Tag Archives: procurement 2030

Procurement 2030: Time Enough At Last?

With 41 per cent of procurement professionals expecting there to be fewer procurement and supply jobs available in the year 2030, career longevity will be held only by those with the right skills.

Fans of The Twilight Zone will remember the Time Enough At Last episode, where it takes a nuclear apocalypse before a frustrated bank clerk finally has the time to indulge his passion.

For procurementand supply professionals standing on the brink of the robotic era, the coming wave of automation presents an unprecedented opportunity to spend time on strategic and value-adding activities that are often pushed aside in favour of the tactical workload.

Procurious and Michael Page UK’s survey of nearly 600 global procurement professionals revealed the top three activities that people would spend time on if tactical elements of their role were automated:

1. Increasing procurement’s influence in the organisation

2. Developing team and talent

3. Seeking opportunities to contribute to top-linegrowth.

This result begs the question: Why wait? If these are the three key activities that procurement professionals would like to spend more time on, they should be prioritised today.

Time for a brand makeover

As the profession continues to transform and evolve, the procurement ‘brand’ is a recurring topic of debate at conferences around the globe. Is it still relevant today, and does it encompass the many value-adding activitiesundertaken besides sourcing? Results from thissurvey reveal that nearly 72 per cent of professionals believe ‘procurement’ will still be an appropriate term in 2030, despite the expectation that the rate of change will increase over the next decade.

Re-skill to survive

With 41 per cent of surveyed professionals expecting there to be fewer procurement and supply jobs available in the future, career longevity will be held only by those with the right skills.

Critical thinking, problem-solving and relationship-building have been nominated as the key skills for the year 2030.

What would you do with 42 per cent more time?

Level 1 of this four-part series revealed that procurement professionals spend, on average, 49 per cent of their time on tactical tasks. Survey respondents expect 42 per cent of their overall workload to be automated, which raises the question: what will people do with their new-found time by the year 2030?

The top three responses indicate that procurement professionals would spend more time on tasks that generate value for their organisation

.• Increase procurement’s influence through stronger alignment with the business and better communication to enable engagement in strategic decisions.

• Do not rush the development and recruitment of top talent, even if there is a pressing business need to do so. Spending more time (not necessarily more budget) on talent will allow the development of highly-skilled teams that can drive value for the organisation.

• Seek opportunities to contribute to top-line growth. This often requires creative thinking and a thorough review of end-to-end processes, particularly in mature functions where further savings opportunities are becoming difficult to find.

The automation of tactical procurement tasks in your organisation will not take place all at once, but piecemeal automation is already happening. Be ready to seize the opportunity to drive true value as tactical tasks are incrementally automated.

Automate to humanise

Overwhelmingly, procurement professionals believe automation will enable a greater focus on building strategic relationships. While tactical transactions with the bulk of suppliers in the spend tail may well be 100 per cent automated, productive engagement with strategic suppliers will increase with technology.

  • Apps or web-apps will drive collaborative processes through event triggers and notifications.
  • Less time will be spent arguing about data, with trusted data allowing more time to spend on collaboratively finding ways to build value.
  • Expect to see more personal interaction but shorter meetings, as the tactical discussion and low-level relationship management will already have been taken care of.

Interested In Learning More?

This content-packed report also contains links to relevant thought-leadership from Procurious and Michael Page UK, including videos, blog articles, podcasts and webinars.

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVELS 1 to 4

Reach Your Summit at Big Ideas Zurich

Sign up as a digital delegate to be in with a chance of winning a Parrot Bebop drone worth £449.99!!

Sign up as  a digital delegate for Big Ideas Zurich (it’s free)  

On the 10th December we’ll be donning our hiking boots, picking up our trekking poles and embarking on a new adventure.

Brace yourselves, because Big Ideas is about to get truly digital!

For the first time ever, we’ll be filming and streaming the entire day’s event via the Digital Delegates group on Procurious. If there was ever a time to register for one of our summits, it’s now. Featuring presentations and interviews from some of Europe’s top procurement leaders, we’ll be discussing:

1. Procurement and Supply Management Towards 2030
2. The Talent Equation
3. Automating Procurement out of a Job
4. Time Enough at Last: where would top practitioners focus energy if tactical elements of procurement were automated?

Prizes for procurement pros – WIN Parrot Bebop drone worth £449.99

You probably don’t need any added incentive to sign up, but everyone loves a prize, right? And believe us when we say we’ve got prizes falling from the mountaintops.

We’ll be doing seven prize giveaways throughout the day to digital delegates actively participating in our online discussions. And, by joining the group you’ll be automatically entered into our prize draw to win  a Parrot Bebop drone.

To be in with a chance of winning…

Step 1: Sign up as a digital delegate for Big Ideas Summit Zurich

Step 2: Get automatically entered into our prize draw to win a Parrot Bebop drone worth £449.99

Step 3: We’ll reveal the winner during Big Ideas Summit Zurich on 10th December

6 reasons to become a digital delegate

Registering as a digital delegate for Big Ideas Zurich is totally free and will give you access to the entire day’s event. Here’s what you can expect from the day:

Drive your peak performance 

As we charge towards the new year, this is your final chance in 2018 to fulfill your personal development goals. Learn how YOU can reach the summit of your career in a whole range of critical areas, from business partnering to engaging with the latest game-changing technology.

Watch from anywhere 

We’ve pushing the digitisation of this event to the limits! Big Ideas Zurich will be streamed on Monday 10th December via Procurious. Become a Digital Delegate to watch from wherever you are, whether you’re at the office, on the bus, or at home enjoying a glass of wine.

Win a Parrot Bebop Drone worth £449.99 

All Digital Delegates that engage in the Procurious Big Ideas Zurich Group on Monday 10th December will go in the running to win a drone! Procurious will also be giving away a whole range of prizes on the day – but only to those who get involved! Follow Procurious on social for more details on prizes and giveaways.

Get the latest research

Be one of the first to get hold of Procurious and Michael Page UK’s final installment of the Procurement 2030 report. This much-anticipated research paper will be released on Monday 10th December, with a live discussion of the findings with one of the report authors.

Engage with the hottest topics facing procurement and supply 

What skills do I need to drive peak performance in my procurement career? What’s the latest intel on blockchain? What steps can I take to close the gender pay gap? Digital Delegates tuning into Big Ideas Zurich will hear about the latest, hottest topics that are challenging procurement and supply professionals around the globe.

Hear from procurement’s top thought leaders

Watch presentations and interviews with inspirational speakers including blockchain guru Olinga Ta’eed, gender equality champion John Everett and supplier innovation expert Jeurgen Nelis. But that’s not all! This event will be packed with bite-sized content including research updates, top picks from the Procurious Blog, and CPO interview compilations.

FAQs

When is it?

10th December 2018. But a lively conversation has already begun on Procurious! Expect to see most of the action between 10am-3pm GMT when we’ll be streaming all of the action from Zurich.

Where is it?

Although our top influencers will be meeting in Zurich, due to its digital nature Procurious members across the world can watch the whole event from the comfort of their office, armchair or even from the beach!

How can I join?

Simply sign up to Procurious to become a digital delegate. You’ll instantly gain access the Big Ideas Zurich Group and the live stream on the 10th December

Does it cost to attend as a digital delegate?

It is completely free to join Procurious and to be a Digital Delegate! Simply sign up or enrol here.

Do I have to be a member of Procurious?

Yes. Participation as a digital delegate is free and open to all members of Procurious. You’ll be joining a community of 32,000 like-minded procurement peers and gain access to all Procurious’ free resources.

Help – I can’t make the live-stream on 10th December!

No worries! If you can’t join the action on the 10th December, you’ll be able to catch up when it suits you, on demand, via the digital delegates group.

Sign up as  a digital delegate for Big Ideas Zurich (it’s free) 

Procurement 2030: Would You Report To A Robot?

Can leadership be automated? Will AI soon take over procurement negotiations, communications and problem-solving? Once thing is for certain – no skill-set will remain uniquely human forever.

Click image to get your copy of Procurement 2030: Level 3.

What is your human advantage?

With 42% of the average workload in procurement expected to be automated by 2030, now is the time to take stock of our skill-sets and focus on what makes us uniquely human.

Today, the automation of core procurement skills such as data analysis and market research is well underway. Lines are being drawn between those skills that AI has already mastered, those that will be automated in the future, and – critically – the areas where humans still have the advantage over machines … and that’s where soft skills come in.

However, categorising procurement skill-sets into 1) core skills for AI and, 2) soft skills for humans oversimplifies the issue. It ignores the fact that the creeping wave of automation increasingly includes soft skills such as communication and problem-solving. 

Robotic leadership?

Avoid the trap of thinking there are particular skills that AI will never be able to replicate. Surprising results in this research, for example, reveal that very “human” skills such as negotiation and even leadership are seen as likely to be automated. Robots are currently being trained to read and respond to the subtlest of human facial expressions.

With this in mind, our research identifies core procurement and soft skills where – for the foreseeable future – humans hold a unique advantage. The ability to influence others, build relationships and think creatively have emerged as stand-out skills that will enable us to future-proof our careers on the cusp of the robotic age.

Let’s recap.

Level One of this four-part series by Procurious and Michael Page UK examined the forecast for procurement and the threats and opportunities facing the profession. Level Two shifted the focus to the practicalities of procurement and supply chain management’s evolution against the backdrop of a technological revolution.

This report, Level Three, dives into the core procurement and soft skill-sets to understand exactly which parts of our roles are expected to be automated, and offers advice on the skills that top CPOs will be hiring for by the year 2030. 

AI and Core Procurement Skills

Determining customer needs, developing supply strategy and delivering stakeholder value are not only considered to be the most important core procurement skills, but also the least likely to be automated.

Procurement professionals who wish to develop their skills in determining customer needs (both internal and external) should work to improve their ability to build relationships, listen carefully, challenge assumptions, and always look for opportunities to connect the dots, help others and add value.

AI and Soft Skills in Procurement

Among the top four soft skills nominated as most likely to be effectively automated, problem-solving, leadership and negotiation have emerged as unexpected results. Robotic problem-solving is an entirely different concept to human creativity and innovation. AI has the superior ability to search and analyse data – for example, the answer to an engineering challenge may already exist in your files, but has been forgotten by human staff. Given the right search parameters,AI can identify the solution.

Would you feel comfortable reporting to a machine? Robotic leadership is a fascinating concept. Robots may very well have the ability to check your work and track your KPIs, but are not yet capable of motivating or inspiring others, or picking up on the human nuances that are a part of powerful decision making.

Negotiating robots already exist, and may soon be considered very useful for conducting low-level, emotionless negotiations that involve no ambiguity or complexity. For strategically important negotiations, however, human skills such as awareness, empathy and flexibility will always have the advantage.


Interested In Learning More?

This content-packed report also contains links to relevant thought-leadership from Procurious and Michael Page UK, including videos, blog articles, podcasts and webinars.

And don’t forget … part 4 of the Procurement 2030 report will be released before the end of the year!

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVELS 1 to 3.

Procurement 2030: Preparing For The Revolution

Only 7 per cent  of procurement functions are perceived as ‘maturing’ in terms of digital transformation and a mere 38 per cent of teams have the capability to meet the challenges of Industry 4.0. Find out how to address these challenges in our latest report: Procurement 2030: Level 2.

Without careful preparation, revolutions fail.

From Spartacus’ slave rebellion in Ancient Rome, to the Satsuma Samurai uprising in Imperial Japan, to the Boxer rebellion in colonial China, history has shown that a revolution cannot be powered by enthusiasm alone. Successfully landing a change of any significant scale requires strategy, planning, and no small amount of determination to see it through.

The Fourth Industrial Revolution (Industry 4.0) is now upon us, and its effects can be seen in the assembly lines and offices of companies around the globe. Game-changing technology such as 3D printing, the Internet of Things (IoT), and Blockchain will super-charge the supply chains of many organisations, but need to be implemented with care.

Level One of the four-part “Procurement 2030” series by Procurious and Michael Page UK examined the forecast for procurement and the threats and opportunities facing the profession. The latest report, Level Two, shifts the focus to the practicalities of procurement and supply chain management’s evolution – against the backdrop of a technological revolution.

Our survey of 590 global professionals revealed that there is a great deal of preparation to be done before the majority of procurement functions will be equipped to take full advantage of Industry 4.0, particularly in the areas of strategic planning, creating a roadmap that gives priority to the most impactful elements of the digital revolution, and (crucially) having the right talent on board.

Download Procurement 2030: Level 2.

Low Maturity

Our survey revealed that only 7 per cent regard their procurement functions as ‘maturing’ in terms of digital transformation. The factor holding back this maturity would appear to be a lack of support from the wider business, with comments such as:

  • “Management is not interested in a digital transformation journey.”
  • “Our desire to transform is not matched by the business, who do not see the value.”
  • “Digital transformation of procurement is not even on the agenda.”

Some steps that might be taken to improve this situation include:

  • Do your homework and build a rock-solid business case that supports digital transformation. Alarmingly, 43% of survey respondents indicated they do not have a formal digital transformation strategy.
  • Ensure you align each step of your digital transformation journey to an enterprise-level objective.
  • Find a sponsor (a senior person in the organisation) to support your proposal.
  • Have the courage to take a risk – have confidence behind your ideas and be prepared to stand up for them.

Procurement’s Kryptonite

What do you regard as procurement’s greatest weakness? This research reveals that a narrow focus on cost savings and a lack of influence in the wider organisation are two stand-out factors that are holding procurement back.

HSBC CPO Jan Fokke Van Den Bosch shared his opinion of procurement’s greatest weakness in this video interview.

What’s Your Priority?

Moving systems into the cloud and leveraging big data analytics are by far the two most likely technologies to be implemented within the next 24 months by surveyed organisations.

Although AI and cognitive procurement are perceived as two of the most difficult-to-implement technologies, they are also expected to have the greatest impact on organisations. Other high-impact technologies include big data, cloud computing, and robotic process automation.

When prioritising these technologies to create a digital transformation roadmap, take the following factors into account:

  • Enablers – which technologies need to be implemented first to enable others to work successfully?
  • Impact – which technology will make the greatest positive impact on your wider organisation’s goals?
  • Costs and benefits – what is the long-term ROI on this investment? What are the benefits beyond cost savings?

The Right Team For The Job

Our survey-takers believe that on average, only 38% of their colleagues heave the capability required to meet the challenges of Industry 4.0.

For procurement functions on the cusp of a major digital transformation, now is the time to examine the team’s attributes and capabilities and, if necessary, bring in fresh talent with the ability to drive change and reap the full benefit of enabling technology.

While digital skills are a must, candidates should be screened for attributes such as a willingness to embrace change, agility, and the flexibility to make use of new behaviours and technologies.

Another solution to the perceived capability gap is to embrace the gig economy. The future of work will be project-based and outcome-focused. From the employer’s perspective, it will become increasingly important to bring in the right team for the right project.

A higher percentage of contractors in procurement will enable project managers to scale up and down as necessary, with results revealing that employment of contractors is expected to nearly double by 2030.

Interested In Learning More?

This content-packed report also contains links to relevant thought-leadership from Procurious and Michael Page UK,  including videos, blog articles, podcasts and webinars.

And don’t forget … parts 3 to 4 of the Procurement 2030 report will be released in the coming months!

  • Part 3: Human vs AI Skill Sets: October 2018
  • Part 4: Procurement Makeover: November 2018

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVEL 2.

Here’s What Procurement Will Look Like By 2030

92 per cent of respondents believe that by 2030, procurement will look very different to today’s profession. But what exactly will this evolution look like, and how do we get there? Download the Procurement 2030 Report!

Procurious and Michael Page UK recently surveyed 590 procurement and supply management professionals from around the globe to uncover the facts about the outlook for the profession, the threats and opportunities facing procurement, and perceptions of procurement. Here’s what we uncovered in our new report, now available for download.

Procurement is expected to evolve

All but 8 per cent of survey-takers roundly rejected the suggestion that procurement in 2030 would be similar to today. This stands to reason, given the transformation the profession has undergone in the past 10 to 15 years from back-office function to an influential and highly-visible part of the business that’s increasingly focused on driving innovation and generating value.

Here’s the result when we asked respondents what they expect procurement will resemble in 2030:

Just over half of our respondents believe procurement will evolve into “an agile group of strategic advisors”. But what does this actually mean? It could refer to Agile (with a capital A) work practices that are sweeping through many of the world’s top organisations, or perhaps it means that procurement will evolve into a high-value team of experts who will move around the business to give advice at the highest levels and solve specific challenges.

To use an analogy from the gaming world, this evolution is a bit like moving from a Space Invaders-style “mission-control” approach where you are dealing with a never-ending stream of issues from the bottom-up, to the approach taken in 21st-century games such as Fortnite or Call of Duty, where a highly cooperative group of professionals with different areas of expertise parachutes into a certain area to solve a problem before moving on to the next mission.

The word “strategic” is also key here. This report discovered that an incredible 49 per cent of procurement’s current workload is regarded as “tactical”. Filtering by role and seniority revealed that:

  • Survey-takers with “junior” roles identified 59 per cent of their workload as tactical in nature.
  • Analytics professionals have the most tactical tasks (57 per cent), followed by supply chain professionals (56 per cent).
  • The tactical workload of category managers sits at 46 per cent.
  • Concerningly, 57 respondents who identified as Chief Procurement Officers indicated that 40 per cent of their workload is tactical on average, despite having what is regarded as a highly strategic role.

It’s also worth noting that two persistent concerns about the future of procurement have also been dismissed by survey-takers. Only 3 per cent believe the profession will be completely outsourced, while 9 per cent believe procurement will be completely automated by 2030.

Positive forecast

Procurement professionals remain optimistic about the profession, despite the rapid development of ever-smarter AI and media coverage of white-collar job losses to automation. In fact, optimism about the future has climbed by four points since this question was first asked in 2017.

Similarly, job security is relatively high. Only 9 per cent of respondents report a lack of confidence that they’ll be able to keep their role of the next 24 months.

While the profession itself is confident about its future, the task at hand is to broadcast this positivity to the wider organisation, other functions, and to suppliers. Building upon the brand of procurement will enable us to:

  • change the face of the profession from the inside out
  • overcome outdated stereotypes, and
  • educate others on the full value-offering of the profession.

Threats and opportunities

When we asked survey-takers to nominate the greatest threats and opportunities for procurement and supply chain management, we were surprised to discover that the top two threats are also seen as the top two opportunities.

  • “Not keeping up with technological advances” is seen as the biggest threat, while technological advances are also seen as the number one opportunity.
  • Being unable to recruit and retain top talent is seen as the 2nd-biggest threat, while recruiting and retaining top talent is also seen as the 2nd-biggest source of competitive advantage.

Organisations must therefore retain their focus on investing in top talent, even while they are investing heavily in technology. It also follows that procurement functions with leading-edge technologies will be more attractive to top-tier candidates.

Prisoners of our own perceptions?

We know that the profession wants to evolve into an agile group of strategic advisors by 2030, but what’s holding us back? In one word: perception.

  • Less than a quarter of respondents say their organisations have a strong understanding of procurement’s value, while 21 per cent have “little understanding” of procurement’s value-offering.
  • Procurement’s own perception of its purpose needs to change if it is to expand its value offering and transform into strategic advisors and commercial leaders. At present, 38 per cent believe cost reduction is procurement’s main purpose, followed by risk management.
  • The good news is that by 2030, the main purpose is expected to shift to two high-value tasks: “driving supplier innovation (29 per cent), followed by “driving sustainability” (25 per cent). Both of these revised areas of focus will also support procurement’s core capability of cost reduction.

CLICK HERE TO DOWNLOAD THE REPORT.

But wait, there’s more:

This content-packed report also contains links to heaps of relevant thought-leadership from  Procurious and Michael Page UK,  including videos, blog articles, podcasts and webinars.

And don’t forget … parts 2 to 4 of the Procurement 2030 report will be released in the coming months!

  • Part 2: Preparing for Industry 4.0: September 2018
  • Part 3: Human vs AI Skill Sets: October 2018
  • Part 4: Procurement Makeover: November 2018

CLICK HERE TO DOWNLOAD THE REPORT.

Procurement 2030: Makeover or Game Over?

The profession must evolve, but which way will it go? How can procurement give its value offering a makeover, and what are the indispensable human skills that will future-proof procurement careers … before it’s Game Over? Take the survey to help us find out!

10-15 minutes is all it will take to put yourself in the running to win a retro, cocktail-style arcade machine!

We need your input to discover:

  • What’s keeping procurement and supply management professionals awake at night as we hurtle towards the brave new world of Industry 4.0?
  • How is your procurement function preparing today for the digital revolution?
  • Which skills are most likely to be automated, and which skills are irreplaceable?
  • What does the future of procurement talent look like?

We’ve kept the survey to under 15 minutes – we know you’re busy!

Cool prize, right? But you’ve got to be in it to win it! The Procurement 2030: Makeover or Game Over survey is only open until Friday 22nd June. Participants will also receive a copy of the report summarising the findings of the survey.

CLICK HERE to take the survey!