Tag Archives: c-suite

How To Get Supply Chain A Seat At The Table

If supply chain pros can secure a seat at the table, it becomes easier to to share insights, challenge processes, support the business and be part of strategy creation – ultimately delivering value.

Laura Faulkner, CPO and Director Supply Chain Management for Nationwide Building Society, is truly passionate about developing the profession in order to raise its value and reputation within the business.

“As a fellow of CIPS I really am very keen to take on an active role in working across all industries; sharing best-practice and learning from the best of who’s out there.”

Laura is a firm believer that  Supply Chain functions act as an extension of the organisation as a whole and in her role at Nationwide Building Society she has led by example, “leading a team that supports the delivery of our business strategy but doing so in a really collaborative way with stakeholders and suppliers. Our suppliers and partners are simply an extension of our own firm . We have the ultimate responsibility and the actions of our suppliers reflect on us.”

Recent events have truly tested this mentality.  The collapse of Carillion, one of Nationwide’s biggest suppliers, in January 2018 hit particularly hard.

“When [Carillion] collapsed on 15th January we really did have only two areas of focus. One was to secure the services which was everything from security, reception, data centers and maintenance.

“But we also had to do the right thing by all of the Carillion staff that had served Nationwide for a number of years. Within six days of the collapse we in-sourced all 300 members of staff and directly contracted with the 160 sub contractors.

“To me sharing this kind of story shows how we can add value not only to our own organisation but also in sharing it across other industries. We’ve all got things we can learn from each other and it’s very key that we play a pivotal role within our organisation. We are that link to the supply chain, we do not outsource the risk that the supply chain brings and we have to take full responsibility.”

Getting (and keeping!) supply chain’s seat at the table

We were really interested to hear Laura’s thoughts on how supply chain professionals can secure a seat at the table.

“Well it’s easier said than done ,” she admits, “and at all the firms I’ve worked with it’s been something we’ve pushed for. We really do need a seat at every relevant table whether that be the investment boards or the strategy committees – you need to be part of the discussion not someone brought in and brought up to speed outside of the meeting.

“It’s easier when you’re sitting round the table to give your insights, to challenge, to support and really be part of either the decision making or the strategy creation.”

But, as Laura points out,  it’s always easier to get that first invite to a meeting.  It’s keeping the seat at the table that’s really challenging. “If you want to be kept at the table,” she suggests “you need to be able to add something and bring some unique, different types of thinking. [Supply chain management teams] are one of the strongest links to the outside world. Use it and you can bring insights and innovation.”

“We’ve just announced at nationwide that we’ll be investing a further £1.3 billion of investment into our new strategy and we are fully engaged in making that happen.

“I’ve been working with the CTO  – we’ve been holding meetings and strategy sessions with all of our key partners and investigating new possible supply chain partners and it’s that engagement and listening to what our suppliers have to say that will really help us develop the strategy further and ultimately deliver it.”

Laura Faulkner is speaking on Day Three of Career Boot Camp 2018. Sign up here (it’s free) to listen to his podcast now.

How To Upgrade Your Procurement Mindset

In a world where cost-savings are no longer king in procurement, how can the function demonstrate its business value and earn a seat at the table? Jaime Mora talks upgrading your procurement mindset!

In recent years, our organisations have gotten a better understanding of the valuable contribution Procurement can deliver to the business.

And yet, there remains a feeling that the function has not yet reached its full potential. Procurement is certainly a relevant and appreciated corporate function. But we’re not yet sitting in the C-Suite…

As procurement professionals, we unanimously agree that the function should be elevated within the business, but convincing those at the top is easier said that done.  Whilst all organisations consider implementing cost-savings to be a crucial part of business success, it’s no longer regarded as a strategic process or a competitive advantage. Leaders are becoming increasingly aware that savings alone will not distinguish them against  their competitors. As such, procurement can be dismissed within the business as a less important function.

The bottom-up approach

If traditional procurement contributions are not at the top of an organisation’s agenda, how can procurement earn its place in the C-Suite?

It’s difficult to find a “one size fits all” recipe but we could start by upgrading our procurement mindset. I propose that we rebrand  ourselves as: “External Competitive Advantage Strategists.”

But what on earth does that mean?

As it stands, we’re  pressured into taking a bottom-up approach to our work. We know we have to bring savings to the table, we achieve this, and only then do we start thinking about the other nice things we can do with our time; innovation, sustainability, supplier development etc. And we deliver on those things too.

It makes sense that the more value-adding contributions we make, the more arguments we have to justify a spot, and a voice, at the highest levels of the organisation.

But in reality,  we end up doing bits and pieces here and there, following trends and simply trusting our gut.

Taking this approach is one of the reasons that procurement objectives and output may deviate from actual business goals.

Taking a top-to-bottom approach

If we truly want to step up our contributions, we should be taking a top-to-bottom approach. Our organisations operate in highly competitive environments, where sustainable advantages are required in order for us to outperform our competitors.

Procurement is uniquely positioned in the business given our access to so much information from our supply networks and an awareness of the opportunities here. We’re in the perfect position to source more than just products and services – we can actually source competitive advantage.

Procurement is capable of seeing things strategically. We can analyse where our organisation stands in a competitive environment and we are capable of both meeting our business targets and identifying where and how our organisation could compete better.  To take a holistic approach, this should be complemented with strategic analyses of our suppliers.

As I mentioned at the beginning of this piece,  cost-savings will always be appreciated. But procurement’s work should never be limited to that. The new approach to procurement is about sourcing the external competitive advantages on offer to give our organisation unique advantages in a competitive environment.

Imagine the following scenario: one of my organisation’s strategies is to develop its people. From my knowledge of the supply market I know a particular supplier that is uniquely skilled in people management and development and this makes them the most competitive supplier. We have the power to bring this supplier to the table; to initiate the discussion to build a partnership and leverage the supplier’s competitive advantage, or even a vertical integration.  Boom! Now Procurement is sitting at the M&A table.

As saving becomes a commodity and not a priority, it is time to reinvent procurement. Leave the Procurement Manager title behind and become a External Competitive Advantage Strategist!