience of stakeholders, end-users and suppliers to be too focused.

That being said, technical procurement skills do matter, and are still vital for any procurement team’s success. In the example above, the disappointed candidate who missed out on the top job can still play a vital role in educating and supporting the outsider CPO with their supply management knowledge.

What’s the solution? If you believe the CPO role rightfully belongs to you, rather than someone from a completely different department, then make sure you broaden (rather than narrow) your focus as you move upwards in your organisation. This means familiarising yourself on a macro level with the whole business, bringing the core customer into every decision you make, and being known as an influencer who can clearly articulate the value you, and your function, brings to the business.

As Deb points out, procurement professionals are in a unique position to overlook an entire business. They’ve got every chance of seeing where the opportunities are so let’s use it and not lose it!

The Big Squeeze in Public Procurement

As budgets continue to shrink, how can professionals working in public procurement do more with less?

We live in a world of apparent contradictions. The amount of money being spent by global governments is rising year on year. And yet, in the majority of these countries, public sector institutions are seeing budgets shrink at the same time.

Governments are increasing spending in order to continue to provide vital services to the public. In the UK, public spending reached £761.9 billion in 2016. This is forecast to rise again in 2017, with total UK public spending is expected to be £784.1 billion.

However, there are a number of factors that need to be taken into consideration when assessing these figures. The average age of the population is on the rise. Health services are dealing with a rise in chronic diseases as a result of lifestyle choices. Investment is not only being put into social care, but also into improving the lives of the entire population. All this means that any increase in spending is swallowed up as quickly as it is released.

In addition, slow global growth means that Governments have to be aware of future spending too. What this means, ultimately, is that spending at a local level is reduced. So what does this mean for public sector procurement?

More for Less

In Scotland, funding for Councils from the Scottish Government has decreased by an estimated £180 million for 2017-18. Some of this will be offset by rising Council Tax across the country, but many Councils and Local Authorities will still be looking to make major savings.

Maintaining, and improving, public services is only the start. The public sector in a situation where they not only have to achieve more with less, but they also have to invest wisely to help future savings targets.

Technology is just one area where this can be achieved. Many cities are investing heavily in technology that will align with existing infrastructure. Following in the footsteps of pioneering cities like Barcelona and Stockholm, a number of UK cities are moving to become ‘Smart Cities’.

Intelligent Street Lighting, sensors measuring urban data including city centre footfall, air quality, and new applications for refuse collection and public parking, are just a few examples of how technology helps to build a smart city.

These technologies have a dual-benefit for Local Authorities, and other businesses in cities. Data collected can be used to drive savings initiatives, while at the same time helping to improve the quality of life for residents.

Public Procurement’s Three Cs

What does this mean for procurement? The profession will be at the forefront when it comes to savings initiatives, and will play a vital, and ever-increasing, role in these projects. But at the same time, procurement still needs to prove its worth to, and make these savings stick.

If you’re looking for somewhere to get started, or to drive continuous improvement, here are three Cs that are applicable no matter your organisation, industry, or category (or even sector).

  1. Challenge

The best saving procurement can make is by not spending money in the first place. And the best time to do this is at the very beginning of a project. By challenging requests, procurement can begin to weed out wants from needs.

Does the organisation actually need this? Does it really need the 24-carat, diamond encrusted version, when an off-the-shelf one will do just fine? Is there an alternative solution to the question that could cost less while doing the same job?

Get your client, end customer, and specification writers to really think through their requirements. Once you’ve done that, you can move on to the next C.

  1. Collaborate

Collaboration should be both an internal and external activity. Procurement should be involved from the start of the project, and work closely with other departments to get the best for the organisation.

The public sector can also collaborate more too. Instead of all setting up individual projects for the same thing, why not share what’s been done in the past? Frameworks, Dynamic Purchasing Systems, and collaborative purchasing can help save time, resources, and money.

It’s also time to be working more collaboratively with our suppliers. Procurement needs to focus, where appropriate, on building long-term relationships. By building these relationships, suppliers will feel more open to collaboration, and potentially start bringing innovative solutions to the table.

And the other thing collaboration is going to help is with the final C.

  1. Cost

As in total cost, lifecycle cost, or Total Cost of Ownership. It’s critical to long-term savings ambitions that the total cost of goods or services is understood. Depreciation, residual value, maintenance and disposal costs all need to be taken into account before any decisions are made.

Procurement should also be focusing more on the cost element with suppliers too. Profit margin is not necessarily the best place to start looking for savings. Rather than creating the perception of going after profit, switching the focus to cost can provide more opportunities for discussion and even innovation.

Getting Started

While these are very good areas to start in, they are just the start of a larger exercise. However, they will help to provide the foundation for best practice, and to change the way projects are put in place across the organisation.

Infographic: Nailing Your Next Presentation

Want to grab your audience’s attention with the first sentence of your presentation and keep them intrigued throughout? These presentation do’s and don’ts will have you presenting like a pro in no time!

Some people jump at the chance to present, while the very thought of getting up in front of an audience can make many of us feel weak at the knees. One thing is certain – no matter how junior your role may be, you will have to deliver a presentation at some point in your career.

Here’s how you can nail it.

There are two crucial elements to making a great presentation. The first is what you say and the second is how you say it.

If you have great content, your presentation has an excellent basis for success.  As a presenter, it will give you confidence to ace the delivery, but there are still some important points to remember.

This infographic was originally published on Walkerstone.com.