Category Archives: Procurious News

Getting the Most out of Procurious in 2016

A very Happy New Year from everyone at Procurious HQ.

2016

We hope you enjoyed the festive break, survived the family Christmas and dodgy TV scheduling, managed to relax and have come back to work ready to continue the good work we kicked off in 2015.

Procurious has gone from strength-to-strength over the past 12 months, with our community growing to a fantastic 9,750 members. But the work isn’t even half done yet – we want to continue growing and get even more procurement and supply chain professionals as possible on the site.

Get the Most out of Procurious

If you’re new to the site, or have resolved to squeeze as much from Procurious as you can in the coming year, then here are a few top tips for you:

1. Complete your Profile

If you haven’t already, make sure your profile is complete and up to date. Social media profiles with a picture get around 25 per cent more interaction than those without, so add a good picture.

Make sure you complete your location, industry and category, as well as your work experience, so you can get the most from the community by connecting with people you have common interests and work with.

2. Link Your Social Media Profiles

2016 is the year for procurement to push ahead with its efforts in social media. If you have a LinkedIn, Twitter or Facebook account, link it with your profile.

Not sure where to get started with social media? Make starting this your aim for January! Procurious can help with that, and offer you and your organisation a tool to boost your brands.

3. Download the App

If you didn’t know already, Procurious is launching an app! Keep an eye out for announcements on when the app will go live, but it’s sure to be worth the wait. It’s only for iOS at the moment, but we’ll be looking to roll out a version for Android later in the year so no-one misses out.

It’ll be free to download and it means you can take Procurious with you wherever you go!

4. Find a Networking Event

January is a great time to start looking for events you can attend in the early part of the year. Check out the Procurious Events Calendar and see if there is something in your area – this is a great way to connect with fellow Procurians too.

Have we missed one? Let us know and we can add it in.

5. Start or Contribute to a Discussion

Procurious members started over 400 discussions last year, and provided an amazing 2000+ answers for these burning questions. We picked out the most popular Discussions of 2015 – you can read about them here.

If you have a burning question or want to share your thoughts, and you can’t find the question already, then take the opportunity to do this now!

6. Join a Group

Find a Group that is specifically for your category, location or job and connect. Can’t find one for you? Why not create one and invite people to join.

If you’re not sure which Groups are currently on Procurious, check out our article on getting the most out of them.

7. Top Up Your Skills

Check out the Learning hub for a huge selection of fascinating and insightful videos and podcasts. We have over 80 eLearning resources from a variety of well-known professionals, renowned thought leaders and forward thinking organisations – best of all, they are all free to download!

From an Introduction to Procurement, to the future of procurement and all the content from the Big Ideas Summit 2015, there is something for everyone.

If you think we’re missing something, let us know.

8. Write for Us!

Over the past 18 months, we have carefully crafted a selection of high-quality content for you to peruse, digest and enjoy. And while we’ve had a lot of fun doing it, we think it’s high time for you to have a shot!

Get involved with Procurious by sending us an idea for a guest blog article and you could be published on the site this year. Get all the information you need here.

That’s more than enough to keep you all busy for the first few weeks of this year! We are dedicated to developing Procurious for our members, so if you think there is something missing from the site, or something that could improve it, get in touch. We always love to hear from our members!

2015 Rewind – Best of the Blog: Being at the Table – A CPO’s Tale of Woe

Our final rewind comes courtesy of one of our guest writers and friends of Procurious, Giles Breault. The article, originally shared on LinkedIn discusses what procurement needs to do to take its seat at the table.

Being at the Table – A CPO’s tale of woe

 

Some days ago while having a business lunch the topic of “being at the table” arose. It was our client’s fervent hope that as a newly appointed CPO, (a move that presumably underlined the importance of procurement) he one day would sit as a peer at the EXCOM table contributing to the strategy, growth and performance of the business. Well, thinks I, what a wonderful place to consider the notion of being at the table, while being at a luncheon table myself. It got me to thinking of the roles and responsibilities of those at and around the table.

The Options

Of course there are those whose knowledge, experience, and position, earn them a right to 1) be at the table and direct the actions of others, but there are also others at work in this community. There are those who 2) serve the table and whose unique knowledge and skills answer the call for action from those seated. Then, there is 3) the chef whose specialised skills provide the provender for consideration, and lastly there is that which is 4) to be eaten (a role that I vaguely felt myself as having held a few times).

I further reflected on how many times I heard this same refrain from many CPOs whose pre-dominant career objective was to be recognised for contributing to the business at the highest level and ultimately report as a board level peer.  Moreover, I thought back on the many organisations I have come across where the “vital” role of procurement was often tucked way neatly in the CFO shop or Business Services shop where the chance of ever getting a seat at the executive table was remote at best.

Given the fact that procurement is now recognised as a key stakeholder in organisational performance, what is holding it back from somehow being fully accepted into the community of senior leaders? While no answer is fully sufficient in a short blog, a couple of themes have emerged over the years in our work with organisations going through their own procurement transformation.

While business knowledge and acumen are the principle differentiators between those around the EXCOM table and those not, there is something more fundamental that is separating the procurement leader from the full approbation of their business colleagues. To put it back in the frame of my table metaphor,

“You don’t belong seated if you still sound like a waiter”.

And that is the essential point.

The Prerequisites

Two major things must occur that help propel procurement organisations to the senior level of strategy. Firstly, procurement must lose the connection to purchase orders. I hear some of you shouting “Heresy!”, but what I mean is that the procurement leader has an extraordinary difficulty of representing him/herself as a strategic player when the next topic of conversation is; “What is your order placement efficiency?“ Every effort should be made not to own any portion of the operative procurement cycle.

Secondly and most importantly, is the fact that procurement organisations often make a vital error by creating a separate strategy for themselves that does not altogether align with the strategy of the business. What is more, is that the strategy is often unclear how it contributes to the business in a way that satisfies more than just the finance manager.

We often find that procurement leaders speak a different language from that of other senior business leaders. While they speak of category strategies, the business is interested in how real projects bring value to their organisations. While they speak of vendor management and control the business is seeking out how external innovations can help fuel business growth.

The Solution

We advocate two distinct approaches to these dilemmas.

Firstly, develop a strategy that links to the business and directly connects benefits generated to your internal clients. We call these the pillars of successful strategic procurement and the steps are broadly as follows:

  1. Create a procurement strategy directly linked to the company’s goals
  2. Embed the annual procurement cycle into the company business cycle
  3. Drive “Lighthouse” projects directly supporting internal business clients
  4. Pull value through by having the ability to directly influence team actions
  5. Ensure that reporting is visible to your customer and ideally conducted by an organisation other than procurement

Secondly, develop an improved process of understanding the needed innovations required by your ultimate customer and significantly improve the way innovations are sought, collected, evaluated and ultimately adopted from the supplier base. We call this call the Trading Relationship Management process, and Procurement has a natural home at the heart of it.

While there is no guarantee that armed with these dual capabilities, there will be instant recognition of procurement as a future EXCOM member. However what is certain, is that Procurement will begin to demonstrate that it is not just generating business wide savings but can show where and how that value is generated and most importantly how such benefits accrue directly to internal stakeholders. Likewise other business leaders will also recognise procurement’s role as the conduit to supplier enabled innovation. Taken together, these elevate the strategic language of the function.

I explored these ideas with my lunch guest who understood and recognised how important it was for his team to strategically transform, but like so many such discussions it had to be cut short due to pressing issues at the client’s facility (I think he had to go check how many requisitions had been placed that day).

Procurious Big Ideas Keynote #6 – How People Create Alchemy in Organisations

Sarah Trota, founder of sarahtrotaalchemy and Personnel Today HR Director of the Year 2013, provided a different viewpoint in her keynote, that of procurement’s relationship with HR.

Sarah discussed her own model for how to create ‘alchemy’ within organisations – the focus of the idea is on properly engaging with employees, ensuring they are satisfied and as a result, producing better outcomes for the business.

Watch the full keynote here.

See all the keynotes and panel discussions from the Big Ideas Summit, plus Big Ideas from our 40+ Influencers.

Like this? Join Procurious for FREE and meet like-minded procurement professionals from across the world.

2015 Rewind – Best of the Blog: Social Media – Breaking News and Misinformation

Our third revisit comes from later in the year, in the wake of the terrible events in Paris in November. Social media played a huge role in the development of the story, and we looked at the power of these platforms for good and bad reasons.

paris-peace

Social media was awash this weekend with information, news and an overwhelming outpouring of sympathy in the wake of the atrocities in Paris on Friday night.

The Procurious team would like to take this opportunity to offer our most sincere condolences and sympathies to people of Paris, and all those affected by this horrendous act of terrorism. We would also offer the same sympathies to the people of Beirut, Syria, Iraq and Egypt, who have all suffered similar attacks in recent days and weeks.

Social media has changed how the world sees events such as the ones in Paris. Breaking news, information and pictures all appear on the Internet during the events, with people uploading their first-hand accounts on the ground.

But, while social media can be a force for good, and a fantastic tool to help victims and their families, there is also a darker side, with misinformation, vitriol and rhetoric all spread in equal measure, often taking the focus away from the real story.

The Good

As the attacks in Paris unfolded on Friday night, many people turned to their phones to get an understanding of what was going on. With the news cycles taking time to unfold, social media was able to fill that gap with the headlines as they broke.

As well as providing access to the breaking news, social media accounts were being used to communicate with families and friends, to let others know that people were safe. Facebook immediately launched its “I’m Safe” button, which was first used during the Nepalese earthquake earlier this year, allowing a simple way to notify hundreds of people at once.

Not for the first time, a Twitter hashtag trended in the wake of the attacks. The #porteouverte hashtag offered a place to stay for those affected by the events, similar to the #illridewithyou hashtag, which trended in December last year following terror attacks in Sydney.

A sign of sympathy, a sign of solidarity, showcasing all the good that social media can accomplish in these situations.

The Bad

For all the good that social media can do, there is a dark side to the power that is wielded by its users. Giving everyone a voice allows for the support and sympathy, but also gives a voice to misinformation and ignorance.

For the most part, the misinformed stories that appear in the aftermath of such events are not malicious. A small story or throwaway quote can be exaggerated out of all proportion, taking on a ring of ‘truth’ as it spreads across social media.

Stories of the Eiffel Tower lights being turned off as a mark of respect (the lights are always turned off at a certain time of night) and of fires at the Calais refugee camp due to an act of retaliation (the cause is still unknown, but pictures were from a fire in November), are just some of the ‘facts’ that grew legs thanks to the virality of social media.

Where the misinformation is malicious, it can lead to hatred and prejudice being spread, and innocent people being targeted as a result. Already there have been arrests in the UK as a result of social media posts over the weekend.

Unifying Force

The power for good of social media outweighs the power for bad in most cases. The volume of news and information we all have access to means we can be better informed and more up to date on all the breaking stories. It would be a shame to see a tool that has the potential for being a conduit for social good be lost to the many, as a result of the actions of the few.

We have the responsibility to use this wealth of information appropriately, and keep our posts factual, especially when it comes to breaking news and events like Friday night (please still have your own opinions – this is part of the beauty of social media too!).

Let’s ensure that we use social media as a unifying force across the world, share quality information (and the occasional cat video…), shine a light in dark corners and allow us to create a global community. Are you in?

2015 Rewind – Best of Learning: How to Use Social Media to Win the War for Talent

We’re looking back at 2015 and the eLearning content that was added to the site during the year. 

In our second rewind, we take a look at the role of social media in the war for procurement talent. The ‘War for Talent’ has been a major topic in 2015, with organisations looking at the ways they can attract and retain the best talent.

In this video, Tania Seary talks about how procurement can leverage social media in order to reach the right audiences and attract the right people.

Although the focus here is on millennial talent, it’s sure to be useful for recruitment for any person in or new to the procurement profession.

Like this? Join Procurious for FREE and meet like-minded procurement professionals from across the world.

2015 Rewind – Best of the Blog: 3D Printing – The End of Outsourcing?

Our second blog rewind looks at the idea that 3D Printing will have a major impact on the way organisations manufacture their products and ultimately how their supply chains are set up for outsourcing.

3D Printing - The End of Outsourcing?

From golf clubs to firearms, pharmaceuticals to trainers, 3D Printing is disrupting the manufacturing process of an increasing number of products. But what are the long-term implications for the supply chain as a whole?

It’s a common misconception that 3D printing is something new. Although the processes and thinking for it have been around for a number of years, it’s taken a while for the technology to catch up and allow wider functionality and usage.

As a procurement and supply chain professional, this opens up a world of possibilities – a world of potential cost savings as a result of lower manufacturing costs and a centralised supply chain. Of course this isn’t going to happen overnight, but organisations can start to think differently.

The End Outsourced Manufacturing?

Manufacturing in particular has the potential to see a big change. The advances in 3D Printing can allow certain products to be made in house, instead of being outsourced to ‘low cost’ countries. While good news for organisations bringing more jobs back home, it doesn’t provide a rosy outlook for countries like Mexico and China, traditionally strongholds for low-cost manufacturing.

By bringing manufacturing closer to home, it also gives organisations an opportunity to reduce risk in their logistics, reduce lead-times and make savings on transportation costs. Plus, there’s the lower carbon footprint of global activities as an added bonus. This is all illustrated in this neat infographic.

3d printing supply chain infographic

In the pharmaceutical industry, manufacturers are using 3D Printing to improve medicines delivery systems for patients. Printers are being used to produce pyramid-shaped pills, which provide a more rapid drug release than cylindrical pills, and layered tablets that dissolve quicker and more efficiently.

While these processes are still in their infancy, manufacturers are hopeful that technology and science will work hand in hand, lowering production costs, enabling local production and, in the long run, reducing the end cost for patients.

Changes in the Supply Chain

Beyond enabling organisations to bring manufacturing back to a local setting, lowering logistics and transportation risks and costs and even maybe reducing globalisation as a whole, there are other impacts in the supply chain to think about.

Organisations will be able to produce prototypes of designs much faster than before and facilitate testing by being able to print on site. Organisations will also be able to print packaging materials, more tailored to certain products, as well as tools, jigs and other aids for manufacturing.

Finally, the requirement to hold inventory can be reduced by having designs for applicable products and other parts held on a hard drive, ready to be printed on demand, rather than physically stored in a warehouse.

Beware the Magic Bullet

A word of warning, though. As great as all this sounds, there are still risks and issues that need to be considered with 3D Printing.

Protection of copyright and security of patents is a big deal when all the designs are held on a hard drive that could be hacked from outside the organisation. Some organisations have taken steps to protect their intellectual property, but can you be 100 per cent sure you’re safe from cyber attack?

On the environmental side, although footprints are lowered for transportation, the need for printers to run continuously to be cost-effective means increased energy usage and costs. This would lead also to increased carbon footprints for local factories.

Finally, with greater efficiencies in the supply chain, reduced transportation requirements and potentially fewer warehouses, where does that leave the supply chain manager? If parts are going to be printed on site as required, there isn’t going to be the need for someone to manage an end-to-end process.

Best learn how to use the printers then!

Do you work in an industry that’s seen an increase in 3D Printing? Do you work with printers – have we missed any big benefits? Let us know and get involved in the discussion! 

2015 Rewind – Best of Learning: Where are Procurement’s Blind Spots?

We’re looking back at 2015 and the best of the eLearning videos, podcasts and interviews new to the site during the year. 

In our first revisited video, we take you back to the Big Ideas Summit, where we hosted a fantastic panel discussion on the subject of risk, and where procurement’s blind spots are.

The panel included procurement influencers and thought leaders including Tim Hughes, Olinga Ta’eed, Chris Lynch, Giles Breault, Nic Walden, Jason Busch and Lance Younger, who all gave their opinions on the risks the profession will face in the coming years.

With hot topics like social value, procurement transformation, procurement moving away from Finance and leveraging external innovation, the conversation got a little heated… But suffice to say this is one discussion you don’t want to miss out on!

See all the keynotes and panel discussions from the Big Ideas Summit, plus Big Ideas from our 40+ Influencers.

Like this? Join Procurious for FREE and meet like-minded procurement professionals from across the world.

Procurious Big Ideas Keynote #5 – The Business Case for Creating a Procurement Network

Procurious’ founder Tania Seary rounded the day off at the Big Ideas Summit with a keynote focusing on why procurement networks are an incredibly valuable tool for the profession.

Tania started off with a statistic that there are 27 indigenous tribes in the Amazon region that are entirely disconnected from the rest of the world, comparing that to the often isolated procurement profession.

She then looked at the impact of social media on the profession, and how it can help to create the community for procurement to allow us to work together, solve problems and ultimately create value for businesses. One of these platforms is Procurious.

Watch the full keynote here.

See all the keynotes and panel discussions from the Big Ideas Summit, plus Big Ideas from our 40+ Influencers.

Like this? Join Procurious for FREE and meet like-minded procurement professionals from across the world.

Best of the Procurious Discussion Forum 2015

In 2015, Procurious members started over 400 discussions, and provided an amazing 2000+ answers for these burning questions.

Discussion Forum

These discussions covered a vast range of topics, from Key Performance Indicators (KPIs) and professional qualifications, to eSourcing and if there is a typical Myers Briggs profile for procurement professionals. We’ve picked out the most popular Discussions of 2015 to have another look at, and perhaps inspire you to start your own.

KPIs for Procurement Function

We frequently talk about the concept of KPIs or metrics, both for procurement to measure, and for procurement to be measured by. There were a few discussions started on the subject of procurement KPIs, but one in particular that generated some interesting debate.

The Discussion asked for the community’s thoughts on the top KPIs that could be used for measuring procurement performance. While the KPIs and metrics mentioned by the respondents didn’t throw up too many surprises, what was surprising was what the most common answer was.

In fifteen of the responses a savings KPI was mentioned as one of the key metrics. At a time where procurement departments are looking to move away from savings targets, it is surprising that such a high percentage of professionals would highlight it as a key KPI.

A number of respondents highlighted value as a key KPI, however it was much lower than savings, and also lower than total spend managed. Even within the small sample, it’s clear that the traditional mindsets of procurement professionals still have to be changed.

Other key KPIs highlighted were:

  • Percentage of on time delivery
  • Total Spend
  • Customer satisfaction
  • Stock Turnover
  • Quality
  • Supplier Consolidation
  • Supply Chain Security & Risk
  • Cost Avoidance
  • Customer of Choice
  • Procurement Engagement
  • Time
  • Inventory
  • Sustainability
  • Ethics
  • Agility
  • TCO

Within the other discussions on the site, it was recommended that there be a limit on the number of KPIs in use, with 6 being a good number that could be effectively used and reported on. As well as this, the KPIs needed to be meaningful to both parties in order to be successful.

How Did You Get Your Start in Procurement?

One of the more popular discussion from earlier in 2015 concerned how members of the Procurious community had come to be part of the procurement profession.

Traditionally, many professionals have ‘fallen’ into procurement, and only recently has the trend shifted towards graduates actually setting out to have a career in procurement. Within the community, there were certainly a few who ended up in procurement by ‘accident’ or ‘fell’ into the profession, but also many who had been moved into procurement by their organisations.

It was interesting to see that a number (including one of Procurious’ own!) moved into procurement to escape another profession. As well as this, there were professionals who had either made a conscious choice at the outset of their career, or chosen to move following exposure to procurement activities.

There were also a number of success stories from people who ended up in procurement despite this not being their qualification and then succeeding in adding value or creating savings for their organisations.

It just goes to show that there are a number of ways into the profession, but the vast majority of professionals stick with it once they are there!

Is there a ‘typical’ Myers-Briggs profile for procurement pros?

People’s interest was certainly piqued by this question, and it was one of the most answered discussions of the year. As it stands, there is no one profile that is most common for procurement professionals, although there are some trends that have emerged.

A full breakdown of the responses shows:

  • ENTP – 10
  • ENTJ – 6
  • INTJ – 6
  • INFP – 3
  • ISTP – 2
  • ENFP – 2
  • INFJ – 2
  • INTP – 1
  • ISFJ – 1
  • ENFJ – 1
  • ESTJ – 1
  • ISTJ – 1

The most common trait across the network was for N (Intuiting), which appeared in 30 of the profiles. In theory, this meant that we have a group of professionals who are good at spotting patterns and plan well for the future, who also like to acquire new skills.

Whether this is what you perceive procurement professionals as or not, the concept certainly provided some very different viewpoints. One other idea that was mooted as part of the question was whether our profiles change over time, and if we have the profiles we do because we are in procurement, or the other way around?

Other Popular Discussions

There were other great, popular discussions on the topics of vendor management best practice, definitions or first thoughts on hearing the word eSourcing, whether or not professional accreditation and courses were worthwhile in procurement and responsibility in organisations for the drafting and issuing of a specification or brief.

You can also catch up with our Discussion Wraps from 2015 on the Procurious blog by following one of the links below:

And don’t forget, you can always start your own discussion on any topic you can think of from procurement and supply chain. Let’s keep the Discussion forum just as busy in 2016 and continue sharing the knowledge!