Tag Archives: Big Ideas Summit 2018

5 Ways Procurement Can Make Brexit A Breeze

So much about Brexit is still a mystery. But one thing’s for sure – procurement pros can help their organisation turn a negative into a positive!

It’s impossible to say precisely what the role of procurement will be in the post-Brexit world; the future is simply too uncertain.

And it’s easy to infer this sense of overwhelming uncertainty in the procurement world if the results of Odesma’s new Brexit survey are anything to go by.

Despite having conducted two surveys several months apart, very little appears to have changed in procurement teams with regards to their action and response plans.

As Nick Ford, Co-founder – Odesma,  admits “the interesting thing coming out of these surveys is that this is without a doubt the biggest negotiation our country is going through in terms of procurement. But it’s still a very uncertain picture. And we’re right in the middle of it.”

Indeed, over 63 per cent of respondents admitted that they have no risk register or contingency plan in place within their procurement teams post-Brexit.

And a whopping 82 per cent of professionals feel that they are under more pressure than before to reduce the cost of third party goods and services.

It’s a complex time for procurement professionals; who must consider how the function will be impacted by an increase in the cost of imported goods, freedom of movement (or lack thereof!) and a potentially depleted talent pool.

On a positive note, 73 per cent of procurement professionals believe their organisation sees procurement as an important part of its post-Brexit preparation process.

At our London Big Ideas Summit, Nick Ford discussed how procurement can help turn Brexit into an opportunity for their organisation. As businesses prepare, the role for procurement teams is increasing dramatically and it’s “a real opportunity to put procurement at the front and centre of your organisation.”

Here a just a few ways that procurement teams can add value:

1.New Negotiations

Worryingly, according to a couple of the delegates at Big Ideas Summit, some suppliers have already started adding a “Brexit Tax” into their pricing, as well as Brexit clauses within their contracts.

Rather than seeing this as a negative, however, procurement can use this as an opportunity to open negotiations with these suppliers and ensure that value is still being delivered post-Brexit and beyond.

2. Enhance procurement position in the organisation

The survey made it clear that Brexit will put procurement front and centre in organisations.

Procurement functions that show more innovative approaches and see this as an opportunity, rather than a risk, to help companies get their act together can steal the spotlight and use it to their great advantage.

3. Focus on Supplier Risk Positions

According to Helen Mackenzie, Head of Procurement in Scottish Local Government, some suppliers have started to “self-select” for contracts and not bid for overseas work in case risks prove too high post-Brexit.

In knowing this, procurement can understand the risk positions of suppliers and account for this in their tenders. This could mean more local business.

4. Re-engage Stakeholders

According to Nick, one of the biggest opportunities for procurement is re-engaging with stakeholders. Linked to enhancing procurement’s position, the profession needs to gather information from all sides and help to drag heads from the sand throughout the organisation.

5. Drives position of supplier portfolios

Brexit is an opportunity to do some supplier clean up and, as part of that clean up, get some leverage to drive costs down. Spreading the risk for procurement by having a diverse portfolio of suppliers (including local, SME and social enterprises) could give a greater foundation in the future.

Nick’s parting words? “The most positive viewpoints on Brexit are coming from companies that are actually getting their acts together!”

“It’s going to be an interesting time over the next couple of years. And we’ll see procurement rising through the organisation.”

Nick Ford spoke at Big Ideas Summit London 2018. Register as a digital delegate to hear more from him catch up on the day’s action. 

How Your Network Can Turbocharge Procurement

Networks have the power to transform procurement teams and turbocharge the businesses they link together. So how do you get the best value from your network?

Since you’re here reading Procurious, I can already tell you appreciate the value of networks.

And you’ve probably realised that the wider your network of professional connections, the greater its value to you.

This network effect, where the benefit of a product or service increases as more people use it, has fuelled the growth of leading Internet companies for decades.

In procurement as elsewhere, networks enable participants to reach across the world, think big, and magnify their impact.

Meanwhile, as networks embrace cloud-based technologies, they allow buyers and suppliers to think even bigger — and to make an exponentially greater impact on the buyers, sellers, and ultimately customers who rely on them.

As innovations like artificial intelligence, machine learning, the Internet of Things, and blockchain reshape entire industries; networks are becoming not only faster but actually smarter at drawing meaningful insights from sprawling troves of seemingly unrelated data.

Envisioning the world as it could be…

In the process, these advances are helping procurement professionals to envision the world not just as it is, but as it could be — including their own role in it. When cloud-based applications take on many of the function’s day-to-day tactical activities, they free up procurement professionals to focus on strategic priorities such as strengthening supply chain resilience, safeguarding the brand from third-party risk, and cultivating new sources of innovation.

As a result of this digital transformation, procurement is evolving from its traditional role of generating cost-savings to fostering collaboration and, ultimately, driving much of the strategic value that fuels growth.

What does it mean to a business — to all its trading partners and other stakeholders — when, for the first time, cognitive insights allow it to get ahead of problems before they occur?

The implications extend well beyond operational risk. Consider the reputational risk associated with forced labour upstream in one’s supply chain. A network instills confidence across the value chain when it offers visibility not only into inventories, cycle time, and turnover ratios but also into the criteria that gauge whether a trading partner’s brand values align with one’s own.

Does a supplier have, for example, the governance structures in place necessary to root out forced labour, human trafficking, and inhumane working conditions? Customers and investors alike demand transparency into all these factors, and networks provide a comprehensive, real-time glimpse to simplify compliance. The result is peace of mind when advances in machine learning provide buyers and suppliers with options instead of data so that they can create ethical, sustainable supply chains, all while extending their competitive advantage.

At its best, technology enhances our business relationships, our personal ones, and the quality of all our lives. Yet, as anyone who’s ever experienced a hard-drive crash can attest, technology can sometimes serve at cross-purposes to this goal.

The same holds true for the software industry. The world’s most powerful networks can evaluate immense amounts of information, but unless they’re designed with the customer in mind they may as well possess the processing power of an abacus.

Procurement professionals have every right to expect that the network they rely on be intuitive, reliable, and — above all — consistent in delivering on their promises.

Does yours?

Demand it!

SAP Ariba’s James Marland, Vice President, will be speaking at Big Ideas Summit in London later this month. To find out more information and register to attend in person or as a digital delegate visit our dedicated site. 

This article was originally published on LinkedIn. 

Why Diligence is Due

Ethical sourcing makes good business sense. Plus… it’s the law! Nick Ford explores how to exercise due diligence.

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Pioneering U.S. academic fundraiser James W. Frick once cautioned prospective donors: “Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.”

For procurement professionals, how they source products and services and where they spend their budgets is not only commercially expedient, but also framed by strict international regulations. The risks contingent on neglecting – or wilfully evading – such rules have profound effects on an organisation’s reputation and, ultimately, it’s bottom line.

Due diligence is about managing risks in the supply chain responsibly; it does not ask companies to guarantee 100 per cent ‘ethical’ supply chains. Tracing the origin of a product, part or service is only one part of this.

The OECD Guidelines

Essentially, the overarching ethical sourcing and procurement principles are set out in the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. According to Emily Norton, Campaigner at Global Witness, these are the most comprehensive set of government-backed recommendations on responsible business conduct and ethical sourcing in existence today.

The guidelines are far-reaching recommendations by governments to multinational enterprises operating in or from adhering countries. Currently, 48 countries adhere to the guidelines, including most in the E.U. They provide voluntary principles and standards for responsible business conduct in areas such as employment and industrial relations, human rights, environment, information disclosure, combating bribery, consumer interests, science and technology, competition, and taxation.

The OECD rules are buttressed by the UN Guiding Principles for Business and Human Rights, endorsed unanimously in 2011. They make it clear that companies have a responsibility to make sure their activities do not fund harm and abuses. In many sectors, risk-based due diligence, as recommended by the UNGPs has emerged as a practical and effective way for companies to meet this responsibility.

EU Regulations

Spurred on by these ethical sourcing frameworks, a new EU regulation came into force in June 2017, the first of its kind to adopt a truly global scope. It requires EU-based importers of tin, tantalum, tungsten and gold (ores and metals) to meet the OECD standard when sourcing minerals from any conflict-affected or high-risk area globally. Technology firms who import tin, tantalum, tungsten or gold in their metal forms into the EU, e.g. for manufacturing purposes, will be covered by the new EU law.

Unfortunately, the EU has chosen to ignore a whole category of companies bringing minerals into the EU. This includes firms who buy and sell products containing these minerals, who are outside scope of the regulation. The EU trusts them to self-regulate.

In Asia, Chinese industry guidelines were launched in 2015 for Chinese companies operating abroad, which are also based on the OECD guidelines and are global in scope.

US Regulations

Meanwhile in the US, Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act requires companies listed with the Securities and Exchange Commission (SEC) to carry out checks on their supply chains where they believe their products contain tin, tantalum, tungsten and gold sourced from the Democratic Republic of Congo and its neighbours. Companies in the aerospace, electronics, medical devices, jewellery and clothing, among other, sectors are subject to this law.

Procurement executives at industry behemoths IBM and Walmart are currently experimenting with blockchain and radio-frequency identification (RFID) tags to clarify the provenance and passage of their products.

The Modern Slavery Act

Here in the UK, the Modern Slavery Act mandates that firms generating over £36m or more a year must produce slavery statements approved by their boards. A quarter of the FTSE 100 are currently non-compliant, forcing anti-slavery commissioner Kevin Hyland to contact them to address slavery in their supply chains. It is estimated that 16 million enslaved people are working for companies around the world.

Whether or not companies are caught by laws and regulations, all firms should be living up to the international OECD standard. This means checking whether their supply chains globally may contribute to conflict finance, human rights abuses or corruption around the world. They should be transparent about what they are doing.

Nick Ford will be speaking at Big Ideas Summit in London next month. To find out more information and register to attend in person or as a digital delegate visit our dedicated site. 

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!

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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.