Tag Archives: big ideas chicago

Three Secrets of Procurement Talent Magnets

Why is it that some organisations consistently attract the best and brightest talent in the profession, while others miss out? ISM CEO Tom Derry tells Procurious that it’s not just about salaries…

Tom Derry will present his Big Ideas on the essential attributes required by the Digital CPO at Procurious’ Big Ideas Summit in Chicago. Register now as a digital delegate

In the sports world, there’s a tradition known as coaching trees. This occurs in teams where an inspirational coach is known for developing others who have gone on to be successful coaches in their own right, and in turn pass on the knowledge, skills and philosophy of that lineage.

From his vantage point as CEO of ISM, Tom Derry has seen evidence of coaching trees in the procurement and supply management profession. “Sometimes it’s companies, sometimes it’s individuals”, he says. “Certain CPOs have gained a reputation for coaching and developing people who have subsequently left, and gone on to make their mark.” Their organisations benefit by being seen as an employer of choice for top procurement talent, and the CPOs themselves benefit from the dynamism and vitality of a team made up of the brightest the profession has to offer. Like the legendary NFL coach Vince Lombardi (pictured), CPOs are elevated by the success of the talent they’ve managed to attract.

But where do you start if you want to become a talent magnet in procurement and supply management?

  1. Build a reputation

“It’s important to create a reputation for yourself as an organisation that coaches and develops great talent”, says Derry. “To do this, you need to commit to the development of your team members. The secret to retaining talent isn’t about paying them more, or promoting them before they’re ready – it’s about investing in their skills and providing the opportunity for them to do more and give more.

“Stop worrying about losing people. Focus instead on developing talent, and you’ll build a tremendous reputation”

  1. Shift your style

For some of the old-school CPOs who are accustomed to leading through command and control, it’s time to shift to a more collaborative approach, particularly if you’re interested in attracting millennial and Gen Z talent. “You need to become more comfortable with being vulnerable”, says Derry. “Team members are more aware of where you are and what you’re doing, so be prepared to receive feedback from all directions, in real-time. It’s about being receptive to this feedback, but also being adroit and knowing when to wrap up the conversation and move on.”

  1. Embrace diversity

Derry says that cultural inclusiveness is no longer an idea but an expectation. “Your team needs to be diverse – in fact, you’ll look impoverished if you don’t have that. The benefits include being able to tap into a diversity of experience and opinion to solve challenges. This creates a truly attractive environment for top talent.”

Live From The Big Ideas Summit

On 28th September, Procurious is bringing The Big Ideas Summit to Chicago. Register now (it’s free!) as a digital delegate to gain access to all of the day’s action.

Strategic Procurement: A CFO’s Guide To Getting There!

Ever felt like a different perspective on that age-old plea: “Help! I need to be more strategic!” would do your procurement team the world of good? Here’s what a CFO has to say on the matter…

Register now  as a digital delegate for The Big Ideas Summit Chicago!

What do we hear from procurement professionals all the time in the industry of Procure to Pay? “Help me be more strategic” or “I want to demonstrate the value of procurement” or “Give me the tools to practice strategic procurement” or “How can I influence the big decisions being made?”

The good news is, there is a way to make these things happen – but you must be keenly focused on two things: data and analytics.

Get Perfect Vision with Complete Data

To even think about being strategic, there’s no way around it – you must tap into your company financial data and that data has to be comprehensive and clean. To build the complete data set, you must get 100 per cent visibility over enterprise-wide spending with:

  • 100 per cent of your e-procurement users funneling all indirect spending through the e-procurement solution
  • 100 per cent of invoices, both direct and indirect,  being processed through the AP automation solution
  • 100 per cent supplier on-boarding to ensure all invoices are being converted to e-invoices, regardless of supplier sophistication.

Layer this data with the power of analytics to quickly glean actionable insights and you’re ready to build your strategic procurement team, enabling everyone to see clearly to make informed decisions.

Keep Your Eyes on the Prize

As a CFO, I firmly believe that for both Finance and Procurement to be successful in achieving organizational goals, there must be strong collaboration between the CPO and CFO. The unique talent that exists in these functions needs to be leveraged to build and analyze the full financial profile of the company and see the possibilities for the future. From my perspective, CPOs can foster this collaboration and create a strategic procurement team that has their eyes on the prize by doing these 3 things:

1. Support Working Capital Strategy

53 per cent of organisations use payment terms as a strategic lever to manage cash flow.1 As the owner of supplier relationships, Procurement is in a unique position to support Treasury in the management of working capital by negotiating advantageous payment terms with suppliers. Procurement can help the company keep cash on-hand longer by:

    • Working with large suppliers to extend payment terms and pay later
    • Managing the long tail of the supply chain through a virtual card payment program that enables suppliers to get paid quickly, while the company pays later.

By working directly with suppliers to arrange the right payment terms for the company while benefiting the suppliers, Procurement ensures that Treasury can accurately forecast cash flow, properly invest in growth areas and optimize working capital overall. Supplier relationships also improve as financial volatility is minimized for suppliers, reducing risk in the supply chain. Additionally, a strategic procurement organization can generate a new revenue stream through virtual card payment programs that offer cash back. Read more on strategic payment programs.

2. Use Innovative Technology to Control Costs

Generating cost savings has always been a part of traditional Procurement, but now more than ever CPOs have access to innovative technology and advanced analytics to support these efforts. For example, artificial intelligence built into e-procurement solutions can continually scan procurement data to alert Procurement to savings opportunities like consolidating orders for bulk purchasing, better rates offered by different suppliers, reducing off-contract and rogue buying, optimizing inventory carrying costs and reducing other areas of wasteful or unnecessary spending. CPOs can also give approvers the ability to see how orders affect their budgets in real-time and educate other departments on ways they can make the most of those budgets – spreading the procurement talent across the company to help everyone. Suddenly, Procurement goes from being seen as the spend police to a helpful, collaborative arm of the business. Procurement professionals can also use automation tools to run strategic sourcing events to quickly identify and collaborate with the most cost-effective partners. With the right source-to-pay solution, Procurement is better positioned to quickly save costs and free-up time for more strategic initiatives.

3. Develop the Right Talent:

To achieve a strategic procurement organization, CPOs need to ensure they are developing and acquiring the right skills within the procurement department to focus on data analysis. Strategic procurement organizations steer away from a focus on squeezing cost savings out of suppliers and are moving to data-based decision-making that pivots the business one way or another to get ahead. According to Gartner, “the emergence of machine learning and AI is introducing the need for analytical skills and an understanding of data science and technology.” With rule-based and tactical activities becoming increasingly automated, the skill set needed in Procurement will involve working within that complete data set every day to derive the right insights for strategic initiatives like, right-sizing the supply base, spending smarter, reducing risk in the supply chain, improving supplier relationships and properly maintaining supplier data. Read more about the future talent needed for Procurement in Gartner’s article, Start Preparing Now for the Impact of AI on Procurement.

If CPOs stay focused on these areas, they will be able to realize their goals for strategic procurement and the perception of Procurement across the organization will change. If there’s one thing to take away from this article and my perspective on strategic procurement, it’s that you must set your sights on the data flowing through your organization in order to be effective.

See the Light

At Basware, our customers and their suppliers transact over the world’s largest open business network. That means we’re aggregating data across millions of financial transactions, creating an unmatched data set and layering that information with a powerful out-of-the-box analytics suite. If you’re ready to see how this data can make you more strategic, reach out – we’re ready to help.

On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

Against The Clock: 60 Seconds With IBM….

What makes for an exciting workplace, how do you identify the great leaders and what skills are crucial for procurement? We put IBM’s Graham Wright to the test in a round of quick-fire questions.

Register now  as a digital delegate for The Big Ideas Summit Chicago!

With less than two weeks to go until we launch The Big Ideas Summit in Chicago, we thought we’d have a quick catch up with some of our keynote speakers to discover what makes them tick, where they see the procurement function heading in the near future and how they would reflect on their successful careers.

First in the hot seat is Graham Wright, IBM Vice President, Global Procurement and Cogntivie Procurement services. He’ll be enlightening our Big Ideas audience on Procurement’s Radical Transformation and the impact of cognitive technology.

But today, we want to know what makes him excited about his work, what he wishes he’d known at 20 years old, and the key skills he’s looking for in a killer team.

How do you stay relevant in a world of fast-paced innovation?

Firstly, client interaction. This gives you exposure to a huge variety of approaches by industry, country and company to innovation. You have to remain selective.

Secondly, you cannot read everything.  Instead, take the time to focus on the few key areas you want to learn about.

Thirdly, make time to network and engage through all types of media and professional and industry associations to get the information and bounce ideas to ensure you have learnt and can develop your points of view.

Finally, take the time to think !

What makes you excited to go to work on a Monday morning?

  1. Desire to win.
  2. Clients, my team and the engagements.
  3. Excitement of driving an agenda through IBM that can truly change the world through data, the next natural resource.

What skills and talents contribute to an all-round, great team?

  1. Self motivated, client focused individuals with an operating environment allowing learning from mistakes.
  2. Soft skills, but I’d call them consultative!
  3. An enquiring, questioning mind with the ability to apply innovative, design thinking.
  4. Passion and drive for the business, profession and self.

What 3 attributes make a great leader?

  1. Confidence to lead and use multiple styles.
  2. Being a good listener and a coach.
  3. Communicator with the strength to give “Straight Talk”

What do you know now that you wish you’d known when you were 20?

  1. Time goes very quickly. Have a plan and follow your dreams. Experience as much as you can.
  2. All those successful Internet Stocks !
  3. The benefit of exercise and healthy balance.

Want to hear more from Graham? On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

“I Just Don’t See How Blockchain Can Apply To My Business”

Blockchain naysayers are echoing the words of short-sighted CEOs in the early 1990s who refused to recognise the disruptive potential of the Internet. American Blockchain Council Executive Director Jack Shaw demonstrates why businesses need Blockchain as a cornerstone of their digital transformation strategies.

Business Technology Futurist Jack Shaw is a keynote speaker at Procurious’ upcoming Big Ideas Summit in Chicago. Register now as a digital delegate.

Very few procurement functions are not currently going through some sort of digital transformation. Typically, the transformation includes building digital tools to enhance customer engagement, robotic process automation for rules-based activities, the use of big data and analytics to bolster decision-making, IoT integration, moving your business to the cloud, and – for some – bringing cognitive computing on board.

What’s missing from this daunting to-do list? The integration of Blockchain technology.

Jack Shaw explains why Blockchain needs to be a fundamental part of every business’ digital strategy: “Blockchain is unique among emerging technologies. Other technologies, such as IoT, can be extremely powerful as a ‘point solution’. This means they apply at a particular point in the business process, or even at a particular geographical location in the supply chain, to increase accuracy and speed.

“Blockchain, however, provides the infrastructural glue that ties these disparate technologies together into a single, coherent business ecosystem. You can have thousands of participants accessing timely, shared data, which allows you to step back and think about how the whole system can work more effectively.”

Two exciting benefits Blockchain technology will bring to the supply chain

Speed: Shaw talks about the incredible increase in speed of international trade transactions that Blockchain can deliver. “When I spoke at a global big data conference in China recently, a delivery of cotton from Houston U.S.A. had arrived at the local Chinese port three days earlier. With an international shipment like that, the paperwork involved normally takes around 10 days to settle. However, this particular shipment had been arranged with Blockchain and scanning technology, and it took a mere 10 minutes in total.”

Validation of providence: Supply chain professionals know the importance of transparency when it comes to sourcing products. Even if your first, second or third-tier suppliers seem legit, there’s also the risk that something illegal exists further down your supply chain, such as conflict minerals or modern slavery. With Blockchain, every step of the products’ lifecycle can be tracked and validated, all the way back to the extractive industries. As Shaw says, “Lack of visibility will no longer be an excuse.”

Cybersecurity and Blockchain technology

While it isn’t a magic bullet for cybersecurity challenges, Blockchain creates a level of trust that’s well beyond anything that has existed previously. Transactions are readily accessible (and transparent) for those who are authorised to see it, and un-hackable by those who aren’t. Not only are financial transactions more secure through Blockchain technology; it’s also very powerful for protecting data.

Shaw cautions that hackers could still find their way in by feeding incorrect data through in-house systems. “In a way, Blockchain will step up the requirement for improved data integrity. Technology such as cognitive computing only works if the data is valid.”

The Internet of Things (IoT) is another frontline for cybersecurity. “How do you know that the data you rely on to make decisions is actually from a particular device, and that it hasn’t been hacked or spoofed? Blockchain can provide an immutable record that uniquely identifies a data-providing ‘thing’ to ensure that you know your information is coming from that source.”

Shaw gives the example of odometers, where unethical car dealers can hire digital hackers to alter the mileage. Bosch has recently integrated Blockchain technology with odometers which upload digital readings hourly. “You can extend this concept across big data, analytics and cognitive”, says Shaw. “It only works if the data is valid, and Blockchain is one way to ensure that.”

Blockchain technology will be one of the many disruptive forces discussed on 28th September at the Big Ideas Summit in Chicago. Register now (it’s FREE!) as a digital delegate to access all the news and content from the event.

Procurement Shines Brightest On A Burning Platform

Economic woes, political uncertainty and digital disruption might trouble your CEO, but it should delight the CPO. After all procurement can perform best on a burning platform.
There has never been a better time for procurement.  A combination of the economic cycle, global politics, and digital disruption has brought ambiguity to the marketplace.  If, as a CEO, you are uncertain about your top line, wrapping your arms around the things you can control – costs – is the pragmatic approach to profitability. Costs incurred with suppliers represent the majority of for the average large corporate, overshadowing even labor expenses. How will uncertainty impact each shift.

Economic Cycles

We have been experiencing slow economic growth for a while now. Financial crashes are typically succeeded by over ten years of slow growth, which means a new downward cycle may be imminent.  In the context of record Dow Jones levels and the FTSE not far off its high, it might seem strange to be pessimistic. But when Warren Buffett holds over $100bn of cash, it seems to be an anecdotal indicator that we are nearing the top of a cycle. Being agile with your supply chain is now more important than ever, as you don’t want to get caught with high priced goods and services, or the wrong inventory altogether as your market evolves.

Global politics

Politics shape and reshape the global economy. More so now than ever, economic policies of the Democrats and Republicans, and Labour and Conservative represent a vast divide.  Whether it is Trump or Brexit, coalition politics and political decisions are having a big impact on both the polity and the economic prospects.  Questions about trade, tariff barriers, regulation and corporate tax are now subject to divergent positions and disagreement.  The answers could go in multiple directions, and so politics and electoral results are back to having a bearing on business certainties.  Resolutions to these questions can take many different shapes and will bring some turbulent swings in the stock market and broader business marketplace.  Since these issues are central to the way business is conducted, long-term cost discipline strategies aimed to give cover for the political uncertainty are warranted.

Digital disruption

While not everything is going to be digitized or robotized (I hope a robot isn’t my next barber), the digital age has descended upon us.  Some industries are further down the maturity curve than others – both retail and finance, for example, have substantial legacy infrastructures which impact the incumbent ability to compete cost-effectively, and with agility.  All industries, however, need to optimize digitally; managing processes, metrics, and data to inform short-term and long-term strategies to stay competitive and manage costs. With the emergence of cutting-edge technologies and the disruption of traditional business models, every company will require a hard look at their strategy to ensure they are embracing both the challenges and opportunities that come with advancing supplier provided technologies and their effect on procurement. Companies need to consider how the rapid rate of innovation will disrupt how their organizations work and line up their suppliers to respond. What a moment in time! Add a dash of currency devaluation leading to imported inflation, sprinkle in digital technology, and we could not ask for more ambiguity from the circumstances around us.  Setting clear, agile strategy to control costs is the shrewd response to deal with the uncertainty of our times.  Go procurement.

 

Aaaaaall aboooooard for the Chicago Big Ideas Summit!

Today marks exactly one month until the Big Ideas Summit in Chicago!  NOW is the time to sign up as a Digital Delegate and access globe-beating content from the procurement capital of the world.  

If you’re interested in getting involved but still not entirely sure what’s going on, look no further – we’ve compiled a list of our most frequently asked questions to get you fully up to speed!

What is it?

The Big Ideas Summit is a unique online event uniting procurement and supply chain professionals from around the globe to drive innovation and inspire change. At the Big Ideas Summit in Chicago we’ll be driving the conversation on the following topics:

  • Rethinking what’s possible in procurement
  • Building Workforce 4.0
  • Leadership under fire, and
  • Procurement in the digital age

Speakers include Futurist and Urbanist Greg Lindsay, Former Navy Seal Andy Stumpf, ISM CEO Tom Derry, Pinnacle Group CEO Nina Vaca, BBC Broadcaster Nik Gowing, and American Blockchain Council Executive Director, Jack Shaw.

When is it?

After the stunning success of the 3rd annual Big Ideas Summit in London, we’re continuing our global tour in Chicago on 28 September 2017. Expect to see most of the action between 09.00 – 17.00 (CDT) as we share video insights, quotes, photos and summary articles direct from Chicago.

If you can’t join the action live, not to worry.  The thought-provoking discussions and debate will continue long after, and we’ll be sharing video footage of all our Influencers Big Ideas throughout September on Procurious.

Where is it?

Although our Top Influencers will be meeting in at the Wit Hotel in Chicago, due to the summit’s digital nature Procurious members across the world can get involved from the comfort of their office, armchair or even from the beach!

Procurious members can also use our iOS App to follow the action. It’s available in the Apple iTunes store and is free to download.

 How can I join in?

You’ll need to be a registered member of Procurious – join here for free if you haven’t already. Then simply join the group to access thoughtful opinions, participate in insightful discussion, connect with our Influencers, access exclusive podcasts and interviews and share your own Big Ideas with the Procurious community.

We’ll also be live tweeting throughout the day, so make sure you’re following @procurious_ to share and respond to our tweets using the hashtag #bigideas2017.

Do I have to be a member of Procurious?

Yes. Participation as a Digital Delegate is free and open to all members of Procurious. By joining Procurious, you will not only have access to all the exclusive Big Ideas Summit content, but you will join a community of 23,000 like-minded procurement peers and gain access to all Procurious’ free resources, including being able to:

  • Upskill on the move with dozens of eLearning modules
  • Get your procurement questions answered by experts
  • Find out about relevant professional events around the globe
  • Become a digital delegate in the global think-tank, Big Ideas Summit 2017

Will Big Ideas be live-streamed?

Procurious boasts a global audience of 23,000+ procurement professionals, from more than 140 countries. If we were to cater to all of these time zones, it would be a tough job – so rather than live-streaming (and keeping you awake at awkward hours), we’ll share exclusive video and podcast interviews with Digital Delegates.

 I’m on the fence – why should I take part?

Here are five compelling reasons to join your fellow Procurians and stake your claim to the wealth of knowledge on offer:

  • An audience with 50 of the world’s top procurement influencers
  • Get your questions answered by world-class experts
  • Make powerful new contacts around the globe
  • Share your own Big Idea and make your voice heard
  • Access exclusive content & learnings

Who are the ‘Top Influencers’?

The term ‘influencers’ refers to the face-to-face delegates who will gather in Chicago. Our experts span the worlds of procurement, technology, social media, journalism, social media, economics and academia.

 Who are the sponsors?

The Chicago Big Ideas Summit is made possible by our partners IBM, Proxima, and Basware.

 I’ve got a Big Idea of my own…

Great to hear! You can Tweet us your Big Ideas @procurious_ remembering to use the hashtag #BigIdeas2017.

Leave your Big Idea on Facebook – you can find us at www.facebook.com/procurious .

And of course you can tell the Procurious community all about it by joining the Big Ideas Group page and posting it to the community feed.

Who is behind Procurious?

You can read all about us in Our Story.

Join the conversation and register as a digital delegate for Big Ideas 2017 in Chicago.