Category Archives: Procurious News

Cyber Criminals Could Hold Your Data Hostage

Password theft, identity theft, ransomware – in an age where hacking has become the career of choice for tech-savvy criminals, data protection must be a top priority for CPOs.

“Cyber criminals don’t need to even leave their house to do damage,” says Craig Hancock, cybersecurity expert and Executive Director of Telstra Service Operations. “One breach of trust and the consequences can be irreparable. These days, the traditional idea of criminals – think balaclavas, weaponry, a getaway car – has moved off the streets and into cyberspace.”

Are you prepared for cyber criminals? Do you have your business information secured? How do you manage the confidential information of your customers? And what do you have in place to mitigate risk?

Hancock will deliver a cybersecurity update at the upcoming 10th Asia-Pacific CPO Forum, where he’ll demonstrate how frighteningly easy it is to steal data from a computer by showing a live hack. “I’m planning on showing the group how easy it can be to hack a business, with basic tools and knowledge. I want to make sure everyone is aware about what goes on in the world of cybersecurity threats, and give them some understanding of what they should be doing to help mitigate these threats.”

“Mitigate” is a key word here, as Hancock predicts the cybersecurity challenge faced by businesses and organisations will continue to grow year on year. Notably, he says that any organisation offering a fix-all solution to “solve” your cybersecurity challenge should be avoided.

“It’s an ongoing challenge – cybersecurity has evolved enormously from five years ago, and is likely to look entirely different again by 2020. There’s no single ‘fix’ and there are plenty of bright, shiny objects to distract your security team. You would be wise to put in place some basic, common-sense measures and controls and partner with an organisation that understands the extent of the threat.”

What are the risks?

Cybercrime can be initiated through your head office, at weak point in your supply chain, or even through IoT-enabled devices with low-level protection. Among the types of crime that can take place, Hancock mentions:

  • Password theft: with the obvious prize being the password or access code to users’ bank accounts.
  • Identity theft: a customer’s date of birth and other key information (such as health records) enables criminals to assume their identity, or to sell on this information to others. This can be very expensive for the company that has suffered the breach.
  • Ransomware: Hackers can lock your company’s data in an encrypted vault and demand a ransom for its release. A famous example of this occurred last year when a cyberattack on a Los Angeles hospital left doctors locked out of patient records for over a week, with the hackers demanding a ransom of $3.7 million in Bitcoin.

Telstra’s Craig Hancock will deliver a cybersecurity update at PIVOT: The Faculty’s 10th Annual Asia Pacific CPO Forum.

Do CEOs Dream Of Robotic Sheep?

…Or are they kept awake at night worrying about how to adapt their business to a robotic-centred future? KPMG Australia Chairman Peter Nash reveals two concerns playing havoc with the sleep patterns of business leaders.

How can I adapt my business to a robotic future?

The thing about technological disruption – and machine intelligence in particular – is that people tend to regard it as a challenge to deal with at some point in the future. The key to understanding the scope of the challenge is to break it down into two categories – disruption that we’re already dealing with, and disruption that is yet to emerge.

Robotic process automation (RPA), for example, has been around for decades, with disembodied robot arms a common sight on production lines. Typically, they automate a series of existing processes that were once carried out by humans. We’re just starting to realise the full potential of RPA, with the emergence of bots that sit inside software to automate administrative labour becoming more common.

From his viewpoint into many of KPMG’s client organisations, Peter Nash has seen what an RPA bot is capable of. “If you go into any call centre, you’ll observe staff doing a series of processes as they engage with customers – typically around data capture and data entry. Through observation, you can create “process flows”, and then build software that can be inserted into the call centre and automate the data capture. That’s a classic example of robotic process automation, and it’s happening at pace.”

Interestingly, RPA is resulting in the reshoring of capability from overseas. Nash comments: “You can track the life cycle of offshoring and reshoring. 10 years ago you may have had 100 people doing a job in Australia for the cost of $5 million. Those 100 jobs were offshored to India, resulting in costs being reduced to $1 million. Today, with robotic help, you can have only 10 people doing the same work that 100 used to do – at a cost of $0.5 million. Yes, 90 jobs have disappeared, but there’s the exciting potential for completely new jobs to be created with each technological leap.”

“Artificial (or Cognitive) Intelligence, for example, is only just beginning to emerge. People are very excited about AI’s enormous potential, but at present it’s essentially a solution looking for a problem.”

How do I effectively harness innovation?

Nash comments that there are several models that have emerged in the ways corporations seek to harness innovation. “Many CPOs look for innovation to emerge from down the line, and encourage people, whether they’re in-house employees or suppliers, to bring ideas forward. Other organisations set up innovation capability ‘hubs’ or ‘accelerators’. Another approach is to acquire, or partner with, innovation capability outside of your organisation. Some business are doing a mix of all three.”

“What’s encouraging is that most businesses understand that today, it’s innovate or perish. A culture of innovation, partnered with a culture of flexibility where people have the ability to react and respond to disruptive technology, will ensure businesses are able to take advantage of anything that comes their way.”

KPMG Australia Chairman Peter Nash will deliver a keynote speech at PIVOT: The Faculty’s 10th Annual Asia Pacific CPO Forum.

 

Procurement Pay Gap Shock

The gender pay gap in procurement and supply management has INCREASED, according to US and UK survey results released this week. Have you sponsored your own internal gender salary gap analysis?

Ever considered how procurement salaries measure up with the rest of the working world?

Are you suspicious that your  procurement colleagues might be getting a better deal than you?

If you’re a woman working within procurement and supply chain, have you ever wondered how glaring the pay gap is within your industry or organisation?

This week, ISM’s Twelfth Annual Salary Survey in the US and the CIPS/Hays Salary Survey in the UK have shed some light on all of the above. Whilst there’s clearly still a very long way to go in terms of the  gender pay gap (predicted to take another 170 years to close), things are otherwise looking pretty comfortable for the procurement and supply chain profession….

ISM Salary Survey Results

Now would be a great time to convince your boss you deserve that pay rise, because the Institute for Supply Management’s (ISM) Twelfth Annual Salary Survey has been released. The results are based on data from 3808 supply management professionals who were surveyed throughout February and March 2017 to determine these average salaries:

Average Salary: $115,440

Median Salary: $90,000

Average for Men: $126, 710

Average for Women $96,990

In the US, a person working in professional, management or related occupations earns an average of $63,076 annually, which means these results are pretty good news for the supply management profession.

The figures show a 5 per cent increase in average compensation since 2015. Men’s salaries have risen by 8.2 per cent and women’s by 3 per cent.

The super bad news is that procurement appears to be taking a step backwards with regards to equal pay. In 2015 women earned 24 per cent less than men, compared with 31 per cent this year.

Download a summary of the report here.

UK Pay Gaps Revealed

It’s not just ISM’s figures proving to be disappointing in terms of gender equality.

As of last month, UK organisations employing more than 250 people are obliged to publish their gender pay gap figures.

Virgin Money disclosed that men who work at the bank earn, on average, 36 per cent more than women, asset manager, Schroders, reported a  31 per cent gap and Utility SSE a 24 per cent gap.

Some are against the new legislation arguing that the numbers don’t give a full picture and place all the blame in the hands of the employers. Others are in favour of the full disclosure and think it will spur organisations and governments to crack down harder on gender inequality.

McKinsey’s Global Institute report found that $12 trillion could be added to the Global GDP by 2025 by advancing women’s equality, which is as good a reason as any to close the gap, pronto!

UK Procurement Salaries Outstrip Average

The CIPS/Hays Salary Guide and Insights 2017 has surveyed over 4,000 procurement employers and employees to learn everything from key trends in salaries to challenges faced by employers and the top benefits desired by procurement professionals at all levels of seniority.

Whilst the average annual UK pay increase is 2.2 per cent, procurement professionals in the UK are receiving an average of 5.3 per cent more! Jacki Buist, writing on Supply Management, believes the results show a “continuing enthusiasm for the profession in all regions.”

Unpredictably,  the cause for concern falls once again in the region of gender disparity. Overall, the pay gap is reducing but at the advanced professional level, men receive an average  of £82,000, compared with a woman’s £65,700.

Registrations are open for the CIPS/Hays Procurement Salary Guide and Insights 2017 Webinar, which takes place on Thursday, 11 May 2017 13:00 GMT.

Are you surprised by the figures released in these two surveys? How do you think the UK’s new legalisation will impact the fight for equal pay? Let us know in the comments below.

In other  news this week….

Google Customers Subject to Phishing Attack

  • Google customers have been targeted with a scam that gave hackers access to the contents of emails, contact lists and online documents of victims
  • On opening a given link, Google’s login and permissions page asked users to grant the fake Docs app the ability to “read, send, delete and manage your email”
  • Google has now shut down the attack but have asked customers who received such an email to flag it to them.
  • Victims have been advised to change the passwords to their online accounts

Read more on The Telegraph

Amazon to Expand in the UK

  • Amazon is adding 400 staff to a new research and development centre focused on machine learning, in a move that reinforces the retail group’s long-term investment in the UK
  • The lab will develop  the voice-activated Echo speaker and Prime Air drones
  • By the end of this year, Amazon plans to add another 5,000 British employees to its payroll, open a new 600,000 sq ft headquarters in central London, and operate three new fulfilment centres around the country

Read more on the Financial Times

The future of Blockchain

  • Put simply,  blockchains take out the middle man (banks) and make the transfer of funds more streamlined and safe
  • The United Nations (UN) used one particular blockchain, Ethereum, to distribute funds from the World Food Program (WFP) in a pilot program earlier this year. The experiment successfully, distributed aid to 100 people in Pakistan
  • The system will now be used in Jordan to distribute funds to more than 10,000 people. It’s expected to help support 500,000 recipients by 2018

Read more on Futurism 

How To Turn Your Procurement Team Into A Cracking Intelligence-Gathering Organisation

According to Justin Crump, CEO, Sibylline, procurement professionals would be foolish to underestimate the value in becoming more active intelligence-gatherers.

Justin Crump spoke at the Procurious CPO Forum in London, Big Ideas In Action, sponsored by Basware

In his book, Corporate Security Intelligence and Strategic Decision Making,  Justin Crump, CEO Sibylline, addresses the current void of awareness about and study of the corporate security intelligence environment. “The increasing size, scale and sophistication of corporate activities  on the world stage – coupled with increasing legislative attention is driving an increasing focus on the [topic of corporate security], and the traditional gap between “business” (which makes money) and security ( a corporate cost center) is markedly narrowing.

Procurement’s value to an organisation has long been due to it’s position at the interface between the supply-chain and the business itself.  Its external reach offers a unique insight into market trends across the globe.

But is your team sufficiently engaged with the external world to spot these trends and push them  back out to your organisation to ensure that you, the CPO, get a seat at the table.

Justin outlines Sibylline’s five tips to bear in mind for anyone seeking to build out their internal process:

Corporate Intelligence is both an art and a science, and is often misunderstood. It is, perhaps sadly, not the province of dashing secret agents and beautiful women in fast cars; rather it is a process that involves everyone in the organisation, refining the myriad data in the world around us into some sort of meaning. Put simply, intelligence is the process which delivers timely, accurate and relevant insight to decision makers, allowing them to value risk and weigh opportunity effectively for their organisation.

The state of the world at present makes the need for an effective security intelligence process in businesses more important than ever. Drivers include:

  • Legislation – duty of care, safe workplaces, negligence
  • Threat environment – scale and tempo
  • Complexity of supply chains – “just in time”, dependencies
  • Information availability – expanding, data overload
  • Global marketplace – challenges and opportunities

Research has shown that truly resilient organisations not only survive but thrive in this environment. Taking an intelligence-led approach allows for effective and efficient risk management and demonstrates clear value add. After all, if you’re not intelligence-led, then what are you being led by…?

1: Perfect is the Enemy of Good

Intelligence is an imperfect process – inherently, returns are a the function of time and resources. While we equate security forecasting to weather forecasting, the weather does not deceive or lie to you – humans do, whether accidentally or deliberately ! In this uncertain world, everything represents a “best effort” – and you more or less get out what you put in.

 2: Understand what you Care About

Understanding what you care about is at the heart of an effective intelligence function. Faced with a mountain of information, it is answering the “so what” question that matters the most – and clear requirements are the fuel for this. Thorough understanding of the organisation, including its people, its business processes, its strategy and its areas of key exposure, is a key facet of making this all work.

3: Make the Most of People, Processes and Technology

Overcoming the constraints of limited time, imperfect information and strained resources relies on a combination of well-trained people, slick processes and appropriate technology. This helps to generate the best possible results in the time and resources available. All too often companies address only one of this triad, meaning that results are imbalanced and opportunities to provide effective insight are missed.

4: Make an Impact

The best analysis, from the most perfect process, is no good at all if people are not listening. One way to ensure this is to speak to their needs; but sometimes even this is not enough. Presentation is therefore important; what suits your consumer? How much detail do they need, or can they absorb? How much information is too much, or not enough? These are the questions that the practitioner must answer in order to ensure that they make a meaningful impact.

5: Manage Intelligence as a Project

Introducing an intelligence function need not be complex, but needs to be managed as a project and with rigour. As the function begins to build a head of steam, it will start to generate more client interest and greater demands will be made, requiring a steadily evolving approach in order to satisfy expectations. It is therefore best run as a project, within a coherent framework that allows it to grow in a controlled fashion.

We at Sibylline earnestly believe that the best decisions are taken on the basis of intelligence, and an intelligence-led process helps make organisations resilient – allowing them to cope with the challenges of the modern global marketplace. This is a minor investment that returns a great deal, often requiring little more than enforcing things that are already happening within a more effective and disciplined system.

The process of examining yourself and examining the world, within a cohesive framework, gives a stable way to reference what is changing in your environment and therefore highlights both risks and opportunities. Procurement functions in particular are well placed to understand the world and the organisation, and so have a vital part to play in making sense of it all – however crazy the world threatens to get, and well know that there are opportunities amidst the doom, gloom and fake news!

Save The Planet With Garbage-Powered Trucks And Edible Water Bottles

Earth Day is about more than switching off the overhead lights – it’s about making purchasing decisions that will minimise our impact on the environment. From eerily-silent zero-emission trucks to seaweed-membrane edible water bottles, these are just some of the products that should be on the radar of every innovation scout.  

Modernise your fleet with hydrogen-fuelled, electric or biomethane trucks

Although the petroleum industry is grudgingly beginning to recognise that an increasing number of car drivers will hang up the fuel bowser (gas pump) for the last time within the next decade, there’s still a sticking-point when it comes to heavy vehicles.

“Sure, you can move a car with an electric battery, but an 18-wheeler truck is always going to need diesel.”

Wrong. Alternatives are already available for zero or low-emission trucks that match, or even beat, the performance of a diesel-fuelled truck.

Toyota’s hydrogen fuel-celled semitrailers

The Ports of Los Angles and Long Beach took delivery of a zero-emission, 670 horsepower 18-wheeler earlier this month. The hydrogen-fuelled truck is completely silent and emits only water from its tailpipe.

The twin ports are a major source of pollution in the region, due in part to an estimated 19,000 cargo containers moving through daily, carrying $450 billion worth of goods annually. If the test is successful, thousands of conventional trucks could potentially be replaced by hydrogen-fuelled trucks.

Toyota is yet to announce a price for the truck but have predicted it will be competitive with new, diesel-powered trucks when it hits the market. Mileage looks good, with a range of 200 miles on one 20-minute charge. The fuel-cell stacks can be fed water, natural gas or a variety of waste products, with one Toyota spokesperson telling the press that abundant hydrogen can be reclaimed from landfill waste.

Tesla’s all-electric semi-trailer

Mystery surrounds Tesla’s much-anticipated electric semi-trailer, with most reports centred around a tweet from Elon Musk announcing that the truck will be unveiled in September 2017, and that it is “seriously next-level”.

Musk has also confirmed that the semi-trailer will be followed by a ute (pick-up truck) within 18-24 months, and has suggested that Tesla should also enter the bus and heavy-duty truck markets.

The company has yet to share details about how large the battery itself would be or how the truck would overcome range limitations, but commentators from Morgan Stanley have predicted that the truck would be “relatively short-range” (200-300 miles), and use Tesla’s charging stations to quickly swap the batteries for charged ones (a 5-minute process) and get the vehicles back on the road.

Waitrose’s rotten food-powered trucks

Waitrose has partnered with bio-fuel company CNG Fuels to place an order for 10 flatbed trucks that will be powered entirely by rotten food, sourced from unsold food at supermarkets across the UK.

This investment ticks two boxes for Waitrose’s sustainability targets – lowering carbon dioxide emissions, while addressing food waste. Globally, an estimated one-third of all food, or 1.3 billion metric tons of produce – goes to waste every year. The new biomethane trucks have an average range of nearly 500 miles, with the biofuel to cost 40% less than diesel fuel. The biomethane emits 70% less carbon dioxide than diesel.

The next challenge? Lifting a commercial airliner off the ground with rotting vegetables. It may seem unthinkable today, but so was the technology that’s now enabling zero-emission semi-trailers.

Procuring for an event? Try edible water bottles

With an estimated 100 million plastic water bottles being trashed globally every single day, there will soon be more plastic than fish in the ocean. That’s why it’s vital that a solution is found to stem the (literal) tide of plastic.

A start-up called Skipping Rocks Lab has created a product that won’t completely replace plastic bottles, but could potentially make a big dent in their consumption.

“Ooho!” edible water spheres are created by dipping frozen balls of liquid into an algae mixture (seaweed), forming a watertight membrane around the water, which then melts inside. To consume the liquid you simply bite into the membrane (apparently tasteless) and sip it out, or just eat the entire ball.

The spheres generate 5x less carbon dioxide and require 9x less energy to make than a conventional PET (plastic) water bottle. But here’s the catch – they’re perishable. The product has been compared to fruit, with a shelf-life of just a few days. Try keeping one of these in your pantry for a week and you’ll find that it has dissolved into a puddle. However, Ooho would be perfect for events where bottles are bought in bulk and distributed to enormous groups of people, only to be trashed in huge numbers during or immediately after the event – think music festivals, marathons and conferences.

In other news this week:

New study finds that Brexit fears are impacting growth for 80% of UK businesses

  • eProcurement provider Wax Digital has surveyed 200 UK business on the impact of Brexit, finding that 4 out 5 business fear it will hinder their growth. 79% also stated their growth is being hindered by suppliers being unprepared for growth amidst Brexit.
  • 37% said that Brexit will restrict their ability to do business in Europe and 35% said that it will make EU business more costly and complex. 26% expect to reduce their business operations on the continent and 24% will look at alternative international opportunities. Interestingly, 65% of surveyed UK business leaders voted “remain” and would still do so today.
  • The survey also explored perceptions of the Trump Presidency, with 82% saying that a ‘business mogul’ type figure in the White House is positive, and 40% expecting Trump to improve UK to US business opportunities.

Forget the Bus, I’ll Travel To My Meeting By Drone!

What will business travel look like in 2017?  We’re not going to see people riding around in personal drones (yet) but it’s starting to look more like The Jetsons all the time.

Technology is having a big impact both on the way employees travel and how managers help them move around the world with ease. Sunny Manivannan and Ethan Laub of our travel and expense team, and Jack Miles, a long-time procurement executive and business advisor share their thoughts on what the year may bring.

1.    Travel and expense management goes mainstream

For firms with good governance and a cost management mindset, travel and credit card spend has always been a focus. Due to rising costs, and a new generation of technology for automating in this area, we will see laggards start to pay attention and begin to focus here as well. –Jack Miles

2.    Loosening of T&E policies

Companies with modern automated tools will relax their travel and expense policies, paradoxically because they now have so much granular T&E data. This might come as a surprise, but we see the T&E spend culture at customer organizations undergoing a once-in-a-generation shift. Given the rise of knowledge workers, the competition for talent and the focus on employee happiness in today’s leading organizations, companies are trying to find ways to give their employees more flexibility. With the data now available to administrators, companies can relax their policies in certain areas and give their employees more flexibility while still protecting the organization from fraud. -–Sunny Mannivanan

3.    Savvier negotiations as hotel costs rise

Travel costs–typically one of the top four expense categories in most firms–will rise as consolidation in the hotel industry continues. Given Marriot’s acquisition of Starwood and other hotelier consolidations, expect to see an increase in average room night cost. Companies with a focus on sourcing for this category will use their data to look beyond room night cost and add in ancillary costs such as food and beverage, parking, and conference and event spend if they have it to give them more leverage in negotiations. –Jack Miles

4.    Airbnb makes inroads with corporates

Airbnb will continue to grow share in business travel as its integrations with corporate travel agencies and booking tools starts to pay-off. Three major travel management companies (TMCs) signed partnerships with the homesharing platform last year, driven at least in part by corporates expressing interest. According to Lex Bayer Airbnb head of global payments and business travel, Airbnb’s average business trip booking is six days. Again, it’s about giving employees options, and a home may better suit travelers in town for a longer-term project than a hotel room.  –Ethan Laub

5.    Ground travel prices fall

Ground travel (Uber, taxis, limos) is one area where prices will decrease. Black car services will continue to lose share to Uber and Lyft, as the car sharing titans roll out more corporate-friendly controls and reporting. Gaining corporate clients has been harder for pink-mustachioed Lyft, according to sharing economy expert Arun Sundarajan, but it scored a major win when Apple announced them as a preferred partner last spring.

Besides increased competition, lower costs are also driving prices down. Newer, more fuel-efficient cars make up a bigger share of fleets, and fuel rates are currently low. There’s one thing that could cause rates to plummet, rather than just tick down: driverless cars. Fuel isn’t the biggest cost. Neither is the car–cars these days are made so well they can easily last for ten years or more. The biggest cost is the driver. Without drivers, rates for rides could fall by as much as 90 percent over the next two or three years, some analysts say. –Sunny Manivannan and Ethan Laub

6.    Expensing of a driverless ride

 Speaking of driverless cars, here’s a bold prediction: 2017 will mark the first time we see an expense line filed for an autonomous car ride. While Uber had to halt its test of autonomous vehicles in San Francisco last December, there are more than a dozen companies either publicly or secretly working on autonomous vehicles. It’s only a matter of time before this technology makes it to the business market. Our question is, what will this expense line look like? What will the amount be? Who will be the vendor of record?

Perhaps there’ll be a time in the not-too-distant future where transportation isn’t something employees even expense. It will simply be a public utility like electricity, where every company simply pays per employee-mile at the end of each month. –Sunny Manivannan 

7.    Virtual assistants everywhere

Since we’re getting all futuristic here, we’re going to go out on a limb and predict that in 2017, every employee will have an assistant, not just executives. These assistants will be virtual, not physical. With Apple’s Siri, the Google Assistant, and the Amazon Echo, consumers have been exposed to the grand idea of a digital around-the-house helper a la Rosie the Robot. And, many business travelers have already experienced a degree of this with mobile apps that do things such as automatically fill out your expense lines based on geolocation data.

This concept will really take off in 2017, with employees having access to really intelligent, self-learning assistants, no matter where they are. And, we will be able to call on these assistants with the touch of a button, a few taps on our keyboards, or simply our voices.

Sunny Manivannan is senior director of special projects at Coupa. Ethan Laub is director of product management. Jack Miles is principal consultant at Mainspring Advisors, a business strategy consulting firm. This article was originally published on the Coupa blog

A Futurist, An Economist, A Professor, A Psychologist and a CFO Walk Into A Bar…

A Futurist, An Economist, A Professor, A Psychologist and a CFO Walk Into A Bar…It may sound like the start of a terrible joke, but in fact, this is the stellar line-up of experts featuring in Even Bigger Ideas. And alright, they didn’t  actually walk into a bar, it was more of a podcast series…

Whether you love learning on the go, at your desk, on your lunch break or from the comfort of your own sofa, Even Bigger Ideas is made for you! The series is free for all Procurious members and can be found in the learning section of the site.

Why not spend 15 minutes with each of our procurement power-players as they highlight the trends disrupting business. Here’s what you can expect:

1. Make Sure You Still Have A Job In 2020

Futurist Anders Sorman-Nilsson warns that unless procurement pros act now, there’s a good chance they’ll find themselves unemployed as early as 2020. It’s time to embrace the gig economy, learn to speak the language of digital and invest in our education.

Listen to Anders’ podcast here or read more here

2. The Unpalatable Update On Thinking The Unthinkable

It turns out that thinking the unthinkable in the current climate is becoming a rather unpalatable affair. Nik Gowing, BBC Broadcaster and Visiting Professor at King’s College, explains why leaders must learn to recognise and handle impending unthinkables or risk going out of business.

Listen to Nik’s podcast here or read more here

3. How Do You Know When Your Idea’s Got Legs?

Creating an encouraging environment for intrapreneurs in the biggest organisations can be tough. Rio Tinto CFO, Chris Lynch, offers advice on fostering innovation and some top tips on assessing when an idea has legs. How do you know if it’s worth investing time, and money, into someone’s idea and what can the biggest companies do to encourage and motivate their employees to think big.

Listen to Chris’ podcast here or read more here.

4. Unleash Your Creative Genius In Fifteen Minutes

Innovation is now firmly on the agenda for businesses worldwide. According to Creative Change Agent James Bannerman, there’s no such thing as a lost cause when it comes to unleashing creativity. It’s simply a matter of re-educating ourselves and learning some tips and tricks to unlock our creative potential.

Listen to James’ podcast here or read more here.

5. Trump & Trade: Hope For The Best & Plan For The Worst

Dr Linda Yueh, a renowned economist, broadcaster and Adjunct Professor of Economics for London Business School, discusses how supply managers can prepare for the major shifts in globalisation, trade and protectionism under Trump. With any luck the potential impacts on our global supply chains are over-exaggerated!

Listen to Linda’s’ podcast here or read more here.

SpaceX, Red Cross Millennials Amongst 30 Under 30 Rising Supply Chain Stars

Procurement and supply leaders as young as 24 are impacting major companies including SpaceX, A.T. Kearney, Cisco Systems and the American Red Cross. 

ISM and THOMASNET.com today announced the 2016-17 winners of the 30 Under 30 Rising Supply Chain Stars award, presenting the profession with an inspirational batch of role-models who are sure to attract more Millennials to supply management.

Tom Derry, CEO of ISM, says the quality of this year’s crop of stars is inspiring. “Younger generations in the workforce are stepping into leadership roles earlier than their predecessors. This year’s winners are leading the charge, and show that our future is in capable hands.”

“Capable” is an understatement when you look at the achievements of some of these professionals. Andrew Paulsen is a Senior Buyer at SpaceX, one of the highest-profile and most sought-after companies to work for in the U.S. There, he has helped transform the castings commodity into a strategic organisation focused on the reduction of risk and the amplification of innovative designs and production processes.

Amanda DeCook of A.T. Kearney spent nearly a month in Tanzania leading a supply chain diagnostic on life-saving commodities (such as antibiotics) for the remote Sengereme District near Lake Victoria. She was able to make recommendations that would help reduce the likelihood of stock outs in the future, resulting in more lives saved.

Subhash Segireddy, Supply Chain Program Manager at Cisco Systems, led a team which developed a strategy for a manufacturing project which enables resiliency in the supply chain, reduces greenhouse gas emissions and drives millions in cost savings with a vertically aligned supply chain.

In a rapidly changing supply and demand environment, Jaime Todd has created innovative projects for the Red Cross, including a first-ever toolkit for category managers, along with supplier risk frameworks, policies and procedures.

There’s a common thread in the careers of these four Rising Stars, in that they’re all contributing to a wider cause beyond immediate business goals. Whether it’s reducing greenhouse gases, ensuring the supply of life-saving blood, assisting a remote African community or even helping humanity reach Mars, each role taps into the social aspect that has been identified as a major draw-card for Millennial talent.

Three winning characteristics of 30 Under 30 Stars:

According to THOMASNET.com’s Donna Cicale, the judges looked for three main characteristics in this year’s batch of Rising Supply Chain Stars. The 30 winners are:

  • Multi-talented: “We look for people who demonstrate and excel at a wide range of skills beyond business acumen. We’re searching for fast learners, effective communicators, quick thinkers and natural leaders.”
  • Influencers: “Supply chain stars must be ‘movers and shakers’ in their organisations. They need to be skilled in getting others engaged, bringing colleagues on-board, and working towards common goals.”
  • Trailblazers: “We look for individuals with ‘firsts’, or accomplishments not previously realised by their organisation. A ‘first’ can relate to timing, budget, initialisation, integration or adoption.”

Each winner will receive a one-year membership to ISM; complimentary admittance to ISM2017 annual conference in Orlando, Florida (May 21-24); and a THOMASNET.com Team Training Lunch and Learn session for them and their colleagues.

Visit www.thomasnet.com/30under30 for the full list of 30 Under 30 winners.

Working Parents: Stop Hiding Your Children at Work

Supercharging my career and nurturing my family at the same time has always been a struggle for me….until I brought my children out of the closet and into the workplace.

Join our Women in Procurement group, Bravo,  here.

Last week,  Professor Robert E Kelly and his two mischievous children starred in one of the funniest viral videos of all time. The whole world laughed when, in the middle of a live BBC interview, Professor Kelly’s children burst in to the room and hilariously upstaged him.

If the clip has, by some miracle, passed you by, here it is in all of its side-splitting glory:

Yes, it’s pretty funny. But let’s face it, how many times have you closed the door on your children, locked them away in a (metaphorical) closet or pushed them away when you had to perform your professional duties.

In reality, we’re constantly keeping our families behind closed doors so we can get on with our working lives. For years I have felt the need to downplay my family commitments in order to be seen as a serious career professional.

My stress levels were continually going through the roof. I was gliding over the surface with style at work, but paddling like a crazy duck under the waterline in an attempt to manage all the demands of my personal life.

But a year or so ago I decided to bring my children more visibly into my work life and it has made a big difference to me, my children…and – most importantly – those I work with.

My first foray with bringing my children to work was to take my son to Europe’s largest procurement conference, ProcureCon, Berlin. I was a speaker on a panel and thought it would be a great chance for my son to see me in action. So much for him learning about my work: he didn’t look up from his iPad once! I don’t think he learnt a squat about what I did, but at least I made the effort. Importantly, I was really touched that people were positive about my son attending the event.

One of my fellow delegates sent me this note –

“You and I met in Berlin last month at the ProcureCon Europe Conference. I admired how you were able to be real without dropping the ball on exuding leadership and kindness! But, I think that what really impressed me was that you brought your beautiful son to the conference, he was so sweet and shy! In bringing him with you, without realising it, you managed to reflect what most women go through when we have to work long hours or travel a great deal, away from our families and loved ones. There have been times that in my travels or long hours I wish I could just have my babies near me…the guilt of being dedicated to the person that makes me who I am, can be a bit heavy. But we all do, both men and women, to provide for our families, while at the same time try to get something out of the sacrifices that we may have to make. So, I sincerely thank you for bringing your son with you.”

My second foray was to take my younger son to listen to a speech I made at the Australian Embassy for Future Leaders. When I asked him about the experience afterwards, he thought about it and said, “The lemonade was great”. Another breakthrough (not)!

I know not everyone has the same flexibility as someone who runs their own company. However, as business leaders, we can do a lot to help manage the stress levels of working parents. We need to walk the talk and recognise that everyone has priorities (and not always children) that compete with work.

Here are my four ideas on how we could stop hiding our children at work and build more fluid relationships between work and home.

1.  Talk about Family

In the early days of parenthood I never spoke about my children in the workplace because I wanted to be seen as “professional”. When I first started sharing small amounts of information about my family, I realised that most of the people I worked with were parents too and could totally relate to my plight. In the right circumstances, sharing family stories has actually helped me build business relationships.

2. Take your children to work 

I have lived through so many tough days when I felt I really had to be in two places at once.  For example, having a “career-changing” meeting planned (luckily these are few and far between and the skill is in knowing which meetings really count) and, just as I was about to get started, receiving a compelling, competing call for my attention,  from a family member. These were the times when my stress levels reached an all time high and I started to think that the only solution was to quit my job and focus solely on family.

Working from home is widely accepted on these types of days, but if you were still wanting to fulfill your work obligations for just one or two hours, wouldn’t it be great if we were “allowed” to bring our family into the office?? I can hear the pressure valve release at the mere thought of it!

3. Put children in the picture 

We need more imagery of children in the places where we are building our careers. Perhaps you’ve seen the image that went viral of a US Professor who picked up and carried a crying baby during a lecture? He calmed the child, allowing the class to continue and, most importantly, the parent to complete the class.

Some of the most popular photos of outgoing US President, Barack Obama, have been with children within the White House, which is his normal place of work. We need to see more child-friendly work imagery.

4.    Remember – Everyone has priorities 

Having said all of this, working parents need to be cognisant that we aren’t the only people in the universe with priorities competing with our work. Whether you’re a parent of one, four or ten children (heaven forbid!) or even if you don’t have children, everyone struggles at times to manage their personal and professional lives in the best, and most healthy, way possible.

What we can do, as people who understand these struggles, is to be understanding of every individual, make accommodations where possible and offer flexible working environments. That way, we’ll get the most out of our happy, stress-free team!

Procurious has launched Bravo!, a group that seeks to celebrate and promote women working within procurement. Get involved here.

Standard, Express, or Flying? Why supply managers need to be ready for delivery drones

Flying delivery drones will soon take over the last mile of your supply chain. Have you started planning ahead for a drone-filled future? 

“Alexa, re-order Doritos from Prime Air.”

Blink, and you’d miss it. Amazon purchased 10 seconds of the year’s most expensive advertising space last week to introduce the U.S. Super Bowl audience to two of its latest tech products: Amazon Echo and Amazon Prime.

Disgusted by her partner’s finger-licking, a tech-savvy woman directs her request for a second bag of Doritos to the IoT-enabled smart speaker in front of her television. The speaker (“Alexa”) in turn places an order with Amazon Prime, resulting in a delivery drone making a graceful touchdown in the yard outside.

Meanwhile in the U.K., a Youtube clip featuring former Top Gear presenter Jeremy Clarkson explains the ordering and drone delivery process in much greater detail:

Drone delivery services are swiftly approaching the commercial market, with Amazon taking a clear lead in the development race. In December, Amazon made its first successful go-round in a rural corner of England, where it has been beta-testing. While there’s still a significant weight restriction, the benefits of drone delivery are clear:

  • The 30-minute delivery time is an enormous improvement from the standard 24-48 hour wait customers currently experience when ordering online.
  • Drones can reach a height of 400 feet and fly for 24 kilometres at a stretch. They  avoid traffic and potential obstacles using laser, sonar and other technology.
  • Environmentally, battery-operated drone delivery ticks a lot of boxes as they’ll eventually replace many fuel-burning delivery vehicles currently on the road.
  • Finally, the full autonomy of drone delivery will mean there’ll be very little need for human interference, leading to enormous efficiency gains for delivery companies.

After the successful beta-tests in England, drone confidence is rising in the US, although the Federal Aviation Authority (FAA) has been slow to react. A report from December 2016 claimed the FAA has yet to begin drafting rules around flying drones over populated areas.

Testing, however, is taking place, with examples including UPS making a medical supply drop to an island off the coast of Massachusetts, while Alphabet’s drone delivery initiative (Project Wing) sent a hot dinner to students at Virginia Tech. Both the U.S. Postal Service and Britain’s Royal Mail have expressed keen interest in drone delivery as the cost of traditional delivery methods continue to rise. In Europe, DHL similarly completed a round of drone testing last year.

The process of delivery drones

Using a GPS system, delivery drones can quickly generate the most efficient route and even communicate with each other. Users can use communicate with delivery drones via smart phones, selecting delivery options such as: “Bring it to Me,” “Home,” “Work,” and “My Boat.” Additionally, if the customer relocates, the drones can redirect mid-route.

While apartment buildings are still too complicated for drone routes, doorstep delivery throughout rural and suburban neighbourhoods has been mastered.

Allison Crady, Marketing Specialist at CDF Distributors, has followed the rise of drone deliveries closely. She comments that drone delivery will only be applicable to a limited number of products at first: “Giant screen TVs will still require a typical truck delivery, but drone warehouses are currently ideal for light-weight purchases such as tech gadgets or snacks. As drone weight options increase through future development, their useful applications will extend far beyond simple convenience deliveries.”

What can supply managers do to prepare? 

Regulatory bodies such as the FAA move slowly to make drone deliveries a reality.  Supply managers can take advantage of this delay by planning ahead for a drone-based future. This means reviewing your current delivery arrangements (in-house or outsourced) and measuring:

  • the number of light-weight products currently delivered by truck that could be carried by drone
  • current delivery timeframes versus potential drone delivery speed
  • traditional price structures and operating costs against drone delivery
  • the human workforce required to run a delivery fleet versus autonomous drones
  • your current ability to deliver to difficult/remote locations
  • environmental benefits of taking fuel-burning cars off the road in favour of delivery drones.

In other  procurement news this week…

Huawei announces IoT Partnership with Deutsche Post DHL 

  • Huawei and Deutsche Post DHL Group will collaborate on innovation projects to develop a range of supply chain solutions for customers using industrial-grade Internet of Things hardware and infrastructure.
  • The group  is expected to make its IoT devices and network infrastructure accessible to DHL to assist in incorporating greater sensing and automation capabilities into warehousing, freight, and last-mile delivery services.
  • A  spokesperson from Huawei, Yan Lida, commented, “This partnership opens up an opportunity to improve the efficiency, safety and customer service offered by global supply chains in previously impossible ways, and defines how the Internet of Things will shape the fortunes of the logistics industry in the next few critical years of innovation.”

Read more at Logistics Magazine. 

Remote Australian supply chains cut by flooding

  • Floods in Western Australia closed major road transport routes for three days last week. Meanwhile, rail movement into Perth was delayed for five days.
  • The Newmont Mine in the Tanami desert has been closed for over a month due to the flooding. Delivery company Toll has been issued permits to use the flood-damaged roads to deliver fuel, food and emergency supplies to the community at the mine.
  • Parts of the Stuart Highway and Carpentaria Highway have also been closed. This is  impacting on the movement of heavy trucks in the region.

Read more at Fully Loaded.