Category Archives: Procurement News

Here Are 5 Of The Most Life-Changing Career Tips Of 2020

2020 has been a year like no other. Which of course means we need an update in our go-to career tips…


Unfortunately, careers often look better with hindsight. If only I hadn’t taken that role, we often think, or perhaps, I could be better off if only I’d learnt to better negotiate my salary. 

Fortunately for you though, those types of concerns or regrets might not be something you have to worry about after you read this article. We all need some good news right now, so to bring you five of the most life-changing career tips of 2020, we chatted to one of the most-experienced supply chains recruiters in the world, Tim Moore. As the President and Owner of Tim Moore and Associates, has single-handedly placed thousands of high-ranking supply chain executives into roles all over North America for the best part of almost three decades. 

He sat down with us to share ‘something money simply can’t buy’- hindsight. 

Tip 1: Stand out – you may soon have some competition

When it comes to global supply chains, it’s fair to say that the coronavirus pandemic has changed absolutely everything. From food to medical supplies, the crisis has caused all of us to consider just about every element of what we do, from how we manage suppliers to what technology we use and why. 

It has also brought significant awareness to the importance of a resilient, secure and reliable supply chain. This, in turn, says Tim Moore, has led to an increased interest in completing your supply chain qualifications: 

‘Thanks to COVID-19 and the awareness of Supply Chains there will be a long overdue “spike” in the number of new students enrolling in supply chain courses.’ 

‘Fortunately, I think there are now many degree programs ready to cater to this boom and help rectify today’s shortages of supply chain talent.’ 

Is an increased interest in a supply chain as a career going to pose a threat to today’s seasoned supply chain professionals? Not really, says Tim, but if you are at a more junior level, standing out when applying for jobs will become more important than ever. 

Fortunately though, more qualified junior talent in supply chain will be of great support to teams this year who have a lot to grapple with throughout the pandemic and beyond. 

Tip 2: Your profession has skyrocketed in importance and awareness – make the most of it  

Prior to writing this, we Googled whether there was such a thing as the ‘Year of the Supply Chain’ (sort of like the Chinese Zodiac “Years Of”). Sadly, there wasn’t. 

But if there was, undoubtedly it would be 2020. 

At no time in history has supply chain management been as crucial and all-defining as it has been this year. Suddenly, procurement and supply chain has gone from an overlooked ‘function’ to the crucial heart of the organisation. If ever you wanted to be strategic, get noticed and truly ‘take a seat at the executive table,’ now is the time to do so, says Tim.  But you have to be strategic and proactive.

He truly believes that this year will be career-defining for many supply chain professionals who step up and take the initiative: 

‘There has never been a time since the second world war, when the supply chain profession, and the techniques they bring, have been so important and visible to the senior executive within the firms that employ them.’ 

‘Every supply professional has learned lessons about the vulnerability of their particular supply chain(s) – and should be proactive taking steps to reduce the risk of disruption in the future.’ 

‘You can’t afford to wait and gamble that it won’t happen again…it will.’

Tip 3: Salary surveys may give good insights – but be careful how you use them

With the supply chain profession being elevated in importance, and businesses (hopefully) edging towards recovery as the year continues, opportunities may increase for people in the hunt for a better salary. But Tim cautions everyone to be very careful when it comes to the old ‘grass is greener’ salary argument. 

Tim has seen many supply chain professionals become disgruntled because they believe they are being underpaid. Yet the places they get their information may not be what they seem: 

‘I’ve heard some people say that “money talks” and they’ll crack open an industry salary survey to try and determine whether they’re ahead or behind others in terms of the salary curve.’ 

‘The thing is, those surveys can be almost impossible to fully interpret, and are often misleading to the casual reviewer.’ 

Especially this year, Tim says, salary survey results may not be able to tell you much as many companies are freezing pay levels and asking employees to take pay cuts. The ‘greener grass’ may in fact not be green at all when it comes to pay. 

Yet should you still use these salary surveys as leverage in your own pay discussions? Tim says:  

‘In any salary discussion, it’s important to know what your range should be, based on firms of the same size, in the same industry and of the same profit level. But really, it’s hard to glean this information from a survey so likewise, hard to use this as leverage.’ 

‘Pay discussions should be based more on your achievements and your tenure with the firm, whether the firm has been profitable and frankly, whether or not there has been recent layoffs or downsizing.’ 

Tim cautions, though, that now might not be the right time to ask for a salary increase: 

‘In some cases, people should be happy to have a job, let alone be seen as gouging their employer for demands for a salary increase.’  

Tip 4: Consider the big picture – and put your negotiation skills to good use

The coronavirus pandemic has wreaked havoc on economies, lives and jobs losses, and that means that inevitably, some supply chain professionals might find themselves without work  this year. This is a terrible outcome, of course, but when the market picks up Tim does genuinely believe there will be more opportunities than ever. 

But when and if we all decide to accept an offer of employment, Tim believes that we should consider the ‘big picture’ of what an employer is offering; as it will be more important than ever before: 

‘When considering a new opportunity, of course look at the salary range, and compare this to your competitors and your industry at large.’ 

‘But remember, as your supply chain training  has taught you – salary, like price, is only one element to consider. Think long and hard about other benefits, for example: educational reimbursement, membership in your local supply chain association, bonuses if any, (and how frequently they’re paid), stock options, and healthcare and dental coverage.’ 

‘Post-COVID, increased benefits may be  easier to achieve than a dramatic salary increase..’ 

When it comes to negotiating your package, however, Tim believes that supply chain professionals need to remember their training: 

‘I’ve always maintained that you never get paid what you’re worth, but you ALWAYS get paid on how you negotiate and how well you have interviewed.’ 

‘It’s surprising that so many supply chain professionals go blank and completely forget their negotiation training when presented with a job offer.  After you feel confident that you’ve checked all of the boxes and know you’re the right fit, just like with negotiating with vendors, you can always ask for:  1. Time to consider it further,  2. For the offer to be put in writing, and for those adventurous  3. “Is that the best you can do?”’

With the final request, Tim says, if you execute it politely and professionally, you may be able to leverage up your offer. 

Tip 5: Ask the hard questions

With unemployment approaching an all time high, many of us may be forced into a ‘beggars can’t be choosers’ type situation, where we simply take the first job we can get. But nonetheless, Tim says, you should research the company you plan to join, because if you do end up having to leave after a short amount of time, it may not look great on your resume. 

In order to research the company you plan to join, Tim recommends the following: 

‘Find out about everything. Look up the organisation’s products and services, read their financial reports, look at their social media accounts. Make sure you take detailed notes in all of your interviews, and don’t be afraid to ask why they’re interested in you and how you might fit exactly within the role in their eyes.’ 

‘But more than that, ask some harder questions. Ask WHY the position is available, and what happened to the previous individual in the role?  Enquire as to how long they were in that role?   You’d be amazed at what you can uncover!’ 

There’s very few professions that will be able to claim that 2020 was a great career year. But for many of us in supply chain and procurement, we might just be able to surprise ourselves. 

Will you negotiate harder for your salary increase or greater benefits this year? Or are you concerned about competition? Let us know in the comments below.

Join Procurious to connect with 40,000 other ambitious procurement professionals and get free access to networking, industry news, training and much more. 

4 Reasons Social Media Is A Gamechanger For Supply Chain & Procurement

Thanks to the power of online collaboration, social media has played an essential role in helping supply chain and procurement professionals manage COVID-19.


Where would we be without social media? Imagine trying to navigate through this crisis without the support of your social networks. At Procurious, we have provided a safe space for our almost 40,000 (we’re at 39,964 as I write!) supply chain and procurement leaders all over the world.  We’ve played our small part in helping our members step up to the plate, curveball after curveball.

In honor of World Social Media Day, it’s only right that we tip our hats off to how far we’ve come as a community. We’ve helped our members find jobs, advance in their careers, make critical connections across the world and collaborate to tackle some truly complex and exciting challenges. We’re extremely proud.

Today, we’re reflecting on a few of the many reasons social media has become a professional powerhouse:

1. It can help anyone, anywhere in the world

Think of how big your network would be without the virtual groups, forums, discussions and networks you’re a part of today. The best part is the skies the limit —and communities like ours are growing every day.

But even beyond individualized benefits, influencers like Professor Karsten Machholz, from the University of Applied Sciences Würzburg-Schweinfurt (or FHWS) in Germany, demonstrated the impact users can make when they use their platform for the greater good. Amidst the crisis, 65% of businesses were required to quickly source alternative suppliers for affected categories. And while procurement’s response was mostly impressive, some organisations are still struggling. Social media has allowed Karsten to play a huge role in recovery. “With the use of my procurement and supply chain networks like Procurious, I am trying to help companies find alternative suppliers in order to make their supply chains run again.”

Joanna Martinez, founder of Supply Chain Advisors LLC is another example of influencers leveraging social media to make an impact and help others. “Watching all the people being furloughed or laid off, I started ‘Pay it Forward Fridays’, where I use my connections and expertise to help people begin the journey back to employment. I’ve been a practice interviewer, a speaker to Zoom groups focused on the job search, have proofread resumes, made connections, and been a reference. I haven’t found a person yet that I haven’t been able to help in some way.”

2. The more we put in, the more we get out

Since coming together to prove our organisational value, we’ve made monumental strides in outshining old stereotypes and proving our organisational worth. Still, we’ve come too far to lose our seat at the executive table.

When asked about the pressures of today’s environment, Chief Heart Officer of SupplyChainQueen, Sheri Hinish, explained that COVID-19 has taught us a valuable lesson. “We are ONE planet – each of us interconnected in ways we may not be aware of or see. You can’t watch the news without hearing supply chain nowadays…. Literally, we are seeing that supply chains have the ability to save lives and power the world we share.”

This requires us to learn more and give more: to society and our professional networks. Social media makes this possible.

3. It boosts collaboration

Although much of the world is still at home, social media has brought our community closer than ever. “The pulse for information due to COVID has created a space for helping others better understand and prepare for external risks, visibility, social and environmental insights that are all tied to building resilient and transparent supply chains.” – Sheri Hinish, SupplyChainQueen.

It’s clear the support we’ve given each other is admirable. Beyond that, we’re progressively moving and adding value outside of our normal realm. For example, some procurement teams have contentious relationships with their suppliers.  But according to Sarah Scudder, President at Real Sourcing Network, the dynamic must change – and social media is helping pave the way.  “COVID-19 is forcing companies to save money and be more efficient… I want all procurement professionals to believe in collaboration and teamwork with suppliers instead of ‘us versus them’.”

There is no “I” in team. Effective collaboration requires communication and sharing. It can be especially uncomfortable if your organisation is doing something for the first time. But, who says you can’t borrow from another playbook? That’s what makes professional networks so unique. Chances are, someone out there has tackled a similar issue to whatever you are facing today… and they’re willing to share what they learned.

4. Online communication can be just as personal and productive

Our own Principal Advisor Helen Mackenzie proved connecting virtually doesn’t need to be any less intimate than meeting face-to-face. “I’ve been working hard to connect CPOs with each other. We’re having virtual coffee breaks where three or four of us come together just for a chat and to exchange information, insight and ideas. I like to think that being that community connector, which after all is what we’re about at Procurious, has helped the CPOs I’ve shared a virtual coffee with feel that they are part of a wider network that’s there to support each other.”

With major changes ahead, it’s critical we keep up the momentum. The most rookie mistake supply chain and procurement leaders can make is not being receptive to further change. As Dave Food, Strategy Director at Prophetic Technology expertly puts it: “The future is full of possibility, say no to the old ways and leverage the new potential. Early adopters are the powerhouse of tomorrow.” And social media is the enabler.

For more game-changing insights and inspiring stories from key players themselves, check out our COVID-19 Gamechangers whitepaper.

And if you haven’t officially joined Procurious yet, do yourself the favor and make today the day.


How Kelly Barner Became The World’s No 1 Procurement Influencer

Reaching influencer status on social media in any industry comes down to two things. Procurement and Supply Chain Influencer, Kelly Barner reveals what what they are and why it is important…


With world social media day only moments away, it’s time to reflect on how far the procurement profession has come in promoting itself to the broader business community and the world.

It was only six short years ago that we launched Procurious as the world’s first online network for procurement and supply chain….and since then we have seen a plethora of social media influencers emerge representing our profession.

But before any of us burst onto the scene, Kelly Barner was already here, promoting the work of our profession on Buyers Meeting Point, publishing books and writing original content to help upskill the profession while promoting key individuals, brands, publications and events within the industry.

Thinkers 360 and CPOStrategy Magazine recently recognised Kelly as the number one influencer on social media for procurement. So what has been her secret? How do you become the most influential person in a space where everyone is vying for attention? I reached out to Kelly to find out.

Kelly Barner: In my opinion, reaching influencer status on social media in any industry comes down to two things: 

1. Consistently working at it day in and day out. I’ve been sharing and engaging on social media since 2010. In the early days, I didn’t have a following, but I stayed on course, actively promoting my own content and following others and commenting on their content. I use some platforms to help me automatically promote content periodically after the main promotional window is over, but I do 99% of my social media work the ‘old fashioned way’ – I do it myself, as me, every day. If your online brand is important to you, you can’t fake authenticity. Give it 5-10 minutes a day, every day. That is enough to make a noticeable difference.

2. Not generating a following for the sake of the following, but looking at it as a natural (and very valuable!!) byproduct of doing excellent work, writing excellent content, and building real connections with real people. If you are just focused on building up your numbers, you will end up with an audience built for the wrong reason, and those connections won’t help you achieve your primary mission.

Tania:  When the field is open wide, it can often be tough to find the courage to “be the first” and get started. I know it found me a while to “find my voice” (and I still may be looking!), but it took a lot of courage to get started sharing my stories on social media.

Kelly: This is one of those cases where it helps not to have any idea what you are doing. I’m sure I made a lot of mistakes along the way (and continue to make them to this day), especially since I don’t have any training in marketing, PR, or social media strategy. But it has helped to have good friends by my side along the way. The procurement community is made up of amazing, generous, inspiring people that never fail to inspire me with new ideas and approaches to tough problems.

Tania:  But now the field isn’t wide open, we have a lot of influencers in our space, and in some ways, that could be more daunting – you could feel that you don’t have a unique story to tell, that it’s all been said..and maybe by people that you think are better than you.

Kelly: Everyone has a unique perspective to offer – that is the first, most important lesson I learned from Jon Hansen. He has been my mentor since day one, and early on I asked him why he was helping me. We both had blogs, and I wondered why he didn’t see me as a competitor. He pointed out (in his friendly, genuine way) that as long as we both write from our own point of view, there is no such thing as competition. No one can ever be you, and as a result, you will always have a unique offering to bring to the market. You can also beat people on time and quality. Work faster, and make sure your work is cleaner, that everyone else’s, and the readers will follow.

Tania:  I’ve always encouraged our community that they have a lot of great stories to tell. We have such interesting careers, interfacing with so many interesting, unique issues every day.

Kelly: The secret to great writing and social media engagement is… READING! I know that isn’t the most popular activity these days because we are all so busy. But it is absolutely critical. Read content on procurement, supply chain, business, communication – absolutely everything you can get your hands on. I read several newspapers every day as well as blogs, and monthly/quarterly business journals. It is amazing how often inspiration and insight come from unexpected sources. And – back to the idea of having a unique point of view – since no one else will be reading the same mix of sources as you, no one can duplicate your perspective. 

Tania:  With due cause, COVID has been a hectic time in procurement and on the news scene.  Our recent How Now report showed how well our profession handled the stress and actually have an increased interest and commitment to building a career in procurement and supply chain.

Kelly: I think procurement has done an outstanding job keeping the lights on in these unprecedented times. Who else knows how to get hard to find products and services? Who else can be creative about solving problems on the fly? Our companies have relied upon our agility and determination, but so have our families. I’m sure I am not the only procurement professional who applied her knowledge of supply chain management to keep the house stocked with food, medicine and – yes – even toilet paper. We’ve had some odd meals (turkey kielbasa, stewed tomatoes, and buttered toast, anyone?) but we always had something to eat – and I never missed a deadline at Buyers Meeting Point.

Given the additional information supply chains have received since the pandemic began, I think there is good reason to be hopeful that a flood of talented, hardworking professionals from other fields will join procurement and supply chain because of what they have read and seen during the shutdowns. 

Tania:  Speaking of increasing influence, Kelly, you have just made a big strategic decision to purchase MyPurchasingCenter from another female entrepreneur.

Kelly:  MyPurchasingCenter was owned by MediaSolve Group, a B2B Marketing Company led by Michelle Palmer, and it was edited for a long time by another well-known figure in the procurement industry: former Purchasing Magazine Senior Editor Susan Avery. They were both determined that ownership of MyPurchasingCenter go to someone that wanted it for the right reasons; not to part it out or gut its assets, but who would show respect for its legacy as a standalone information resource.

I worked on this acquisition for A LONG TIME. I knew Buyers Meeting Point was uniquely positioned to show the respect that Michelle and Susan wanted to see (and rightly so!) and to create tangible value with the MyPurchasingCenter brand, content, and social media accounts. 

Tania:  Just like when you started Buyers Meeting Point, this acquisition is a big step, it must have taken courage.  Were you nervous about the next step. Can you give any advice to people wanting to take that first entrepreneurial step?

Kelly:  My short answer to that question would be, “Just GO!” With the exception of ensuring your personal finances are in a state to support the leap before making it, you can’t overthink the decision to step out on your own. If you do, logic will stack up against the decision to become an entrepreneur every time. Nothing in the world can prepare you for starting a business, but no professional experience offers more riches. The highs and lows, gains and pains are like nothing else. I highly recommend that anyone who gets the ‘itch’ seriously consider acting on it!

Tania:  What do you think the profession will look like in five years?  What will MPC/Buyers Meeting Point look like in five years?

Kelly: In five years, I think procurement will be a primarily data-driven profession. Technology will be able to handle a lot of the process work we do today, leaving us to analyze data and work at the highest levels of the enterprise to inform and contribute to the development of corporate strategy.

My plan for BMP and MPC is to continue supporting all of the information needs of procurement and supply chain professionals. Five years from now, I imagine the full MPC content archive will be back online and I will have had some other creative spark about how to perpetuate the brand on my own. I can’t wait to find out what I come up with!

Tania:  There’s a few things I’ve always admired about Kelly (being a lovely person would be the first), but from a business perspective, that she’s achieved this number one status, that she’s managed to do this without having to leave her family and travel like a madwoman around the globe to build her network and that she’s a great collaborator.

We’ve talked about the achievement of her influence, but what about being able to build this global network without travelling.  Kelly, what’s your secret?  Do you think face to face is a myth?  Has all our Zoom, Webex, etc during COVID proved your approach?

Kelly:  This is absolutely a unique point about my experience. I was a consultant traveling almost 100% of the time when I had my daughter 12 years ago. Overnight, I went from jetsetting to full-time first time parent, and it was quite a shock. I joined Buyers Meeting Point in 2009, 4 months before my oldest son was born (referring back to my point about about not overthinking the leap to entrepreneurship – logic would have told me that was a TERRIBLE idea! Who starts a business with a newborn and a 20 month old?). My youngest son was born in 2012, so I have had babies and/or kids for every minute of my entrepreneurial journey. It is amazing what technology will allow you to achieve. I don’t even have a home office. Before COVID-19, I worked at the kitchen table, and after my family all came home to roost full time, I moved to the dining room because I didn’t want peanut butter and jelly splattered on my laptop. 

I’m also lucky that I live about an hour from Boston, which brings a lot of people into my backyard. I make the most of those opportunities, and I have met many of my global colleagues – including you, Tania! – in person. There is something magical about sitting face to face across the table from someone you already have an online relationship with.

There is no question that being able to travel would have accelerated my career and influence, but not being able to travel wasn’t a deal breaker. Now that everyone else is in the same boat, I have an advantage because I’ve been working this way for over a decade. 

Tania:  And collaboration, you’ve always collaborated with others in the profession – Jon Hansen, Phil Ideson, and Stephanie Lapierre to name a few. I totally subscribe to this, we’re going to get a lot further promoting the profession if we all promote each other.  What’s been your approach to collaboration?  How do you choose who you want to collaborate with?  Will you be collaborating more or less with others into the future?

Kelly:  Deciding who to collaborate with has always been a gut decision for me. If I like you, there is almost nothing I won’t do for you. I received a ton of goodwill from people who were practically strangers when I was first on my own, and I have made a point of paying that generosity forward. This is another one of those areas where you can’t fake authenticity. If you really like someone, the collaboration comes naturally. If you don’t ‘click’ with someone, nothing can fix it. I’ve actually gotten stomach aches from dealing with certain people over the years, and I trust that 100%. After all, what is the good of taking on all of the risk of being out on your own if you can’t reap the benefits of being able to decide who you will work with and for?

Summary

I hope that leaves everyone inspired, with some great practical tips for increasing your own social media influence.  

From my own perspective, building a really compelling profile on Procurious is a great way to start promoting yourselves to 40,000 other procurement and supply chain pros around the world…and also connecting with them to solve your daily challenges.

Happy World Social Media Day Eve!

Job Cuts: Is There Light At The End Of The Tunnel?

COVID-19 creates new career opportunities for procurement and supply chain professionals, despite recent job losses and pay cuts.


COVID-19 wreaked havoc on the job market. The most recent U.S. analysis reveals that 21.5 million Americans remain unemployed. In the European Union, 397,000 people lost their jobs in April, according to the EU’s June report. Globally, Citi projects that 44 million people around the world, excluding China, could lose their jobs due to the pandemic.

The procurement and supply chain function is not immune. Our research, which was conducted between 4/28 – 5/12, found that 20% of supply chain and procurement departments experienced job cuts due to the crisis. Diving deeper into those numbers:

  • Nearly half (48%) said the job cuts were limited to about 10% of the team
  • 15% said their teams experienced cuts of 50% or more

Similarly, 23% of respondents said they were forced to take pay cuts. Of these:

  • 38% saw pay cuts of about 15%
  • 32% saw cuts of about 25%
  • 10% saw cuts of about 33%
  • 19% saw cuts of 40% or more

Millennials took the most pay cuts (32%), while Boomers took the least (18%).

While these numbers are alarming on the surface, they may not be as severe as they appear. A recent U.S. survey from the Census Bureau found that 47% of adults said they or a member of their household had lost employment income since mid-March. This may indicate, on a comparative and anecdotal level, that procurement and supply chain practitioners have somewhat been spared.

The harsh reality: Given the magnitude of job loss across the world, it was always a matter of how much, not if, procurement and supply chain functions would get hit. Across many industries, it simply did not matter how talented you are, or the results you produced. Many organizations saw revenues drop by nearly 100%, which naturally (and unfortunately) affects employment.

The good news comes in what’s next. Our research found that the majority of organizations are valuing procurement and supply chain like never before. More than ever, procurement and supply chain leaders play a critical role in organizational resiliency, recovery, cost controls and business continuity.

Go-forward job confidence reflects this thinking. On a scale of 1 – 5, weighted job confidence for the next 12 months is 3.96—meaning procurement and supply chain practitioners are more confident than not. Nearly half (43%) said they were extremely confident they would have a job 12 months from now, compared to only 5% that said they were not confident. We see this confidence mark as an incredibly positive sign considering the employment turmoil around the world.

Could this confidence – along with the newfound appreciation for procurement and supply chain – lead to more promotions? While it’s safe to assume most organizations will take a tepid approach to compensation and spending for the foreseeable future, we believe this crisis will create fresh career and financial opportunities for Generation Next. If anything, this crisis – and the strong performance of teams across the world – crystalizes the importance of investing in people, technology and the overall function, which should open up more (and new) doors.

Building on this dynamic, the majority (73%) of organizations we surveyed are planning seismic shifts in supply chain and procurement strategy post-pandemic, including supply base expansion, inventory management changes, and reductions in supply chain globalization. These changes represent fundamental shifts to traditional approaches, and will require substantial smarts, experience and an immensely committed and results-driven team for success. All of this points to higher demand for great people. 

There’s no escaping the chaos caused by COVID-19, especially when it comes to jobs. But for procurement and supply chain leaders, the light at the end of the tunnel is bright.

Big changes ahead for supply chain and procurement strategy. What are they, and how do we get ahead? Find out now in our ‘How Now?’ report.

Forget The Pretty Face, It’s The Content That Matters

Don’t be seduced by a sleek user interface or fancy bells and whistles – it’s the solutions ability to address your most critical spend categories, use cases and suppliers that really matter in the long term.


It’s easy to be taken in by the shiny exterior of a product, it’s pretty packaging, isn’t it? As we all know, companies use clever product branding and marketing to draw us in and boost their sales. And the pretty-packaging strategy is no different when it comes to tech solutions. 

Think about the last tech solution you or your organisation purchased. More than likely it had an appealing design, intuitive user interface, and web 2.0 look and feel.  Or maybe you were drawn in by the way the system looks in mobile or app form? These are all design features intended to lure in a tech buyer.

But is design really what matters most when it comes to making a success of your tech implementation?

Success Requires More Than Just a Pretty Face

Once you’ve decided to purchase a new tech solution, you pull together your shopping list of requirements. Key stakeholders add to your list of requirements and then each requirement is stack ranked based on need.  “Must-haves” vs. “nice to haves” are thrown together into an RFP.  Tech vendors check all the boxes and impress you with their demos.  By the time you see the third or fourth vendor, you start to believe, any one of these vendors can meet our requirements and help us achieve the success we desire.    

Then the system demos take place and that pretty packaging comes into play. There’s a risk that all the focus on the shiny new objects distracts from what really matters. So how do you stay focused and stick to your requirements and select a tech solution that’s right for you? 

Here are my three tips to keep your mind focused and ensure your head isn’t turned by the razzle-dazzle of a great sales presentation.

1. Keep suppliers top of  mind 

One of procurement’s key relationships is with the suppliers that we use. Choosing a solution that puts the suppliers’ user experience at the top of your priority list is pivotal to making your tech implementation a success.

Your business case probably includes reducing supplier-related work. As far back as 2015, Hackett Group research estimated that e-invoicing could cut costs by 31 percent and supplier enquiries by 24 percent – big wins for you and the team if you get the implementation right.

But this goes beyond making it easy for suppliers to transact efficiently, it includes making it easy for suppliers to keep their content up to date.  Supplier data, certifications, qualifications, financial info, and catalog info are just a few things that suppliers can keep up to date to make it easier on you and your team.   

During your selection process, don’t forget that suppliers are no different to any other user of new tech. They expect it to be free and easy to use or they, like your end users, will do all they can to go around the system.

Successful supplier adoption of new tech can be critical to making your implementation work. If buyers ensure that regularly used suppliers are onboarded correctly and ready to go at go live, then adoption will be a whole lot easier for your end users.  Why?  Because the suppliers they are used to transacting with, will be easily found in your new tech.   Resist the pretty packaging and keep your supplier experience top of mind.

2. Ensure your new tech effectively addresses the categories that matter most

Imagine you have just installed your new tech and your end users engage the platform only to find that their spend categories are not enabled.  It doesn’t really matter how intuitive the user interface is or how much it looks like Amazon.com.  If they can’t engage with their suppliers and buy from the categories they typically buy, they will not adopt your new tech.  

Buyers of tech can easily be persuaded to focus on the shiny new object.  Don’t be distracted, stay focused on what really matters for your end users.  What spend categories must your new tech address to deliver the value your business case promised?  

Make sure your new tech supports the categories and departments that are large spend areas, but are not effectively managed today.  If your new tech can match the spend coverage you have today, while also positively affecting categories and departments that you have typically struggled to manage, you will see wider spread adoption and a significant increase in spend under management.  Your end users will feel as though they have been heard and will appreciate that you are implementing a solution that appears as though it was built for them.

3. ‘Keep the main thing the main thing’

In the razzle-dazzle of the tech demo, it’s easy to lose track of the critical use cases that separate success from failure. Tech companies will want to show off their most fancy stuff, but that is not typically where success is found.  In fact, many that focus on the shiny objects don’t focus enough attention on the use cases that matter most.  

For example, what’s the real use of an Amazon-like procurement system when a very small percentage of your spend is actually “shopping” for items?  It is also a very low bar for any system to shop for a laptop, put it into a shopping cart and route it for approvals.  That changes though if your end users are shopping for MRO and/or research items where shopping is the norm.  

We are also seeing a trend for organizations moving toward systems that are able to effectively address use cases for both direct and indirect.  This is certainly an area that you don’t want to assume your new tech can effectively address.  Take the time to engage the right stakeholders and let their voice be heard.  Bringing them in after contracts are signed is way too late. 

Ask yourself – does the tech solution give me what I need? Are core functions as they should be? Is the user experience for suppliers and end users acceptable for your standards? Does the solution cater to your key categories and departments? You will find there is a big difference between updating your processes to fit best practices to minimize customization and feature requests with your new tech and trying to fit a square peg in a round hole on the other. Make sure you’re clear on what your critical use cases are and the features that you will need to support them. Consider how much you are prepared to change processes to fit within your new tech and document everything so all parties are on the same page on what needs to be done.  This will help clarify which tech is a better fit and which solution is better aligned to support your industry and organizational uniqueness. 

It’s great to have a tech solution that has a pretty face. But the lure of pretty packaging may lead you down a path that’s just not right for you, your team or your business. Use my 3 tips during your selection process to ensure you get a solution that will deliver the outcomes you are expecting. 

To go deeper on how to find your perfect tech match, download our e-book ‘How To Select Source-To-Pay & Procure-To-Pay Systems That Deliver Results‘ and tune in to our series ‘Major Tech Fails.’

Supply Chain And Procurement Leaders Anticipate Seismic Post-Pandemic Strategy Shifts As Executives Brace For Peak Of Impact

Confidence levels remain high, despite widespread disruption


Today we released the results of our How Now? The Supply Chain Confidence Index. The research reveals that nearly all (97%) of the 600+ professionals we surveyed experienced a supply chain disruption related to COVID-19. In response, the majority (73%) of organisations are now planning major shifts in supply chain and procurement strategy post-pandemic, including supply base expansion (38%), reductions in supply chain globalisation (34%) and increases to inventory levels (21%).

When asked where COVID-19 had the biggest single impact on their supply chains:

  • 31%: Decreased demand for products and services
  • 26%: Lack of available supply due to production downtime and shutdowns
  • 21%: Logistics and transportation slowdowns and delays

“We expect to see seismic strategy changes in the months ahead that fundamentally alter the makeup of global supply chains,” said Tania Seary, founding chairman and CEO of Procurious. “For decades, low-cost country sourcing and offshoring was the foundation of global supply chains. The pandemic has many executives considering reducing globalisation—and for good reason. But these changes won’t come easy.”

Reflecting on lessons learned, 39% of those surveyed said they were blinded by a lack of supplier and geographic risk and 29% said they didn’t understand the upstream supply chains of their suppliers. Fifty-nine percent of respondents believe the Fortune 500 should reduce globalisation by localising supply chains and bringing manufacturing back home.

Confidence Remains High, Despite Looming Uncertainty  

Uncertainty around when the disruption will peak continues to loom. Procurious found that while 34% of business leaders believe the worst has come and gone, nearly half believe the peak impact will occur within the next six months.

“The message from frontline practitioners is that the end to these supply chain disruptions is not near. Most professionals believe the crisis will peak in or after June,” said Seary.

As a result, supply chain and procurement teams will continue to play a key role in recovery and resiliency initiatives. During the crisis, 40% of respondents said their recommendations were solicited more than usual internally, and 22% said they now have a seat at the executive table.

This growing platform has inspired a new generation of professionals to further pursue careers in supply chain and procurement. Procurious found that 62% of all respondents and 71% of millennials said their interest in procurement and supply chain has increased as a result of the pandemic.

“We found that most practitioners stepped up in a big way and responded effectively to a crisis that literally brought the world to a halt,” said Seary. “The spotlight on performance will lead to increases in budgets, tech investments and board-level involvement, and create new opportunities for practitioners to make their mark at the executive level.”

Analyzing employment trends, Procurious found that 20% of supply chain and procurement departments experienced job cuts and 23% of departments were forced to take pay cuts. However, go-forward job confidence remains high. On a scale of 1 – 5, weighted job confidence for the next 12 months is a 3.96—meaning employees are more confident than not.

The full report, which dives deeper into COVID-19’s effect on supplier payments, technology investments, jobs and supply chain and procurement operations, as well as plans and predictions for the future, is now available for download.

Big changes ahead for supply chain and procurement strategy. What are they, and how do we get ahead? Find out now in our ‘How Now?’ report.

Methodology: 605 survey responses were collected via SurveyMonkey between Apr. 28 through May 12.

3 Things Stopping You Doing What You Need To In Procurement

Big things, small things – there are probably countless things stopping you doing what you need to in procurement. What blockers are in your path?


We’ve all had that day or that week. You get to the office with a task list in your head or in hand, sure that you are going to make a huge dent in it before you even get to your morning coffee. But then you sit down and within 10 minutes your plan is blown out of the water and you spend the rest of the day playing catch up, with the bottom of your to-do list getting further and further away.

This is the reality for many procurement departments too, just on a larger scale. While an individual’s blocker might be a rogue email or the wrong phone call at the wrong time, a department’s could be any one of a number of things, from lack of resources to questionable IT systems. The thing about the blockers is that most people will already be aware of them, either as conversation around the watercooler, or something that people think is the responsibility of senior management to sort.

However, responsibility doesn’t just rest with an individual or small group, it is on each and every person to recognise these blockers and help to minimise their impact. This list is far from definitive and will change from organisation to organisation, but they are common across the profession as a whole.

1. Being Distracted by the ‘Next Big Thing’

“Procurement deserves a seat at the top table.”

“Procurement needs to be seen as a strategic business partner.”

“The next big thing for procurement is…”

If you attend procurement events or read industry literature, much of the content will concern the ‘next big thing’. Category Management, Supplier Relationship Management, Business Process Re-engineering, Strategic Stakeholder Engagement – all of these things have been touted as procurement’s ‘next big thing’ at some point in the past decade.

But, hand on heart, how many of us could say that they have been fully achieved before the next big thing came along and stole people’s attention?

Too many of these terms have become useful jargon for consultants and advisors to use, rather than the core principles for procurement departments to be working with. The relentless pursuit of the next idea to make procurement a strategic partner has blinded the profession to a major blocker to progression – getting the basics right.

Instead of chasing the metaphorical white rabbit, procurement instead should focus on ensuring that it is delivering on its principal duties – ensuring good relationships with suppliers (and paying them on time!), delivering on time and in full and delivering value, not just savings, to the business.

This can be achieved in a number of ways including cutting down unnecessary tenders, ditching non-strategic strategic activities, creating more open supplier markets and two-way communication in relationships. Whatever the best way to do this, organisations need to find their own path to it which will ultimately allow them to get back to basics.

2. Not Being ‘Besties’ with your Stakeholders

For procurement to realise its goal of a more strategic role in the organisation, it needs to create good relationships with its key stakeholders. We’re not talking about being ‘besties’ with stakeholders, but gaining support and buy-in for ideas and projects.

There is plenty good literature written about stakeholder engagement, and many organisations talk a good game about the importance of procurement and supply chain. However, just as many organisations fail to live up to these words and aims when it comes to having it as part of their key tasks.

Getting stakeholder buy-in is a critical first step in the success of any project or for any part of an organisation. This can range from ensuring that maverick spending practices are limited, or that procurement has the necessary level of support in terms of resources, time and money to build robust and fully risk-managed supply chains.

There is something of a chicken and egg situation with gaining key stakeholder buy-in. Procurement needs to meet internal expectations to prove its value, but may need a level of support to achieve this.

There are good ways to engage internal stakeholders and for procurement to get an organisational BFF! Strong two-way communication, ensuring what is required from stakeholders is clear and developing plans in conjunction with stakeholders are all good things to bear in mind.

3. Being Buried in Paperwork

At the Big Ideas Summit 2020 in London, Justin Sadler-Smith, General Manager at Basware, argued that technology solution providers have failed procurement in not providing good technology solutions. This, combined with a lack of utilisation of existing technology, has led to many procurement processes continuing to be done manually – effectively burying procurement in a deluge of paperwork, wasting valuable time and resources.

This just isn’t an issue for procurement, but across the wider organisation. The lack of technology also has a knock-on impact on the quality of data being used by procurement. Poor data means procurement can’t fully define things like the length of its tail spend, or even understand fully what its annual spend with individual suppliers is.

This can then lead to poor contract management (and over spend) and poor supplier management, including late payments. Late payments lead to delays, which can then lead to organisational issues. Late payments can undermine supplier relationships, put the suppliers themselves at risk and ultimately cost an organisation more than the original payment was worth in the long-run.

It goes against one of the foundations of the profession and means that procurement fails to meet its own basic requirements of operation.

Unblocking the Blockers

Procurement, as the entry point for suppliers and the supply chain into the organisation, will frequently be where the buck stops. However, the blockers for procurement have the potential to derail everything from individual activities to organisational strategy making it a collective responsibility to solve.

For procurement, the blockers ultimately boil down to getting the basics right, meeting the needs of the organisation, putting systems in place for better management and delivering on its core principles. Something as simple as ensuring that appropriate systems are in place to facilitate on-time supplier payment can mitigate a number of risks, many of which can have a domino effect across the organisation.

Could unblocking the blockers be as simple as treating suppliers better? Perhaps not, but it seems like a very good place to start.

Join Procurious to connect with 40,000 other ambitious procurement professionals and get free access to networking, industry news, training and much more. 

You Ask All Of Your Suppliers For A 5% Discount. What Can Possibly Go Wrong?!

What does best practice supplier relationship management look like? Not like this…


With sales at her company in freefall due to the Covid-19 crisis, the pressure was on for Sally’s* procurement team to reduce costs. In a desperate pitch to do what she could, Sally decided to issue a letter to all suppliers, asking for an overall price reduction of 5%. In exchange, Sally dangled the carrot of ‘to-be-determined’ commitments that the business would fulfill post-Covid. These could include, she thought, accelerated payment terms, additional volumes, or contract extensions.  

What could possibly go wrong, she thought, as she hastily finalised the letters and forwarded them on. Even if most say no, some might say yes and procurement will be lauded as heroes. 

We’ve all been in Sally’s position – or if we haven’t, we certainly can imagine being put in it. When faced with the pressure that a crisis brings, isn’t it always the best idea to at least try to reduce costs by asking for a discount? On the surface, it seems like a logical approach – all you need is for one supplier to agree and your effort pays off. But is it possible that taking such a black-and-white approach can end up costing you more than it saves you? 

Issue 1: Vague notions of success can’t be measured 

In Sally’s situation above, you could argue that ‘success’ looked like one supplier agreeing to discount. But what if they agreed to a 1% discount, would that suffice? Or if they agreed to a 5% discount without complaint, would you ask if you had done more? 

The problem with a strategy of ‘doing something and hoping for the best’ is that there really is no benchmark for what ‘the best’ is and whether it has been achieved. This leads to issues with measuring success internally, and naturally, the same question is always asked: how has procurement added value here? 

Issue 2: No discount is as simple as asking – negotiation will be required 

If achieving a 5% discount was as easy as sending a letter, then procurement would likely be out of a job. Herein lies another problem with Sally’s strategy – it’s unlikely that vendors would respond with a simple ‘yes’ or ‘no,’ leaving her to need to negotiate for whatever she could get. 

And these negotiations would not be simple. Those suppliers who may be inclined to agree would expect more clarity and certainty on any future commitments from the company, which could turn discussions sour, quickly. 

Those on the other end of the spectrum, however, may feel the need to explain why they can’t offer a discount, and may enter the conversation feeling defeated or exposed. 

Whichever way these discussions transpired, they would certainly be time-consuming. In an environment where time is money, you have to ask yourself what the small percentage gains you might secure are really worth. . 

Issue 3: Your supplier is in a crisis, too 

Supplier Management 101 tells us that we should treat our suppliers like we’d like to be treated. But is sending out a generic request the way we’d like to be treated, especially if we’re in crisis too? 

The answer is a resounding and obvious no. Any suppliers that Sally is dealing with would also be deep within this crisis, and may in fact be considering a price increase to save themselves. On top of this, a lack of personalised correspondence could be perceived as insulting to the relationship. The request might net a discount, but it would cost far more than that in future relationship capital. 

If Sally’s plan wouldn’t work, then what would? 

Step 1: Shore up your fundamentals 

In times of crisis, and indeed, in ordinary time procurement must have a clear goal and an execution plan for what is needed for the business operations to continue undisrupted (or minimally impacted) and more importantly, for creatively increasing value to the organisation. 

These are essentially the fundamentals required to maintain a strong supplier base and elevate procurement. From a pure supplier relationship perspective, engaging strategic suppliers to assess their crisis preparedness and ability to continue to serve the organisation is the first step. 

Step 2: Creatively and empathetically engage your suppliers

Once you’ve got your fundamentals organised, you need to engage your suppliers in strategic conversations about how to creatively increase efficiency, optimize processes quickly, reduce waste (of time, resources and costs), and where possible, decrease costs and deliver additional value. 

Beyond this, you also need to discuss with them what value is added,  how much, for how long, what are the contingencies. This will help you establish a win-win approach with short and long term impact. 

The idea is that a continuation of a growing partnership will drive the right behaviours, not just during this crisis but in the future. Supplier-driven innovation should always be a top priority to both procurement and the entire organisation. 

After you’ve finished your initial discussions (and note, these type of discussions should always be ongoing) use learnings from them across all other supplier segments. The behavior you want to drive here is ensuring suppliers not only want to continue doing business with you but are eager to strategize with each other during the crisis.

Going back to Sally’s situation, this approach works for a number of reasons. Even if suppliers couldn’t immediately offer reductions they will be clear on expectations and will be committed to perform at a high level and produce ideas for the company, while increasing supplier engagement and value as a byproduct. Suppliers will be willing to explore solutions to avoid disruption, which is exactly what the business needs. In addition to this, the effort expended is targeted so no time will be wasted and in fact, the time spent may even produce market intelligence that can be brought back to the business to refine their own mitigation strategies. 

Also, finally and perhaps most importantly, the role of the procurement will be elevated to a truly strategic function (with lasting impact) to the organisation.

Continue supplier relationship best practice? 

For procurement professionals that realised early that Sally’s approach wouldn’t work, none of the advice here on how to rectify it should come as surprise: it is, quite simply, supplier relationship best practice to treat your suppliers in this way. 

In fact, for organisations that already implement supplier relationship best practice, they may not even need to take these steps – throughout this crisis, their suppliers may already be knocking on their door with creative mitigation strategies. They may even be using this crisis to bring the relationship to the next level. 

But for those who are yet to establish supplier management best practice, this example provides the perfect reason why you need to. Supplier relationships are a key enabler to business success, and when they are strong, the risk of business disruption is greatly reduced. 

What have you done to strengthen supplier relationships throughout this crisis? Let us know in the comments below. 

Working From Home Is Resilient, But Is It Sustainable In Procurement?

The coronavirus pandemic disrupted Procurement in unimaginable ways. Running Procurement from home is possible, but is it sustainable?


The coronavirus pandemic has disrupted the workforce in ways we have never experienced, affecting also Procurement departments and Procurement Outsourcing (PO) providers. Shared service center locations first across Asia and then the rest of the world became hot spots, leading to a rush of company initiatives to enable procurement professionals to productively work from home. IBM was successful in moving 99% of its Procurement Outsourcing teams from 60 centers across 40 countries into a home office environment in only 10 days without service degradation (1), proving that running a Procurement business working from homeis possible and productivity can be maintained when a business can react quickly, but is it sustainable? Have critical activities just been postponed or is this is the new business as usual? Three considerations for sustained resiliency.

#1. Make regularly working from home part of your team’s DNA

While many of us are used to working from home in some capacity, over 80% of our procurement professionals have never done so on a regular basis.  And just because our workforce can work from home does not mean they are able and willing to do so long-term.

But returning to the office means finding the balance between safety and productivity for our teams, and deciding whether to aim for a quick return to the office or a more comprehensive re-modeling toward “borderless workplaces” where staff works from a combination of office, client site and/or home. Returning to the office is based on smart, quick and simple fixes: social distancing, mask wearing, and setting up sanitation protocols, such as rethinking where and when we eat and gather, how we open and close doors and use elevators. Re-modeling more fundamentally looks at how we work and defining what the worker’s purpose and intent is inside the office. Buildings become much more purpose-driven; deliberately sought out for team meetings, new employee onboarding, and collaboration sessions, with more hot desks and larger shared spaces, instead of being the default place to go for work.

But no matter in what capacity we return to the office, working from home regularly or even primarily will have to become part of our DNA going forward, as future infection waves are likely to force us out of offices again multiple times over the next few years.

Achieving this will require us to focus more than ever on internal communication. We have already seen a personalization of written communication over the past few months, with people expressing genuine care for each other, but we need to also listen to our employees and keep an eagle-eyed focus on engagement. By taking time for one-on-one discussions, acknowledging everyone’s individual challenges, ramping up appreciation and recognition, and ensuring we create virtual spaces for socializing we can maintain a sense of belonging and feeling of pride. On a collective scale, short pulse surveys can be a simple way to gauge the team about how they feel and adapt measures for greater engagement and productivity.

Ultimately our teams and their willingness to be flexible will be the first line of defense for sustained productivity in the new world.

#2: Bootstrap adjustments in operating models to accelerate your digitalization journey

Just a few months of working from home on a large scale have successfully increased the sense of urgency for digitalization and more intelligent end-to-end workflows. IBM and our clients have already seen an explosion of home-grown dashboards and trackers, aimed at gaining more visibility into procurement operations, allowing for more granular insights and daily views of the business. In the spirit of agility, we should initially allow for the creation of these “quick and dirty” data collection and visualization tools, even if it is manual and there is duplication. As we learn more about what our post-COVID-19 world will look like and the effort required to maintain a plethora of semi-manual tools becomes a burden, we can start distilling down to only a handful of tools and a new operating standard, creating the enablers for a broader roll-out of “no touch” procurement solutions, including traditional tools like catalogs, as well as newer solutions like marketplaces, chatbots, guided buying assistants, robotic process automation, and analytics to accelerate speed to insights and decision making.

Even more delicate and trust-based processes like Category Management and Strategic Sourcing can benefit from digitalization, for example by running “Virtual Sourcing Bootcamps” with business stakeholders using a series of video calls to map out purchasing plans, identify additional addressable spend and define more robust category wave plans for the year.

Additional incentives can be created for those internal clients or BPO customers who are resistant to a more permanent work from home delivery environment by redistributing real estate charges and differentiating expected employee productivity to create a price differential between home- and office-based setups.

#3: Learn to build trust virtually as a buyer and a seller

Until recently, meeting face-to-face was a non-negotiable prerequisite for the signing of large contracts, which we at IBM have experienced both as a supplier of Procurement Outsourcing, but also a buyer agent with our own and our customer’s suppliers. Finding a way to make customers comfortable pulling the trigger on multi-million-dollar contracts with little to no human contact is going to be a key success factor for our new future.

In the outsourcing world, visiting one or more delivery centers is a staple in every sales pursuit, but with increasingly distributed teams and a desire to reduce non-essential business travel, we are now showcasing our teams and their capabilities virtually. Using a mixture of live and pre-recorded videos, online whiteboarding tools and virtual roundtables with practitioners we have been able to create an authentic virtual delivery experience to aid in the sales process.

Experiment with virtual collaboration tools not just internally, but get comfortable using them with clients and suppliers to co-create, or hear from experts and practitioners that wouldn’t otherwise have been flown in. Focus your travel dollars and effort on one key meeting or workshop and augment it with a few virtual “visits” to round out the picture.

Summary

Leading a borderless workplace Procurement team is possible and can even deliver superior results if employees are engaged, but ensuring sustainability requires active shaping of your team’s DNA, a more digitalized operating model and the confidence to build trust in a virtual environment. Sometimes creativity requires constraints to really flourish, and let’s use the existing restrictions as an opportunity to emerge from this crisis stronger than when we entered it.

By Matthew Bounds & Martin Esser. For more information about operational resiliency, read:

·       Business Process Outsourcing (BPO) Services for business continuity and resiliency ibm.com/bpo

·       Building operational resiliency for anytime, anywhere and any situation

Footnote: (1) IBM Services blog, “Building operational resiliency for anytime, anywhere and any situation”, May 4, 2020, https://www.ibm.com/blogs/services/2020/05/04/building-operational-resiliency-for-anytime-anywhere-and-any-situation/

RFP Beware – It’s Not Just About Ticking The Boxes

Don’t get caught out by using a template without thinking! The result can give you nightmares!


I was recently asked to describe the worst procurement project that I had been involved in. While not the worst, this story certainly highlights the importance of engaging procurement teams early and not blindly following templates!

The scenario

I was in the role of a buyer supporting an internal customer and I took over a project at evaluation stage. The evaluation team had individually assessed the bid responses and the team had convened to discuss their findings. A weighted attribute model had been selected to help identify what criterion was valued over others.

The template bites back

The ranking of the bidders evaluation scores were revealed and the project lead was shocked. “This isn’t what we expected? These aren’t the best proposals that meet our needs, these are the weaker ones?!”

The problem became obvious. The boilerplate RFP template had been used without tailoring it to the business problem they were trying to solve.  Most critically, the evaluation criteria percentage hadn’t been adjusted at all. Innovation was set to a default of 10% whe,n in fact, it was the most critical factor the project!

What is a weighted attribute evaluation model?

A weighted attribute model is one of the most common evaluation models used in procurement. It helps to identify the proposals that best meet the most important buyer needs. This could be requirements like: methodology, project management, resources or capability and capacity.

A typical weighted attribute model looks like:

Track record10%
Technical skills25%
Project team and key personnel20%
Methodology35%
Price10%

There are many different ways to approach the weighted attribute model. (Top tip, don’t put the percentages too close together otherwise there will be nothing distinguishing one bid from the other!)

Project resuscitation

What would you do if you inherited a project at evaluation stage and the RFP didn’t actually ask the market for the complete picture that you wanted? And worse, that the evaluation criteria didn’t match the most critical elements of the project?

These were my options:

  1. Cancel and start again – this wouldn’t be fair to the bidders who had already put in the time and effort to respond.
  2. Reissue parts of the tender questions – the submission deadline had already passed but we could seek further clarification responses. This would risk our reputation in the market.
  3. Create a second stage and interview each bidder to better understand their proposal and see if they have the capacity and ability to scale up to our desired needs.

We selected option number 3 and ran a second stage process. The presentations enabled us to drill down into each proposal and meet with each company face to face. They were able to better understand the objectives we were seeking and we were able to better understand the solution they were putting forward.

3 lessons that changed the way I approach evaluation

  1. One size doesn’t fit all

A template with a generic model can’t be assumed to meet the needs of every project in every situation. It’s important that the needs are thought about carefully and that the right model is chosen for the project.

  • Clunky RFP processes aren’t always right – especially where innovation is required

Consider what parts of the process must be executed e.g. notice to market, instead of paper based responses – ask the bidders to complete a simple two pager, then hold a dialogue to flush out the rest of the solution.

  • Think carefully about what is important to the success of the project

The commercial team could have determined what was most important to the project. Pairwise analysis is a great tool to help with this!

The traditional RFP model’s days are numbered and will hopefully soon become a thing of the past. It does not suit all processes and yet it’s still frequently used. If the entire process can’t evolve to be more efficient, then we have to change the way we approach evaluation to ensure we’re selecting the best company for the job, rather than the company that can write the best response.

Join Procurious to connect with 40,000 other ambitious procurement professionals and get free access to networking, industry news, training and much more.