Tag Archives: big ideas sydney

Six Reasons You’re Still Stuck In Procurement 1.0

Robobai surveyed 250 procurement specialists and asked them what their pain points are within a growing organisation. Chairman and Founder, Julian Harris, shares the top six reasons you’re stuck in procurement 1.0…

Every business has the desire to grow and succeed and as a result of this targets are set to support the overall objectives of the GDP. It is natural to encounter many roadblocks along this journey and procurement is seen as an important area as it can both block or support growth.

We have recently surveyed 250 procurement specialists and asked them what their pain points are within a growing organisation. We then established the six biggest pain points from their perspectives.

1. The companies had outgrown their supplier base

79 per cent of the people we spoke to said that their businesses were not driving innovation in supplier relationships. The common theme being their existing suppliers weren’t adapt enough to support their growth model and that they did not have the correct systems in place to evaluate potential new supply partners in an efficient and fast manner.

2. Their current systems were inadequate

85 per cent of our survey said that they overall procurement process was to complex and resource heavy. The existing systems and processes simply aren’t up to the job and as a result Account Payable are constantly battling to keep on top of the processing and payments of invoices.

3. Poorly equipped for investment or acquisitions

According to our results, 76 per cent of procurement specialists said that with their current systems and processes, they would not be able to provide the relevant due diligence to any potential investors. This is a massive barrier to a company that is looking to expand in anyway.

4. Managing rising costs

81 per cent of companies admitted that they don’t challenge suppliers enough on cost or performance. The truth is, they are struggling with rising costs against income which is effecting profits, but they have inefficient systems in place that don’t allow them to manage their supplier contracts properly in these areas.

5. Ineffective supplier management

44 per cent of our specialists said that they need to manage their suppliers more effectively. They basically don’t have access to enough good quality data on suppliers to allow them to effectively challenge and negotiate the best deal for them.

6. Not enough control over spending

In our research 40 per cent of respondents said that they need to improve their budgeting controls. There are compliance issues surrounding using approved suppliers, and to fix this change is required to both their systems and culture to give the required visibility of spend.

Is Data really the answer?

For optimum results, you need optimized data

The benefits of good data are no secret. You will constantly see things written and hear conversations about how powerful data can be with regards to driving efficiency, reduce costs and even keeping customers within any business. But, in the world of procurement it is a must have. Why? Because with the right data you can massively improve your return on purchasing goods and services.

High quality, cleansed data helps to drive a more strategic view of procurement. It enables teams to make informed decisions, earlier in the procurement lifecycle. If you don’t have it, then sure you can view total spend, but in a very inadequate way doesn’t allow you to understand the size of the cost saving opportunities that exist. These opportunities may include variance in pricing, contract terms, consolidation, payment discounts or duration. You need cleansed, granular data to be able to provide good insights to make the right purchasing decisions. You simply can’t do this efficiently without having access to a platform that provides this quality of data in a timely manner.

Often, one of the biggest challenges in an organization sits in the realms of data. Without good quality data cleansing and data classification you will never have a genuine spend visibility.

When a company has good spend visibility they get timely, accurate, complete, and detailed data which offers invaluable intelligence and insight on their spending patterns, compliance and performance. These insights help them identify savings opportunities, drive compliance, and develop purchasing strategies which reduce cost.

Julian Harris, Chairman and Founder – Robobai, spoke at Big Ideas Summit Sydney. 

Why Quick Decision-Making is the Name of the Procurement Game

ISM CEO Tom Derry urges procurement leaders not to let perfect be the enemy of good – make decisions and move on!

When Tom Derry, CEO – ISM attended Procurious’ Big Ideas Summit in Sydney this week he came armed with a stark warning for the procurement professionals in attendance. “If you’re the steward of a process, then your job will inevitably be automated.”

Concerned? You should be. Because, as Tom points out, there are an awful lot of procurement roles that fit this bracket. In the very near future, for example, every sourcing event is likely to be automated.

This article is a compilation of Tom Derry’s comments from his appearances at both the London and Sydney Big Ideas Summits in 2018.

Adapting to the pace of change

Procurement has changed dramatically in the past decade, and will change even more so as we move into the robotic era. Tom believes that we’re facing more disruption and a faster pace of change than ever before. “Most of us operate within a context or a framework that we’re familiar with – the established rules of the game. But when the rules get thrown out, how do we operate?

“Being comfortable with ambiguity is a rare skill, especially amongst executives,” he argues. But he reminds procurement leaders not to let perfect be the enemy of good, urging them to: “Make decisions and move on. If we don’t, our competitors will. Being able to move on and know that there are going to be times we don’t win is important. Accepting that as the cost of being in the game and having the opportunity to win is the reality we are in.”

“We can’t anticipate every possible scenario but what we can do is be ready for multiple scenarios and recognise that when we face an unfamiliar scenario we’ve built up some skills and reflexes that we can put into play.”

Of course, as Tom admits, it’s human nature to react in fear to such rapid change. But “there’s always opportunity when there is inherent change and risk.” The skill is in recognising where that opportunity lies. And that, according to Tom, “comes from a deep understanding of what creates value. The source of value might shift but it is still there somewhere.”

Making procurement indispensable

What key skills should aspiring procurement professionals be developing in order to make themselves indispensable?

“The CPO of the future possesses an openness to change, an openness to developing and an openness to sharing.” says Tom.

To improve business-wide understanding of procurement’s value offering it’s vital that procurement leaders allow their people to reach their full potential and move on. “Maybe it’s within your company, and now you’ve got evangelists in other functions who understand the importance of procurement, or maybe it’s outside the four walls of your company. There’s no better reputation to have than being seen as a cultivator of talent, both inside and outside the company”

Tom also highlights the following three skills as critical attributes for procurement professionals.

1. Understanding Markets
“This is about more than just the price,” asserts Tom. “Procurement professionals must understand the dynamics that drive the price whether it’s short supply or supply disruption, new technology that disinter-mediates an old technology.”

2. Strategic Acumen
Procurement leaders must ask of themselves “where am I going as a business? What’s important to my business in the next two to-three years?”

3. Financial Savviness
Procurement teams must accept that they really are driving financial results for their firm. “Sometimes we are a bit too afraid to engage with financial metrics and the traditional income statement or balance sheet. But we must embrace engaging with that income statement and balance sheet in order to understand how what we’re doing in procurement is driving financial metrics such as earning per share and driving revenue growth . We must not focus on metrics that are largely discredited like cost avoidance.”
The future of professional associations
[ISM has] been around for over 102 years and so future-proofing professional associations really matters to Tom. “For 102 years we’ve been very successful but you can’t continue to execute that playbook and expect to still be around.”

“An association used to function as the place where people felt obliged to belong,” says Tom. But nowadays he doesn’t believe procurement professionals feel such a sense of needing to belong to an association just for the sake of belonging. What people need and demand from associations like ISM is “value for money and the provision of tools and skills that enable them to be successful at a critical moment in their career.”

Another key evolving role for associations, according to Tom, is their role as data brokers. “We’re able to reflect back to the profession everything we learn about the profession because we deal with all industries and all geographies, we have a broad view of what’s happening.”

ALL the video content from #BigIdeas2018 Sydney!

Strap yourselves in – we have HOURS of fantastic video content from the Sydney Big Ideas Summit to share!

Missed out on the action at #BigIdeas2018 Sydney? Never fear: you can still catch videos, top speaker quotes and more right here on Procurious. Simply opt in to the Digital Delegate group here.

Here’s a taste of the video content captured on the day.

Live from the sidelines:

Interview with Influence Nation CEO Julie Masters:

Interview with innovation and disruption guru, Gus Balbontin:

Speaker keynotes

David Gillespie, author of Taming Toxic People:

SAP Ariba Regional VP, Henrik Smedberg

There are plenty more videos in the Digital Delegate group – be sure to check it out.

The 3 Rules Of Epic Storytelling

The key to creating real engagement – the type of engagement that actually leads to action – is deceptively simple. Learn how to become an EPIC storyteller with these tips from Influence Nation CEO Julie Masters.

 We are, by our very nature, storytelling creatures. It’s how we’ve been connecting since the Stone Age when we sat around campfires sharing our stories as a way of showing vulnerability and intimacy – and we’re hardwired for it.

According to Forbes, storytelling ‘the new strategic imperative of business’. Think about what happens in your mind when someone starts talking about statistics. Now compare that to what happens when they start telling you a story. Immediately you make yourself the lead character – how would I feel if that were me? How would I have responded? And there you have an emotional connection.

Looking at the explosion of social media and reality TV, not only are we storytelling creatures, we’re suckers for real stories – full of ups, downs and lessons learned. In the business world, regardless of whether you’re putting together a pitch presentation, vying for venture capital funding or presenting to the Board – your primary objective should be to get people emotionally connected enough to your message to take action. To help you get started as an epic storyteller – here are my three top rules:

MAKE IT REAL

Stories are so much more impactful when they are real – especially if they happened to you. A speaker I work with once said, “You don’t tell and retell a great story, you live and re-live it”. It’s hard to live and re-live a story that isn’t yours, however, we don’t always have the opportunity to take inspiration from our own lives. I recently coached a CEO who had to present at an industry convention, she needed to share how the digital revolution had fundamentally changed their consumer. Instead of jumping into some hard-core statistics, we took a different approach. She said “I want to introduce you to Emma…”

Emma wakes to the sound of her iPhone alarm. She quickly checks the weather forecast and emails before getting out of bed. She reads the news on her iPad, drops the kids at school while listening to a favourite podcast, orders the weeks groceries online… and on the story went. Every single statistic was covered by Emma’s journey and at the end the question was posed: “Who here has a day that resembles that?” Everyone put up their hand. In under 3 minutes, she had the room convinced that digital devices have completely reinvented our lives. Compare that to 10 minutes spent going through statistics and figures – which is the most compelling?

MAKE IT COMPELLING

Some of us are born with the ability to tell a really great story, but it usually requires three pints and a shot of tequila. For the rest of us (and where alcohol isn’t an option), the answer is to sharpen your skills. The key to a compelling story is energy. If you’re speaking in front of people, start by using your whole body. Remember the ‘live and re-live’ rule – how would you tell this story if you were literally re-living it? How would you use your hands? How would you move your body? How would your voice change? In the most recent studies, body language accounts for a huge 55 per cent of how a message is received, so harness its power and start literally taking up more space.

If your story is going to be consumed on a digital device rather than in person – look at using video as a storytelling tool. With video content predicted to account for 80 per cent of internet traffic by 2019, customers are sending a clear message. Don’t tell me, show me. And if you want me to amplify your story by sharing it – tell me on a platform where I’m already actively sharing content. It might be Snapchat, it might be Instagram stories – look to where your target market is already hanging out and start a conversation.

(If you want to learn more about powerful ways to use your body – Harvard Professor Amy Cuddy delivered an incredible TED Talk on the topic of ‘power posing’).

MAKE IT ACTIONABLE

This is one of the biggest mistakes I see from great storytellers. The story ends – there’s an eager and engaged audience – ready to take action – and then – nothing. The most effective stories are the ones that finish with a simple request.

I recently watched a documentary about the alarming decrease in the whale population. It lasted an hour and, by the end, I was willing to do anything in my power to help. The credits rolled and that was it – no way for me to turn my new-found passion into action. Compare that with the Dolphin Safe label campaign. In this case the action was simple – only buy cans of tuna containing this label. A simple request that has permanently changed my buying behaviour.

I interviewed Daniel Flynn the Founder of social enterprise Thankyou a months ago on my podcast. He was telling me about the beginnings of Thankyou – when he knew the core to it’s success would be to get products stocked by a major retailer. He set up a meeting with 7/11 and – in the two weeks before the meeting – ran a social media campaign asking consumers to do one simple thing. To let 7/11 know that if they stocked Thankyou products – they would buy them. Within one day, 7/11’s social channels were flooded with support and within a few weeks – their products were stocked in 7/11s around the country.

The key to creating real engagement – the type of engagement that actually leads to action – is deceptively simple. Tell compelling stories – on the right platforms – and make simple requests. In a world where we’re overloaded with information. Epic storytelling will continue to be the only key to cutting through the noise.


#BigIdeas2018 speaker Julie Masters is a globally recognised expert in influence, authority and thought leadership. She is the CEO and Founder of Influence Nation and Founder of ODE Management – responsible for launching and managing the careers of some of the worlds most respected thought leaders. Julie is also the host of the weekly podcast Inside Influence.  http://juliemasters.com

Are you in Australia? There’s still time to reserve your seat at the Sydney Big Ideas Summit on Tuesday 30th October. Book now: http://www.bigideassummit.com/big-ideas-sydney

Can’t make it to Sydney? Become a digital delegate and catch all of the action LIVE right here on Procurious. Digital delegates can download a free copy of Julie Master’s ebook: The Influencer Code. https://www.procurious.com/big-ideas-summit-sydney