Tag Archives: disruption

Fresh Supply Chain Talent Will Use Tech To Collaborate, Says Kearney Partner

Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? Procurious talks to Kearney partner Kate Hart about the burning issues in supply chain – from attracting new talent to co-creating with suppliers.


Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? 

Procurious Founder Tania Seary recently sat down with Kate Hart, Partner at consulting firm Kearney, to talk about the state of supply chain and what’s coming.

Change, pivot, attract

Supply chain management is increasingly about dealing with disruption, says Kate.

“Recent events have highlighted how susceptible our global supply chains are to disruption, from the pandemic to ransomware attacks to global trade wars,” Kate explains.

So how do we cope? It all comes down to two critical capabilities.

The first is the ability to sense the changing environment and pivot. And the second is the ability to attract and retain core talent. 

That need hasn’t changed for a decade, says Kate. So why is it worth mentioning now? 

“What it means today is very different to what it meant 10 years ago in regards to the importance of being able to sense a change environment and pivot,” Kate says.

That’s because the demands on supply chain professionals have changed dramatically – and certain industries adapt quicker than others.

“Some global geographies are a lot more mature than others so far as their uptake of e-commerce and some geographies have really been lagging,” Kate says. 

Why technology means survival

If retailers were hesitant to adopt new technology, they have an extra incentive now. It’s their key to survival.  

“Amazon has been a trigger for some of those geographies to uptake, but obviously the pandemic has just increased the proliferation of retailers offering e-commerce platforms,” says Kate.

Companies are also becoming more innovative in the way they handle the actual distribution of their supply chains, particularly in the business-to-consumer route.  

“We’ve seen a proliferation of sort of rideshare ‘uberisation’ of that last mile,” Kate says.

“What we’re seeing is those companies that invested in the technology and got ahead of the game really have thrived during this. Now it’s going to be a matter of, you know, catch up or who survives, so it’s going to be quite interesting.”

Understanding the risk

So what are smart companies doing now to avoid future disruption? Supply chain network mapping.

Kate has seen a huge influx of companies not just looking at supplier risk, but looking at suppliers’ suppliers risk and building that information through their supply chains.

Interestingly, this is largely driven by senior executive interest. Never before has supply chain resilience enjoyed such a prominent position on the c-suite agenda.

“It’s beyond just enterprise risk. There is reputational risk, there is financial risk, there are lots of different risks that are inherent in the supply chain and that is very much front and centre in many of our board conversations at the moment,” Kate says.

“The key question that we’re getting asked by boards is how they get visibility in their end-to-end supply chain risk and how they manage that resilience.”

Making it automatic

Companies are also investing more heavily in automation to improve resilience.

‘It’s been quite extraordinary. Some global areas, particularly in the US and in the UK, are seeing a lot of advantage from automation,” Kate says.

“But the investment in automation needs to be deliberate, with a very sound business case, otherwise organisations are investing but not necessarily seeing returns in some areas.”

Technology, like automation, is providing supply chain teams with new levels of influence, Kate says. 

“We’re seeing supply chain organisations use digital tools to create a triage process with a front door to supply chain – a self-service functionality,” Kate explains.

“[It] enables their internal talent team to then work with their business stakeholders to drive extraordinary value.

“So, supply chain is really being impacted positively by digitisation and automation. It’s all part of a focus on resilience which elevates the conversations and, in turn, the value that supply chain can deliver.”

Working as partners

That’s why Kate says the future will be all about human decisions facilitated by technology.

“What does that mean for partnerships across your supply chain?” Kate asks. “It means that the problems that need to be solved are increasingly complex. It requires a very strategic view of your supplier base.”

The strategic view increasingly means changing the relationship to a close partnership.

“In some of the scenarios that we’re working on at the moment, the clients don’t know what the solution is and actually need to engage the suppliers to co-create solutions for problems that are new to both of them,” Kate says. 

That means seeing suppliers as extensions of your own organisation, which is positive.

But as Kate points out, companies still need to maintain “control and visibility so you are not anchored to them in perpetuity. So getting that balance of control versus collaboration right is going to be really, really important.”

The right people

As Kate puts it, the bright future of procurement isn’t possible without the right people.

“All of that is very contingent on the ability to attract, retain, and grow talent – the conundrum of supply chain management for aeons,” Kate says.

“But never is it more important than now. For supply chain management to have a seat at the table it needs to be attracting the core talent that we’re seeing coming out of the universities.

“There needs to be a very strong talent pool that’s feeding into the industry.”

Kate Hart – Partner at consulting firm Kearney, overseeing the supply chain practise within Asia Pacific – can be heard in the webcast series The Future Of Supply Chain Now.

Supply chains are changing. Here are 5 things we know now.

How to Be Super Normal: 5 Must-Have Traits to Get Ahead in 2021

What does it take to be Super Normal? Here are the 5 must-have traits to get ahead in 2021 without driving yourself crazy.


There’s no turning back. There’s only the here and now. And whatever you call it – the new normal, now normal, the end of the world, or as we’re labeling it, the Super Normal – it no longer matters. What matters is how you adapt, move forward and make a difference.

There’s a lot of difference-making that still needs to happen. Procurement and supply chain must lead the way, just as we’ve done in the past. According to McKinsey, “in the five years immediately following the 2008 financial crisis, total return to shareholders for companies with top-quartile procurement capabilities was 42% higher than for companies whose procurement operations were in the bottom quartile.”

That’s a significant impact. Clearly, we have what it takes to succeed. But this is not the same environment as the global financial crisis. The game has fundamentally changed and we need a new playbook to win, manage stress and get ahead.

The Super Normal: Start by Owning Your Vulnerability  

Resilience is core to the Super Normal. We’ve been talking about it since March, which begs a deep discussion: What actually makes us resilient?

It has nothing to do with our age, gender, ethnicity or nationality. Instead, according to a Harvard Business Review study, there are two driving factors. The first is exposure. The more exposed you are to the suffering or event, the higher your resilience levels are. As HBR puts it, “this strongly suggests that we discover our resilience only when we are forced to meet unavoidable suffering full in the face. It’s when we face that reality, and see ourselves and how we respond to it, that we find the basis for resilience.”

The second factor is the extent of the threat. The more tangible, the more resilient we become.

An HBR survey asked how many people had experienced workforce changes as a result of COVID-19. There were 11 possible changes to select, such as sheltering in place, layoffs and furloughs, and changing use of technology. Ninety-six percent of respondents globally said they’d experienced at least one issue. This is similar to our business study, which found that 97% of organisations experienced a supply chain disruption related to COVID-19.

This isn’t surprising – so why does it matter? Because as leaders, we need to own our vulnerabilities. Our Super Normal requires us to be open, transparent and direct. You can’t force a return to normal just to calm anxiety and stress. We have all suffered to some extent and glossing over the potential implications – whether it be layoffs, longer work hours, hard conversations with suppliers and customers, a demand for new skills, or changes at home – is counter-intuitive.

Instead, own the vulnerability, be clear about your team’s exposure and communicate what needs to change. When people understand what’s at stake, they are remarkably resilient.

The Super Normal Playbook: Heart, Brain and Vision

Resilience amidst chaos requires evolution. We need to change and adapt, even if we don’t know what the future holds. While there’s no easy button or universal blueprint, we’ve learned a lot in 2020 about how to be Super Normal.  

1.       Super Normal Professionals Think the Unthinkable

If we’ve learned anything in 2020, it’s that anything can happen. Pandemic, trade wars, recessions, natural disasters… the list goes on.

Being Super Normal requires us to come to terms with an inherent truth: Uncertainty is certain.

We need to engrain this mindset into our team, decisions and actions. Once we see that the big picture is cloudy and unpredictable, we can better prepare ourselves for success, and quickly overcome the shock factor when everything abruptly changes. Being ready for sudden change – and having a plan of action – puts you ahead of nearly everyone. 

2.       Super Normal Professional See Limitless Opportunity

Don’t let the state of our world get you down. Instead, get up, make a plan and get going. Be positive.

Changemakers see opportunity in crisis. They understand that the dynamics have completely changed, and there are limitless opportunities to improve your reputation, get noticed, move up and make an impact.

We know that procurement and supply chain operations are intrinsically linked to organisational survival and success. Whether you are at the beginning of your career or leading operations for a Fortune 100, there’s a greenfield opportunity in front of you. Thriving in the Super Normal requires you to see it and take advantage.

3.       Super Normal Professionals Invest in Themselves

Warren Buffet put it best. “By far the best investment you can make is in yourself.” 

This advice isn’t relatively new or unique, but it’s a game-changer for those that take advantage. What skills do you need to thrive in our Super Normal? What about the Next Normal? How will your day-to-day job change in the next 5 years?

Our recent survey found that the majority of organisations (93%) are investing big to propel procurement forward. The top three investments they are making in procurement are in data and analytics, talent development and technology.

Soft skills matter as well. According to LinkedIn, the top five most in-demand skills in 2020 are “creativity, collaboration, persuasion, adaptability, and emotional intelligence—all skills that demonstrate how we work with others and bring new ideas to the table.” 

If your organisation isn’t providing the necessary training or experience you need, make the time to get it yourself. The pandemic has accelerated the global tech transformation and heightened the need for modern skills, expertise and experiences, like analytics, digitisation, emerging technology, emotional intelligence and leadership. Super Normal leaders see where the world is going and stay ahead of the transformation by investing in themselves and their teams. 

4.       Supper Normal Leaders See the Big Picture and Know How to Focus

Where is your organisation going and what does it need right now? Super Normal leaders are always in the know, and when they aren’t, they are confident and proactive enough to request an immediate alignment meeting with leadership.

We only have so much time and resources and need to spend them where it counts. Today, for most procurement and supply chain teams, that means cost savings, supply chain risk and business continuity. But your actual goals and priorities may be different and could change suddenly. Going above and beyond your day-to-day supply chain and procurement operations to stay fresh on the strategic priorities of your organisation is paramount to success. Similarly, bringing modern and fresh thinking to the table that breaks through traditional results and delivers compounding value on key projects, like cost containment and savings, will make C-suite stop and take notice. 

5.       Super Normal Leaders Have a Heart

They put people first – and recognise that success starts with teamwork and human connection. They recognise that vulnerability – financial, mental, physical and social – is very real, and that people need time, space and support during difficult times. They know that talent wins 100% of the time.

While putting people first may sound simple, that’s not always the case, especially amidst the chaotic nature of our world today. Super Normal leaders are intentional about it every single day, with their decisions, actions, engagements and relationships. People are core to what they do – and why they succeed. 

You Have What It Takes: Embrace the Super Normal 

Life is chaotic and stressful. And you have everything you need to be successful now and in the future. Everyone’s Super Normal will look a little different – but if we continue to learn from each other, share our successes and look ahead, we’ll all be more than alright.

And finally, wherever this Super Normal takes us, always remember to make time for yourself and your family. Find something you love and embrace it. We are all tired, stressed and anxious. Happiness helps solve all three. If you are looking for more inspiration, check out what your peers say it means to be Super Normal.

How Dawn Tiura Built The Largest Sourcing Network In The US

If you’re an ambitious procurement or supply chain professional, there’s plenty to learn from Dawn Tiura about the power of networking, and upskilling yourself in the important areas of third party risk.


“You’ve got to meet Dawn,” said Gabe Perez from Coupa.

“You’ve got to meet Dawn,” said Chris Sawchuk from Hackett Group.

“You’ve got to meet Dawn,” said Alpar Kambar from Denali.

So, I said to myself – “I’ve really got to meet Dawn!”

There’s literally only a handful of women in the world who own and operate their own businesses serving the profession.

So… it was great to finalIy meet the much-admired Dawn a few years ago at the LevaData conference in San Francisco. Finally – I had found someone out there just like me – someone who also believed in the power of bringing our profession together.

Dawn and I are still really getting to know each other. We next met up at the SAP Ariba conference in Austin. Then she did a fantastic job keynoting at our Big Ideas Summit in Chicago last year (on third party risk…which is her specialty and very timely for what we were about to experience this year!).

SIG is a powerhouse. They dominate the U.S. Their member companies are a who’s who of Fortune 500 and Global 1000 companies who get together frequently. Their upcoming Global Executive Summit will feature insights from senior executives and disruptive thought leaders; they host weekly webinars, one-day events and CPO Roundtables; drive thought leadership in Future of Sourcing; and they have a training and certification program for sourcing, procurement and risk professionals.     

So, I wanted to make sure the Procurious community knows all about Dawn and her amazing company….so I asked for this interview..

When you started SIG, what was your vision? Were you trying to build the largest sourcing network in the U.S.? 

I actually am not the founder of Sourcing Industry Group (SIG). I took over the leadership in 2007 and my original intent was to remake it from a “good ole boys” network into the leading organization for sourcing, procurement and outsourcing professionals. My vision was to be a disrupter to the industry, pushing the latest ideas to members and to help elevate the role of the CPO.

Has your vision become a reality? Has SIG become what you thought it would be?

Yes and we’re making progress everyday as we continue pushing the envelope to adopt emerging technologies and find new ways to streamline the process of procurement. Over the last 10 years, SIG has become the largest network for sourcing professionals in the world. But more important than the size of our membership is the collegial nature and information sharing that we have fostered. SIG brings people together to share best practices and next practices in a non-commercial manner that creates success.

What have been your secrets to success?  And what advice would you give to others thinking about starting their own entrepreneurial venture?  

The secret to my success is surrounding myself with people who are smarter than me. They are my inspiration and they never say “no” to my new ideas. I also pride myself with only hiring people who volunteer in some capacity in their personal lives. For me, I think that people who give back to their local community or for a nonprofit says a lot to me about their character. We also allow people to take time off work, with pay, to support their own causes. The people I have recruited to the team often come from my volunteer work where I’ve seen their work ethic up close and personal. 

Why do you think people join networks? And, in particular, your network, SIG?  

The reason people join is most likely not the reason they ultimately stay.  People join SIG to network, share best practices and to become better educated. They stay largely due to the network itself and the fact we are non-commercial. People enjoy the camaraderie, the fun we have and most importantly how we lift one another up and help each other.  Our members are all great people, they participate fully and care for one another.  

Why did you decide to have both buyers and suppliers in your network? 

This was easy for me, I came from the supplier side, having consulted in sourcing for more than a decade. I know first hand that consultants/suppliers/advisors/tech companies each work with hundreds of clients and therefore bring a wealth of knowledge to the table. I encourage this interaction and these relationships. 

I really admire how you have very clear guidelines on how your suppliers, vendors and sponsors can interact with your members. What are some of those guidelines and why did you put them in place?  

I am proud of our Provider Code of Conduct and it is critical that providers acknowledge the fact that our practitioners are very sophisticated and won’t buy from you if you are a “slick salesperson.” They engage you because you have the right thought leadership that strikes a chord, or the right technology at the time they are ready to investigate it. They don’t buy from brochures or from being “sold to.”  If you are found to be actively selling, you are given one warning and the second time your membership is revoked and you have to sit out of SIG for two years. At that time we will allow you to come back into the SIG Tribe.  

When we caught up last year at the Big Ideas Summit in Chicago (by the way, you did an amazing job talking about Third Party Risk!  Very timely!), I really learnt how busy your life is – running your business, organising your major events, hosting webinars, mentoring young people….you fit a lot into your day, week, month, year!  What’s your advice to others who are trying to manage and prioritise their time better? 

I feel best when I have a lot of projects to take on, from building curriculum, to mentoring and parenting. The more I have to do, the more deadlines I have, it motivates me. Without deadlines, I would achieve very little. For example, you didn’t ask me for a deadline for this article, so it didn’t get done for over a month. I set my priorities by keeping them balanced. I must do something to help someone else every day, that is one thing that I believe in. Whether it is donating time or money to a good cause, shopping for an elderly neighbor or mentoring youth, we have an opportunity to be kind and to give back every single day and we should take advantage of that opportunity. 

What’s your advice to ambitious professionals out there? What should they be doing right now to make sure they succeed into the future? 

Learn to open your mouth wider so you can drink more easily from the fire hose, because technology is going to change at an increasing rate of acceleration. Accept it, embrace it and never fight it. Also, bring your authentic self to your role, whatever it is. You can’t be successful without living your own truth. Don’t try and be what someone else wants you to be, be who you are and who you want to become. Err on the side of kindness always. 

Most importantly, how are you personally right now? Florida is being hit hard by COVID. Are you and your family OK? What’s happening in Florida right now? 

Thank you for asking, we are doing well. I have a high school senior in virtual school and kids in college all working from their apartments. 

Summary

Wow!  Whichever way you look at this, Dawn is an inspiration.

If you’re a budding entrepreneur out there, you have hopefully been inspired by Dawn’s vision and determination.

If you’re an ambitious procurement or supply chain professional, there’s lessons to be learned in the power of networking and upskilling yourself in the important areas of third party risk.

If you’re a supplier, looking to truly partner with our profession, SIG provides a trusted and valuable conduit into the important buying community.

What did you learn from today’s story? Let us know.

Disrupt – Or Be Disrupted

We have to try to engage proactively with a changing business world, no matter how impossible it seems to predict what is coming.


‘It’s difficult to make predictions – especially about the future,’ as an old Danish proverb observes. 

The saying – sometimes attributed to physicist Niels Bohr – makes perfect sense. Predictions are hostages to fortune, and it’s not difficult to think of a number of well-known forecasts that turned out to be embarrassingly wide of the mark. 

Thomas Watson, then president of IBM, wrote in 1943 that he saw a world market for ‘maybe five computers’. Steve Ballmer, then the chief executive of Microsoft, said in 2007 that there was ‘no chance’ of the newly launched iPhone gaining any significant market share. Telephones were just a toy that would never catch on, wrote the president of Western Union, William Orton, in 1876, when inventor Alexander Graham Bell offered to sell him the patent. 

And so on, and so on. 

Nevertheless, not everyone has the luxury of being able to avoid being held to account. Especially those of us who run businesses or supply chains.

For us, we have to make predictions: it’s our job. And right now, we’re facing a choice – disrupt or be disrupted. Here’s why. 

Why do we need to make future predictions? 

A business or supply chain that is ill-prepared for the future is a business or supply chain that may not have much of a future. 

In the current business environment, we all need to make predictions about the future. But even so, making predictions about disruptive trends is excruciatingly difficult.

While it’s easy to laugh at how wrong predictions can be, at the time those predictions may well have appeared to be sober, hard-nosed assessments. 

All of which is worth bearing in mind as businesses and supply chains around the world begin figuring out what to do about 2 key disruptive trends that are competing for our attention. 

1. The sustainability agenda

From the fuel that powers our trucks, ships, trains, and aircraft, to the paper and plastics that make up our packaging, logistics is very much in the crosshairs of sustainability activists’ sights. 

We all need to have a strong sustainability agenda. Ignoring the issue is not an option. But right now it’s difficult to see what options we have. 

A few years ago, the focus was on ‘peak oil’ and running out of the stuff. Now investors are alarmed at the prospect of so-called ‘stranded energy assets’ – reserves of fossil fuels that may never be extracted because of their impact on climate change. 

2. Geopolitical uncertainty and the perils of a hyperconnected world

After sustainability, the next disruption that will affect all of us is ongoing geopolitical uncertainty. President Trump’s trade wars. Brexit. China and its ‘Belt and Road’ strategy. Seemingly perennial Middle East tensions. These are not comfortable times in which to be determining supply-chain strategies. 

Nor is it solely geopolitical uncertainty that impacts supply chains. From the Japanese earthquake and tsunami of 2011 to the more recent coronavirus outbreak, again and again we see what an interconnected world we live in. 

Within days, an event on the other side of the world can disrupt supply chains thousands of miles away. Supposedly resilient, they turn out to be more fragile than anyone imagined. 

Roll it all together, and it is increasingly difficult to avoid the suspicion that present approaches to supply chain management aren’t as effective as we practitioners fondly imagine. 

What can we do? 

In short, we need something else – not least a change of mindset. Because transformation is only possible when we are willing and able to let go of our old patterns, old models – and old concepts of what constitutes supply chain management. 

Put another way, the biggest risk that businesses may face today is the risk of doing nothing at all. It is not an exaggeration to say that businesses can choose to disrupt, or to be disrupted. 

As I point out to my students, Uber is the world’s biggest taxi company, but doesn’t own a single taxi cab. Airbnb and Booking.com are the world’s largest hoteliers, but don’t possess any hotels. And after being in business for a quarter of a century, Amazon – the world’s biggest bookseller – is only now experimenting with physical book shops. 

It’s time for something more radical 

Even some of the world’s leading thinkers on business and supply chains believe we need something radical, and we need it now.

In late 2018, for instance, influential management thinker John Elkington took to the pages of the Harvard Business Review to officially ‘recall’ – i.e. take back – a concept that he had first launched 25 years ago: the Triple Bottom Line.

Simply put, he argued, the Triple Bottom Line was no longer enough. Something else was needed. Something bolder. 

To those in the know, Elkington’s admission was startling. The Triple Bottom Line had an enormous impact on businesses’ and supply chains’ approach to corporate and social responsibility. It replaced a single-minded focus on profitability with a broader focus on social, environmental and economic impact – the Triple Bottom Line. 

There’s no doubt that it’s made a big difference. But it isn’t enough, Elkington acknowledged. Too many businesses see it as a trade-off mechanism, rather than as an absolute test. 

Something else is required if businesses are to really ‘shift the needle’. Right now, though, we don’t yet know what that something else could be. 

But one thing seems certain: despite Donald Trump’s dismissive remarks at Davos this year, Extinction Rebellion and Greta Thunberg won’t let up on the pressure to find it. 

Supply chains need a radical rethink, as well 

Another concept that may be ripe for re-evaluation is the very notion of the supply chain. Look at many real-world supply chains, and it is difficult to escape the conclusion that ‘chain’ is too mechanistic a description of fulfilment processes – too linear, too unidirectional, too evocative of inflexible conveyor belts. 

In industry after industry, real life doesn’t work like that any more, if indeed it ever did. 

What can we replace the term ‘supply chain’ with? I rather like the suggestion that ‘supply web’ would be a better term.

It is closer to what many of us deal with in practice. It brings with it values of flexibility and resilience, as well as facilitating two-way flows and multiple sourcing connections. 

Does such relabelling help? Shakespeare, after all, aptly observed that a rose by any other name would smell as sweet. 

But with all due to respect to the Bard, I disagree. We need that mindset change. We need to let go of our old patterns and old models – and embrace new thinking.

As practitioners, ‘supply chains’ imprison our thinking, locking us into paradigms that constrain us. ‘Supply webs’ open us up to new possibilities, new paradigms and potentially new and different processes. 

And with the challenges the world faces, those new possibilities, paradigms and processes have never been more needed.

Disrupt – or be disrupted. Be an Uber, Airbnb or an Amazon. And not a moribund traditionalist. 

Could Blockchain And AI Help Procurement Change The World?

At last month’s London CPO Roundtable we explored how to enable smarter procurement, using blockchain for social good and anticipating disruptive forces…

What are the obstacles to more informed, strategic decision-making in procurement?

How can procurement pros use blockchain for social good to change the world?

What disruptive forces are heading your way in 2019 that could impact your supply chain?

These are just some of the questions we discussed when we gathered a dozen procurement leaders in London last month for a CPO roundtable sponsored by Ivalua.

Enabling smarter procurement

A new study by Forrester, commissioned by Ivalua, surveyed 433 procurement, supply chain and finance leaders across Europe and North America. The results, which Alex Saric, CMO Ivalua took us through at the roundtable, provide a practical look at how to enable smarter procurement.

The obstacles to more informed, strategic decision-making are quite consistent. The study, entitled “Enabling Smarter Procurement” found three common issues

  1. Firstly, despite efforts at automating processes, too much capacity is still consumed by operational or manual activities. Teams must free capacity to work on new projects, conduct analysis and plan, but are struggling to do so.
  2.  Secondly, leaders struggle to access relevant insights when and where they are needed. The volume of information now available is of little help if not digestible, simply leading to information overload.
  3. Compounding this, respondents also cited poor data quality as a key challenge. Duplicate supplier records, inaccurate data and poor integration between systems all were cited as sources of data quality issues.

A common viewpoint today is that Artificial Intelligence (AI) is the answer, the magical light at the end of a dark tunnel that will improve automation and give us the magical answers we need, when we need them. But what isn’t discussed is ensuring you have a solid data layer that feeds the intelligence layer, where the algorithms lie and all the talk lies.

Organisations must implement AI in conjunction with cleaning up their data, rather than using poor data quality as an excuse for inaction.

Empowering procurement to make more informed, strategic decisions is no longer an option. There is simply no other way to effectively meet the broad set of objectives now expected.

Using blockchain for social good

Olinga Ta’eed, Director, Centre for Citizenship, Enterprise and Governance became the world’s first Professor in Blockchain and Social Enterprise at Birmingham University in 2018. He led a discussion surrounding his research into using blockchain for social good, which focuses on studies into methods to alleviate problems and provide significant intervention into society.

“No one grows up saying mummy I’d like to be a CPO,” he begins. “And that’s because we value non-financial value. We grow up wanting to do things that have value in society – things to do with life and sentiment, we want to change the world.”

“In institutional life we often succeed in stripping that out – any kind of intangible value. But this attitude doesn’t occur in real life, only within institutions.”

In our own lives we use our personal values to procure things “I’d like to have products that are aligned to my values, I’ll use this coffee shop not that one, I’ll eat this ice cream not one from that place, price is this important to me but slavery is this important. We talk about our feelings”

Blockchain could enable procurement to change the world by bringing our values back into the workplace.

“My honest belief is that procurement will be the single largest instrument in the world to change the world – children will say they want to be a procurement officer because they will want to change the values of the world – what we buy, what we eat, what we sell, the values by which we transact. Blockchain and AI will change our processes dramatically.”

Preparing for the disruptive forces heading your way

Given the rate at which technology is evolving and how global events are impacting the world, it is increasingly difficult for companies to keep up without considering risk in real-time.

Intelligence about the world we live in drives business operations and the better informed we are the easier it is to drive progress. Mark Joyce, Head of Analysis, Sibylline revealed the most disruptive forces headed our way in 2019.

The four baseline trends include:

  1. Geopolitical reconfiguration – Chinese growth and assertiveness and a US retreat from global leadership
  2. Deadly conflict on the rise – Total conflict deaths fell enormously from mid-nineties up until the last decade. Since 2012 they’ve sparked to the highest since 1990s. Conflict deaths are concentrated in North Africa, Middle East, Syria Libya and Yemen. Middle Eastern countries have accounted for 70 per cent of battle deaths over the last five years.
  3. Disruptive populism
  4. Weakening of frameworks – including nuclear weapon control

These trends impact procurement in four ways:

  1. Strategic uncertainty – Impacting high-level decision making; blurred lines between politics and business -and criminality
  2. Tactical challenges – Geographical, technological, legal and reputational
  3. Cross-functional working – Procurement, legal, communications, HR and IT are increasingly stakeholders in political and security risk information
  4. Decision advantage – The importance of precise, actionable information and analysis to avoid paralysis and enable business in an uncertain external environment

Adventuring against adversity 

Kris King, Ultra-runner and adventurer extraordinaire specialises in the safe delivery of life-changing challenges and expeditions in the world’s most remote and demanding areas.

He inspired our roundtable attendees with his personal story describing how his best friend’s dad was diagnosed with Huntington’s disease and his commitment to raising as much money as he could for medical research.

Kris become the youngest gym owner in the country, started running marathons, which turned into running ultra-marathons, which turned into extreme adventuring across the world, and started to see what a difference he could make.

In his own words “adventuring doesn’t pay well” so he found a way to monetise it – designing extreme adventures for clients, as well as for himself. Whether it’s expeditions in the Arctic Circle and Namibia, driving over a frozen lake with Daniel Craig, catapulting David Hasselhoff or bungee jumping a car of a cliff – nothing seems to be out of reach.

As Kris pointed out “it’s not about skill it’s about how stubborn you are.”

But wait, the blockchain action doesn’t stop here! Join us on October 15 with blockchain experts Shari Diaz, Innovation Strategy and Operations Program Director, IBM Watson Supply Chain and Professor Olinga Ta’eed, Director of the Centre for Citizenship, Enterprise and Governance in this webinar brought to you by IBM and Procurious. Click here to register for Blockchain: Supply Chain’s 21st Century Truthsayer.

12,000 Jobs Gone: Coal Supply Chain Hit Hard

Businesses that supply equipment to coal and gas power plants are cutting costs dramatically in response to the rise of renewable energy. 

General Electric’s new CEO, John Flannery, is cutting 12,000 jobs in its electrical power division. The blood-letting comes in response to GE’s 44% plunge in the Dow this year, and an ongoing battle against overcapacity in an increasingly disrupted industry.

GE’s electrical power division makes turbines and generators used in coal and gas-fired plants, which are estimated to provide around one third of electricity produced worldwide. The company has reported that disruption  in the industry has reduced the need for its products by 40%.

The power division’s European headcount will be reduced by approximately 18%, including 1,100 jobs in the UK and 1,400 in Switzerland.

GE’s problems have been exacerbated by the previous CEO’s gamble last year with an ill-fated $10bn acquisition of Alstom’s power and grid businesses.

German industrial conglomerate Siemens has also announced plans to cut 6,900 jobs, predominantly in its power division. The company expects to sell only 110 large gas turbines for power generation, down from its global production capacity of about 400 a year.

The International Energy Agency reports that renewables currently generate 24% of power worldwide, and expects this figure to grow to 40%  by 2040. GE’s response is not only to shrink its power business, but to invest in renewables, selling about $9 billion in wind turbines last year.

In other news this week:

Infrastructure boom leads to skills shortage

  • The Australian state of Victoria is currently investing in an unprecedented number of infrastructure projects, leading to a shortage of specialist and entry-level skills across the state and related cost increases.
  • Shortages include specialist rail skills, project management, finishing trades, commercial advisory skills, industry analysis, systems engineering and tunnelling.
  • Increased demand for raw materials, quarry materials, cement and sand has also resulted in price pressures in the extractive industries. A similar skills shortage occurred in Western Australia’s mining boom.

Best places to work in 2018

  • Glassdoor has announced its 100 best places to work for 2018, with Facebook taking the #1 spot for the third time.
  • Bain & Company and Boston Consulting Group took out the 2nd and 3rd places.
  • Only three companies have remained winners for 10 consecutive years: Bain & Company, Google, and Apple.

Access the full list here.

Assessing the Impact of Hurricane Harvey

A special report from ISM on the impacts of Hurricane Harvey has found there will be ongoing challenges around pricing, speed of delivery and certain commodities due to the storm’s destructive path through Houston, Texas.  

Facts, not fear. Back in July 2016, ISM’s CEO Tom Derry told Procurious why his organisation had put out a special report on the impact of Brexit in the U.S. “…There has been an enormous amount of speculation … fed by a sense of unease and uncertainty. ISM was in a position to gather real data and put the information out there so businesses can make informed decisions based on facts, rather than fear, concern or emotion.”

ISM has once again demonstrated leadership when disruption hits by producing a special paper addressing the potential economic impact of Hurricane Harvey, replacing existing speculation with data-based information to help affected business plan their response and recovery.

Houston, Texas, is home to the sixth largest import terminal in the world and a nexus for shipping lanes in the gulf coast. Strong economic linkages between the gulf coast and the U.S. as a whole mean that Harvey’s impact will extend far beyond the storm-hit area.

ISM’s survey of purchasing and supply executives nationally (not just in the affected area) found that the biggest challenges are expected with pricing, supplier deliveries and commodities such as fuel and plastics. Encouragingly, the data indicates that the effect on production, new orders and employment will be minimal.

Most impacted metrics: Prices and speed of delivery

  • Two-thirds (67%) of responding supply managers believe input materials pricing will be negatively impacted to some degree over the next three months.
  • 27% anticipate input materials prices will be negatively or very negatively impacted.
  • Over half (56%) feel supplier deliveries will be negatively impacted to some degree over the next three months.
  • 19% expect deliveries to be negatively or very negatively impacted.

Moderately impacted: Production, new orders and inventory level

  • A majority feel Harvey’s impact on production, new orders and inventory will be neither positive nor negative.
  • One in five are concerned about somewhat negative impacts, but only 1 in 10 foresee more negative impacts in the next three months.

Low impact: Employment

The good news is that business will not be laying off staff as a result of the Hurricane’s impact. Over 80% of respondents feel that employment will be neither positively nor negatively impacted by Harvey.

Commodities potentially in short supply

With the Houston area known for its fuel and petrochemical production, the following commodities could be in short supply for the next three months: fuel; plastic resins; chemicals; electronic components; feedstocks, chemicals (raw); gasoline; polypropylene; resin-based products; building materials; electrical components; LDPE; plasticizer; caustic soda; ethylene; HDPE; LLDPE; methyl methacrylate; petroleum based products; and isocyanate. 27 of 36 industries report that they expect to be impact by potential shortages of the above commodities.


My Brilliant Procurement Career Survey: we have a winner!

  • Over 500 procurement professionals took Procurious’ survey on career management in the profession.
  • Congratulations to our prize-winner Steven Reddish, a commercial supply coordinator based in Waikato, New Zealand. Enjoy your quadcopter!
  • Findings from the report will be published here on Procurious in mid-October.