Four Essential Capabilities For Your Procurement 2020 Roadmap

Procurement 2020 will look a little different with new skills, knowledge and tools to address entirely new challenges. Procurement has seen rapid change in a relatively short span, the value creation of this function has increased multi fold becoming more strategic, collaborative and technology driven. This momentum is expected to continue and quicken in the coming years. Procurement will emerge in the forefront as an important and integral function of an enterprise.

The Hackett Group’s research showed that 85 per cent of the procurement organisation believe that digital transformation will change the way they deliver services over the next 3 -5 years. To stay competitive, procurement needs to embrace disruptive effects of technological innovation in conjunction with organisation which is lean, agile and responsive to stakeholders and suppliers.

It is imperative for the procurement function to develop journey roadmap on four essential capabilities that are vital for future – Digital Transformation, Supplier Relationship, Stakeholder Engagement and Talent. The first step in this journey will be to fully understand how the procurement landscape is shifting.

Procurement in 2020 will look very different with new skills, knowledge and tools to address entirely new challenges. Organisations that fail to embrace new procurement models may fall behind the competition, jeopardising overall competitiveness and viability.

Digital Transformation

Procurement is effectively positioned to join the Digital revolution. It can offer a radically different value proposition to the organisation as Robotics Process Automation, cloud based applications, Big Data analytics, Artificial Intelligence and Mobile Computing begin to converge. These smart tools will improve service delivery, reduce errors and free procurement staff for higher value work.

Technology provides dual track opportunities to support ‘upstream’ or Source to Contract (S2C) and ‘downstream’ or Procure to Pay (P2P) which predominately consists of operational, repetitive and transactional activities.

Technologies like Artificial Intelligence, Crowd Sourcing, Live Digital Dashboards can be effectively used for decision making accurately and with speed to support ‘upstream’ while Robotics Process Automation is widely used to drive efficiency and effectiveness ‘downstream’.

Robots interact with different IT applications to enable transaction processing, data manipulations and communication across multiple IT systems. In effect, multiple Robots can act as virtual workforce to process operational and transactional activities. This could allow CPOs’ to rebalance their functions upstream and reducing the focus on downstream activities.

Supplier Relationship

With the advent of technology, the organisations have started to realise the growing importance of suppliers in terms of innovation, security of supplies, corporate social responsibilities, risk mitigation and cost savings. Strategic partnership will be at the top of the corporate agenda and Supplier Relationship Management will be seen as significant differentiator.

Supplier Relationship Management is systematic approach for developing and managing partnership. It is focused on joint growth and value creation with limited number of suppliers based on trust, open communication, empathy and win – win orientation.

The 4C’s model will govern the future of Supplier Relationship Management – Capabilities, Continuous Growth, Customer of Choice and Creating value.

The speed of business continues to accelerate, market expectations are higher, product life cycles are shorter, turnaround times are faster and the risks are wider and deeper. Clearly organisations rely on suppliers to bring innovative and new products to their markets.

Essentially procurement will have sound understanding of supplier market across the world and be able to link their potentials and limitations. Demands on procurement to become more business oriented, more mature and integrated in its ways of working. All of these reinforces the need to re-invent robust supplier relationship management.

Suppliers are increasingly being looked upon as trusted business partners and engaging early and ensuring all parties are on track will propel procurement organisation to  greater heights.

Business Stakeholders

Procurement has been rapidly evolving to keep pace with the changing trends.  The procurement profession has made significant leads moving from price management to category management and in the future it becomes very clear that procurement will move from category management into value creation.

Becoming a trusted business advisor is a long drawn process and time consuming, it varies from person to person. The individual has to not only understand stakeholder needs but go beyond to understand the breadth of business challenges and develop deep personal relationship.

Most stakeholder relationships are at service provider and enhanced service provider level providing answers, sharing expertise and resolving business related problems. Relationship with stakeholders are usually good at a business level but have no real depth at a person level.

The challenge seen by many procurement professionals is to move from been seen as just a service provider into being recognized by stakeholders as a trusted advisor

Elevation to consultant requires more insights and ideas into the stakeholder organisation on broader business issues and also building a stronger personal relationship. This level of relationship could be achieved through focus, time and effort.

Few people achieve the trusted advisor relationship, where there is a comprehensive understanding of all the stakeholder needs and they look up and reach out as first person to help them tackle the difficult issues they are facing.

As the procurement function changes, it will need people with new skills. Apart from being comfortable with data, future procurement professionals will need to be prepared to lead rather than simply serve their business.

CPO’s should fundamentally rethink regarding their organisation and capabilities both of which needs to be reshaped over time. Companies have to create new job profiles such as buyer for new categories, contract experts on intellectual property or Data scientist for data maintenance, analysis and mining. Only if the procurement personnel are digitally capable can a company fully benefit from opportunities provided through digitalisation.

Procurement functions must follow Seven fundamental steps to manage Talent – Plan, Attract, Recruit, Assess, Develop and Retain.

The team must be digital savvy, ability to collaborate and build relationship with internal stakeholders as well as suppliers from diverse array of geographic and cultural backgrounds.

Negotiation skills and market insight will continue to be the fundamental skills but TCO across product lifecycle, cost structure analysis and game theory will emerge highly important skills in this field.

The professional credentials will be measured by their ability to influence, persuade, and provide vision, the mind set must be strategic, global, collaborative and above all commercial.

Conclusion

Shifting the procurement team from being tactically devoted to strategically focused can be a long journey for a company. But this journey can literally make the difference between company’s definite success or failure. There are still several actions to be tackled in order for procurement to gain deep business insight, react quickly to the changing needs, drive higher overall value and greater stakeholder satisfaction. Investing in activities to elevate the role of procurement within an organisation, moving beyond the traditional role of gate keeper and cost hunter will definitely bring added value to the organisation.

Procurement in Twenty 20 will mean developing new value propositions, meeting new business needs, and integrating data across functions. It will call for using data pro-actively and intelligently. Perhaps more important, it will require fundamental reshape of procurement organisation and its capabilities to take on new challenges.

This article was written by Kumaralingam MC, Director, Global Procurement Centers – IBM. It was orginally published on Shared Services Forum. 

From Cannonballs to Mobile Apps: The Fight Against Modern Slavery

Disney, Walmart and other big players have partnered with Humanity United to launch Working Capital, a $23 million early-stage venture fund aimed at creating scalable, ethical supply chain innovations.

Image: Royal Navy Brig “Acorn” chasing a slaver vessel in 1841, by Montague Dawson.

In 1808, the Royal Navy established the Preventative Squadron, tasked with suppressing the Atlantic slave trade by patrolling the coast of West Africa. By 1860 the Squadron had captured 1,600 slave ships and freed 150,000 Africans. In the meantime, America fought a long and bloody civil war before the Emancipation Proclamation could finally be enforced through all regions.

Abolition in the 19th century – in the very simplest terms – was driven firstly by a change in the law, then enforced with the barrel of a British frigate’s cannon or a Union Army soldier’s rifled musket.

In today’s fight against modern slavery, we’re seeing a new wave of legislation, including the UN Global Compact, the UK’s Modern Slavery Act, France’s Duty of Vigilance law, Holland’s Child Labour Due Diligence law, and similar legislation being considered in Switzerland and Australia. Yet, as we know, the insidious nature of modern slavery means the perpetrators are considerably more difficult to identify than they were 200 years ago. That’s why modern slavers must be fought not with guns, but with tech solutions that remove their sources of income.      

Big names behind venture launch

Working Capital was launched by Humanity United last week with the goal of “accelerating supply chain innovations to enable corporations to operate more transparently and ethically around the world”. The launch made headlines due to the leading brands that are on-board with Working Capital, including: Walmart Foundation, C&A Foundation, Stardust Equity, Open Society Foundations (Soros Economic Development Fund), The Ray and Dagmar Dolby Family Fund, and The Walt Disney Company. The fund also received £2.5 million in sidecar grant funding from the UK’s Department for International Development.

Ed Marcum, Managing Director at Working Capital, said in a statement that “There is a growing market demand for more transparent and responsible corporate supply chains. We see an opportunity to invest in emerging solutions that will meet the demands of large multinational corporations while also benefiting millions of vulnerable workers.”

A press release from Humanity United says the fund focuses on product traceability, worker engagement, sourcing platforms, risk assessment, and ethical recruiting tools by investing in emerging technologies such as blockchain, machine learning, artificial intelligence, digital identity and Internet of Things (IoT) solutions. 

Two tech platforms that are about to be scaled up

 At present, Working Capital’s portfolio of slavery-fighting tech solutions lists two organisations:

Provenance: Described as “Fairtrade on the Blockchain”, Provenance is a technology platform that uses blockchain to enable brands, suppliers, and stakeholders to trace products along their journey from producer to consumer.

Ulula: A software and data analytics platform that allows organizations to engage with workers in real time to measure and monitor labour-related risks, creating more responsible global supply chains.

Watch this space

As companies such as Provenance and Ulula use this cash injection to maximise their impact, be prepared for the appearance of anti-slavery plug-ins to existing systems or even mobile Apps that rate and lock-out the use of risky suppliers.

While 19th century slavery was fought on the battlefields and on the high seas, the 21st-century frontline exists on the smartphones of procurement professionals around the globe. 


In other Procurement news this week:

 Germany’s biggest trade union strikes

  • About 260 companies were affected by thousands of striking metal and engineering workers in Germany last week.
  • The IG Metall union wants an 8% pay rise and reduced hours on full-time pay to enable workers to care for children or elderly or sick relatives. The IG Metall union has 3.9 million members.
  • The companies involved are currently willing to negotiate on pay not on reduced hours.

Read more: https://www.reuters.com/article/us-germany-wages/german-industrial-workers-start-24-hour-strikes-in-row-over-pay-hours-idUSKBN1FK0GA

 

Bananas threatened with extinction as history repeats itself

  • The Cavendish, the world’s most popular type of banana, is facing extinction as a fungus known as the Panama Disease takes hold.
  • The first strain of Panama disease, known as Race One, wiped out the Gros Michel banana in the 1950s, previously the world’s most popular banana.
  • The current strain (Race Four) now attacks Cavendish and other cultivars. 47% of bananas grown worldwide are Cavendish, with 55 million tonnes grown per year.

Read more: http://www.bbc.com/news/uk-england-35131751

 

Facebook reports more active users, less time spent on site

  • Users spent approximately 5% less time on Facebook, which translates to around 50 million hours a day, from October to December 2017.
  • Facebook’s Mark Zuckerberg commented that the priority was encouraging more personal interaction among users. Active users rose 14% to 2.13 billion people in the same three months.
  • Facebook’s annual advertising revenues jumped 47% to over $40 billion, while profits jumped 56% to $16 billion. Despite these figures, the company is adjusting its News Feed to prioritise posts from friends and family and make sponsored content less prominent.

Read more: http://www.bbc.com/news/business-42893051

Megatrends Shaping the Future of Finance

Disruption, innovation, transformation, change – the watchwords of modern business. But how do these apply to Finance and Procurement? What are the trends that are likely to shape your role? And how do you prepare to adapt to the opportunities that these bring?

Barely a day goes by when the headlines aren’t doom-mongering about “the machines taking over” and displacing human labour. But modern-day fears associated with the rise of disruptive innovations such as artificial intelligence and automation barely differ from the objections of workers at the turn of the 19th century whose jobs were threatened by the machines of the industrial revolution. Change can be scary, or it can be exciting, but the one thing it is for sure is inevitable.

Sir Jack Welch, whose tenure as CEO of General Electric spanned 20 years, famously observed: “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” So as the mega-trends of RPA, AI and Blockchain make it into everyday language, all of us need to pay attention to what’s going on beyond the four walls of our business rather than hoping they are merely passing technology fads.

“If the rate of change on the outside exceeds the rate of change on the inside, the end is near” – Jack Welch, Former CEO, GE

Robotic Process Automation

RPA is the use of rules-driven software ‘robots’ to perform high-volume, manual, repetitive tasks by mimicking the actions of a human being interacting with the user interface of a computer application. For example, they can scrape structured data from a PDF document to speed up transaction-matching.

Robots are tireless, completing their activities faster than people with zero errors. However, their role is not to eliminate the need for human capital, but to free up humans to focus on higher-value, more purposeful activities. In fact, RPA is touted as “helping humans become more human at work”. RPA isn’t AI – robots have to be explicitly programmed with instructions and can’t “think” for themselves. And RPA is not the answer to all of your problems, either – you can’t fix a broken business process simply by giving it to a robot. That’s where business process automation (BPA) should be applied to overhaul and streamline processes for maximum efficiency and value.

Artificial Intelligence

AI is the new electricity. You’re already experiencing AI at work whenever you use social media, search engines, online shopping recommendations or virtual digital assistants like Siri and Alexa. There are four different levels of AI.

Level 1 – Reactive machines are rules-based and simply recognise patterns – they have no ability to form memories or to use past experience to inform current decisions. Examples of level 1 functionality in Basware AP Automation include automatic coding templates, recurring invoice recognition and best-fit matching.

Level 2 – Limited memory systems can look into the past. This is where machines start to get smarter, building on rules-based information by applying context, such as identifying specific objects and monitoring them over time. An example of this is the self-driving car, which observes other vehicles’ speed and direction, and decides when to decelerate or change lanes. But this information is only transient and isn’t saved into a library of “experience” the way a human driver learns. Smart coding of invoices is an example of level 2 functionality in Basware AP Automation.

Level 3 – Machine learning enables computers to teach themselves without being explicitly programmed, using algorithms that grow and adapt when exposed to new data. While learning, they collect further data to expand their insights and use these to formulate predictions.  Basware Predictive Analytics is an example of level 3 capability.

Level 4 – Systems that learn can execute processes much more dynamically, creating their own algorithms and taking decisions based on these self-developed algorithms in a similar manner to humans. They apply what they’ve learned from existing data to forecast future behaviours, outcomes and trends and make better decisions. At Basware, we’re currently working on Insights-Based Guidance, which falls into this category.

Blockchain

Blockchain is a digital medium of exchange that involves sharing a distributed ledger database – a common version of the truth – which is updated simultaneously to all members of the Blockchain, accelerating the consent and validation of work orders and invoices. It was designed in the aftermath of the financial crisis of 2007/8 to deliver transparency, security and efficiency in transactions, particularly international payments.
Today’s P2P processes require a ton of back-and-forth interactions and opportunities for the process to break down. With Blockchain, the steps of validation and authentication, purchase order management, invoice processing and settlement are vastly simplified, enabling instantaneous transactions, diminishing the need for enquiries and process status follow-ups, and providing a tamper-proof audit trail.

Capturing data (lots of it!)

Whatever digital technologies you propose to adopt, the bottom line is that you have to capture data – and lots of it – in a centrally architected manner. Not just your own transactional data, but complemented by that from other organisations along with publicly available data. Machines cannot learn or predict without data to draw on, and worse than no prediction at all is taking the wrong direction based on incomplete data.
The key to realised value throughout the chain is not simply to have an integrated source-to-pay system, but to get everyone using it and everything going through it. That means:

  • Adopting 100 per cent of your suppliers – from big corporations to Mom ‘n’ Pop businesses
  • Capturing 100 per cent of your spend – you can’t just repeat the mantra “no PO, no pay” so the solution must be the path of least resistance for all users
  • Automating 100 per cent of your invoices – not just invoices that match against indirect POs, and everything must run through one unified system

Only once you have achieved this holy trinity, can you make 100 per cent of activity visible through analytics. An example of this working in practice is a Basware customer that manufactures heavy machinery. Having grown through organic and inorganic means, they had accumulated a patchwork of ERP and AP systems and were suffering from all the classic AP failures and frustrations. Now, with Basware, they have every single invoice from 50 different countries flowing through the system, and 100 per cent spend visibility, which has not only allowed them to meet their cost savings business case but, more importantly, gain competitive advantage.

To learn more about how Basware can help you gear up for the future of finance, get in touch.

What’s Coming To Procurious in 2018

What’s around the corner in 2018…? There’s a whole host of exclusive procurement content and events for you to get your teeth stuck into!

The Procurious community, at 26,000+ members,  is growing faster and providing better networking opportunites than ever before.

To keep pace with our growing membership, we’ve planned out the most exciting year yet on Procurious. From our now-famous global Big Ideas Summit series; to procurement webinars; Career Boot Camp 2018 and this year’s Gen NEXT survey, we can guarantee there’s something for everyone.

So make yourself a cuppa, open up your online calendar and let’s get some dates in the diary!

#FeeltheLove Webinar

On the 14th February 2018 – 3pm GMT/ 10am EST – we present #FeeltheLove.

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labour, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious will present #FeeltheLove – the first Procure with Purpose webinar.

Sign up for #FeeltheLove here. 

Conducting a Cognitive Symphony – Podcast Series

From 26th February, Procurious present a new five-part podcast series – Conducting a Cogntivie Symphony – sponsored by IBM.

There are many factors that require careful consideration to bring about effective, scalable and sustainable analytics and cognitive solutions. Intelligence is the conversion and enrichment of data into meaningful business insights. It is a little like an orchestra: you can get good sound from one instrument, but correctly managed, you get a symphony from the entire orchestra.

Marco Romano Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM; Anna Madarasz Analytics & Cognitive Lead IBM Global Procurement and Peter Hrabovski Analytics and Automation Lead, IBM Global Procurement will guide you through the steps required to conduct a dazzling cognitive symphony!

Stay tuned for sign up details later this month.

Big Ideas Summits 2018

The Big Ideas Summit is the world’s first digitally-led procurement event. With a global reputation as the most innovative leadership event for the profession, Big Ideas 2018 once again promises to light up social media, spark vigorous discussions and crowd-source ideas for the future of the profession.

The Summit is an interactive, online event where up to 50 senior executives, industry thought-leaders and CPOs come together to connect with digital delegates from across the globe via our social media platform to discuss and test strategies and solutions for real world change.

2018 will once again see the Big Ideas Summit go global, with events in London, Sydney, Chicago and Munich.

Attendees and digital delegates will be joining a community of 26,000+ procurement professionals from 140+ countries to connect, learn, discuss and innovate together.

Big Ideas Summit London 2018 26th April 2018

This year, we’ve assembled some of the most energising and fascinating speakers: from IBM’s CPO to a Chicago-based Futurist and a former Las Vegas Poker Extraordinaire – it’s certainly one procurement event you won’t want to miss!

This year, our Big Thinkers will tackle:

  • Engineering Serendipity: Workplace of the Future
  • Understanding Risk, Reward and ROI
  • AI: How your human touch will win the day
  • Why Design Eats Discipline for Breakfast
  • Procure with Purpose: The power in your hands

We are also hosting:

  • Big Ideas Summit Chicago 2018 27th September
  • Big Ideas Summit Sydney 2018 30th October
  • Big Ideas Summit Munich 2018 29th November 

Find out more here  or email Olga Luscombe via [email protected] to request an invitation to London. 

London CPO Roundtables

Following our very successful Big Ideas Summits in London and Chicago, Procurious are hosting a series of London CPO roundtables. These provide a more intimate setting for our attendees to get to know their peers through working sessions and the chance to hear from some inspiring speakers.

Wednesday 7th February – Sponsored by Basware

At next week’s event we’ll be joined by Charlie Wigglesworth –Deputy CEO, Social Enterprise UK; Elizabeth Linder – Founder & CEO, The Conversational Century; Paul Clayton – Head of New Service Development, Basware and Jonathan Harvey – Global Head of Talent & Culture, Barclays PLC.

We will, of course, be reporting on the day’s dicussions for the Procurious blog but if you’re a CPO and would like to attend in person please contact Olga Luscombe via [email protected] to request an invitation

Interested in joining but can’t make it on the 7th? We’re also holding CPO roundtables on 30th May, 19 th September and 14th November –  email Olga Luscombe via [email protected] to request an invite.

Career Boot Camp 2018

Career Boot Camp  is a global professional development event for procurement and supply chain professionals. Each year the series, features five, fifteen-minute podcasts,  designed to help the most ambitious professionals put their career fitness first and upgrade their skill-sets.

It’s an opportunity to hear from the brightest and the best in the industry in a format that is FREE and easily accessible; on the go or in the workplace, providing answers to the most common procurement questions you’re desperate to have answered!

The 2018 series will kick off in September.

Stay tuned for more information and check out the full series  from 2017 here. 

Gen Next Survey 2018

When Procurious put out a call in 2017  for procurement survey participants, we were delighted that 500+ professionals across more than 50 countries shared their insights and wisdom.

The results revealed some fascinating information about the current climate in procurement and the attitudes of professionals working within the function.

We discovered that:

  • 55 per cent of procurement professionals either don’t hold memberships in professional associations or do not regard membership as benefiicial to their career development
  • Over half of those surveyed don’t trust their boss to be proactive about their career progression
  • 77 per cent of global procurement professionals have never crowd-sourced a solution to a business challenge on social media
  • 48 per cent of professionals intend to move on from their current role within two years

We’ll be launching the survey and Gen NEXT report again in 2018 and we want YOU to be involved. Stay tuned for more information and.

In the meantime email us to request your copy of the 2017 report – packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report.

Removing Obstacles to Competitiveness with CLM

Do you view CLM as an automated filing cabinet? You’re completely missing the point!

When you think about why a company would invest in a contract lifecycle management (CLM) solution, the first things that come to mind might include improved governance and agreement administration. But is that it? If the ROI of CLM is limited to better dotted I’s and more neatly crossed T’s, the effort to select and implement a solution hardly seems worth it.

Companies that view CLM as an automated filing cabinet are completely missing the point. They may even be at risk of having a constrained strategic vision for the future and for the place they want to hold in the market.

In order to create and defend a competitive advantage, a company must lean forward with every process, through every employee, and via every system they implement. There is no reason to do anything if it does not breakdown silos, overcome barriers and make them more competitive in some way, and contract management is no exception. CLM must eliminate obstacles to competitiveness and be as strategic as the company’s approaches to market segmentation and lead generation.

Competitiveness Requires Constant, Active Refinement

Even though the world is moving faster than ever before, contracts are still put in place for multiple years at a time. The chances of conditions being the same in the second or third year of a multi-year contract as they were during the bidding process are slim to none. As a result, companies – led by their procurement function – should expect to modify the contracts that govern supplier relationships. This is especially true for an actively engaged team that wants to drive maximum value through their contracts. CLM not only makes it easier to amend an agreement, it tracks the changes – even if there are hundreds of them – and makes clear which set of terms and conditions is the most current.

Are You Getting What You Contracted For?

There are two ways of looking at supplier obligation management. The first involves whether or not the company receives the goods, services, delivery, and outcomes outlined in the contract each time they make a purchase against the contract. The other is a bit more complex, and it forces procurement to look at demand management in a nonconventional way. Just like a world class athlete, a competitive organization has to be supplied with the appropriate fuel. If procurement estimated a certain level of demand by a predetermined point in the contract and actual purchases are falling short, there is a very good chance that other performance benchmarks will be missed as well. CLM can ensure that consumption is proceeding as planned, and if it isn’t, the system can alert procurement. Procurement’s insight becomes a leading indicator of potential performance – one that the executive team won’t want to be without.

Sleep with One Eye Open

In order to secure or defend a competitive advantage, procurement may be supporting decisions to take risks rather than just monitoring external risk from afar. If a company is going to engage in strategic risk taking, they must be able to constantly audit and review reports to ensure that performance benchmarks are achieved and compliance is maintained. This becomes even more important if procurement is taking advantage of appropriate opportunities to refine and amend the contract.

It is unrealistic to expect anyone working in a fast-paced environment to remember the latest terms and conditions; instead, CLM should bear the weight (and proactively report on) key contract data.  

Results matter above all else in a competitive enterprise. Leading companies are harnessing the capabilities of CLM to navigate (and eliminate) uncertainty and enable maximum performance at all times. If your company is looking to become more competitive, you’ll need to be prepared to do the same – an increase in performance that is not possible without leveraging the full capabilities of your supply base through contract management.

This article was originally written for Determine By Kelly Barner.

Can You #FeeltheLove This Valentine’s Day…?

As a procurement professional, cutting costs is the very least you can do! Procure with purpose and start driving change world-wide…

Our webinar,  Feel The Love takes place at 3pm GMT /10am EST  on 14th February 2018. Register your attendance for FREE here. 

NEWSFLASH: Being world-class today doesn’t mean being the best in the world. It means helping the world run better.

In 2018, you should be working beyond cost savings and process efficiencies. You should be committed to making a positive impact on the communities in which you operate by eradicating slave labor, creating ethical and sustainable supply chains and levelling the playing field for all.

Thanks to the awesome power of social media and our interconnected world it’s easier than ever before to make that happen. But the challenge procurement pros still face is kick-starting, and measuring the impact of, their purpose-led work.

This Valentine’s Day, SAP Ariba and Procurious present #FeeltheLove – the first Procure with Purpose webinar.

What can I expect from the Feel the Love webinar?

We’ll be discussing…

  • What is Procuring with Purpose?
  • Why should professionals care about purpose-led procurement?
  • What are the small things that you can do immediately to drive big outcomes?
  • How do you measure and report social impact to the CFO?
  • The procurement teams who are already getting it right!
  • How can businesses ensure that economic growth is always accompanied by a respect for human rights?
  • Our vision for using the power of social media to drive purpose-led procurement around the world

Who are the guest speakers?

Tania Seary – Founder, Procurious

A true procurement entrepreneur, Tania is the Founding Chairman of Procurious, The Faculty and The Source. Throughout her career, Tania has been wholly committed to raising the profile of the procurement profession and connecting its leaders.

After finishing her MBA at Pennsylvania State University, Tania became one of Alcoa’s first global commodity managers.

In 2016, Tania was recognised by IBM as a #NewWaytoEngage Futurist and named “Influencer of the Year” by Supply Chain Dive. She hosts regular procurement webinars, and presents at high-profile events around the world.

Pat McCarthy – SVP and GM, SAP Ariba North America

As head of SAP Ariba’s North American business, Pat McCarthy is responsible for driving sales performance, the go-to-market strategy and overall operations of the field organization across the U.S. and Canada.Since joining SAP in 2005, he has held a number of executive roles successfully leading Net New, Mobility, and Database &Technology teams throughout the U.S.

Immediately prior to his current post, Pat served as chief operating officer for the Midwest region of the U.S., overseeing the consistent execution of sales strategies, operations and the region’s go-to-market initiatives.

Pat graduated from Elmhurst College, sits on the board of Chicago Tech Academy, a charter non-profit for Chicago high school students, and supports global charitable endeavours through Kiva.

Nicole Verkindt – Founder and CEO, The OMX

Nicole Verkindt is the Founder & CEO of Canadian technology company, OMX (theomx.com).

She is passionate about the role that data and networks can play in connecting diverse supply chains and analysing and improving the exact impacts from procurements.

The platform is the only one in the world that manages obligations companies have to invest in local businesses. OMX is an online marketplace to help companies diversify their procurement by providing opportunities through the platform that smartly matches to suppliers.

Nicole is a commentator on CBC and columnist for Vanguard magazine focusing on technology and business news and was a “Dragon” on Next Gen Dragon’s Den, which is dedicated to early stage technology businesses. She was named Canada’s national woman entrepreneur of the year in 2017.

Peter Holbrook – CEO, Social Enterprise UK 

Peter Holbrook became CEO of Social Enterprise UK in January 2010.

Social Enterprise UK is the national trade body for social enterprise and represents a wide range of social enterprises, regional and national support networks and other related organisations. SEUK works to promote social enterprise as a model for changing both business and society.

Peter has established, developed and supported hundreds of diverse social enterprises over his career. He has advised government taskforces in the UK and overseas and chaired the Social Enterprise World Forum, the global network of social businesses until 2015.

Peter has previously worked for Oxfam, Greenpeace and various disability charities. He has experience of working in overseas development, community development and public health. Peter started his career with Marks and Spencer PLC and also spent several years with Body Shop International

He was appointed a CBE in 2015.

How do I register for the webinar?

Joining the Procure With Purpose movement and registering for our webinar couldn’t be easier (and, of course, it’s FREE!)

Click here to enter your details and confirm your attendance. We’ll send you a email with a link to the webinar platform in the run up to the event.

I’m already a member of Procurious, do I still need to register?

Yes! If you are already a member of Procurious you must still enroll to access the webinar. We’ll send you a email with a link to the webinar platform in the run up to the event.

When is it taking place?

The webinar will take place at 3pm GMT /10am EST on14th February 2018.

Help! I can’t make it to the live-stream

No problem! If you can’t make the live-stream you can catch up whenever it suits you. We’ll be making it available on Procurious soon after the event (and will be sure to send you a link) so you can listen at your leisure!

Can I ask a question?

If you’d like to ask one of our speakers a question please submit it  via the Discussion Board on Procurious and we’ll do our very best to ensure it gets answered for you.

Commit to Procure with Purpose

Procure with Purpose is a movement. A coalition of committed, energised procurement professionals who want to deliver value beyond cost savings and efficiencies.

Through the Procure with Purpose campaign, we’ll shine a light on the biggest issues –from Modern Slavery; to Minority Owned Business; and from Social Enterprises; to Environmental Sustainability–and on you –our members -who are already driving exponential change.

How do I get involved ?

To stake your place, simply sign up here. It’s FREE to join –you just need to be passionate and ready to lead with purpose! When you sign up for the #FeeltheLove webinar, you’ll be automatically registered for the Procure with Purpose group on Procurious and all of our related, online events.

Our webinar,  Feel The Love takes place at 3pm GMT / 10am EST on 14th February 2018. Register your attendance for FREE here. 

Five Best Negotiation Scenes In Film And TV

How much can you learn about negotiation by sitting on the couch watching movies? Plenty.

Want to become a better negotiator? You could diligently read up on the subject or attend some negotiation training courses, but for the couch potatoes amongst us, you might just learn more by watching some of your favourite films.

Negotiation scenes come in many varieties in film. Often they’re in the form of a hard sell (think Leonardo DiCaprio selling dodgy stocks in The Wolf of Wall Street), or a hostage situation (Tom Hanks negotiating for his freedom in Captain Phillips) or other life-threatening situations such as Mel Gibson trying to talk a suicidal man down from a ledge in Lethal Weapon.

But when it comes down to the nuts and bolts of haggling, the following five scenes give illuminating examples of how to win – or lose – in a high-stakes negotiation.

 

  1. Sticking to your final offer – Nightcrawler (2014)

Jake Gyllenhaal’s character Lou is trying to sell a video of a crime scene to Nina, a TV news manager. Watch for:

  • Lou being willing to haggle down to a certain level, after which he refuses to budge.
  • The power shift in the negotiation from Nina to Lou (aided in part by Lou’s creepy intensity).
  • Lou throwing in a number of extra conditions when he knows he has Nina beaten.
  • Best line: “When I say that a particular number is my lowest price, that’s my lowest price, and you can be assured that I arrived at whatever that number is very carefully.”

 

  1. Doing your homework before a negotiation: True Grit (2010)

In this Coen Brothers film, 14-year-old Mattie Ross (played by Hailee Steinfeld) shows what horse-trading is all about – literally. In order to raise money to hire a Deputy U.S. Marshal to help her track down her father’s killer, she approaches an auctioneer named Stonehill with two demands – that he buys back the ponies he sold he father, and that he pays her $300 for a horse stolen from his stable. At first, Stonehill laughs in dismissal, but Ross’s perseverance and detailed knowledge of the relevant law wears him down until he yields to her demands – plus a little bit more. Watch for:

  • The moment Stonehill mentions the valuation of the horse and hence kicks off the haggling process.
  • Mattie’s threatening to walk out on the negotiation and go to the law, causing Stonehill to adjust his offer in panic.
  • Best line: “I do not entertain hypotheticals – the world as it is is vexing enough.”

 

  1. Negotiating across cultures – Snatch (2000)

Warning: strong language.

When boxing promoter “Turkish” and his partner Tommy approach Irish Traveller “One Punch” Mickey O’Neil to ask him to participate in a fight, the prospect seems simple enough. The only problem is, Mickey (played by Brad Pitt) has an almost unintelligible accent. His price is the purchase of a fancy caravan “for me Ma”, and then proceeds to list off all the features he wants included in the deal … while Turkish and Tommy can’t understand a thing. Watch for:

  • Mickey’s impossible-to-understand list of caravan features. The video clip below includes subtitles, but cinema audiences had no such assistance when this film was released.
  • The bewilderment on Turkish and Tommy’s faces as they realise they don’t know what they’ve actually agreed to. The cultural barrier between the Irish Travellers and the other characters in the film is a running theme that goes far beyond the tricky accent.
  • Best line: “Did you understand a single word of what he just said?”

 

  1. Coercion – Ocean’s 11 (2001)

“Frank”, played by the late Bernie Mac, has been tasked with sourcing the transport needed for the team to undertake the crime of the century. The dealer names his best offer, and Frank appears to accept. So far, everything seems to be going smoothly … until the handshake. Frank extends the grip to a full 60 seconds, apparently crushing the car dealer’s hand while chatting amiably the whole time. The car dealer, desperately uncomfortable and in pain, abruptly drops his price before freeing his hand. Watch for:

  • The range of emotions playing over the car dealer’s face as he realises he can’t free his hand.
  • Frank’s feigned surprise and gratitude when the dealer drops his price.
  • Best line: “If you were willing to pay cash, I’d be willing to drop that down to seven-SIX-teen each.”

 

  1. The power of silence: 30 Rock (TV series 2006-13)

By simply sitting in near-silence and looking stern, grumpy babysitter (Sherri) is able to make Jack Donaghy so nervous that he doubles her pay for working half the time. Donaghy (Alec Baldwin) comes into the negotiation with his usual swagger, but Sherri’s silence causes him to blabber and rapidly cave. Appalled at his own performance, he confronts Sherri a second time. Watch for:

  • Sherri’s tactical silence when Jack pauses to let her speak.
  • Jack rolling his eyes when he realises how badly he came out of the negotiation.
  • Best line: “I made every mistake you can in a negotiation. I spoke first, I smiled … I negotiated with myself!”

Want to suggest some other films or TV shows with great negotiation scenes? Leave a comment below!

Flashback Friday – Can You Make Procurement Decisions Under Fire?

Are you struggling to lead or motivate your team through difficult times and under extreme pressure? We’ve got some top advice from someone who knows a thing or two about making decisions in extreme conditions…

Andy Stumpf spoke at the Chicago Big Ideas Summit 2017. Read more about our upcoming event  – The London Big Ideas Summit – on 26th April 2018 and find out how you can get involved. 

“There are only two types of leadership.” begins Andy Stumpf “good (effective) and bad (ineffective).”

In today’s world, senior managers often struggle to effectively  respond and adapt to change. But the world is full of change and it’s crucial that our procurement leaders are flexible enoughto respond to the unexpected, to “read the tea leaves and meet the challenges of the real world.”

Andy  began his U.S. military career at the age of 17, transitioning from the position of an enlisted soldier, to an officer, and then,  in 2002,  he joined the most elite counter terrorism unit in the military; SEAL Team Six.

The unit, which is tasked with conducting the nation’s most critical missions, has become the inspiration for a number of Hollywood movies and books.

If you ever needed a man who knows how to plan for and adapt to change, Andy Stumpf is your guy! He’s strategised and executed hundreds of combat operations throughout the world in support of the Global War on Terror.

At Procurious’ Chicago Big Ideas Summit, Andy will draw on his wealth of leadership experience to talk about the intersections between business and combat, decision-making and empowering procurement teams.

Building the greatest leaders

“Business and combat are defined by their similarities, not differences and the theories of successful military leadership and successful business leadership are identical” Andy believes. It’s possible to apply the same principles and philosophy to your procurement teams because it’s really only the arena that differs.

“60 per cent of the time, organisations want me to talk about leadership. In fact, the definition is always the same. What can change is the way in which you approach leadership.”

So, how do the military build strong and competent leaders?

“Leadership is about empowering your people. From day one in the military we are taught, and it is enforced, that in the absence of leadership you must stand up and take control.

“Instead of creating individuals that think reactively in nature, we instead create individuals that think proactively.  You don’t have to be in a leadership position now to think two or three steps ahead.  In doing so, when a decision presents itself you’ll already have an answer for it.”

Does Andy believe these skills can be taught or are natural leaders exactly that?

“neither successful teams or leaders occur by accident, these are skills that must be learned, practiced, and refined. Navy SEALs are successful because of how we select, train, and lead our teams.

“Nothing in that process happens accidentally, everything is calculated. We demand leadership and accountability from each individual starting from the first day of training. We prioritise the individuals to our left and right, and the goal of our team over personal success. This philosophy is diametrically opposed to what is often found in society, and requires a structured approach and prioritisation from leaders to be successful.”

And Andy has some strong words of advice for any over-confident leaders out there. “The 1st leadership principle within the SEAL Team is ego; if you have a massive ego you’re more concerned that your ideas and strategy is being used as opposed to striving for success of the team. You can’t meet the challenges of the real world this way!”

Plan, plan and plan some more!

“We plan for everthing in the navy. We often say that if you want to shut down the military, you simply need to shut down powerpoint!

“Every stage of a plan gets one slide and there might be between five and seven slides on the ‘what-ifs’, the contingencies. Where will we land this helicopter? Where is the nearest location for medical treatment and what alternate options do we have?” When, as Andy points out, precisely 0 per cent of planning goes as expected, contingencies are everything!

“You make primary, secondary and tertiary plans because you don’t want to have make snap decisions in a crisis. You need to be able to fall back on stable procedures”

And of course, it can’t hurt that contingency planning makes you look like something of a genius! “It’s really hard to make difficult decisions in a crisis because you’re in a time compressed environment and you may have people’s lives depending on you.  We plan for 24 -72 hours and there are 5 phases per plan. Each phase has 5-7 ‘what if‘ contingency plans because, at the end of the day, you don’t want to make decisions in a crisis, you want to be able to draw on a branch diagram.

“It’s the contingency planning especially in the SEAL teams that makes the difference between success and failure in moments of crisis.”

What can our procurement teams learn from this? Spend a lot more time planning, for starters! But Andy also reinforces the value in having baseline standards to fall back upon. “Businesses should always fall back on standard procedures so people can come together, with a clear knowledge of the protocol. This is especially crucial when you’re working under restrictive time constraints.”

Andy’s final words of advice? “Don’t get attached to your plan -get attached to success!”

Andy Stumpf spoke at the Chicago Big Ideas Summit 2017. Read more about our upcoming event  – The London Big Ideas Summit – on 26th April 2018 and find out how you can get involved. 

Do We Still Care About Professional Associations?

Do procurement professionals across the globe still see the value in professionals associations? And, if not, what can these associations do to regain their appeal?

When Procurious put out a call for procurement survey participants, we were delighted when 500+ professionals across more than 50 countries shared their insights and wisdom.

We’ve investigated the finding that 54 per cent of procurement professionals don’t trust their boss and interviewed a number of global CPOs to find out why this figure is so alarmingly high.

We also asked them why it is that procurement staff are moving on from their current roles so quickly and how leaders can cope with this erratic workplace dynamic.

And thirdly, we looked at the scepticism the profession still feels towards social media – 77 per cent of global procurement professionals have never crowd-sourced a solution to a business challenge on social media.

Our final deep-dive into the survey’s results looks at the stat that 55 per cent of procurement professionals either don’t hold memberships in professional associations or do not regard membership as benefiicial to their career development.

This result would suggest that professional bodies need to re-group and reform in order to stay relevant in today’s world…

The Results Explained By Global CPOs

At The Big Ideas Summits in Chicago and Melbourne earlier this year we revealed the results of the survey to our CPO delegates.

In this video we ask what professional associations can do to maintain relevance and membership growth. Is there still a place for these organisations?

Have today’s procurement leaders benefitted from professional association memberships?

Many of the people  we interviewed admitted to placing a lot of value in professional associations, citing them as one of the key secrets to their success.

Tony C. Astorga, Supply Chain Management Consultant described his career path and explained  “I set my goals upon  what do I need to learn to be more successful and provide greater contributions to my company. I think through certifications, memberships allow us to have those tools to be able to grow.

Josh Teperman, Senior Consultant, The Source Recruitment “A membership organisation is going to have value. It gives you access to a community of people who are all thinking about what does the future of procurement look like. If you want to stay relevant you want to be part of a reall good  membership organisation where people are talking about the future leaders in procurement, what the technologies are going to look like,  what the macro economic and politial trends are that are goint to affect procurement. So there’s certainly a lot of benefit to be had in being part of those organisations.”

So what should professional associations do to up their game…?

1. Communicate their value

“I think the challenge here for organisations is helping people understand how to maximise the benefits” argues Alan Paul, SourceIt CEO. Of course, if  prospective members, don’t see the potential benefits of a membership – they simply won’t join.

Michelle Varble, Procurement Director, United Airlines concedes stating “I do think they need to reinvent their service offerings. But having said that I think these organisations need to focus on how they market themselves. We need to move past the idea that we have an affiliation with them and move to an area where we see them as resources.”

2. Stay relevant

“I am a member of an organisation in Australia. I would have to say it has not been very relevant to me,” says Jane Falconer. ” The generations coming through universities now will have to find different ways of commuting and embrace social media in its most modern form. If we use existing means it’s not going to work.”

Anne Berens, Principal AMB ProCures LLC agrees stating  “Organisations need to remain relevant. There are so many things that organisations offer whether its education or networking or develoment or futurisitc thinking that it’s important to not try to be everything to everyone. I think then it gets spread a little bit thin- be very focussed on what your mission is and allow the customers be discerning and select what’s appropriate.”

3. Be “on topic”

John Foody General Manager Procurement, U.S Steel believes that “Organisations have to be topical. Sometimes at the local level the meetings, the challenges, the issues aren’t topical to our people so the ability to address issues that are relevant in the moment and tie it up with that membership is the challenge that any organisation faces”

Keith Bird, Managing Director, The Faculty  shares this view arguing that “As long as you invite a membsership that adds value to the CPO, the CPO’s direct reports and the team overall that can bring the global insights to you then I think it’s worthwhile.”

Request your copy of the Gen NEXT Report

The Gen NEXT report, exclusively available to Procurious members, is packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report. Email us to request your copy. 

My 5 Networking Goals For 2018

Given that she’s always “banging on” about #networking, it’s no surprise that Tania Seary’s 5 New Years Resolutions are all about growing – and nurturing – her professional network.  

This year I am going to:

  1. Find my fabulous five
  2. Dine (not eat)
  3. Keep watering the seeds of possibility
  4. Connect the dots, and
  5. Take more photos!

I guess this isn’t the typical list you would see for someone’s New Year’s resolutions … but I feel that it works, given that I’m always “banging on” (English for carrying on, talking, espousing) about the power of networking. In the past I’ve spoken about networking in a theoretical way, so for those who are interested in improving their networking skills and want to start NOW, I thought I would share my 5 networking goals with you and provide some examples to get you started.

Find my Fabulous 5

My first goal is to identify 5 new people who I would like to connect with in 2018 who could really help “shift the dial” for my businesses. My challenge is that there are so many amazing people out there who could really help, so it’s not going to be easy to get it down to 5. I have to be strategic and even ruthless in my selection.

Now the tough part – once I’ve found someone fabulous, how do I find a reason for them to connect with me? This is where so many people get stuck. They freeze at the thought of putting themselves “out there” and fear rejection.

Here’s my advice. Take a deep breath, raise your head high and move forward in the confidence of knowing the most important rule of networking – and that is to Network From The Heart. Why from the heart? Because networking is about giving, not receiving. It has to be authentic. You need to have the other person’s interest as your priority … so, in my case, once I have my list I’ll immediately try to work out how I can help each of the 5!

Keep watering the seeds of possibility

The Fabulous 5 are not currently in my network; rather, they are game-changing people I would like to know. Equally important are my current connections who are the lifeblood of information about the profession. Of course, I’m following all these people online and can see what is top-of-mind for them, but to understand their concerns, strategies and aspirations, I really need to have a conversation.

This year, I have decided to become a bit more structured and conscientiously catch up with these people each quarter. I am going to schedule calls. There are probably up to a dozen people in this “inner circle” – they are a combination of CPOs, management consultants, media, and influencers who really have their finger on the pulse. They are the hubs of their own large networks.

Who are the hubs within YOUR network who can help keep you connected?  Write down their names – potential future employers, smart people whose opinions you trust, people who would recommend you to others. Now, what can you do to help them in 2018?

Don’t eat, dine

I am not sure who made the famous quote “why eat when you can dine?”… but it’s one of my favourites. Even though I write so often about the importance of online networking, I am also a huge believer in the importance of meeting people face-to-face. It’s only through face-to-face contact that we really get to know people and begin to understand both their motivations and their aspirations. You can then work out how you and other members of your network can help them achieve their goals. That’s when the magic starts to happen.

I love food and eating … so for me, sharing a meal is a great way to get to know people. “Breaking bread” with your network can lead to all sorts of mouth-watering business opportunities.

My 2018 resolution is to host some small dinner parties at home to get to know my key business partners (and their partners!). It may not be practical, feasible, or even of interest for you to entertain at home, but there are plenty of other options such as catching up for coffee or inviting them to be your guest at an event where other people are hosting. Get creative! The dividend of knowing someone well will always pay off – a pleasant meal, a new learning, a business lead, the creation of a new friendship … the business opportunities are endless!

Connect the Dots

As well as keeping in touch with my network online, high on my agenda for this year is to attend as many face-to-face networking events as possible. For me, this includes Procurious’ Big Ideas Summits in London, Sydney, Chicago & Munich, The Faculty’s CPO Forum in Melbourne, IBM’s Think event in Las Vegas and ISM 2018 in Nashville.

It’s going to be a busy year, but I am so energised by the opportunity to meet and connect with thousands of procurement and supply chain professionals around the world and help “connect the dots” within the Procurious network.

Many people equate having a good network with having a large database of contacts, or attending high-profile conferences and events. But they falter at the next step – actually doing something to make the connection meaningful.

It’s impossible for anyone holding down a day job to attend all these events, so my advice is to be strategic. Choose your events wisely and have a strategy to achieve your ROI!

Take and post more photos!

I don’t know about you, but I love seeing photos of real people in my professional social media feeds! I am so tired of those generic stock photos that are branded on too many social media posts. This year I am going to be talking a lot about being human (look out for #behuman and #beatthebots hashtags) because I believe authenticity is a vital part of being a great leader. There is also a huge opportunity for us all to carve out a new future for ourselves in Industry 4.0 by leveraging our own very human unique personalities and capabilities that robots won’t possess (in our lifetime, anyway). Procurement can also “procure with purpose” to make a big difference in the communities in which we operate. So many possibilities!

We all have to work on promoting our profession to the world and make sure procurement & supply chain are well represented in the Googlesphere! Photos capturing real moments, with real people, like me here with some procurement professionals from Costa Rica I met at ISM 2017 shows what an interesting, diverse and optimistic future we have for our global profession. #BRAVO!

All the very best for 2018.  Stay in touch 🙂