Tag Archives: 12 days of procurement Christmas

Beating the Procurement Drum – What’s Coming in 2017?

Procurious will continue to beat the drum for procurement in 2017. And here’s what we have planned for you all in the coming 12 months!

procurement drum beat

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog. 

“On the twelfth day of Christmas, my true love gave to me…twelve Drummers Drumming.”

We’ve made it to the end of our festive procurement carol. With birds galore, rings, maids, lords and ladies, and pipers behind us, it’s time to look forward.

As we come towards the end of one year, we want to take a look at what’s coming in 2017. So, drummers and all, let’s march into the next twelve months.

Big Ideas, Big Plans

Now in its third year, The Big Ideas Summit is a unique invitation-only event for just 50 of the world’s most influential Procurement leaders. But, as ever, we’ll be inviting the Procurious community to take part as digital delegates.

If you’re new to the site, and haven’t taken part in a Summit yet, then you’re in for a treat. But first, to whet your appetite, here are the three-word Big Ideas our procurement leaders had last year:

So far for 2017, we have confirmed some big-name speakers already, as well as CPOs from a host of global organisations. We’ll have more information in January, so stay tuned!

Can’t make it to London, in person or digitally? You’ll be pleased to hear that we’re expanding our Big Ideas plans for 2017. Not only are we hosting our annual event in London in February, but we’re also planning a globe-trotting agenda for later in the year.

With topics covering risk, technology, people and careers, and innovation, there’s something (and somewhere) for everyone next year.

The Procurement Drum Beat

And if our events are enough for you, we have plenty to come on the Procurious Blog.

We’ll be continuing our Bravo series, celebrating Women in Procurement, with a series of interviews with top procurement professionals. If you’d like to get involved, join the Bravo Group, or contact Laura Ross, our Community Liaison Manager.

Not only that, after the overwhelming success of our Career Boot Camp, we’ll be running another Boot Camp during the year. If you missed out this year, you can catch up with the content on the Blog, and the podcasts here.

We also have an eBook, filled with some great content, written by Procurious Founder, Tania Seary. You can get all the information you need, and download it, right here!

Learning From Mistakes

So, as we sign off for Christmas, we’ve got one final thing to take heed of from 2016. Procurement needs to be all about learning in 2017. Learning from each other, learning new skills, and, most importantly, learning from our mistakes.

The last thing you want to do is end up on this list next year. The “World’s Worst Procurement Awards” highlights some of the biggest (and sadly, quite common) mistakes in procurement.

The good thing is, we all can learn from these mistakes and ensure our processes tick the ‘best practice’ box. If you need any guidance, then you can catch up with our festive carol on the Blog. It should point you in the right direction, and provide you with tools to drum up support for your team.

We hope you’ve enjoyed our mini-series on the 12 Days of Procurement Christmas. It’s been fun to write, so we hope you’ve got something from it. If you have any questions or comments, then please feel free to get in touch with the team.

Would You Have Managed the Piper Ethically?

No one involved behaved particularly ethically in the legend of the Pied Piper of Hamelin. How can consumers and organisations ensure that all practices are above board? 

piper 11th day

 

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the eleventh day of Christmas, my true love gave to me…eleven pipers piping.”

There’s no doubt that the most famous piper in the history of piping is the Pied Piper of Hamelin. Renowned for his hypnotic musical talent, he successfully led away an entire town’s population of rats and, following lack of payment for his efforts, children. Can you begin to imagine the power that could be yielded by eleven of them all piping at once?!

We’d hope that, in this instance, the true love would have been extremely careful and ethical when it came to paying the pipers for their efforts; fairly, ethically and on time.

And if they hadn’t? Would the pipers be forgiven for leading away something precious to the true love? Perhaps they would have taken away all the gifts from the previous ten days!

It all begs the question, who is most responsible for the horrible outcome at the end of the tale, the townsfolk or the Pied Piper? Neither behaved entirely ethically.

Ethics is an issue readily discussed in procurement with regards to the supply chain and the consumer buying an end product or service. Both are, in part, responsible for ensuring that processes, pricing and staff-management are ethical and sustainable.

Where’s Your Consumer Conscience?

At this year’s Big Ideas Summit, Lucy Siegle, journalist at The Guardian, discussed the importance of consumers supporting sustainable fashion.

Fast fashion can be extremely enticing thanks to its competitive pricing and the consumer’s desire for on-trend clothing.  But what is the true cost of this industry? If you purchase an item of disposable fashion at a cheap price, have you considered the working conditions for those at the end of the supply chain?

It’s possible you’re supporting a fashion brand that pays low wages to workers in developing countries in terrible working conditions and, at worst sweatshop labour.

Whilst it might have been easy to claim ignorance in previous years, in an age of ethics and transparency, ignorance and apathy are no longer acceptable. It’s easy to dismiss responsibility by expecting fashion brands themselves to ensure  supply chain purity. But defiant and principled consumers can make an important impact by refusing to buy these products.

Danielle Stewart, Head of Financial Reporting at RSM UK, discussed this point further at our Big Ideas Summit 2015.

And if you’re still unsure whether your fashion purchases are ethical or not, ‘Good On You’ can help!

Is the Future Bright for Green Supply Chains?

Of course, we’re not placing the burden of achieving ethical supply chains entirely on the consumer’s shoulders. Organisations themselves are under increasing pressure to “go green”.

The long-term benefits to procurement alone are indisputable. These include:

  • The achievement of significant savings by focusing on a “whole life costing” methodology for procurement.
  • The incorporation of the “three Rs” (Reduce, Reuse, Recycle), to cut waste and improve the efficiency of resources.
  • The improvement of management information, a focus on business and supply chain risk, and better supplier relationships.
  • Competitive advantage as a consequence of the early adoption of practices, focusing on increasingly environmentally-focussed legislation.

Back in June, the Sustainable Purchasing Leadership Council (SPLC) recognised twelve organisations that are aiding the long term health and vitality of society, economies, and the planet through best practice. These organisations are doing a great job at setting a standard for the rest of the world.

David Noble, Group Chief Executive of The Chartered Institute of Procurement & Supply (CIPS), discussed the issue of ethics in procurement at last year’s Big Ideas Summit:

Changes were also afoot in 2016 in relation to modern slavery in supply chains. New legislations were added to the Modern Slavery Act which came in to practice in April.  All businesses with a turnover of over £36 million must now  prove they have taken steps to remove slave and child labour from their supply chains.

It’s likely that smaller businesses will also be forced to step up to the plate. As the larger companies begin to investigate suppliers throughout their supply chain, everyone will be expected to prove they are slavery-free.

It’s so important for organisations to take a measured and targeted approach to tackling exploitative conditions in their supply chains.

Our festive look at procurement is nearly at an end. However, we have one day left – and a look at what the procurement drum beat will be in 2017.

Leaping into the Future – Better Have the Right Skills

Plan for the future. Look before leaping in head first, and understand what you need to know to handle constant change. It’s time for procurement to upskill.

10 lords a leaping

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the tenth day of Christmas, my true love gave to me…ten Lords-a-leaping.”

With birds, rings, and maids all behind us, we head into the final few days of our carol. You never know what’s coming in the future, so you need to be prepared for any eventuality.

Think about how the recipient of all these gifts would be coping. What skills (if any actually exist) would they need to manage the myriad presents they have received?

It’s a similar situation with procurement, and the future of the profession. The fundamental nature of procurement is changing, and professionals need to be ready to cope. For this, we need to be developing the right skill set for what procurement will look like, not what it is now.

And once we have the skills, we need to know how we, as individuals, can make a difference for our organisations.

Leaping into Action

The traditional skill set in procurement isn’t going to cut it any more. That much is clear. Throughout the year, our experts and contributors have been highlighting the change in skills expected of procurement professionals.

The basic skills of contract management, negotiation, and others, can all be taught. It’s an attitude versus aptitude decision when it comes to hiring new team members.

But hiring managers are looking for a new set of skills. Keith Bird, Managing Director of the Faculty Management Consultants, sees these five skills as critical for the profession:

  1. Learning Agility – procurement needs agile learners to keep up with the pace of change, or face obsolescence.
  2. Cultural Awareness – the ability to work with diverse groups of stakeholders, usually in cross-border situations.
  3. Information Management – knowing which data is good to use, and how to use it in a way that means something.
  4. Social Media Savviness – where would we be without social media? Procurement professionals need to be comfortable communicating in any medium.
  5. Creative Thinking – approaching everyday business challenges with an open mind and creative mind set.

On top of this, we need to stop viewing ‘soft skills’ as a luxury. These are generally skills that cannot be learned, but are just as critical for success. And once you’ve mastered these skills, you might even be able to take on the mantle of your team’s MVP:

Change the Skills, Change the Game

If that’s all got you leaping to your feet to sign up for training courses, then great! If you have ambitions to be one of the CPOs of the future, you’ll need to develop a variety of capabilities.

And once you have the skills, you’ll need to know how to apply them for success. Even if you aren’t heading to the CPO arena, you can still make a difference for your organisation. You might not be a ‘game changer’ (and that’s ok), but you can still make a major difference for your procurement team.

Not familiar with the concept? Think Branson, Gates, Zuckerberg – in fact, anyone who has turned a small idea into a major disruptor. We were lucky enough to get the expert view during Career Boot Camp:

Your individual strengths can bring change to your organisation. The beauty of it is that one skill set isn’t enough. To create lasting change, you’ll need individuals all bringing their skills to the party.

And while the party probably won’t include leaping Lords and dancing ladies, it’ll be a celebration of procurement’s evolution instead.

We’re nearly at the end of our 12 Days of Procurement Christmas. But first, we need to have a look at how the logistics of the carol come together. Like the Pied Piper himself, you need to make sure everyone is dancing to your tune.

Going Dancing? Deal With This Supply Chain Crisis First!

Planning on going dancing with the nine ladies at the Christmas party? First, there’s a crisis to solve.

9 ladies dancing

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the first eight days on the Procurious Blog.

On the 9th day of Christmas my true love sent to me – a work Christmas party! But before you can go dancing, a major supplier calls you with some bad news. Let us regale you with the story of how Procurious saved Christmas!

 

‘Twas the day before Christmas, and I sat in my chair,

Before my computer, pulling my hair.

My colleagues had left for the work Christmas party,

Their voices were merry, their laughs loud and hearty.

 

The plan was to join them once emails were read,

While visions of Christmas treats danced in my head.

“I’ll be just a minute!” I’d shouted with glee.

How little I knew of the fate before me.

 

That’s when my phone gave a shout (what a clatter!)

I gulped – what was wrong? What was the matter?

An earthquake? A flood? My supply chain on fire?

Whatever it was, it was bound to be dire.

 

I picked up the phone with a trembling hand

It was a supplier! “They’ve taken a stand!”

“Who have?” I groaned, completely unmanned:

“Our workers! They’re striking! It’s bad for the brand!”

 

“But it’s Christmas!” I yelled. “The timing is shocking!”

“I think that’s the point?” he replied, knees-a-knocking.

I flew to my laptop and the project I checked

Without those supplies the whole thing was wrecked.

 

I leaped back to the phone: “Forget it!” I said.

“I’ll have to find a different vendor instead!”

Did I have a plan B? A second supplier?

No I did not, and now things were haywire.

 

I scrolled through my contacts, I Googled and Bing’d

Yahooed and LinkedIn ’till my eyes were red-rimmed

As I mentioned before, I was pulling my hair

“This isn’t Christmas-y! This isn’t fair!”

 

I slumped at my desk, my heart pounding sickly,

I knew a supply must be procured quickly.

And that’s when a lightbulb blinked on in my head

“I know where I should be looking instead!”

 

Back to the screen I leapt with a flurry

And typed in “Procurious.com” in a hurry.

This was my chance to stop repercussions

I logged into the site and clicked on “Discussions”.

 

“Please help me!” I typed. “I need a supplier!”

“It’s Christmas! I’m desperate! We’re down to the wire!”

I listed my needs and sat back, all a-quiver

In hope that Procurious would quickly deliver.

 

A minute passed – or two, maybe three

Would this trick work? There’s no guarantee..

But then Procurious.com gave a “ding!”

Someone’s answered my question! I felt like a king!

 

A colleague I’d met on the site was quite happy

To suggest a supplier, a reputable chappy

who could sort out my problems, no matter how vast

And what’s more, will do it surprisingly fast.

 

That’s when I realised my problems were solved

The supply chain was saved, all worries dissolved.

I put on my coat and left with aplomb.

Merry Christmas, and thank you Procurious.com!

From dancing the night away, to leaping barriers to the evolution of procurement. But what skills do procurement professionals need to cultivate in the future? Learn more tomorrow.

Negotiations Milking you Dry? Why Not Unleash the Power of the Herd!

On Day 8, the true love bestowed that famously lusted after gift of eight milking maids…

eight maids a milking

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the eighth day of Christmas, my true love gave to me…eight maids-a-milking.”

As the gifts become more and more extravagant, we have to question the logistics of it all – we wouldn’t be procurement professionals if we didn’t!

It’s unclear how the true love bequeathed the eight milking maids. Were eight cows also included in the purchase or was it simply a milking service that was required? Were the maids employed by an hourly rate or at a fixed cost, and how were they delivered to the lucky recipient?

Whatever happened, it would have taken some great negotiation skills to strike up a fair deal that ensured neither party was milked dry.

Perhaps the true love harnessed the knowledge of a crowd of friends to get ideas on how to orchestrate the whole thing – using the power of the herd as it were!

Negotiating Your Best Deal 

The festive season calls for a lot of meticulous planning but when it comes to negotiating deals, you need to be prepared all year round. What’s your pre-match strategy when it comes to negotiating with suppliers, clients and stakeholders?

In order to achieve the right outcome, you ought to have considered your objectives well in advance. This will help you determine what sort of negotiation you’ll need to have and assess any additional support you might need such as legal advice.

It’s also important to ensure you know the other party. What are their aspirations, weaknesses and objectives?

This Procurious e-learning video has it all covered: 

Here are some key things to bear in mind:

  • Will your agreement stand the test of time? Both parties want to feel that they’ve achieved a good deal and a satisfactory outcome.
  • Is the outcome efficient? Make sure no value has been left at the table.
  • Are you off to a good start? Negotiating a deal sets the foundation for your supplier partnerships and a precedent for the relationship you want to build.
  • Have you mastered your verbal, written and non-verbal communications? When it comes to negotiating, you need to be assertive but not aggressive!

Milking The Power of the Herd 

Sometimes, no amount of self-determination and commitment can get you across the finish line alone. We all need a little help from our friends for ideas, innovation and support.

We’ve certainly noticed that collaborative innovation has been on the rise in 2016 with more organisations embracing the power of the Hackathon.

In November, Spotless Group and Startupbootcamp hosted an epic two-day event at the MCG in Melbourne, Australia, focusing on the Internet of Things (IoT) and DataTech. Events such as these help to generate new ideas and turn innovation into reality.

Lisa Malone spoke about the value of the Hackathon at this year’s Big Ideas Summit.

Lisa explained why it’s key to foster creative cultures in the workplace, giving employees the chance to dare to think about the unthinkable. It can be hard to think big and innovate when you’re stuck in the routine of day-to-day office life.

Hackathons can be a great way to harvest creativity and allow teams to deliver the big ideas CEOs are demanding.

If hosting a hackathon seems a bit out of your reach, remember there are other ways to drive change and innovation within your organisation.

Internal collaboration also has a huge part to play. Procurious recently addressed why it’s so critical to engage Millennials with new tech implementations. They’re tech savvy and accustomed to participating in digital communities.

Their contributions, for example, could be invaluable when it comes to the adoption of e-procurement.

It’s very nearly Christmas, and many of you will be dancing out the door to your Christmas party. But what happens if there’s a crisis that arises, demanding your attention? Don’t worry, help is at hand!

How Sustainability Can Help Procurement Avoid Black Swans

Swans, procurement and sustainability – what’s the link? It’s all to do with procurement taking account for its impact on the wider world.

Seven Swans Swimming

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the seventh day of Christmas, my true love gave to me…seven swans-a-swimming.”

Black swans are always unexpected, and defy explanation. Seeing two black swans together is highly unlikely. However, seeing seven together all at once? Well, you better hope that you don’t.

Of course, I’m not talking about the bird that you might see in your local park. The Black Swan I’m thinking of is a term coined by Nassim Nicholas Taleb for an event that is both surprising, and has a major impact.

So, if we can’t predict when these events will happen, how can we stop them? This is where sustainability, social value, and procurement come in.

Thinking the Unthinkable

Earlier this year, Nik Gowing spoke extensively about the concept of ‘Thinking the Unthinkable‘ at the Big Ideas Summit. The idea behind this was that current leaders weren’t able to deal with cataclysmic events – either through a lack of skills, or outright denial.

Little did Nik know that when he used President Trump as an example of an unpredictable event, he was actually predicting the future! Nor could he have known that 2016 could provide even greater volatility than 2014, the year Nik and his co-author looked at for these so-called Black Swans.

It’s easy to argue that, without the right skills, these events are impossible to handle. If you then add in the fact that we can’t predict them, even with all the technology available to us, then what can we do?

Swimming with the Swans

Given that Black Swan events can be just about anything, procurement needs to look at its impact on everything to do its bit. And one way to do this, is to be conscious of its impact on the wider society.

Sustainability and sustainable procurement are concepts that are getting increasing focus in the global profession. Organisations have begun to realise that sustainability can build supply chain competitive advantage. Employee engagement is key, but the vast majority of people want to engage if it means a brighter future.

The environment is certainly a major consideration in potential future Black Swan events. And, from management of resources, to responsibility for global supply chains, procurement will play a major role.

Procurement Gets Social

Of course, sustainability is just one aspect of procurement’s future. The profession is taking increasing interest in social value, and working with social enterprises.

And why should procurement be working with these organisations? Well, they give back to the community, and have a positive impact on the community, and the environment. There are also social organisations working hard to ensure that people have proper access to good, healthy food.

And those of us looking to get more meaning in our procurement careers could do worse than looking to work with social enterprises. Career Coach Charlie Wigglesworth, Director of Business and Enterprise, Social Enterprise UK, discussed this at length earlier in the year.

If your conscience has been pricked, then there is plenty you can do to help. If we pull together as a profession, then we can ensure procurement is better equipped to deal with unexpected events.

Or, you never know, we might even be able to stop them happening in the first place. Then the only swans we need to think about would be the ones we see at the local pond. And that would be good for the future, wouldn’t it?

Negotiation – it’s just one of the key skills procurement professionals need to drive value. But do you go for milking your supplier? Or getting something from the wider herd? Get the lowdown on Day 8.

Procurement’s Future – Growing Not Killing the Golden Geese

Rumours of procurement’s imminent demise persist. But would organisations be killing their golden geese by getting rid of the function?

6 geese a laying

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the sixth day of Christmas, my true love gave to me…six geese-a-laying.”

Mark Twain is reported to have once said, “The reports of my death have been greatly exaggerated.”

We like to think of the procurement function, and it’s fantastic professionals, as the golden geese of an organisation. We bring savings and value, build our influence, and increasingly drive strategy, but still find ourselves defending our position. And for some experts, the end of procurement in its current guise is still on the horizon.

But are we looking at this from the wrong angle? Nothing remains the same forever, so what are the strategies procurement can use to maintain its hard fought position?

Is the End Really Nigh?

It’s been a little over a year since PepsiCo took the decision to scrap its marketing procurement function. The move took many people by surprise, and left procurement commentators wondering if other major players would follow suit.

At the time, few people thought there would be a snowball effect for procurement. And, so far, they have been proven correct. So, let’s put the doom and gloom behind us, and focus on what procurement might look like in the future.

It would be incredibly naïve of us to think that procurement will continue to exist in its current form. However, what this does mean is that we have a fantastic opportunity to develop in line with strategy and disruption.

We’ve had differing views on what this might look like for procurement in the future. At the Big Ideas Summit this year, Anna del Mar, outlined how procurement could be integrated into the business.

This would not only help break down organisational silos, but actively encourage best practice procurement across the board. A collaborative attitude is going to help mould procurement success, and at the same time, make communicating our value much easier.

Tech & Disruption – Grow the Golden Geese

This all brings us back to a hot topic across all business right now – disruption. You might be tired of reading about it, but getting ahead of the disruptive wave is what we must aim for.

The disruptive landscape is changing, and even the famous disruptors (Airbnb, Uber, etc.) need to stay on their toes. Technology is forcing organisations to re-evaluate how they do business. But at the same time, it’s giving them the opportunity to change and make processes more efficient and effective.

Cognitive computing, such as IBM Watson, Big Data, the Cloud, AI and Blockchain. All these disruptive technologies stand to make massive impacts in procurement and supply chain. Processes can be automated, and taken over by robots. Technology will change the way we interact with suppliers, stakeholders and the public.

But even as the robots take over (not really), there will always be a role for people in procurement. Just as there will always be a role for procurement in the organisation. For procurement, it’s finding that sweet spot between cost and value that allows it to grow. For the professionals, it’s about having the key skills to allow them to grow with the change (but we’ll come to that in a few days!).

So let’s not get the procurement obituary prepared just yet. There’s plenty of time left in procurement’s hourglass if we’re doing the right thing. It’s all a matter of showing why it’s turkeys, and not geese, on the chopping block for next year! 

Is procurement taking heed of its impact on the wider community? We certainly don’t want to feel like we’re swimming against a tide of public opinion. Find out what we mean tomorrow.  

Measuring Value – All That Glitters Isn’t Necessarily Gold

The Five Gold Rings might be the most expensive of the gifts listed in the carol, but does that mean they’re the most valuable? Not necessarily. It depends on how you measure value.

five gold rings

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the fifth day of Christmas, my true love gave to me…five golden rings.”

In 1982, the late, great Irish actor and singer Frank Kelly released a hit single called “Christmas Countdown”. The song is a parody of the 12 Days of Christmas, where the hapless narrator writes a series of thank-you letters to his over-indulgent true love, getting increasingly frantic as each day passes.

As his small home fills up with various aggressive birds (doves and geese in the living room, swans in the bathtub), he and his elderly mother become overwhelmed with the noise, the smell, and the veterinary bills.

By the time the maids-a-milking, drummers drumming and lords-a-leaping add to the pandemonium, the singer’s letters have turned from thanks to abuse, and his mother has been taken to a home for the bewildered.

But, amongst all the inappropriate gifts of birds and musicians, there’s one gift that makes him pause.

“Your generosity knows no bounds! Five gold rings! When the parcel arrived I was scared stiff that it might be more birds, because the smell in the living-room is atrocious. However, I don’t want to seem ungrateful for the beautiful rings.” 

Finding Gold Among Feathers

As procurement professionals, we often need to take a step back and look at the true value of the product or services we’re procuring. Below we’ll take three different approaches to the measurement of value – according to price, utility, and cultural value. 

Value Based on Price

To be clear, judging the value of an item based on price alone is not good procurement practice. It’s a gross oversimplification of the concept of value. But sadly, it’s still an ingrained way of thinking for many practitioners.

If you want a chuckle in the lead-up to Christmas, check out PNC Wealth Management’s “Christmas Price Index. The Index totals up the cost of the 364 gifts (including all the repetitions) listed in the carol. The total cost is a staggering $156,506.88 for 2016, which is a rise of 0.7 per cent over last year.

The tongue-in-cheek economic indicator pulls its prices from a range of local sources, including a Philadelphia nursery for the pear tree, a local jeweller for the golden rings, and the Pennsylvania musicians’ union for the drummers’ wages.

Value Based on Utility

The 18th-century mathematician and physicist Daniel Bernoulli hit the nail on the head with this memorable quote: “The value of an item must not be based on its price, but rather on the utility it yields.”

Apart from the potential egg yield of the three French hens and six geese a-laying, the only other material return to be had from this gift bonanza would be quite a lot of milk from the eight maids a-milking and, possibly, a few pears. All the other gifts have little to zero utility, but do have significant cultural value. 

Cultural Value

This carol is packed with cultural value. There’s atheistic value in the ornamental birds, sentimental value in the golden rings, and artistic value in the performing musicians.

Think about some of the goods and services you’ve procured for your organisation. Which ones have had cultural value? Cultural value tends to attract a price premium, but often pays off in raising customer perception of your brand. 

From the Value Experts

According to the experts, organisations are also increasingly using the concept of value to define their strategies. Alex Kleiner, General Manager, EMEA at Coupa, explained more at Big Ideas Summit 2016:

Different companies will view value in different ways. This concept of Value-as-a-Service takes in everything from usability, to lives saved, and everything in between. It’s down to each individual organisation to decide how to measure this.

From a procurement point of view, it’s also good to remember that we shouldn’t be constrained by one particular definition. All that glitters isn’t necessarily gold. The profession just needs to define the stakeholder needs, and go from there.

While value might be difficult to define as one concept, we like to think procurement is worth its weight in gold. But can the profession survive in its current form? Or will the golden goose meet its end? Find out tomorrow.

Hello, Procurement Career? It’s Social Media Calling

Have you found your calling in life? Do you worry that your procurement career is getting away from you? Then you need to heed the siren call of social media.

Four Calling Birds

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with the story so far on the Procurious Blog.

“On the fourth day of Christmas, my true love gave to me…four calling birds.”

By now, the receiver of the true love’s gifts probably has a large aviary to keep all the birds in. Just as well really, as three of the next four days will bring even more. However, despite the song bringing us calling birds, it’s another, bluer bird we’re looking at today.

Where’s Your Career Going?

By this time of the year, most of us have decided on resolutions we’ll kick off the new year with. Starting with good intentions, we make smaller changes to how we live our lives. We might want to eat less, exercise more, or spend more time on our favourite activities. But, life tends to take over, and by mid-January, we’ve fallen back into old habits.

But for some people, this is the time of year that brings consideration about the next steps of their career. Whether it’s a change of companies, going after a promotion, or even thinking about a complete change, most people start their search on the Internet. More specifically, they’ll start to look for information and new roles on social media.

The array of sources, information, and potential employers, makes social media a major tool in an individual’s search. Whether it’s LinkedIn, Facebook, or Twitter (see, we told you we’d be talking about a bird…), there is plenty you can do to boost your career.

So how are you going to turn that around, and make social media work for you? We’ve been calling on our experts this year to share their thoughts on this very topic. And they haven’t disappointed.

Break Down Walls, Increase Value

During our Career Boot Camp, Jay Scheer, Senior Digital Marketing Manager at THOMASNET, highlighted what many of us have been doing wrong on social media. That is using different accounts for different areas of our lives.

However, Jay advises that we need to break down these personal silos in order to increase our digital value. In a more connected social media world, employers want to see the full picture. And individuals want to portray a more rounded image.

Breaking down the barriers is the first step. Jay also advised the following when on social media:

  1. Start thinking of yourself as a brand – project the right image to the public
  2. Be authentic and conversational – inject your personality where possible
  3. Be targeted – always consider the medium and the audience, and tailor your activity
  4. Don’t be banal – don’t post for posting’s sake
  5. Draw a line – use the grandma test for all your posts

No Avoiding the Brand

So now we know how we could be using social media, we need to know how to portray the right image. Happily, another of our experts took care of that – Procurious’ own Lisa Malone.

Lisa gives some great tips on building a ‘kick-ass’ personal brand that’s bound to get you noticed. And if you’re looking for a new job, or to showcase why that promotion should be yours, then getting noticed is what you need.

From authenticity and injecting a bit of colour into your profile, to connecting with top people (and then leveraging those connections), there’s plenty here to get you started.

Personal brand is key on social media. And if we all take the time to boost our personal brand, then the brand of procurement will benefit too. We’ve got plenty of tips and tricks that we’ve shared.

But perhaps the biggest is the importance of a great profile picture. If you do one thing the next time you’re on Procurious, check out your picture, and see if a change will do you good.

What are you waiting for? If you hear a new job calling for the new year, or just want to give your social media accounts a spit and polish, now’s the time. You never know if that perfect job is just around the corner, but at least you’ll be ready!

Knowledge is worth its weight in gold. So how can you boost your procurement knowledge using some economic basics? Make sure you come back tomorrow to find out.

Speaking the Language of The Three French Hens

Feel like you speak a different language to the business? Then imagine how the French hens felt with the other birds in the song.

three french hens

The traditional 12 days of Christmas might not start until the 26th of December. But this festive season, we’ll be bringing you the 12 days of procurement Christmas in the run up to the big day. Catch up with Day 1 and Day 2 on the Blog.

“On the third day of Christmas, my true love gave to me…three french hens.”

So the gift giving continues, and so does the avian theme. And yes, we are well aware that although the French Hens might have been French, the language barrier probably wasn’t an issue. Forgive us for stretching a metaphor, but we do aim to make a valid point!

One of the common themes we have come across in 2016 has been the concept of language. Specifically the concept that procurement needs to start speaking the language of the business to get ahead.

Communicating the value of procurement can be tricky. However, it’s up to all of us as professionals to make sure our voice is heard.

Bonjour, French Hens

While we were at ProcureCon Europe in Berlin in November, a number of keynotes discussed this perspective. Both Finance and Engineering were represented, and both speakers highlighted the different language the business speaks.

One speaker, Gordon Tytler, Director of Purchasing at Rolls-Royce, did state that procurement was valued in his organisation. The issue was that it wasn’t fully understood, neither in value, nor in activity.

Tytler also warned against insularity in procurement, arguing that this means the function can’t be sure it’s delivering what the business actually wants. As procurement adapts and changes to organisational requirements, it’s vital that our role is understood.

How do we go about communicating this value? Well, first we have to define the value we are delivering. Value is underpinned by four key aspects – service; innovation; risk; cost. Find out how here.

The Value of Procurement

Communicating the value of procurement to stakeholders is all very well. But the profession needs to ensure that strategy is following suit. This was one of the topics on the agenda at this year’s Big Ideas Summit.

Gabe Perez, Vice President, Strategy & Market Development at Coupa Software, discussed how disruption is forcing procurement to put value at the core of all its activities. According to Gabe, procurement needs to start with the value proposition, and work backwards.

It’s the same whether it’s a manufactured good, or a service (Gabe used the example of buying procurement technology). This sort of focus will allow procurement to move forwards with the value agenda.

The transition from cost to value was also on the mind of ISM CEO, Tom Derry. You can see what Tom had to say here.

Understanding how procurement is delivering value is a good first step for the profession. Communicating it is another matter, though, unlike the french hens at least, we don’t have a language barrier to cross. Maybe just a terminology one instead.

Our avian theme continues tomorrow on the fourth day of Christmas. But we’re looking at a bird with a difference – it’s blue, digital, and a great tool for procurement to use in its communications. Stay tuned to find out more.