Category Archives: Procurious News

84% Of CSCOs Say Lack Of Visibility Is Their Biggest Challenge

84 per cent of Chief Supply Chain Officers say that a lack of visibility is their biggest challenge.  How can AI help?

By VicPhotoria/ Shutterstock

Supply chains are the lifeblood of any business, impacting everything from the quality, delivery and costs of products and services, to customer service and satisfaction. Last, but not least, they have an impact on the company profitability.

Mastering the supply chain is a central element of the customer experience and the competitiveness of any company. However, until recently, supply chain management has been considered a support function.

Today, we are beginning to see that the trend is reversed, as supply chain management becomes more and more a strategic function. Artificial intelligence (AI) is being adopted by leading businesses, with application in the supply chain.

Supply chain organisations struggle to make sense of a sea of data, including multiple ERP & Supply Chain Systems, multiple data sources, both structured and unstructured, extensive supplier and partner networks and relationships.

How can AI augment supply chain organisations?

A smarter supply chain is critical to the success of the business. The ability to reconcile structured and unstructured data to generate insights is a hallmark of AI, machine learning and intelligence.

Let`s translate this, shall we?

  • Gaining end to end supply chain visibility across systems and data sources
  • Retrieving data up to 90 per cent faster
  • Proactively predicting and mitigating disruptions
  • Cutting disruptions by up to 50 per cent
  • Arming professionals with information needed to take action
  • Reducing mitigation time from days to minutes
  • Aggregating knowledge on SC disruptions and build playbooks

What is Watson Supply Chain Insights and what can it do for your supply chain?

Watson Supply Chain Insights is an AI-powered visibility and collaboration platform for supply chain professionals, which helps to deliver insights, predict and mitigate disruptions and retain organisational learnings. This innovative and global value proposition helps supply chain leaders drive greater visibility and mitigate disruptions.

Genesis

Continuing the work initiated by IBM’s supply chain teams, in our labs, we educate and teach Watson all the complexity and nuances of the supply chain world for different industries, so that it becomes operational and efficient as quickly as possible to help companies identify disruptions, predict impacts and consequences, and bring together the appropriate team for the resolution.

Watson infused into an Operations Center Cockpit

Watson Supply Chain Insights has the ability to collect and exploit structured and unstructured data relevant to the supply chain; whether the data is inside the company, such as ERPs, logistics systems, stocks, or outside the ecosystem.

What about external data?  Smarter supply chains leverage social networks, road traffic, weather forecasts or regulations.

Partner with Watson in the Resolution Rooms

Resolution Rooms allow supply chain professionals to deal with the uncertainties that inevitably occur in all Supply Chains. Concretely, when a hazard is observed or predicted, the solution generates a virtual work environment that brings together the experts of the extended enterprise. These experts define the solutions together whether it’s alternative sourcing, reorganisation of the production line or a replacement carrier. All these resolutions are documented, which on the one hand constitutes a real digital “playbook” and contributes to learning. and knowledge of Watson. Thus, progressively, Watson is able to recognise the various hazards, to bring together the relevant experts, and even to directly propose suggestions for resolution by supporting them.

In 2018, this success prompted us to market this solution created by IBM for its own needs. The solution has been packaged under the name of Watson Supply Chain Insights, and is already deploying to customers in France and across Europe.The adoption of AI in the Supply Chain is a journey and Watson Supply Chain Insights is here to accelerate this adoption.

For more on the IBM supply chain story, take a peek here.

Author : Yassine Essalih – Cognitive Supply Chain, Client Solution Professional


7 Supplier Negotiation Fails We’ve All Experienced

Every procurement professional knows that supplier negotiations aren’t always plain sailing – and we’re sure you’ll relate to these seven scenarios.

By Oleksii Sidorov/ Shutterstock

It’s happened to even the best negotiators.  Leaving a negotiation with less than desired results might even be called a rite of passage for procurement professionals. It’s frustrating and time consuming but there are learnings to gain from every disappointing negotiation.

Giuseppe Conti, Founder and Managing Partner of Conti Advanced Business Learning, interviewed seven procurement leaders to find out their most notable negotiation fails.

1. Pushing too hard

Using competition to push your advantage and lock it into a contract can be counterproductive. I recall a negotiation performed for a global IT project, during which we closed what looked like a great deal secured by a complete and detailed contract. Once the project began, the vendor quickly started to lose money. Having no leverage and way out from the contract, he eventually decided to stop the project. Ultimately, to continue our working relationship, we had to sit down together, find solutions and find fair compromises to make the project a success. Olivier Cachat, Chief Procurement Officer, IWG

2. Internal alignment

Involving executive leadership into a critical negotiation can be a very powerful ‘tool’, when done in a very concerted way. Our main objective was to secure supply for this material and ideally get a price concession when allocating more volume to this supplier. We briefed the President of our BU and explained the situation. We also explained in much detail that anything beyond a three per cent price reduction is very unlikely and that this supplier would rather threaten us to stop supply. While the first part of the actual negotiation was going well, our president decided to our complete surprise to become very aggressive with our supplier by threatening him to move to a different supplier if they would not reduce pricing by at least -15 per cent. Not only was that very insulting to our supplier, but it was also a complete bluff and our supplier knew that we were not able to move away within any reasonable/manageable timeframe. As a consequence, our supplier stood up and left the meeting, stating that we have one week to think about his offer to raise pricing by +5 per cent as they would otherwise stop supplying us. It took me two months to ‘repair’ the relationship and to convince them to continue supplying us at a flat price. Furthermore, I had to make additional concessions which we would not have made if our colleague would have stayed with our plan. Matthias Manegold, Head of Global Indirect Procurement, Liberty Global

3. Clarity on agreed terms

Make sure the final terms of a negotiation are clear for both parties. I had the surprise, for a new supply agreement (over 35M Euro), to discover that we were not aligned regarding the product specifications. Our yearly demand had been multiplied by 10 and obviously, during the negotiation, the supplier did not dare confess not having the capacity to deliver our needs. We needed to rediscuss and revaluate this challenge and find a way forward to solve the issue. It demonstrates the importance of always re-confirming the terms you reached.  Christophe Schmitt, Head of Strategic Supplies, Omya

4. Safety in small numbers

At times I have walked into a room and seen more than ten people around the table. In such a situation, it is very unlikely that any significant flexibility will be shown during the following hours. By nature, most people will not want to lose ground in public. As a general guide, I find the best agreements are made in smaller meetings with participants who have been briefed in advance. Unless related to celebrations, nobody likes surprises!Jon Hatfield, Director Global Supply Management, PPG

5. Stubborn suppliers

Sometimes even if you have evidence that you could get a better price for same quality the supplier will not move. This can happen especially in the Pharma world where changing supplier is time, money, and resource consuming. I also think this behaviour by the incumbent supplier is wrong. Ultimately pressure on prices will prevail and the new cheaper supplier will be a better fit. Romain Roulette, EMEA Procurement Director, Bausch Health

6. Changing protocol

Overcoming counter-productive pre-existing relationships of suppliers can derail negotiations. My corporation acquired a company that had strong links with the local supply base. The local suppliers were working with this company for decades and had developed ineffective habits that were hard to change. When we requested the existing supply base to apply standard requirements, we were confronted with resistance and opposition from these suppliers. A few negotiations went well, however we had to change all of the other suppliers. Francesco Lucchetta, Director Strategic Supply, Pentair

7. Lack of alternatives

It was a single source supply situation. Over ten years ago, I was renegotiating an IT outsourcing agreement that was expiring. Benchmarking data indicated that our prices were well above market. On the other side, the supplier knew that we had no other alternatives and they enjoyed a strong relationship with the CIO. In spite of our efforts, we only received a very minor price decrease. The next step was to start developing an alternative supplier to be in a stronger position at the next contract renewal. Giuseppe Conti, Founder and Managing Partner, Conti Advanced Business Learning

These responses were collected by Giuseppe Conti, Founder and Managing Partner of Conti Advanced Business Learning (www.cabl.ch), a consulting firm that specialises in negotiation & influencing. This article is part of a series

Two Ways To Transform Your Supply Chain In A Hypercompetitive World

Tom Derry, CEO – ISM discusses how to turn your supply chain into a key source of competitive advantage and what not to do in supply chain management.

By Pavel1964 / Shutterstock

Everyone loves to talk about the romance of startups and small businesses. But today it’s becoming increasingly obvious that we’re living in the age of the corporate giants. And the big brands such as Amazon Apple, Google and Walmart are only getting bigger. There’s a whole host of reasons that these giants are repeatedly found in the top 10 places of Fortune 500 year after year. But one reason that stands out is that they recognise their supply chains are a key source of competitive advantage. We asked Tom Derry, CE0 – ISM, to outline the key elements needed to transform a supply chain into something a company would proudly put front and centre in its annual report to share holders. For Tom, it boils down to two things.

1. Last mile customisation

“[As supply management professionals] you’re serving regional customers and local customers even if you’ve got a global supply chain,” Tom begins. “And local markets demand customisation and localisation even if it’s just printing your user manual in the local language. HP did that famously a decade ago. Diageo are currently customising for delivery in Asia from a distribution centre in Singapore.

“Being able to access local markets and extract the most value from local markets is critical for supply chain professionals.”

2. Agility

Tom argues that supply chains are a form of agility. “In light of all the recent controversy around taxes and tariffs – if [supply chains] flexible and responsive they provide strategic agility to the company, which is becoming increasingly critical.”

“The most important consideration in determining how a supply chain is structured usually comes down to two economical factors- taxes and tariffs. [Last year], the US passed a new tax law, which ostensibly puts US manufacturing first. The question around tariffs is critical and the threat of them, whether they’ve been implemented or not, is already affecting the way supply chains are designed and implemented.”

Supply chains in the US have seen the impact of the steel and aluminium tariffs imposes on European exports, which has led to retaliation. Tom cites Harley Davidson, who announced that they have to shift their production to the EU in order to continue to grow its non-US sales, which are critical to company’s future growth. “The president is trying to protect the production of steel and alumninum ostensibly on a national security basis but he is actually is forcing production of goods offshore and thereby threatening jobs – and [Harley Davidson] is just one example.”

According to Tom, the old concept of money is fungible but supply chains are flexible holds true. “Some people may not appreciate the degree to which we have built in agility and flexibility over the last twenty years. It’s clear that companies can, and have to, respond to maintain competitive advantage and maintain their margin and they will flex their supply chains to meet the circumstances they face. We’re all short sighted if we think that’s not going to happen and if we think we can impose a set of conditions that cause current supply chains ,as they exist now, to be set in place. They’re going to flex and move.”

Part Eight of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss how to turn your supply chain into a key source of competitive advantage and what not to do in supply chain management.

Good Hire Or Bad Hire? How To Know You’ve Hired The Right Person

So much is written about how to hire great people and what to look for when hiring. But that is merely the start of the journey…


By pathdoc / Shutterstock

Good hire or bad hire?

You’ve done the hard work, you’ve made the decision and your shiny new hire has finally joined the team.

Great, now what?

So much is written about how to hire great people and what to look for when hiring. But that is merely the start of the journey.

After the hiring decision is made, the work begins. Your team has grown and, at some stage, you’ll need to decide whether the person you recently hired is adding value. If not, it might be time to make some hard decisions, or even revisit your hiring methods.

Here are five powerful indicators that you’ve made the right choice.

1. Dedication

“Things may come to those who wait, but only the things left by those who hustle.”

– Abraham Lincoln

There is a lot of talk about hustling in the startup community. It’s a badge of honor. But hustling is not a skill, it’s a behavior. It is therefore a choice.

Every startup hopes its team members will make that choice every day.

You can encourage hustling by communicating your company’s vision and values, as well as creating a collaborative and fun work environment.

Without those things, even the best hustler may run out of steam.

When people buy into your company’s vision, they are more likely to become dedicated to your team. A dedicated team member is an excellent outcome, but it takes both sides to make that happen.

Making the right hiring decision isn’t just about hiring someone who is great in isolation. Rather, it’s about hiring someone who is great for your team. In other words, a great hire is someone who will eventually become dedicated to your team.

Dedication looks pretty much like hustling, but it’s sustainable. So look for sustained and purposeful effort. It’s a good indicator of both performance and engagement.

2. Initiative

“Initiative is doing the right things without being told.”

– Elbert Hubbard

Having people who can do things well without being told is a gift.

In his article, One Behavior Separates The Successful From The Average, Benjamin P. Hardy describes people who take initiative as follows:

“They don’t need to be managed in all things. They don’t just do the job, they do it right and complete. They also influence the direction for how certain ideas and projects go.”

But it’s not enough to just do things well. After all, that’s what is expected. It’s about doing the right things well. Knowing which things to prioritize requires good judgment. Initiative coupled with bad judgment can be counterproductive.

When people take initiative, productivity increases and the confidence goes up. Team members know they can rely on each other to get things done.

3. Cultural Stretch

“Knowledge will give you power, but character respect.”

– Bruce Lee

In his article, Hire for Cultural Fitness, Not Just Cultural Fit, Gustavo Razzetti argues that good hires should make the culture stretch, not just adapt to it.

That’s a great perspective.

When new hires form independent relationships with other team members, and impact them in a positive way, you can be sure that your culture is stretching. It’s evidence that they are adding something, not just assimilating.

It’s a beautiful thing to see the team growing. Not just in numbers, but in intellectual firepower and curiosity.

Any new hire that makes a contribution to the team’s growth is a leader in the making, if not a leader today.

4. Improvement

“We are all born ignorant, but one must work hard to remain stupid.”

– Benjamin Franklin

There is always room for improvement, no matter who you are.

It’s a wonderful feeling to see people improve over time and, for high performers, improvement is not an option, it’s an irresistible desire.

In his article, 76% of high-performance employees say trade mastery, not money, most important in career decisions, William Belk argues that “corporate culture and directive”should encourage team members to develop their skills in the pursuit of mastery. This will result in high levels of engagement and sustained innovation.

Improvement is therefore a strong indicator of performance. Assuming people are set up for success, strong team members will look for opportunities to hone their craft. An ethos of continuous improvement needs to be encouraged and, sometimes, leaders may even need to get out of the way to give the team space.

People with a capacity and willingness to improve their skills become more valuable over time. Rather than having their careers developed for them, improvers create opportunities for themselves. For companies who believe in empowering their teams, constantly-improving team members are obvious assets.

5. Surprise

“Surprise is the greatest gift which life can grant us.”

– Boris Pasternak

Trying to hire people who will surprise us is a contradiction in terms. We hire people to perform certain tasks and we expect them to perform those tasks very well. High performers may exceed our expectations in the quality of their work, but that’s not what I’m referring to here.

Every so often, people do things that catch us off guard. These acts of wonder cannot be found in a job description, they require skills that we don’t necessarily associate with the person who surprised us, and they are not things we would have thought to do ourselves.

It’s something intangible, and there is no point looking for it. But when it happens, we know that we have someone special on our hands. We got more than we bargained for.

Then, You Know It’s Real

“To be natural is such a very difficult pose to keep up.”

– Oscar Wilde

When I reflect on the five indicators of a sound hiring decision – dedication, initiative, cultural stretch, improvement and surprise – what stands out is just how human they are. They are, more or less, what Seth Godin would call “real skills”.

That doesn’t mean that technical skills, which Godin calls “functional skills”, aren’t valuable. Of course they are. They are the baseline, the minimum standard.

But it’s the “real skills” that make a new hire stand out. They influence how the work is done, the impact on the rest of the team and the propensity for growth.

When the time comes to assess a hiring decision, it is helpful to look beyond how individual tasks are performed and see each new hire through through a “real skills” lens. In addition to an assessment of performance right now, you’ll get a strong indication of what you’re likely to see in the future.

This article, written by Omer Molad, was originally published on Vervoe.

Do You Have The Leadership X Factor?

What are the common traits shared by the top CPOs around the world and how can you demonstrate leadership within procurement and supply chain even if you don’t have a team?

CThe best leaders in procurement and supply chain know all too well that you don’t get results without the support and hard work from a killer team. It doesn’t matter how brilliant you are at your job, you can’t do it all yourself and having the best people around you will result in a huge multiplier effect on your overall output.

ISM’s CEO Tom Derry truly believes in this ideology. “The best leaders see the whole business, which most frequently manifests itself as a real concern for their people.” These types of leaders, who we all admire, understand that they got to where they are today based on the strength of their teams. “And so they’re always focussed on their team. How they’re building them , what roles are evolving, what skills they need now. They understand the bigger picture.”

Advice for a first-time procurement and supply chain leader

Tom believes that there is one important thing people need to understand before they set their sights on a leadership role. “The opportunity to lead people flows from you. You’re not a leader if you don’t have followers.” By followers, Tom means gaining support from colleagues within the organisation, to have people gravitate towards you as a natural leader.

“We all know people [like this] in our workplaces who aren’t formally leaders of the people [follow them] but they’re respected, they’re prepared they’ve done their homework. They have data to support their arguments, they’re affable and friendly and people like being with them because they’re seen as authentic. It’s those people who get the opportunity to manage teams in my experience.”

And whats the most important thing to remember once you’ve bagged that leadership role?

“The key to first time management is listening,” argues Tom. “I spend the first period of time doing one on ones and face to face interviews with my team. I ask them in an unguided way: What’s going on? What do you like about what you’re doing? What issues are you facing? What opportunities do you have?” And once you get all of this information on the table it’s so important to take action and respond. “If you ask for input you have to show that you reacted to it and show people your plan in a visual way.” What is the outcome from all of this listening and learning you’ve done and what is the future measure of success within this team going to be?

Part Seven of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss common traits shared by top CPOs around the world, top tips for first time team leaders in supply management and how to demonstrate leadership even if you don’t have a team.

7 Tips For Today’s Procurement Managers

Alex Saric shares his top tips for procurement managers in order to succeed as the profession continues to evolve.


By Makistock/ Shutterstock

As the role of procurement continues to evolve, a new approach is required. Leaders are actively transforming their organisations, with a new mindset, new processes and new technology. There is no textbook answer to all of these – needs differ based on the organisation, talent, industry and other factors. Yet best practices exist and certain approaches are clearly driving procurement in the right direction. Having worked with hundreds of leading organisations as they transform procurement, I’d like to share some tips for procurement managers that should serve them well.

1. Digitise – Automation is your friend

A massive trend across companies is digitisation, with digitization of the Source-to-Pay process a key initiative for many CPOs. The inherent automation, which promises to only accelerate as innovations such as Artificial Intelligence (AI) evolve, is viewed suspiciously by many as a threat to jobs. There is no doubt certain roles are changing or even being eliminated by automation, but fundamentally it is critical to empowering procurement to succeed. As the list of objectives continues to grow, from a cost focus to risk management, driving innovation, improving cash, increasing revenue and more, Procurement is becoming ever more strategic. But doing so much more is only possible if capacity is freed, which is a key benefit of digitisation. Don’t resist digitisation – it’s coming. Embrace it to redefine your role and become ever more valuable to your organisation. Leaders are already doing so, in some cases automating 99 per cent + of their procurement and AP processes, CACI being one great example.

2. Know your suppliers

Supply risk is hardly new, but with ever growing dependence on suppliers paired with more complex, global supply chains, it is ever harder to manage well. And with social media amplifying scandals around the world in minute, the potential impact has never been as large. Few things can strike terror in a CEO’s heart faster than a scandal or supply shortage, which we read about daily. Even compliance, take GDPR for example, often requires ensuring suppliers are compliant. Procurement leaders must ensure a solid understanding of their existing and potential suppliers. It can be a daunting task, but there is so much information now available and tools such as SRPM solutions that can bring it together, generate insights and make them available at your fingertips. Integrated action plans, flexible surveys and other capabilities let you quickly gather information, address deficiencies and ensure auditability of your actions. Leaders are going a step beyond, not just passively assessing risk but proactively helping mitigate risk, as Fannie Mae  does by notifying suppliers at risk from cyber security threats.

3. Build a solid data foundation

There is so much focus today on the latest innovations, with AI front and center of most conversations. But not many actual success stories. A key reason, as confirmed in a recent Forrester study, is poor quality data. Procurement leaders that are having success operating smarter, leveraging analytics and technologies such as AI, are addressing data quality in parallel to implementing new technologies. Integrated suites generate clean data, at least if they have a unified data model, and master data management solutions are available that can address issues in back end systems, cleaning and normalizing suppliers records for example. Embrace new technology but don’t forget to work on the basics too.

4. Believe in Darwin

Charles Darwin famously stated that “It is not the strongest or the most intelligent who will survive but those who can best manage change.” This was part of his theory of natural selection, but it has never been more relevant to companies than today. Markets are rapidly evolving with a continuous stream of new regulations. New technologies are disrupting traditional business models. New risks such as cyber security are arising. The only certainty about the future is uncertainty. Procurement is well placed to help companies adapt, meeting new regulatory requirements, shifting supply to optimise an evolving tariff landscape and much more. Successful Procurement leaders are ensuring their organisations are agile and can evolve. That means being flexible in processes and it also means ensuring technology supports rather than constrains your plans. The shift towards Cloud-based solutions offers many advantages to companies, but can also impose constraints, forcing companies to adjust processes to the software and tying your hands if your needs change. This is a key reason why so many companies switch providers – they realise too late the technology doesn’t meet their ongoing needs. Be sure any technology you implement is likely to allow you to meet unforeseen needs.

5. Care about your customers

Successful Procurement leaders are seen as helping employees do their jobs better. Increasingly, that means making the purchasing experience a pleasure rather than a hassle, as employees expect consumer-like shopping at work and home. Companies of course have constraints, such as buying off contracts or from preferred suppliers, but that should be built into your procurement process so it feels seamless to employees, who are guided to what they need and can easily track the status of orders. The more procurement can be viewed as making employees happier and more efficient, the better for the function and your career. And the more automated this process, the more time for strategic activities.

6. Engage your suppliers to innovate

Suppliers are a vast pool of potential innovation. Much talk is made of untapping that innovation but far less results. This is a tremendous wasted opportunity, and one that needs more attention. Success here can drive significant revenue opportunity and reduce costs, ultimately greatly increasing the stature of procurement in an organisation. A great example is MBf Holdings, where procurement collaborated with suppliers to develop a new outpatient services offering to not only save a strategic customer, but grow share of wallet and create significant upsell opportunities. The key to success here is making such collaboration scalable, through effective platforms that allow sharing of requirements and communication between internal stakeholders and suppliers.

7. Think beyond best-in-class

As a final tip, I feel its important to look at your end goal. procurement teams are often obsessed with benchmarking against and achieving best-in-class performance on a range of metrics. This is all good, but the most effective procurement teams don’t aim for best-in-class as their end goal but an interim step. You don’t build a competitive advantage by being as good as your competition and doing everything the same. You also don’t attract and retaining talent by forcing them to operate in a fixed, generic best-in-class process. Winners empower their talent to bring their best ideas to life and do a few strategic things differently, better than the rest. A leading Telecom provider realized they had an untapped source of revenue in used mobile devices so configured their sourcing tool to run forward auctions, generating tens of millions in new revenue. Join the upcoming webinar to hear how Meritor, a leading automotive supplier, configured a unique New Product Introduction (NPI) process to drastically accelerate launch of more profitable products, driving huge share price appreciation relative to peers. So if you rather win the World Cup than just play in the tournament, leverage technology that can both bring you to best-in-class quickly but still empower you to go beyond.  

Registrations are now open for Ivalua NOW The Art of Procurement, which takes place in Paris 10th-12th April 2019.

The event will bring 1000s of procurement, supply chain, and finance leaders together in Paris at the Carrousel du Louvre and is set to reveal technological innovations that will transform the art of procurement and empower leaders to successfully transform their functions and maximise value to their organisations.

The Future Is Superfinance

At our last Procurement Thought Leadership Forum of 2018, sponsored by Basware, we discussed risk mitigation, Superfinance and the future of the CPO. 

How do you prepare for those black swan events that could truly impact your organisation? 

Can Superfinance transform the procurement and supply chain professions?

What challenges does the CPO of the future face?

At this Procurement Thought Leadership Forum, sponsored by Basware, we discussed risk mitigation, Superfinance and the future of the CPO. Check out some of the highlights below.

Understand Your World

Justin Crump, CEO at Sibylline thinks that every procurement leader needs somebody to tell them the world forecast so they can figure out when they’re going to need an umbrella.

Given the rate at which technology is evolving and how global events are impacting the world, it is increasingly difficult for companies to keep up without considering risk in real-time.

The growth in media means we care about things we didn’t before, have access to much more information and can communicate instantly. And being able to anticipate and respond to events around the world allows us to be more global and more competitive.

Justin believes that every organisation can implement an intelligence process to predict and mitigate risk but argues that any risk assessment is only as good as the day you do it. You can’t, for example, say that you assessed terrorism in 2015!

Listen to Justin speaking at Big Ideas Chicago earlier this year. 

Justin Crump CEO – Sibylline Speaking at Big Ideas Summit

The Future is Superfinance 

Louis Fernandes, VP and Country Manager, UK & Ireland at Basware, introduced the idea of Superfinance. That is, the bringing together of mind and machine that empowers finance and procurement professionals to combine emerging technologies with uniquely human talents.

As Louis explained, Superfinance means:

  • Creating a unified & accurate view of all the data
  • Being able to answer new questions
  • The ability to rely on data analysis to make better decisions
  • Transforming workforces to become insights-driven
  • Being behaviourally aware and understanding human limitations

Superfinance demands data insights, the transformation of business roles to ensure that employees are working collaboratively with machines and a change partner who champions it. It’s about putting insights at the heart of everything you do. 

The roles of procurement and finance professionals will fundamentally change with the rise of automaton and technology but Louis believes “predictive analytics and AI enriches the human condition. Humans are uniquely good at everything that isn’t programmable such as abstract thinking and the ability to reason.”

Holding the right data is absolutely critical in order to harness the benefits of new technologies. If an organisation can turn all the data they hold into tangible customer value by leveraging machine learning and AI they can actually begin to benefit from these technological advances in the market. But to do so relies on having the right volume, quality and completeness of data.

Once you have meaningful and relevant financial and procurement data in place, it allows your teams to:

  • Negotiate better prices and select the right suppliers, thus reducing supply-chain risk
  • Make well-informed, strategic decisions
  • Replace manual supplier catalogue maintenance processes 
  • Ensure master data integrity
  • Work in a fraction of the time and cost

“If you don’t have a view to the future when you are evaluating automation options, not only will you not achieve your business case for today, but three years from now, your system will be obsolete,” Louis asserted.

“We have to embrace the opportunity to work in collaboration with AI. AI won’t replace people but people who use AI will replace people who don’t”

Vision from a CPO

Nick Dobney, former Chief Procurement Officer of Puma Energy and Andrew Cameron, Group Chief Procurement Officer, RSA Group led a group discussion on the challenges and opportunities a CPO must face and what their predictions are for the future of the profession.

Hear more from Nick Dobney, a speaker at Big Ideas Zurich, in the interview below:

Nick Dobney, former Chief Procurement Officer – Puma Energy speaking at Big Ideas Zurich

Procurious’ Procurement Thought Leadership Forum was sponsored by Basware.

3 Ways To Make It Big In Procurement and Supply Chain

Tom Derry, CEO – ISM shares his three top tips for early-career professionals who aspire to be a CPO or Head of Supply Chain in a leading organisation.

The next generation of CPOs and Heads of Supply Chain will need to be “next-level” talent.

“It’s easy to point out a few critical success factors for people who have risen to the very top of the profession,” explains ISM CEO – Tom Derry.

In this article Tom shares his three top tips for early-career professionals who aspire to be a CPO or Head of Supply Chain in a leading organisation.

1. Align yourself with the best in the business

One of most important things to do during the early years of your career is to align yourself with the best talent out there. “If you’re just getting into the field or are early on in the field discover who has the best reputation, who’s the best leader and who’s regarded as being leading-edge and running a great organisation” Tom suggests. It’s also advisable look at the company’s reputation. “It’s clear that certain companies have created an awful lot of talent in our profession, disproportionately more talent to other companies.” So find those great leaders, at those great companies and that’s going to be a launching pad for you.”

2. Be courageous

“There are a lot of metrics of dubious value that we often pay attention to in the profession that have outlived their usefulness.” Tom says. He advises professionals to try and link what they’re doing day-to-day with what’s driving value for the firm – whether it’s bringing new products online, introducing new features to new products, driving top line revenue growth or increasing earnings per share by reducing cost. “Speak the language of the business and link explicitly what you’re doing to driving those kinds of outcomes.” This will help you to gain respect because that’s how we keep score in business and those are the measures that matter the most.”

3. Be competitive

“Businesses are about competition,” asserts Tom. “It’s about competition between firms but, frankly, it’s also about competition within the firm to gain resources to win the opportunities for promotion and advancement.” Tom believes it’s important to understand that you are competing, you’re being regarded by your superiors in the firm in terms of your output and your productivity. “You’re in a competition for advancement – maybe it’s advancement within the firm, maybe it’s advancement in another firm but you have to recognise that and put your game face on every day. As they say in sport: leave everything on the field. At the end of the day someone may outcompete you if you’re not taking that approach.”

Part Five of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss top tips for aspirational early-career professionals, how high profile leaders can become talent magnets in supply management and the latest data on salaries.

Putting The ‘I’ In D & I

By having an inclusive corporate environment for people we can make a change and improve the way society works…

In today’s workforce, diversity has become a buzzword, with organisations increasingly communicating its importance through their advertising and core business values.

But what does diversity mean, why is it important, how do you achieve it and, once you have it, what do you do with it?

Joelle Payom, Global Strategic Sourcing & Vendor Management Lead explains that there is an enormous pressure for organisations to hire people that are different. But alongside that moral pressure to ‘do the right thing’ is a very strong business case. “A UK report revealed that the British economy could be boosted by as much as £24 billion if black and minority talent was fully utilised . When you have a diversified workforce you have a broader [talent pool] who are able to bring different ways of working, different ways of dealing with issues and can provide greater innovation.”

Putting the ‘I’ in D & I

As Joelle points out, there is no point in building a diverse workforce if it is not nurtured into being an inclusive one. “To reap the benefits of a diverse workforce it’s vital to have an inclusive environment where everyone is treated equally, feels welcome to participate and can achieve their potential”

Diversity = The What

A mix of diverse types of people

Inclusion = The How

The strategies and behaviours that welcome, embrace and create value from diversity

“What is really at stake is not diversity, but inclusion. How do you make sure your diverse workforce will generate the expected benefits – that increased profitability – no matter who they are. You cannot simply integrate a human being [to the workforce] because they come with their own character and uniqueness.

“How do you ensure [everyone is able to] give their best to the company?”

  1. Let People Be Themselves: It is the employer’s role to ensure that all employees, no matter their specific characteristics, can be themselves. “In the corporate world we all have to fit in but fitting in doesn’t mean you forget who you are.”
  2. Equity – The entire employee base should be given equal chances whether that’s an equal chance to be promoted, equal pay or other opportunities within the organisation.
  3. Intersectionality – A black man, who is a wheelchair user and identifies as gay might endure multiple forms of discrimination at the same time. To better include this person it doesn’t make sense to only address one of these factors – you can’t foster an inclusive environment without addressing everything. D & I teams often isolate their efforts on one particular minority group but the experience of a white woman might be very different to that of a black women, and that needs to be addressed when it comes to developing D & I strategies and policies.
  4. Safe space – Employees should be encouraged to speak up about these issues without fear of retaliation. “Organisations must ensure their people management approaches don’t put any group at a disadvantage.”

“What I want people to take away is that diversity and inclusion (D & I) is not only for women or for people of different ethnicities or sexual orientation. It is for everybody. D & I , which is much more important than diversity, means that we need to provide each human being with equal treatment in the corporate world. By having an inclusive corporate environment for people we can make a change and improve the way society works.”

Joelle Payom, Global Strategic Sourcing & Vendor Management Lead

Procure with Purpose

Procurious have partnered with SAP Ariba to create a global online group – Procure with Purpose.

Through Procure with Purpose, we’re shining a light on the biggest issues – from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Diversity and Inclusion.

Click here to enroll and gain access to  all future Procure with Purpose events including exclusive content, online events and regular webinars.  

5 Reasons Your Procure-to-Pay Implementation Will Fail

Is your organisation about to embark on an initiative to purchase and implement procurement software?  Well, you’re bound to fail. Unless, of course, you address these landmines.

1. You don’t know what your requirements are

I’m sure you can define your problem.  You can probably guess without looking.  Lack of visibility, process, or control; maverick spending; inefficiency; mounds of paper…you name it. Immature procurement organizations that are not tech-enabled likely have it.  But these are just the symptoms.  It’s far more difficult to understand the underlying causes.  Sometimes Procurement’s ills are simply the result of  lacking the specific tool  to drive efficiencies, increase visibility, etc. In many cases, however, things are the way they are for a much more complicated reason.  The diagnostic process can prove time consuming, but accurately identifying Procurement’s sickness is the only way you can define and design a solution to cure it.  Going through a robust requirements gathering exercise is an essential to step in selecting best-fit technologies.

2. You aren’t buying the right tool

Without its requirements defined, how can Procurement know what tool to look for?  The underprepared organization is left to carry out solution design during the buying cycle, i.e. the sales cycle for software providers. This situation presents more than its share of headaches. For example, a common misstep is to buy P2P software to cure a lack of spend visibility (or simply because that’s what you had at your last company).  Someone selling a P2P platform will happily show you all the ways their reporting will provide spend visibility.  Of course this is after your RFP process (let’s say 1-3 months), implementation (6-9 months), and then onboarding and adoption to pull a full year of spend through the platform.  What that provider might not tell you is that there are spend solutions out there that can pull together your AP data, classify it, and feed it back to you in a matter of weeks!  That’s not to say P2P isn’t important for capturing savings, improving efficiency, and enforcing process compliance, it just may not be what you need right now.  Once you have your requirements down, you need to rack, stack, and prioritize your objectives as well as the tools you’ll need to achieve them. Building a technology roadmap to understand the full scope of investment over time to meet your goals.

3. Change management isn’t just training…and you aren’t prepared

Speaking of P2P, have you thought of just how many people, departments, and processes these tools will affect?  There are two factors that drive a successful technology implementation – strategic impetus and organizational readiness.  If you have neither, you probably won’t get budgetary approval.  But let’s assume that there is executive level buy-in throughout the organization to invest in procurement. Let’s even assume that one of those avenues is technology.  Do they really know what these investments will entail?  Does the rest of the organization understand the impact implementing a software platform will have on their people?  Do you?  If not, there are 2 options: 1) take some steps to get them on board, or 2) start with a less impactful investment that maximizes results and minimizes change.

For any platform, successful implementation depends on end users not just employing the software, but leveraging the technology (and doing so correctly) to derive the business outcomes you are looking for. Unlike more upstream procurement software modules like spend analysis and sourcing, CLM, SRM, and P2P touch various parts of the organization from Operations, to IT, to Finance, and everything in-between. This even includes the non-procurement stakeholders who will need to adopt the platform and the changes in process that come with it.   Communicating, generating buy-in, and managing the change throughout the organization is a huge undertaking.  Doing it successfully? That’s an even bigger ask.

4. You forgot to include your stakeholders

Speaking of stakeholders, did you forget to invite them to the design meetings?  How about the kickoff?  The demos? What about the project initiation meetings? If not, you are already behind the 8-ball.  Stakeholders should be incorporated early and often.  This includes requirements gathering and change management as mentioned above, but also the selection and implementation processes as well.  Not caring about the current state that you are about to change is a mistake.  Even if you think you know all of the ins and outs of the business (which you don’t), inclusion goes a long way in developing buy-in, encouraging  adoption, and (let’s face it) making sure you don’t miss anything. 

5. You don’t have a plan

Sure technology can probably solve your immediate issues, or put out the latest dumpster fire, but making tactical multi-year (and potentially multi-million dollar) investments in an ever-changing  landscape is short-sighted to say the least.  What is your ideal state?  Do you want to develop a best-in-class procurement organization?  Do you even need to?  Do you want 100% spend under management?  How do you even define spend under management?  What will your organization look like in the future?  How are you going to continuously improve?  How do you define success now and in the future?  And how are you going to measure that?  These are just some of the questions Procurement needs to answer when defining their vision for the future.  That vision should provide the foundation for your technology roadmap and ultimately determine the solution you select.  

Done correctly, the technology selection and implementation process could be a once-in-a-career undertaking. Don’t make these decisions lightly. Remember that Procurement’s new tools have to outlive the hype surrounding them and provide for the function’s continued strategic evolution. Slow down, ask questions, encourage collaboration, and never let the discussion around the ‘next big thing’ force Procurement into hasty decision making.

Anthony Mignogna is a Director at Source One, a Corcentric Company.