24 of the most influential people in procurement

Whether you’re new to Procurious, or you’ve been one of our #firstmovers, chances are you are looking to grow your network and connect with likeminded professionals.

Most influential people in procurement on social media

As we’re the helpful sort, we’ve compiled a list of the people we think you should be connecting with. Many are already frequent visitors to Procurious; some will be on Twitter too (in these instances we’ve also provided their handle).

How to grow your Procurious network

You can jump straight to a member’s profile by clicking on the links we’ve provided, alternatively try searching for them using the Procurious search bar. Click the green ‘Add to network’ button to request their friendship.

You can keep track of any invites you’ve received by looking in your Notifications area.

Don’t forget to take advantage of the super-useful ‘Build your network’ tool on the site too.  Here you can filter members by country, industry, and category (if you so choose).

Read more: How to build your Procurious network quickly and easily

Find out who we think you should be making introductions to, and the reasons why below:

Helen Clegg 

Helen is the Knowledge Director for the Procurement & Analytic Solutions’ Practice of A.T. Kearney, an international management consultancy. She also compiles and hosts the ‘Wave of the Future’ podcast that aims to keep you on top of the topics and trends that matter in procurement.

On Procurious https://www.procurious.com/user/helen-clegg
@HClegg on Twitter

Kate Lee

Kate boasts nearly 20 years of domestic and international experience and is part of Fronetics – a management consulting firm which focuses on strategy and inbound marketing for the logistics and supply chain industries.

The Fronetics’ Twitter account is both super-active and full of fascinating insights related to the profession which is reason-enough to welcome Kate as one of our newest contributors.

On Procurious https://www.procurious.com/user/kate-lee
@Fronetics on Twitter

Paul Snell

Paul is the acting managing editor of Supply Management and Supply Business magazines. If you want to keep on top of the latest CIPS developments, Paul is your man!

On Procurious https://www.procurious.com/user/paul-snell
@procurementpaul on Twitter

Elaine Porteous 

Elaine is a published writer and editor. She has a passion for supply chains and careers, writing mainly on the ins and outs of supplier relations, strategic sourcing and managing talent. Her work has appeared in such luminaries as Supply Management and Entrepreneur among others.

You’ll be able to read some of Elaine’s work on Procurious in the near future.

On Procurious https://www.procurious.com/user/elaine-porteous
@elaineporteous on Twitter

Jon Hansen

Jon is the editor and lead writer for the PI Social Media Network’s Procurement Insights Blog. He also hosts a popular podcast on Blog Talk Radio (out of 15k hosts, Jon is ranked in their top 300). We think it’s high time you give him a listen!

On Procurious https://www.procurious.com/user/jon-w-hansen
@piblogger1 on Twitter 

Cindy Dunham

Cindy is a General Manager and oversees Global Process Architecture at Rio Tinto. She is also one of Procurious’ most-active (and well-connected) members with 500+ connections in her network. Follow Cindy’s example, head to the Discussions area and get involved.

On Procurious https://www.procurious.com/user/cindy-dunham

Hal Good

Harold (or Hal to his friends) owns the Procurement Pros LinkedIn group.

He has also amassed a sizable 13.6k followers on Twitter. No mean feat.

On Procurious
@Hal_Good on Twitter

Stephen Ashcroft

Stephen is a blogger, speaker, and author. He is part of Brian Farrington Ltd, a long-established procurement and supply chain consultancy and training specialist.

On Procurious https://www.procurious.com/user/stephen-ashcroft
@ProcureChange on Twitter

John Viner-Smith

John is a procurement-focused manager, consultant and commercial negotiator. What John doesn’t know about negotiation isn’t worth knowing… He’s also very kindly agreed to impart his knowledge to the Procurious community via a monthly blog series.

On Procurious https://www.procurious.com/user/john-vinersmith
@vinersmith on Twitter

Sergio Giordano

Sergio was one of Procurious’ earliest flag bearers – this happy Italian has 30 years of expert industrial procurement knowledge under his belt, and nothing makes him happier than helping organisations to drive down their costs.

On Procurious https://www.procurious.com/user/sergio-giordano/
@GiordanoProcOut on Twitter 

Gordon Donovan

As well as being a fellow of both CIPS and the Australian Institute of Management, Gordon acts as a principal consultant for The Faculty.

On Procurious https://www.procurious.com/user/gordon-donovan
@gdonovan1971 on Twitter

Local Producer

AKA Brian Heinen – Brian is one of the driving-force’s behind LinkedIn’s biggest groups for supply chain and sourcing professionals (Procurement Professionals). With member numbers nearing 290k and soon-to-be launching into the Events space, Brian is definitely someone you should add to your network.

On Procurious https://www.procurious.com/user/local-producer/
@ProcurementProf on Twitter

Helen Mackenzie 

Helen is in a senior managerial position in Scottish government and offered the Procurious community a valuable insight into Scottish procurement policy during the referendum earlier this year. Helen is fascinated by procurement that is seen to be pushing the envelope – drop her a message, or find her over in our Discussions area.

On Procurious
@SuperstarHelen on Twitter

Tania Seary 

Tania is the founding chairman of three companies specializing in the development of the procurement profession, namely: The Faculty, The Source and Procurious. Got a question for Tania? She’d love to hear from you!

On Procurious https://www.procurious.com/user/tania-seary
@taniaseary on Twitter

Who to connect with on Twitter

What makes some Twitter accounts stand out from the others? Due to the nature of Twitter, tweets can be made instantaneously in real-time – therefore you’ll gain more benefit from following those accounts that Tweet frequently. Nobody wants to follow an account with long periods of inactivity. We’ve included some of our favourite Twitter personalities below, along with some useful publications.

PPN

PPN has been formed out of Accounts Payable News (APN) and now includes procurement, supply chain and shared service information and news. Publish great daily updates and content across a variety of relevant topics.

Go to their website, or connect on Twitter: @p2pnetwrk

Adrian King

Tweets about management, supply chain management & IT consulting. 104k followers.

@adrian_king on Twitter

Chadwick Halse

Chadwich specializes in web design and marketing but also tweets about fashion, leadership, and how to increase your social influence. 81.4k followers.

@ChadwickHalse on Twitter

InventoryNinja

If you hadn’t guessed, the Ninja shares inventory management best practices for small businesses. 49.5k followers.

@Inventoryninja on Twitter

Supply Chain Matters

A useful resource of supply chain news and insight from Bob Ferrari. 20.4k followers.

@SC_Matters_Blog on Twitter

Logistics Management

Logistics Management provides editorial content to executives, managers and other professionals in the field of logistics and supply chain management. 21.6k followers.

@LogisticsMgmt on Twitter

Procurement Cat

AKA Catherine Lauder – the content and community manager at Procurement Leaders. 431 followers.

@ProcurementCat on Twitter

Supply Chain Digital/Sam Jermy

Provides news, info and events for supply chain executives. 14.2k followers.

@SupplyChainD on Twitter

SCMR

The official Twitter account for the Supply Chain Management Review magazine. 13.7k followers.

@SCMR on Twitter

Buyers Meeting Point 

Buyers Meeting Point is an online knowledge, networking and professional development resource for procurement and supply management professionals. 2673 followers.

@BuyersMeetPoint on Twitter

Tim Hughes

Tim numbers in the top 35 of UK bloggers, he’s also a speaker, market influencer, and feature’s in the Forbes Top 100. 81.9k followers.

@Timothy_Hughes on Twitter

Who have you been connecting with recently? Recommend other Procurious members in the comments below, or tag them in a status!

Stay up-to-date with Procurious



VOTE FOR PROCURIOUS IN THE UK BLOG AWARDS 2014 #UKBA14


Procurement at forty thousand feet – Qantas in the spotlight

Qantas has a fleet of procurement professionals keeping the iconic Australian brand in the air, and Cassie Mackie is a key part of that team.

As Portfolio Category Manager – Aircraft Cabin, she’s responsible for the end-to-end procurement and lifecycle management of Aircraft Cabin product categories including seats, inflight entertainment, connectivity, cabin electronics and cabin interior.

It’s a mammoth role, which puts her in charge of procurement on behalf of the Qantas Group Aircraft, including Qantas Domestic, Qantas International, Jetstar Branded businesses and other Qantas Group airlines.

The Sydneysider is in charge of a team of category management professionals, who all work with her to develop and deliver on all aspects of the source-to-contract and contract-to-supplier relationship management processes.

Cassie has been with Qantas since 2008 in a range of procurement roles.

“I can see a tangible connection that my role has on the business and specifically on our customers. I love that no day ever feels like ‘groundhog day’ and that I’m constantly challenged. Most of all, I love that I work with a diverse group of people that are incredibly talented at what they do and are always in pursuit of excellence.”

Like many, Cassie fell into procurement when living in London. She had the experience to consider a job in the field, with a Bachelor of Arts in Asian and International Studies under her belt. She also speaks Mandarin Chinese.

“I distinctly remember seeing a job advertised on the Australian High Commission website for a Procurement Officer with Defence Material Organisation. At the ripe old age of 20, I phoned Dad back in Australia, and asked him what procurement was. He told me it was basically like shopping, and that was it. Now, 10 years later, I’ve never looked back.”

She credits her parents for mentoring her and always being there to remind her that the world is her oyster. “They’ve always told me that as long as I work for it, I can have whatever I’ve ever wanted. I’ve had formal and informal mentors and inspirational people who have helped me to progress through my career and contemplate the future. I’ve also had some not so inspirational leaders in past experiences that have helped me see exactly what I don’t want to be, which I’ve learned from.”

She advocates the importance of good relationships with business partners and suppliers, and says some of the most challenging and difficult negotiations have ended up being the most rewarding.

Podcast: Social Media for Procurement

ATK helps put procurement in the drivers’ seat with social media

A.T. Kearney’s Knowledge Director, Helen Clegg, is spearheading the discussion for educating the procurement profession on the benefits of social media.

Hear my interview with Helen http://bit.ly/14VDC1x where I share how to leverage social networks, from building relationships with suppliers to receiving real-time news about supply chain disruptions.

On the topic of risk, I share with Helen my view that there are more risks to procurement professionals for NOT being connected with social media, than there are to being involved.

I also share my top tips for building a social media presence, as well as recommending that everyone finds a millennial mentor!

If you find it useful, I would love you to share it with your Procurious network, on LinkedIn or over Twitter?!

How to detect fraud in your organisation

This is a guest article from Visna Lampasi, The Faculty’s 2014 Chief Procurement Officer of the Year (Asia Pacific).

With the growing emphasis placed on the CIPS Ethical Mark, we quizzed Visna Lampasi – Global Chief Procurement Officer & Procurement Thought Leader on how to detect fraud in your organisation.

Procurious asks: Do you believe fraud has become a bigger issue for Procurement in recent years? And if so, why? 

Visna answers: The number of instances in procurement fraud and corruption is increasing and becoming a far bigger issue than previously for organisations globally.

Whilst some industries have imposed pay freezes and pay cuts over the last number of years, the living costs have been rising and during a time when the jobs market has been stagnant.

If you couple this with an organisation who has poor procure-to-pay controls, then this will unfortunately reveal opportunities to defraud.

Procurious: From a  procurement perspective, what do you see as the most common examples of unethical conduct  are in the supply chain today?  (bribery; misconduct by suppliers; misappropriation of company funds etc.)

Visna: There are many types of procurement fraud, which can be committed across the entire source-to-settle core process not just procure-to-pay.

The ones that I have come across the most throughout my procurement career are: – 

·         Fictitious suppliers and sub-contractors
·         False, inflated or duplicate invoices
·         Unjustified sole source awards
·         Bribery and kickbacks

·         Undeclared Conflicts of Interest
·         Purchases for personal use or resell
·         Split purchases

Procurious: What do you believe are the most important activities for detecting and deterring fraud in the business?  

Visna: The simplest way to prevent procurement fraud is to: – 

1)      ensure that you have robust “Procurement Policies & Procedures” in place and that these are reviewed regularly to ensure that they are effective,

2)      proactively drive organisational “Compliance” against these policies and procedures,

3)      ensure appropriate “Segregation of Duties” – ensure that the person who can set-up a supplier, issue purchase orders, and process an invoice for payment is not the same,

4)      ensure tight controls within your “Procure-to-Pay” process as a minimum, with appropriate checks and balances in place.

Don’t forget to address your “Source-to-Contract” process as well, which is the front end of the Source-to-Settle process and more often than not is disregarded.

Procurious: Government Procurement have long had strict gift and hospitality policies in place and the private sector are increasingly following suit. Do you think there’s such a thing as ‘going too far’?

Visna: There needs to be a balance here and one that takes into account different cultures and customs that an organisation is going to encounter when doing business both locally and overseas.

The important thing here is that an organisation has a policy in place around gifts, meals and entertainment and that is being followed by its employees.

Full transparency is key and will assist to address questions around reasonableness and perception prior to acceptance.

Procurious: Western countries often have quite different beliefs and practices around what constitutes unethical behaviour.  Do you have any tips for dealing with suppliers in other countries which may take a more lax attitude towards gifts and payments?  

Visna: My suggestion would be to look to your organisation’s corporate values and Code of Conduct for guidance around expectations of ethical behaviour and determine if these align with the country you are seeking to do business with.

Many organisations also have lists of embargoed countries, which will also assist in identifying whether the country is approved to do business with.

Procurious: If businesses are serious about taking a ‘zero tolerance attitude’ towards corruption, what policies, procedures and employee training will be fundamental?   

Visna: Robust procurement policies and procedures are fundamental, supported with regular communications and on-going training to increase awareness and build capability.

Current members of The Chartered Institute Procurement of Supply can complete an eLearning  module on Ethical Sourcing, which incorporates elements around procurement fraud and corruption.

A license can also be purchased for the Chartered Institute of Procurement & Supply Anti-Procurement Fraud Training,  which will allow organisations to deploy this online training to all of their employees globally.

Procurement crisis? Social media can save the day!

Steven Lewis of Sydney-based Taleist on social media and procurement

Social media can be an erratic and angry beast. One minute your company is being praised, and the next it’s under fire for a minor procurement program that’s somehow landed in serious hot water.

To stay out of trouble, make sure you are prepared for any social media crisis well before there’s any sign of trouble.
Start by working up to a worst case scenario by considering what could go wrong, recommends Sydney social media trainer Steven Lewis of Taleist.

Consider who is going to be called in from other duties to lend a hand if trouble hits, he says.

“The first step in handling a crisis is to be prepared for the eventuality in the first place. If you’re prepared, you’ll know who’s going to speak, what they need, and you’ll have your channels and processes in place and tested. Having thought about those things in advance frees you up to think strategically when dealing with the specifics of a crisis.”

Conduct a risk assessment on each of your processes so you know how they might be questioned or attacked, and by whom, Lewis advises.

“Create a tailored response to each process that allows you to give clear justification, preferably with supporting evidence. If, for instance, you’re accused of using a supplier who uses child labour, what policies, inspections or assurances from the supplier can you cite and what would your response be to an accusation?”

People expect their corporate citizens to have human qualities, so don’t be afraid to respond on with some emotion, he offers.

If you don’t know something you’re being asked, say so.

“It’s not good for a clothing brand, for example, to say it’s never even considered there might be child labour in its overseas supply chain, but you might not have all the facts to hand immediately. But an empathetic response and a promise to investigate with a deadline will help.”

In this example, he suggests a response such as: ‘We care deeply about child labour too and we’d be horrified to find we’d supported it even directly.”

Furthermore, it’s becoming increasingly important to respond online, he notes.

“You need to be in the channels in which you’re being discussed. If you’re being attacked on Twitter, it’s not enough to put up a media release on your website. How will the people on Twitter know it’s there?”

Remember, a social media crisis seldom involves a rational exchange of views:

“Essentially, you have to be prepared for the emotion of a crisis. If you plan to deal with the crisis only through the cold exchange of facts, you won’t put out the fire.”

Lewis also stresses the need to get your side of the story up quickly and in the relevant media.

“You’ll likely have supporters and the more you can give them to share and get your side out, the better.”

However, be prepared to wear the criticism, he warns.

“In social media as in politics, it’s often the cover-up that will get you. People don’t like having their comments deleted.”

Leading female entrepreneurs front government export drive

The UK Trade & Investment arm of the UK government has just distributed ‘From local to global’. The guidance has been collated and published in aid of the GREAT Britain campaign – a campaign that encompasses the very best of Britain’s businesses, tourism, and educational offerings.

Kelly Hoppen offers export advice

Kelly Hoppen was chosen to pen the forward to a new online document that delves into the logistics and economics of the huge export market.

Kelly boasts an enviable track record, with over 30 years of first-hand experience building businesses.

“Language, logistical and cultural barriers can all be business obstacles. However, these barriers can be overcome with the right support, guidance and people to cheer you along throughout the journey,” she says. To that end here are a number of tips to help first timers thinking of entering the export business:

Know the currency

Understand the currencies you will need to deal with. Talk with your foreign exchange provider early, as they can give you insights into the potential currency risks.

Start small

It’s tempting to pursue multiple markets. Don’t. Begin by focusing on one or two markets.

Appreciate cultural differences

Failure to take account of different cultures can lead to damaging and costly mistakes. This could range from causing offence by not observing correct protocol to inappropriate packaging and marketing.

Get paid

It’s easy to overlook the risk of non-payment. Establish the credit rating of potential clients and guard against non-payment through letters of credit or credit insurance. If you’re a UK business, UKEF (UK Export Finance) can provide advice and insurance where the private market can’t help.

Business skills and networking

Kelly isn’t the only one offering her advice. Here’s Heather Melville, Director of Strategic Partnerships at RBS, on networking internationally:

Learn your markets

Use the experiences of your new contacts to get under the skin of new markets. Learn about the opportunities and the challenges. Ask questions to get the right answers.

Immerse yourself in the culture

Tap into the expertise of your local contacts. They can advise you on what to wear, what traditions to respect and even teach you some local dialect to throw in!

Know the business card etiquette

Be aware of business card customs when networking abroad. In Japan, for example, the business card is often embossed and represents a significant part of the process. Present your own card with both hands, and take the time to receive a card warmly.

Importing and exporting advice

Tips for using digital to sell overseas

The final part of the published guidance revolves around the notion of ‘selling while you sleep’.

Remember these top tips: 

Distance isn’t a barrier

Asian consumers, for example, are more connected because of their love of smart phones, meaning there are vast opportunities to extend the reach of your brand.

Spot common trends

Engage with your customer using the common trends in their market. Learning how different markets operate is simple but extremely effective.

Cost of digital

Weigh up the options of ‘digital only’ vs ‘digital and physical presence’ within a new market.

Know whether to scale up or down

Scalability is easy and affordable. Whether you want to sell into one country or 101, e-marketplaces allow you to trade across multiple countries via one platform.

Engage with social networks

Be more social. Consumers expect to be able to engage with you or other shoppers before purchasing.

Commodity changes affect market conditions

This week we are looking at technology and how the recent commodity pricing changes has affected both the size of organisations as well as their strategies.

Microsoft Tops Exxon as 2nd Biggest Company on Oil Drop

  • Exxon Mobil Corp. (XOM) ceded its title as the world’s second-largest company to Microsoft Corp. after the five-month oil rout cut $47 billion from its market value.
  • Apple (AAPL) Inc., the Cupertino, California-based iPhone maker, retains its rank as the world’s biggest company. Its shares have rallied 41 per cent in 2014, the 33rd biggest gain in the S&P 500, as the company bought back shares and extended a streak of beating analyst earnings estimates to eight quarters.

Read more at Bloomberg.com

The desperate struggle at the heart of the brutal Apple supply chain

  • The most valuable corporation on Earth has the power to make or break a company through its supplier relationships.
  • A $578m deal signed between Apple and GTAT in November 2013 looked as though it would not only bring sapphire screens to iPhones, but also create thousands of jobs in the US, salving a sore point with legislators critical of Apple’s use of foreign assembly for almost all its products, especially the iPhone and iPad.
  •  But it ended in October 2014 with GTAT filing for bankruptcy, hundreds of people put out of work, and GTAT’s chief executive and chief operating officer facing questions about insider dealing after they sold millions of dollars’ worth of GTAT stock before Apple’s iPhone announcement in September.
  • Though it doesn’t actually own any factories, Apple pours gigantic amounts of money – about $12.5bn in the past four quarters – into “plant, property and equipment”, the majority equipping its suppliers to make its products.

Read more at The Guardian

Economic volatility, low commodity prices to hurt mining industry

  • Global economic challenges, the strengthening US economy and an imbalance of supply and demand have had a devastating impact on the commodities market.
  • Current slump in prices was reflecting the cyclical nature of the industry.
  • For gold companies, while the long-term view was above current spot prices, volatility remained the key issue.
  • For base metal producers, a growing global population that would have greater overall need for products such as cars, computers and household goods, had helped support current prices.

Read more at Mining Weekly

Still Avoiding Social Media? You’re Losing Business

  • 74% of adult internet users use social media platforms.
  • Regardless of whether you are a business-to-consumer (B2C) or business-to-business (B2B) organization, your company can utilize the power of social media to see a real return-on-investment (ROI).
  • However, if you are not on social media then you are missing an opportunity to not only increase sales, but also provide better customer service to your existing clients.
  • What Percentage of People are Social Based on Income?
    Less than $30,000/year—79%
    $30,000-$49,999/year –73%
    $50,000-$74,999/year –70%
    $75,000+/year –78%
  • One thing is certain, your target audience is social. However, if your business is not on the social media platforms where potential customers are, then you are simply missing out on opportunity

Read more at Business 2 Community

Accenture previews digital disruption

  • Accenture has promised to continue to enhance digital transformation and business efficiency through the application of relevant solutions and technology.
  •  The rise of social media platforms has changed the game, stressing that data has become another source of revenue for telcos after revenue from voice appears to be peaking.
  • New emphasis on data and new sources of value: attention, identity, reputation, social graph, machine intelligence, robots, genetic modelling, new buyer values, change in control points and a winner takes all phenomena.

Read more at Biztech Africa

G20 climate challenge calls for a rethink of economics

  • Focusing on growth, the Brisbane G20 leaders’ summit has not grappled with three key issues.
  • How much more growth can the planet survive?
  • How can poorer nations raise their living standards to parity with the “developed” world?
  • How can a fairer distribution of the benefits of growth be realised?

Read more at The Conversation

How much do you really know about digital currencies?

In a report commissioned by HP, the Ponemon Institute has made a number of interesting finds. Its “Security & Compliance Trends in Innovative Electronic Payments” paper reveals that support for digital currencies and new electronic payment systems are perhaps stronger than originally thought.

Need a primer on digital payments? Watch this very informative video from e-commerce platform PinnacleCart.

Understanding the future of money and mobile payments

New electronic payment systems and virtual currencies are expected to make paper currency the horse and buggy of the 21st century. Are organisations up to the challenge of ensuring security and privacy when businesses and consumers use these payment systems for purchasing items and transferring of funds?

And while 79 per cent of the US organisations that took part in the research plan to adopt digital currencies, a key barrier to the adoption of innovative electronic payments remains. Namely: the issue of security. In terms of new electronic payments, all of the following were cited in respondent’s answers as either currently supported in marketplaces or the not too distant future: payments with a mobile device or use of phone number, e-currency (Bitcoin or other open source P2P money), stored value cards, and bar codes.

The biggest concern seems to be authentication risks with the use of virtual currencies. While new payment models are evolving, but the same security fundamentals for maximum protection in the overall payment process are still needed. The most critical are one-time passwords or tokens, federated identity and authentication systems and multi-factor authentication

There is also the perception that the pressure to quickly migrate to the use of innovative electronic payments is making it difficult to address the security and privacy issues.

A case-in-point: Digital wallets (or e-wallets) are used to hold virtual currency – and high profile names in technology like Google and Apple already have solutions in place to drive the adaption rate. In-fact belief is so strong that almost half (46 per cent) of respondents predict that virtual currencies will overtake paper currencies within the next five years. Perhaps there’s some truth in this… we are increasingly looking to financial institutions and credit card companies to make the inroads needed to take such practices to the next level. They’ll be the ones to create new approaches to the security and privacy of the electronic payment platform. These organisations are closer to the consumer experience with electronic payment systems and might have a greater incentive to innovate and improve both security and privacy.

What do you make of these new virtual payment systems: is more time needed to fully realise the benefits (and drawbacks) of such innovations? 

Strategies to limit backdoor or maverick buying

Procurement Professionals on LinkedInThis guest blog was written by Dr. Tom DePaoli and originally posted in the Procurement Professionals LinkedIn group. It has been redistributed with their permission.  Read more on Procurement Professionals LinkedIn group at: http://linkd.in/1uupe8p or Twitter: @ProcurementProf

Backdoor or maverick buying is a perplexing problem that plagues many purchasing organizations. The methods to counteract this behavior are highly dependent upon the cultural climate and ethical standards of your organization. There is no universal solution.

Strategies to Limit Backdoor or Maverick Buying

 

People’s behaviors are influenced by consequences. If there are no consequences for backdoor buying the behavior will continue and grow. Some of my suggestions are drastic, others are more reasonable. Purchasing professionals must use their judgment to select the appropriate actions that fit their particular organization.

An important aspect to solving this issue is to remain objective and to try to gather data on the costs of backdoor buying. These could include lost discounts, lost rebates, and extra transactional work by purchasing and others. Many purchasing organizations know the average transactional cost of a regular transaction with an approved supplier. Try to calculate the extra cost with an unapproved supplier. Always control your emotions when discussing this issue.

Here are some reasonable tactics to create an organizational atmosphere and climate that helps discourage backdoor buying. In my experience the biggest offender is usually the engineering department. So involve engineering in cross-functional supplier selection teams and standardization initiatives. Make them a stakeholder in approving suppliers. Get the vice president of engineering on board with OEM (Original Equipment Manufacturer) standardization and have them participate in OEM standardization processes.

Consider establishing a policy of no gifts or gratuities to be accepted from suppliers by both purchasing and all other employees (zero tolerance). This discourages lunchtime promises or promise buys to suppliers by non-purchasing employees. Another alternative is to have purchasing have their own modest budget to entertain, socialize and conduct work sessions with suppliers.

Get your compliance employees on board with your policy i.e., your legal department and accounting. Craft an approved supplier only purchasing policy and make it clear that unauthorized purchases will not be honored by accounts payable. Keep the list of approved suppliers visible and updated. Use your software safeguard controls to limit buying privileges and cross reference the approved supplier list. Many purchase cards can be limited to specific approved suppliers and or categories of goods. Meet with your approved preferred suppliers and ask them to use the grapevine to communicate any purchases from unauthorized suppliers directly to you. Most will gladly do this.

One of the most effective drastic actions occurred when I worked for a global chemical company. The company had just spent over $200 million on a worldwide ERP system. The CEO sent out a strong memo saying that all purchases must be made on the ERP system and only from the approved suppliers in the ERP system.  Employees were required to use the new ERP system. The very first day four employees went off system to purchase some items from a non-approved supplier. The CEO personally fired them and publicized the results of the incident to all employees. Needless to say there were no more such purchases.

Do your networking and informal work before you institute your policy. Meet one-on-one with stakeholders or in small meetings to explain your reasons for your policy and get their buy-in before you roll it out.

Establishing a policy against backdoor buying requires some deft maneuvering by purchasing that correctly judges the culture of your organization. Instituting the appropriate policy will help reduce backdoor buying. More important, you must enforce the policy and reprimand employees who violate it. A backdoor buying policy unenforced, is both hollow and meaningless.

Would you use a social network that pays you to post?

Tsu (pronounced ‘sue’) is a social network and payment platform that shares up to 90 per cent of its revenues with users. With a $7 million investment behind it (led by Sancus Capital Prive), Tsu has already attracted the gaze of 50 Cent, Timbaland, and NBA’s Carmelo Anthony – but sadly no sign of a Kardashian or Grumpy Cat yet…

Tsu the new social network that pays you to post

What is Tsu?

So by now you’re probably wondering just what is this Tsu that I’m hearing so much about?

It’s a new type of social network (hang on, we’ve heard that one before… ello, Ello?), but this one’s differential lies in its modus operandi. You see, you (the member) own the content you post, not only that but Tsu will pay you for the privilege.

Get paid to use social network(s)

Yup, that’s the jist. While it’s something of an incendiary headline, the New York Times led with “The Social Network That Pays You To Friend”.

The more people looking at your content, the more sales revenue Tsu makes from ads served. If this were Facebook or Twitter any wealth generated would only serve to line their pockets – Tsu will instead give back a slice of the pie.

It’s a ballsy business model that’s for sure.

Tsu Tmi?

Too much information? Tsu also provides detailed analytics to its users, so they can chart follower count, views, likes, and comments on posts made. This is in stark contrast to the news that a researcher from University of Illinois has created a browser plug-in that removes all trace of numbers (or metrics) from Facebook. Why? To show (or perhaps prove) that when not hell-bent on seeking others approval, the quality of posts and comments improved, as did enjoyment levels.

Download Facebook Demetricator

Tsu does move to ban users who spam in order to preserve the community, and that stretches to invites too. Don’t go thinking you can bombard your Facebook, Twitter, or LinkedIn friends with your member short code (required to sign-up and access the community), Tsu wants you to instead nurture ‘meaningful’ relationships through the network proper.

It’s not for me, but it might for Tsu…