Tag Archives: procurement brand management

Creating a Procurement Video to Make Your Mum Proud!

Photo by Donald Tong from Pexels

This article was written for Procurious by Sievo. Find out more about them here.

Have you ever had a hard time explaining what you do to friends or family? Do you love your job but get the sense other people find it boring?

We all know sales drives growth, marketing builds brands and the buck stops with finance. Why is it so difficult to explain the excitement and value procurement brings to the table?

According to Wikipedia, procurement is “the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement generally involves making buying decisions under conditions of scarcity.”

Yeah, I know! It sounds boring. Compare it to what we came up with to describe procurement analytics. And we promise you, this is NOT just another boring video about procurement.

Time for a Re-Brand

So why did we break the procurement as we know it and create that simple-fun video? We all know that procurement is often introduced in a boring way – it’s no Sales or Marketing.

But if Sales and Marketing can brand themselves well, why can’t procurement? Why is it that when think-ing about sales, people think of smiling businessmen in suits making deals on lunch dates that increase the company’s revenue, and when thinking of procurement it’s something….well…different.

At Sievo we do procurement analytics. It’s arguably the nerdiest, geekiest, most jargon-filled area of procurement. Analytics is tough to explain on its own. But analytics combined with procurement? I’m not going to even put the definition of that here.

But don’t worry – the fact that procurement is boring is not your fault!

You can choose who and what to blame – the fact that procurement professionals are focusing on savings instead of branding or the lack of knowledge about the subject – but one thing is true: procurement has a branding problem.

Our Procurement Video – Sharing the Excitement

A while back we were looking at YouTube videos about procurement to have some inspiration for future projects. Turned out, we weren’t very inspired at all after watching all of the long and technical videos. In fact, we got a bit worried when wondering what our moms would say if they decided to look into what we do for a living.

We decided we had to do something. Anything. We found that there was a clear demand for an interesting and fun video about procurement. Like the one the sales function has where Leonardo DiCaprio shows how to sell a pen. If for no-one else than to finally explain to our partners and mothers what it really is that we do in a way that they wouldn’t fall asleep halfway.

The thing is, procurement and procurement analytics are actually quite exciting. You should know. Sure, it’s not smiling people out on launch dates all the time, but dang it, procurement is an important function. It’s a function that should be portrayed in the exciting way it deserves.

This subject of changing the way we talk about procurement seemed to be close to the hearts of many since there has been an abundance of comments in response to the video.

Check some of those out:

“Definitely going to show this to my family to let them know what I do at work all day!”

Naavie

“Very cool – this video shows importance of procurement analytics to CPOs, cate-gory managers, compliance officers who look for sustainability in procurement process and even legal department!”

Alexandra Shtromberg

“Shared to my network, great vid… procurement analytics, simply explained and fun to watch… ”

Laura Garcia-Hornell

“Interesting and fun video, really liked it. I am all in for procurement analytics because on the best case it helps to support better decisions which lead to better negotiations… ”

Phil Kowalski

Want more? Read here 14 of some of the most creative definitions of procurement analytics by the ex-perts. Who knew procurement analytics could be explained with Tequila, an Indian wedding, and digging up gold?

Comment what you think about our approach and let us know how YOU would rebrand procurement!

Collectively Addressing Procurement’s Blind Spots

Education, brand and taking calculated risks – our executive-led panel rounded the Big Ideas Summit off by discussing procurement’s blind spots.

What a way to finish the day. The aim behind the Big Ideas Summit was to challenge our delegates, and create tangible outcomes for them to take back to their organisations. Our senior panel did just that with their discussion on procurement’s blind spots.

Ambition, Strategy and Delivering Value

Mark Roberts, Global Procurement Capabilities Director at AB InBev, started by stating that unless procurement has the vision and ambition, the boundaries that are imposed on it will be out of its hands. Procurement needs to be more than it is today – at AB InBev procurement is starting to consider socially responsible actions of their $25 billion spend.

Dapo Ajayi, CPO at AstraZeneca, argued that procurement truly does have the ability to influence across the enterprise. In the pharmaceutical industry for example, procurement can assist with the speed of clinical studies. The profession’s remit is much broader than just about saving money, it has got to get into conversations about procurement’s strategic role in the organisation.

Chris Browne, CPO at The World Bank, talked about his organisation’s work with world’s poorest countries. The goal of the World Bank is to end extreme poverty, but working in some of the most fragile countries in the world. Currently, the biggest procurement spend is on a $8 billion project to build a solar plant in Morocco.

Chris also talked about his experience working on the government procurement reform in New Zealand, and then subsequently at the NZ Earthquake Commission following 2 devastating earthquakes in Christchurch. The EQC sprang into action following the earthquakes, stopped procurement regulations so people could do what they needed to do, and worked solely on the basis of delivering value and a service to the people on the ground. A very different way to procure, but just highlighting what’s possible.

  • What was your ‘ah ha’ moment from the day?

Dapo – Dapo said that the conversation around transparency has got her thinking about what else AZ could be doing in this area.

Mark – Mark also highlighted transparency. In the era of Wikileaks, people are just as interested in who are the greenest CPOs/CEOs. The other positive for Mark was in the use of the word ‘skunkworks’. The idea that procurement doesn’t need to look for empowerment to chase innovation, but just going and doing it.

Chris – Chris said that corruption is the single biggest issue facing procurement around the world. Linking back to IBM’s opening keynote, Chris highlighted the use cognitive technologies to look at the issue of beneficial ownership – who ultimately is benefitting from contracts being placed around the world.

For Chris, there was also the realisation that we are facing a new norm, in both procurement and society as a whole. Some of the things procurement professionals have taken for granted for past 20 years are likely to be eroded in next few years due to the advancements in technology.

  • What are procurement’s blind spots?

Dapo – Dapo put this question out to her global procurement colleagues at AZ. She argued that maybe we are all playing it safe, that procurement professionals are stuck in our box, with too much focus on savings. The blind spot for procurement was in seeing that a change of mindset was needed in order to make procurement more comfortable about dealing with the wider business.

Mark – For Mark, the blind spot came back to the issue of talent. The profession has used the ‘traditional’ sources, but we need to go beyond that. The other blind spot for Mark was whether or not procurement had enough ambition. Professionals need to be looking at the wider ‘why’ picture, and why what they are doing will benefit the wider business.

Chris – For Chris, the blind spot was how procurement are dealing with organisational lawyers. At the World bank, the lawyers have been taken out of the decision making process, but there is still a blind spot on how procurement works with legal teams, particularly when taking a calculated risk.

  • What do you think we can do as a collective to address issues?

Mark – This is a matter of education, education, education.

  1. Education of the bodies and media around the procurement organisation to give institutions and people a clear indication of what procurement stands for;
  2. Education of the potential talent pipeline, the people we want to bring into the function;
  3. Education of the people procurement already has, how to build on the competency level and what will be required next. Mark suggested that these skills would include relationship management, but also entrepreneurial spirit.

Dapo – Building on Mark’s comments, Dapo said that it was about brand, brand, brand. Addressing this can be helped by using social media, which provides a window into the profession. On social media, the procurement profession needs to create a platform that encourages people to tell the stories about great outcomes, rather than just talking about savings. Procurement has been traditionally poor at doing this, so we need a platform to help.

Chris – Chris highlighted that often procurement people are perceived as, and can be, a bit boring. As Dapo said, the profession needs to be talking about how we are making a broader contribution to the organisation, rather than just about procurement itself.

Gabe Perez – Our final comment came from the audience, and Gabe suggested the profession should draw a line in the sand, and look forward to where we want to go as a profession. People are seeing the value that procurement can offer, why it’s a great profession to work in.

According to Gabe, we should stop looking at what we know, and now look forward to what we are going to do in the future.

The session helped to bring to a close what was a fantastic event, filled with great ideas and thought leadership. However, as was commented on Twitter, we cannot afford to rest on our laurels – we need to put these ideas into practice, address procurement’s blind spots, and collectively drive real change in our organisations.