Tag Archives: ISM

View from the top: Three Ways Procurement Must Transform

ISM’s top brass called in the media to map out the transformation of the profession into a tech-focused intelligence agency that will attract the very best talent.

Tom Derry (ISM CEO), Hans Melotte (Starbucks EVP Supply Chain & ISM Board Chairman) and Kristopher Pinnow (CPO B/E Aerospace & ISM Board Member) sat down with the media at #ISM2017 to answer some burning questions. With Derry providing the context while Melotte and Pinnow added their views as practitioners, three key themes soon emerged.

1. Intelligence transformation

“Times are uncertain, and business hates uncertainty”. Tom Derry sets the scene for #ISM2017 by highlighting the turbulent geopolitical situation that’s impacting the profession worldwide. The presence of two world leaders as conference keynotes – Colin Powell and David Cameron – underscores the anxiety with which many professionals are watching global events unfold.

Derry’s message is that supply managers should cultivate a sharp intellectual curiosity to not only inform themselves of disruptive events, but to position the function as a source of intelligence within the organisation. Importantly, we have an opportunity to be the voice of calm and reassurance, hosing down anxiety with facts, rather than fear.

ISM’s leadership in this area was demonstrated last year when it released a supplementary Report on Business, focusing specifically on the UK’s shock Brexit Referendum’s effect on US business. The decision was prompted by a flood of enquires from US business and media representatives about whether the data for the influential report would reflect the fallout from Brexit. Derry told Procurious at the time that 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.”

The panellists agreed that while it hasn’t always been the case, transforming into a source of intelligence for the business is something to which the profession needs to aspire. Melotte stresses that procurement needs to have all of its data intelligence in real time. “We’re digital natives,” he says. “We book our food online, we track our spouses’ flights – but the workplace is often more of an analogue environment. We need to be in the moment, preempting issues before they arrive.”

2. Technological transformation

Derry warns that if you’re the steward of a process, you’re about to lose your job when it becomes automated. But it’s not all bad news: “New types of jobs will exist in the future, with new skills required to do those jobs. The impacts of technology also have the potential to make us better at what we do, such as data analysis and being more efficient with distribution.”

Melotte tells the room that technology is critically important for our jobs and our companies, yet we’re at risk of underestimating its impact and potential. He notes that among the conference’s 2500 attendees, some will still be associating technology with automating source-to-pay processes and other fundamentals. “Fortunately, there’s also a lot of thought leadership at this conference with leaders who are imagining the opportunities for technologies within the supply chain – what we do, and how we do things,” he says.

“Imagine the potential that cognitive learning, artificial intelligence and predicative analytics will have on how we forecast commodities, demand and consumer behaviour, or how we bring insights back to our business around supplier patterns.” Melotte says artificial intelligence is just one example of the big transformation currently taking place in the profession, with an increase in speed being a key benefit. “We’ll see faster speed to market, and pilot projects that you can turn around in only three months.”

3. Talent transformation

“There’s no question there’s a demographic bump,” says Derry. The “birth dearth” between the baby boomer generation and millennials means that there aren’t enough members of Generation X to step into roles as their predecessors retire. “I’d argue that those smart young people, who are digital natives, do have the tools and the mindset to adapt rapidly,” Derry says. “You’re hiring for that kind of talent all the time.”

Pinnow talks about the importance of developing and sharpening intellectual curiosity in the talent pipeline, and says there’s a lot that established professionals can learn from new talent. “You have to recognise that you don’t know everything. You have to encourage people from a talent management perspective [to teach you new concepts].”

Melotte says that having a balance of skills in your talent pool is crucial. “In tomorrow’s world, we all have to make sure there’s a certain percentage of our teams that are data scientists; who are deeply versed in analytics to give us insights. [We need to] hire and seek out this type, migrating the competency pool to ensure there’s a balance between strategic sourcing and data scientists.”

Colin Powell Talks Security, Trade and Trump at #ISM2017

While many attendees at #ISM2017 were waiting to hear what General Colin Powell would say about President Trump, the former Secretary of State also provided some valuable insights into supply management.

“An army marches on its stomach,” says Powell to a packed ballroom at #ISM2017. “It’s the logistics that allows you to face an enemy.”

Powell draws on his experience in the Vietnamese jungle 55 years ago to illustrate how dramatically the military supply chain has improved. “We just didn’t have efficient supply systems then.” The young Powell was eating plain rice 21 times a fortnight with the occasional slaughtered pig thrown in, because the supply chopper would only come once every two weeks.

Fast-forward to Operation Desert Shield and Desert Storm, the biggest military operation since the Normandy landing. “We realised that it was logistics that would matter. We had to change some rules of behaviour.” Powell talks about some of the creative solutions to logistical challenges in the Gulf, including sourcing trucks from Egypt to move American tanks, early adoption of bar-code tech and using GPS to track those trucks (“we cleaned out every Radio Shack in America”), water scarcity and a vast amount of mail for 425,000 troops that had to be flown in: “I had to get three extra C5A’s, just for the mail.”

Powell believes there’s a lot the military and commercial worlds can learn from each other. “Both sides have to learn what’s going on the world today in terms of speed, service, quality of product and keeping up with the information revolution.” 

On Global Security

“America is not facing existential risk to our existence as it was in the Cold War,” says Powell. “There are problems that are real, but they’re overplayed and blown up.”

Powell gives North Korea as an example. After noting the poor state of their missile technology, he says there simply isn’t going to be an attack. “Give me a strategic reason why North Korea would shoot a missile at Honolulu or San Francisco. What would that achieve apart from ensuring the destruction [of Pyongyang] the following day? All that counts there is the preservation of the regime.”

Similarly, Powell believes concerns around China are overblown. “China won’t be an enemy. They won’t block the routes … It’s a nation that’s extremely important on the world stage. They want to create more influence around the world, [and they’re doing so by] building train systems in Africa, Latin America, the third world. They’re building because they want influence.”

Powell also points out that China is holding a trillion dollars of US paper. “It’s a complex country, but we have to welcome their products and an open, fair trading relationship. China has brought 400 million people out of poverty, not by raising taxes or invading people – they did it by selling stuff. Predictably, as people became more wealthy, they want more. Chinese labour costs will rise.”

On Trump

“I think what Mr Trump has to do now is reverse some of the campaign promises he made that frankly could never have been implemented, such as declaring China a currency manipulator,” says Powell, noting that Trump is maturing in his understanding of these issues.

“It’s in our interest to see him do well. Countries around the world [are] waiting for stability and clarity,  and for these campaign promises to settle down. The rest of the world wants to see coherence and consistency over time in what we say and do.”

Responding to a question about the political and economic impacts of withdrawing from the TPP, Powell says it was an unfortunate decision. “It was in our interest and would have benefited us over time.”

Powell says that the real beneficiaries now will be the Chinese, who are putting together their own trade agreement. “All our [trade] allies are joining China, and we’re standing aside.”

“The world is globalised. I’ve watched our factories going up in China – that’s just the nature of it. Success [can be had] by playing in that game, not wishing it would go away.” Speaking of globalisation in general and NAFTA in particular, Powell says that being mad about problems with trade doesn’t get you anywhere. “Fix it, but don’t throw it away.”

On Generation Next

“I have faith in the millennials and faith in the kids coming afterwards,” Powell says. “I do a lot of work with youth. I can’t change the past, I can [only] watch the present, but I can influence the future through the hearts and minds of young people.”

Take The Disney Approach To Procurement

Learn how to drive procurement change programmes like a Disney Executive.

Founder Tania Seary and the Procurious team are at Walt Disney World Florida for ISM2017. Today, she shares some timely advice on  what Procurement can learn from the famous Disney Formula.

Here’s a little-known fact – I used to work for the Walt Disney Company. Over twenty-five years ago I was a Marketing Co-ordinator in Disney’s International TV Department based in Soho Square, London.

The rest of the team (not me, unfortunately) used to travel to Cannes for the TV Festival each year to support our roll-out of Disney Clubs. It was all very glamorous (for some) and very educational for me.

In one way (at least), I was a perfect fit for a job with Disney. If you’ve ever caught one of my podcasts here on Procurious or elsewhere, you may have heard my voice.

Let’s just say it’s “unfortunate” – quite high in pitch, scratchy…not pleasant! Some of my friends at the time claimed that my role with Disney was actually as the voice-over for Minnie Mouse. Cruel, but understandable!

I learned so much during my time there, but today I want to focus on what I picked up by experiencing the Disney marketing machine first-hand. I am sure many of you have heard about “the Disney formula”, which involves a core asset (the story) being rolled out and leveraged in its many formats.

My short-hand way of summarising this phenomenally successful technique is to categorise the formula into “the book, the movie, the merchandise, the ride – and the tweet”.

Drive Procurement Change Programmes like a Disney Executive

CPOs today are paid to drive global change – but are the programmes we put in place really that effective? Deft change management is what separates the good from the great.

I want to encourage you all to take a very professional, systematic approach to driving change with this Disney-inspired formula.

The Book

At the heart of every Disney project lies the book, or the original script. For CPOs, our “book” is the business case for the change program. This proposal, or argument for action, is the foundation of your change programme that must win the endorsement of your senior leadership team. Without the business case, your campaign has no foundation and will always be on shaky ground.

My advice is to treat your “book” the same way that the world’s best authors approach their craft – write, re-write, and re-write again until you’re 100 per cent confident that you’ve created a rock-solid, engaging business case that meets your organisation’s requirements.

The Movie

Think about some of the lengthy classics that Disney has converted into film. Whether it’s The Jungle Book, The Hunchback of Notre-Dame or Treasure Island, the editors have managed to bring the story down to an average of 1.5 hours. Your “movie” is the public, dramatic expression of your story.

Not everyone will have the time, nor the interest, to read the business case for your change programme, so it’s important to condense it into a version that’s palatable for all. In the corporate world, this is often referred to as “the deck” – or even just a snappy executive summary. 

The Merchandise

Disney has always done an amazing job of licensing their characters to consumer goods companies. Procurement, on the other hand, is notoriously poor at marketing themselves internally.

I’m not suggesting that you order in a range of paperweights or mousepads to promote your change management programme, but it’s worth considering an effective logo or even a slogan that will encapsulate and amplify your message.

Why not reach out to your colleagues in marketing for their creative input? 

The Ride

When I worked at Disney all those years ago, the most profitable part of the business was their theme parks. As part of their marketing formula, amusement rides were based on Disney’s most popular movies and TV shows. But how can this be applied to your change management programme? 

Well, I once heard that if you want to get a message across to employees, you need to communicate it eleven times before it’s absorbed. Why eleven, I have no idea! This is where the ride comes in.

Once you’ve converted your “book” into a “movie”, hop on “the ride” which will repeat the same message over and over again until your program has been accepted.

It doesn’t necessarily need to follow the same track – best-practice communication involves delivering your message via multiple platforms (newsletters, emails, the company intranet, posters and social media) to keep the message fresh and engaging.

A Modern-Day Addition: The Tweet

When I was at Walt Disney, there was no social media. I’ve just checked the #Disney hashtag on Twitter and it’s incredible to see how many accounts they’re running concurrently: @Disney, @DisneyPixar, @WaltDisneyWorld, @Disney Channel, @DisneyMusic. This doesn’t even cover the individual hashtags dedicated to each new movie, along with a legion of unofficial, fan-based accounts.

Disney understands that social media is essential for getting their message to where their audience spends its time. CPOs need to take the same approach. Social media, used intelligently, is an irreplaceable tool in their global change management kit.

Yammer, Procurious and LinkedIn are just some of the many platforms that can be used to engage and influence your team to help them understand the why – and the how – of your change program.

I’ve looked to Disney for my inspiration due to having first-hand experience with their marketing techniques all those years ago in Soho. However, they certainly aren’t the only organisation with a magic formula.

If you’re considering a change management programme, save yourself some time and energy by finding your own inspirational company who demonstrate best-practice, steal their formula, and get to work!

Tania will be delivering her top tips at ISM2017 on how to Network Your Way To The Top on Tuesday May 23rd, 3.45pm. Visit Procurious in the exhibit hall at booth 439!

Who to follow on Twitter at #ISM2017

Heading to ISM2017? Digital-savvy delegates know that alongside the audible buzz of conversation heard at the event, there’s another rich dialogue taking place – on social media.

With an estimated 2,500 supply chain and procurement professionals en-route to ISM2017, there’s a lot to look forward to. From 21st to 24th May, delegates will share knowledge, learn and network with peers and industry leaders at the stunning  Disney Coronado Springs Resort in Orlando, Florida.

A stellar line up of speakers includes keynotes from former UK Prime Minster, David Cameron, Former Chairman of the Joint Chiefs of Staff, General Colin L. Powell and owner of Difference Makers Consulting, Annette Gregg.

But, before you print your tickets and hop on that plane, take a few moments to ensure you’re social-media ready. If you’re not keeping up with what’s happening online, you could be missing out on key information or opportunities!

First up, Procurious has an ISM group, which will keep you updated on all things ISM, including related articles and updates from the event itself.

Twitter has already seen a buzz of activity around the official event hashtag, #ISM2017. If you’d like to keep up to date with all of the online chatter but are struggling to know where to begin, this handy guide will get you off to a flying start.

And remember, even if you’re unable to attend the event in person, these social media channels are a fantastically convenient way for you to engage with and learn from some of the event’s key discussions.

Here are our top recommendations of people to follow on Twitter for ISM2017:

  1. Institute of Supply Management

    Let’s start with the obvious. There’s a number of key ISM Twitter accounts to follow via:

ISM’s official account: @ISM 

ISM’S official magazine account: @ISM_Magazine  (And a small heads up – The May issue of the magazine will be in your conference tote bag) 

ISM’s Chief Content and Engagement Officer, M.L. Peck: @MaryLuePeck She’s the brains behind a lot of the ISM initiatives you’ll see launched during the conference. She’s also a very strong advocate for women in procurement. 

2. Procurious

You can bet that our representatives from team Procurious will be out in full force throughout the conference.

Procurious Founder and CEO Tania Seary will be delivering her top tips on how to Network Your Way To The Top on Tuesday May 23rd, 3.45pm. And Hugo Britt, Procurious’ Content Director will be blogging and tweeting from some of the top sessions so both those in attendance and the wider procurement community can stay  informed.

When we’re not blogging, you’ll be able to find us in the exhibit hall at booth 439; we’d love for you to come and meet us!

Follow us on Twitter via: 

Procurious’ official account: @Procurious_

Tania Seary: @TaniaSeary

Hugo Britt: @HugoBritt81

3. Spend Matters

Spend Matters will be releasing the ‘50 Providers to Watch’ and ‘50 Providers to Know’ lists for 2017 at ISM2017. Besides highlighting some of the best in class procurement providers, they will also place a spotlight on relative (and promising) newcomers in the space.

Follow Spend Matters via @spendmatters 

4.  MFG Talk Radio

Instantly recognisable in their bright yellow jackets, the team at Manufacturing Talk Radio are the voice of manufacturing globally. Their live radio show broadcasts online to listeners all over the world in all manufacturing industries.

They’ll be conducting interviews with some of the best and brightest minds in procurement and supply chain to hear their thoughts on the current state of affairs and where the industry is going to go from here.

Follow MFG Talk Radio via @MFGTalkRadio

5. Lara Nichols,  SVP Head of Procurement NFP

Lara is Chair of the ISM2017 Conference Leadership Committee and co-leads the Bottom Line Learning Track.

Lara will be presenting a session at ISM2017 entitled Are Your Contracts Doing Their Job? where she  will be joined by Tim Robb, EVP General Counsel, NFP.

Last week Procurious caught up with Lara who gave some excellent advice on how to get the most out of ISM2017, revealed what she’s most looking forward to and explained how to not Bore the Board!

Follow her via: @LaraNichols 

6. Brendan O’Connell, Director Design, SEO & Social, ThomasNet

Brendan will be at Booth 526 with the ThomasNet team supplying Supplier Risk and Evaluation Reports. He’s very active on Twitter and sure to keep you up to date on everything that’s happening in the exhibit hall!

Follow Brendan via: @BrendanOConnel

 7. Daniel Perry, Senior Account Executive, EcoVadis

Daniel will be representing Ecovadis in a panel discussion on Sunday 21st May, titled Do you Have a 360 Degree View of your Suppliers?  In his own words, Daniel wants to “save the world by improving the sustainability of global supply-chains”.

Follow Daniel via @DanielRossPerry

Have You Got The Grit Required To Be A CPO?

When your supply chain is in daily danger of being rocked by disruptive events, it takes grit, determination and resilience to remain proactive.     

Procurious asked straight-talking Zimmer Biomet VP of Global Sourcing & Instruments, Howard Levy, for his thoughts on the top three attributes required by the CPO of the future. His answer? Resilience, results-orientation and flexibility.

Remain calm and set an example

“Being a CPO isn’t for everybody. Sometimes, people spend time in a sourcing leadership role and decide it simply isn’t worth the stress. Resilience can be the factor that separates the people who really want to be a leader from the rest.” Levy points to the increasing “churn” of CPOs in a number of major global companies as evidence of the pressures of the role.

How do CPOs cope when things go wrong? “Resilience is the key. There are always going to be challenges and supply chain issues coming up. CPOs need to be very confident in their ability to manage risks globally, and put in place proactive strategies that will reduce the overall risk, such as compliance and single source risk reduction initiatives.”

“Dealing with tsunami-type issues on a day-to-day basis requires a high-level ability to remain calm and at the same time urgently drive progress.  It is like running a marathon, but not knowing what is around the next corner.  So the leadership team must have the right expertise, customer service orientation and set the right tone by demonstrating results orientation, flexibility and resilience.”

Levy comments that the procurement team has an opportunity to set the example of remaining calm and moving forward, even when unpredictable events come up across your global supply chain. “It is challenging to stay proactive and productive. Ask yourself if you and your team have the right level of grit and the right systematic tools to do so.”

Be flexible

Levy notes that today, everyone expects things immediately. That’s true on an individual level where people expect instant responses to phone calls and emails, but always for large organisations that need supply chain agility to be successful. “Companies are requiring a level of flexibility and responsiveness that would have been unthinkable 10 years ago”, he says.

“Companies need someone who has flexibility in their mindset and can work strategically across their supply chain and business partners to discover what’s best for the business – not just what’s best for strategic sourcing. Flexibility is critical, given the dynamics of globalisation and the imperative to more effectively engage our suppliers in meeting the business units’ strategic needs.”

Deliver the bacon

“The days of symbolic figureheads who spend their time on the golf course are over”, says Levy. “We’ve all met some who is ‘all talk’, but talk will only take you so far. If you don’t deliver the bacon, ultimately they’ll find a new CPO who actually has the capability to deliver results.”

What’s the bacon? “Anything that enables the business to grow – adding value, generating innovation from suppliers or reducing costs. The CPO’s contribution will be a critical element of any business of the future.”

Howard Levy is a member of the ISM2017 Conference Leadership Committee, where he is responsible for the “Outside” learning track. He recommends delegates catch the following sessions:

Planning to attend ISM2017? Don’t miss out on Procurious Founder and CEO Tania Seary’s top tips on how to Network Your Way To The Top on Tuesday May 23rd, 3.45pm.

Image: True Grit (Paramount 2010)

 

Find Your Tribe On Procurious

Looking for your tribe on Procurious? Whether you want to connect with colleagues by country, category or campaign, we’ve got you covered…

At Procurious, we like to think we’re very accommodating, which is why we want to help you find your tribe. No matter where you are in the world and whatever your interests, there’s a Procurious group, or two or maybe even three, out there waiting for you.

Groups can be created based on events, industries, categories, regions, countries, organisations and interests. We’ve highlighted some of the corkers to get you started!

Bravo: Women in Procurement

Procurious launched Bravo late last year to celebrate and promote women in procurement and challenge gender discrimination in the workplace. It’s statistically proven that organisations with greater employee diversity achieve better business results and yet women still represent less than 5 per cent of CEO positions.

Gender balance within the procurement function is also skewed, particularly at the top of organisations. Together, we can change that.

This group is a much needed platform for women in procurement to communicate, share ideas and experiences,  mentor and be mentored and stand up for change

As part of the Bravo campaign, we’ve interviewed a whole host  of high profile procurement leaders about their own advice to young women starting off in Procurement, and how they’re helping females get ahead. You can find links to all of these articles via the group.
Read more about the Bravo mission here and join the group here.

Institute for Supply Management (ISM)

This group is your one-stop shop for everything ISM-related from related articles, to interviews and ISM event information.

Procurious have been lucky enough to sit down with most of this year’s THOMASNET and ISM 30 Under 30 Supply Chain Rising Stars to find out what it takes to embark on a successful procurement career. You’ll find all of the links to these interviews in the group.

At the moment, we’re welcoming the delegates who will be attending #ISM2017  in Disneyworld  May 21-24. This group is designed to  enrich the online experience for ISM2017 delegates and members who can’t make it to Florida in-person.

Join this group and share #ISM2017 news, blog articles, event photos, recommendations, network with new connections, and continue the conversations after the event!

Join the group here.

Procurement Toolkit

This group features procurement tools and templates to save you time and effort. These tools can instantly boost your productivity and help you get “unstuck.” Use them to confidently meet the challenges that come your way.

Access the documents tab within the group to download everything from Statement of Work (SoW) templates to Project Management templates orSourcing Risks and Issues Log

Join the group here.

Is Your Nation  Represented?

There’s a whole host of fantastic regional groups chattering away on Procurious that you might not know about. If you’re unsure whether your country is represented we suggest you take a look for yourself – you might be pleasantly surprised! Here are a few of the most active ones:

  • Netherlands Procurement Professionals – Join here
  • Brazilian Procurement Professionals – Join here
  • Spanish Procurement Professionals – Join here
  • Melbourne, Australia Procurement Professionals – Join here
  • Italian Procurement Professionals – Join here

And remember, you can always create your own group whether it’s distinguished via country, industry, interests, your organisation or something else entirely! Simply visit the groups tab on Procurious and click “Create Group” and you’re good to go!

What are you waiting for? Pick your tribe and get going!

Are You Considering Chasing A Procurement Career…?

…according to most of the ThomasNet and ISM 30 Under 30 Rising Stars, going after a  procurement career is a cracking idea!

Last month, THOMASNET and ISM announced the 2016-2017 winners of the 30 Under 30 Rising Supply Chain Stars award, presenting the profession with an inspirational batch of role models who are sure to attract more Millennials to the supply management profession.

Procurious has been lucky enough to sit down with many of the winners to find out what the award means to them,  how they got into procurement in the first place and the key skills needed for a procurement and supply chain career.

We were interested to find out what advice the winners had for any students contemplating a career in supply management. Answers varied wildly, covering everything from “make sure you have fun” to “ask loads of questions” and  “do the things that scare you the most!”

There was one recurrent theme, however:  The 30 Under 30 Stars are all adamant that a career in procurement and supply chain is the way to go!

Opportunities Aplenty Await You In Your Procurement Career

Jon Futryk, Senior Sourcing Specialist Crown Equipment Corporation, advises young professionals to “get involved with a supply-chain organisation in order to gain exposure to the industry”.

Andrew Bagni, Procurement Manager at General Dynamics Mission Systems, concedes, asserting “it’s a great career path for anyone, because there are so many opportunities for growth. In the US, manufacturing companies are bringing their facilities back home, a move that needs to be supplemented with a strong supply-chain team.  This is a great opportunity for young people to be involved”.

Dan Kaskinen, Strategic Sourcing Manager, Sonic Automotive, Inc., is another strong advocate for the profession: “My advice to any young person getting ready to join the workforce is that supply-management could be a great fit – I would fully recommend it.”

Benefiting From Diverse Experiences

Several of the 30 Under 30 winners make mention of the varied experiences on offer within a supply management career and advise any young professionals to make the most of these opportunities.

Barbara Noseda, Global Sourcing Associate at Johnson & Johnson explains why this is a brilliant way to diversify your skills: “At JNJ people transition between finance, operations, marketing and supply-chain. Movement between functions helps you build your knowledge and helps you to better understand your counterparts.”

Andrew Bagni agrees, explaining that “working in supply-chain offers a plethora of  opportunities. Over a lifetime of work you’ll switch between a variety of positions. Supply chain gives you the flexibility to learn about a lot of different things, very quickly, which builds a great foundation. There are so many different projects to work on and it’s possible, particularly for millennials, to move up the ladder but also to move laterally to widen your learning prospects.”

Nurturing Your Procurement Relationships

Of course, this wouldn’t be a piece about procurement careers without mentioning relationship management. In our previous article we revealed that the majority of the 30 under 30 stars hailed communication as the most important procurement skill. Now, they’re keen to remind aspiring procurement pros to make the most of their workplace relationships, whether it’s networking, managing supplier relations,  finding a mentor or doing the mentoring.

Barbara is particularly passionate about mentoring programs. “I’ve had multiple mentors. One was assigned to me at Johnson & Johnson and I was very lucky because we clicked; it just doesn’t make sense to have a mentor relationship if you don’t. I would strongly advise young professionals to find a mentor that they share the same values with. It’s always great to get an external opinion from an experienced person who went through the same thing 20 years ago”.

Barbara is now a mentee and a mentor for younger employees. “It’s great to be on the other side – I’ve also learned a lot, and got a lot, out of being a mentor.”

Jeff Novak places huge value on networking and the chance benefits it can bring: “Having the ability to meet people is so important because you never know when it’ll be someone who can help you and make a real impact. I completed an internship a while ago, and  one of my recruiters is now on an ISM regional board. I’ve been able to connect with him.”

Matthew Montana, Category Lead at Pacific Gas and Electric Company, warns young professionals to not get too caught up with technology or big data. “Don’t forget your suppliers are real people too! It’s important to develop relationships that are transparent and honest. This is the key to a successful partnership.”

More top tips for budding supply management stars

  • Develop your Cultural Intelligence (CQ)
  • Work hard and keep learning/ gaining new qualifications
  • Ask lots of questions
  • Be curious
  • Be resourceful
  • Have the patience to accept you don’t know everything, yet!

The 30 Under 30 Rising Supply Chain Stars will meet for the first time as a group at ISM2017, where ISM and THOMASNET.com will roll out the red carpet to celebrate the winners’ achievements and broadcast their success stories to other young people considering a career in supply management. 

Procurement Pay Gap Shock

The gender pay gap in procurement and supply management has INCREASED, according to US and UK survey results released this week. Have you sponsored your own internal gender salary gap analysis?

Ever considered how procurement salaries measure up with the rest of the working world?

Are you suspicious that your  procurement colleagues might be getting a better deal than you?

If you’re a woman working within procurement and supply chain, have you ever wondered how glaring the pay gap is within your industry or organisation?

This week, ISM’s Twelfth Annual Salary Survey in the US and the CIPS/Hays Salary Survey in the UK have shed some light on all of the above. Whilst there’s clearly still a very long way to go in terms of the  gender pay gap (predicted to take another 170 years to close), things are otherwise looking pretty comfortable for the procurement and supply chain profession….

ISM Salary Survey Results

Now would be a great time to convince your boss you deserve that pay rise, because the Institute for Supply Management’s (ISM) Twelfth Annual Salary Survey has been released. The results are based on data from 3808 supply management professionals who were surveyed throughout February and March 2017 to determine these average salaries:

Average Salary: $115,440

Median Salary: $90,000

Average for Men: $126, 710

Average for Women $96,990

In the US, a person working in professional, management or related occupations earns an average of $63,076 annually, which means these results are pretty good news for the supply management profession.

The figures show a 5 per cent increase in average compensation since 2015. Men’s salaries have risen by 8.2 per cent and women’s by 3 per cent.

The super bad news is that procurement appears to be taking a step backwards with regards to equal pay. In 2015 women earned 24 per cent less than men, compared with 31 per cent this year.

Download a summary of the report here.

UK Pay Gaps Revealed

It’s not just ISM’s figures proving to be disappointing in terms of gender equality.

As of last month, UK organisations employing more than 250 people are obliged to publish their gender pay gap figures.

Virgin Money disclosed that men who work at the bank earn, on average, 36 per cent more than women, asset manager, Schroders, reported a  31 per cent gap and Utility SSE a 24 per cent gap.

Some are against the new legislation arguing that the numbers don’t give a full picture and place all the blame in the hands of the employers. Others are in favour of the full disclosure and think it will spur organisations and governments to crack down harder on gender inequality.

McKinsey’s Global Institute report found that $12 trillion could be added to the Global GDP by 2025 by advancing women’s equality, which is as good a reason as any to close the gap, pronto!

UK Procurement Salaries Outstrip Average

The CIPS/Hays Salary Guide and Insights 2017 has surveyed over 4,000 procurement employers and employees to learn everything from key trends in salaries to challenges faced by employers and the top benefits desired by procurement professionals at all levels of seniority.

Whilst the average annual UK pay increase is 2.2 per cent, procurement professionals in the UK are receiving an average of 5.3 per cent more! Jacki Buist, writing on Supply Management, believes the results show a “continuing enthusiasm for the profession in all regions.”

Unpredictably,  the cause for concern falls once again in the region of gender disparity. Overall, the pay gap is reducing but at the advanced professional level, men receive an average  of £82,000, compared with a woman’s £65,700.

Registrations are open for the CIPS/Hays Procurement Salary Guide and Insights 2017 Webinar, which takes place on Thursday, 11 May 2017 13:00 GMT.

Are you surprised by the figures released in these two surveys? How do you think the UK’s new legalisation will impact the fight for equal pay? Let us know in the comments below.

In other  news this week….

Google Customers Subject to Phishing Attack

  • Google customers have been targeted with a scam that gave hackers access to the contents of emails, contact lists and online documents of victims
  • On opening a given link, Google’s login and permissions page asked users to grant the fake Docs app the ability to “read, send, delete and manage your email”
  • Google has now shut down the attack but have asked customers who received such an email to flag it to them.
  • Victims have been advised to change the passwords to their online accounts

Read more on The Telegraph

Amazon to Expand in the UK

  • Amazon is adding 400 staff to a new research and development centre focused on machine learning, in a move that reinforces the retail group’s long-term investment in the UK
  • The lab will develop  the voice-activated Echo speaker and Prime Air drones
  • By the end of this year, Amazon plans to add another 5,000 British employees to its payroll, open a new 600,000 sq ft headquarters in central London, and operate three new fulfilment centres around the country

Read more on the Financial Times

The future of Blockchain

  • Put simply,  blockchains take out the middle man (banks) and make the transfer of funds more streamlined and safe
  • The United Nations (UN) used one particular blockchain, Ethereum, to distribute funds from the World Food Program (WFP) in a pilot program earlier this year. The experiment successfully, distributed aid to 100 people in Pakistan
  • The system will now be used in Jordan to distribute funds to more than 10,000 people. It’s expected to help support 500,000 recipients by 2018

Read more on Futurism 

Rising Stars: I Fell Into Procurement (With Style!)

Did the ISM and ThomasNet 30 Under 30 Rising Stars always have a burning desire to embark on a procurement career or were they late converts? Procurious investigates….

Last month, THOMASNET and ISM announced the 2016-2017 winners of the 30 Under 30 Rising Supply Chain Stars award, presenting the profession with an inspirational batch of role models who are sure to attract more Millennials to the supply management profession.

Procurious has been lucky enough to sit down with many of the winners to find out what the award means to them, what it takes to be one of the  30 Under 30 Rising Stars and the key skills needed for a procurement and supply chain career.

But how did these rising stars first embark on their careers? Were they passionate about procurement from the offset or did a chance encounter or inspiring internship inspire them to “fall into” procurement later down the line?

Andrew Bagni, Procurement Manager at General Dynamics Mission Systems recalls that “ten years ago supply chain wasn’t as hot a topic as it is today. Specific supply chain degrees weren’t offered at my college at the time but this is now an option for students.”

Perhaps it’s not surprising, then, that 66 per cent of this year’s 30 Under 30 Stars didn’t plan a career in procurement.

The Slow Burners

Bagni applied for an internship with General Dynamics “in the hope of gaining some of the business experience l was lacking at 18 years old! I  worked the internship for the summer, which went really well and carried on throughout college whilst I was studying business management. It’s not been a lengthy career so far but the whole of my career has been spent working in supply-chain despite having fallen into it completely by chance.”

Nick Imison, Subcontract Administrator at Northrop Grumman Systems Corp, had a similar experience to Bagni: “I fell into it sideways. I was a finance major. I went to job trade fairs, interviews, and just wasn’t passionate about finance. One day I stumbled on a supply-specific career fair, which was put on by the University of San Diego who push undergrads and postgrads to the supply chain field. They were very convincing and introduced me to the many sides of the business, giving me a holistic view. That piqued my interest and, from there, I enrolled in a few supply-chain courses.

Corey Gustafson, Senior Buyer at Deluxe Corporation initially attended school in Wisconsin to train in engineering, ” I went on a programme  that focused on the printing industry including graphics and communication management and eventually  started taking a procurement and supply-chain management course. The instructor happened to be the program director for the supply-chain programme and it was the best course I’ve ever taken. I was interested in the way the function  impacts the business and wanted to continue with to focus on that.

The Die-Hard Procurement Pros

Not all of the 30 Under 30 winners came to procurement by accident, however.  Barbara Noseda, Global Sourcing Associate at Johnson & Johnson, has a particularly notable passion for, you guessed it,  shipping containers! “I know it might sound random” she says, “but I swear it’s the truth! I did my bachelors degree agree around shipping and logistics in Hong Kong and  then went into supply chain.  Even  today, every time I can get on a project about shipping containers I jump on it.”

Matthew Montana, Category Lead at Pacific Gas and Electric Company, was also interested in supply-chain at the offset, “supply-chain really caught my attention. I liked the analytical aspect and qualitative aspect. There’s a good balance between creative thinking and working with numbers. It’s the balance of quantitative and qualitative that really drew me to supply chain.

And Matthew has another reason to be passionate about procurement. His father also works for Pacific Gas and Electric. “He’s been in supply chain for several years now. Growing up and seeing him work there and seeing how good the company has been to him and his good career influenced me. It’s a good company and a good industry. I had inside info and insight from him so he was one of my mentors early on.”

Amanda DeCook, Sourcing Associate A.T. Kearney, knew exactly where her career was headed, “I knew which University I was going to and I knew I wanted to pursue a Business Major. Michigan State University’s Eli Broad College of Business has the best supply chain program in the USA, and I loved the tangible,  practical skills involved in the course.”

Indeed, several of the 30 Under 30 stars credit their colleges for propelling their careers. Jeff Novak believes his “college had a lot to do with [his career choices]. I went to Penn State Uni,  which is one of the top supply-chain schools in the states, if not the world. It seems that however your procurement or supply-chain journey starts out, you could have a vibrant and successful career ahead of you- take it from the 30 Under 30’s!

The 30 Under 30 Rising Supply Chain Stars will meet for the first time as a group at ISM2017, where ISM and THOMASNET.com will roll out the red carpet to celebrate the winners’ achievements and broadcast their success stories to other young people considering a career in supply management. 

Executive Recruiter: 4 Must-Have Attributes For Aspiring CPOs

Procurious caught up with Naseem Malik, Managing Partner at the Chicago-based supply management executive search firm MRA Global Sourcing, to find out what attributes recruiters are looking for in the next generation of top CPOs.

Naseem Malik has gone from sourcing goods to sourcing talent. After gaining 15 years’ experience as a procurement practitioner, Naseem turned his full attention to something he enjoys most – leveraging his network, connecting the dots and finding the best talent in the profession. Naseem is also a member of the ISM2017 Conference Leadership Committee, and has some excellent tips for getting the most out of ISM’s biggest event of the year. But first, Procurious asked Naseem for his views on what makes a candidate ideal for a CPO-level role.

Naseem, as a specialist in supply management executive search, what are the top attributes you look for in aspiring CPOs?

Based on the trends we’re seeing and what our clients have typically asked for, there are four stand-out attributes that we look for in a CPO-level candidate.

First, and foremost, they need to have a broad perspective. Companies are asking specifically for candidates from different industries to their own, as this brings about fresh, disruptive and innovate thinking.

Secondly, the candidate should be someone who can earn themselves a seat at the table with the CFO and CEO. They can do this by talking confidently about what they can bring to the business in terms of supply and market intelligence, data analytics, and leverage their own broad perspective. They should focus on the things that matter most to the C-Level – risk, compliance, and technological trends.

Operational know-how is also important, particularly change-management skills. Does the candidate have the emotional intelligence (EQ) to truly collaborate? Are they able to engage, influence, persuade and lead people in a global environment, including those that don’t report to them?

I’d like to add a fourth attribute here that ties the other three together, and that’s humility. Yes, you need to be able to talk confidently about your accomplishments, but this has to be balanced with humility and an awareness of your place in the corporate pecking-order. Humility will lead to credibility, which will pay off down the road.

 You mentioned that you got into executive search because of your love of networking. Can you share any tips for effective networking?

Everyone now needs to have a social presence, and continually build upon that presence online. However, without some sort of face-to-face follow-up, your online connections can be specious. To truly leverage the power of your online network, you need to meet people face-to-face at conferences, make phone calls and gather referrals. Face-to-face networking will help you grow you online network, and vice-versa.

Another piece of advice is to embrace the concept of “pay it forward”. Always see if there’s something you can do to help people in your network – for example, see if there’s someone who you can connect them with to help solve a challenge they may be facing. Again, it will pay off in the long-term.

What are you most excited about seeing at ISM2017?

Besides attending Procurious’ “Network Your Way To The Top” session, you mean?

As a member of the Conference Leadership Committee, I’m really excited about ISM2017 because every year we’re seeing the conference gaining incrementally in attraction. There are more people attending than ever, and I don’t think that’s only due to the prospect of meeting Mickey Mouse at Disney World – it’s about the quality of the speakers, the excellent content and the companies attending (Apple, Google, Salesforce and others). The keynotes, including David Cameron and Colin Powell, are also fantastic. Personally, I’ve been involved in helping ISM find good speakers, great topics and promoting the event.

What are your top 3 tips for getting the most out of a procurement conference?

Network – take every opportunity you can to build your network at the event. After the event, follow up with all the people you’ve met, and also be sure to connect with the speakers or presenters you were most impressed by. Consider writing a blog article to share your thoughts and to keep the momentum going.

Have a plan before you go to the conference. There are a lot of learning tracks, lots of great presentations, but there’s only a finite number of sessions you can attend. It pays to have an attack plan before you go. You can target a specific learning track, or mix and match.

ISM’s Learning Tracks are designed to help guide delegates through the maze of options available. As a committee member, I have joint responsibility for the “Outside” track. Outside sessions are all about learning new and effective ways of improving your skills and establishing your relevance, including career-building, building your professional presence, honing your networking skills and building high-value relationships.

There’s still time to register for ISM2017, taking place in Orlando, Florida from May 21-24.

Planning to attend ISM2017? Don’t miss out on Procurious Founder and CEO Tania Seary’s top tips on how to Network Your Way To The Top on Tuesday May 23rd, 3.45pm.