Tag Archives: procurement conference

3 Ways to Build a Match Fit Procurement Team

You never know what’s on the horizon, so you need to be prepared for anything. For procurement that means staying agile and always being match fit.

Register as an online delegate for the London Big Ideas Summit 2017 here.

Given the pace of change in the external environment, being agile means constantly changing, never standing still. It’s not about putting out fires, it’s about ensuring that fires never start in the first place.

For procurement, this means creating and maintaining agile teams, and staying match fit for what comes next. Staying ahead of the curve, be it change, risk or technology, is critical for the future of the profession.

Procurious are delighted to welcome back Chris Sawchuk, Principal and Global Procurement Advisory Practice Leader at The Hackett Group, to the Big Ideas Summit 2017. Chris spoke last year about why procurement needed to put agility at the centre of all its activities.

This year, Chris will be taking the conversation one step further, discussing ways to enable agility through digital transformation and creating an agile team. However, to do this procurement needs to ensure it’s thinking ahead, not just looking at the problems it needs to solve now.

Chris outlines three top tips below on how procurement can be prepared to handle any future issues.

  1. Be Match Fit

As we’ve said above, the key to being agile is ensuring flexibility. A quick way to lose agility is to create a rigid environment that doesn’t allow trying new things.

Define what procurement can and can’t control, and what activities it can drive. Make sure that your procurement team is aligned to the corporate strategies and objectives. It’s a good way of making sure that new ideas will be fully considered as part of the overall organisational strategy.

For example, if Procurement decides they want a diversity programme and the CEO isn’t behind it, it will never reach its full potential. The same goes for technology. If the CEO isn’t invested, the project will never get off the ground.

But even if your company isn’t focused on technology yet, you can be sure it will be in the future. It might be six months, or it might be five years, but it’s better not to be forced kicking and screaming into this new era.

Procurement needs to be ready to go when the business is. You don’t want to be asking for six more months of planning if your CEO wants a transition now. Be ready – have a list prepared of the top three initiatives for technologies, and how they will be implemented. That way you won’t be caught short.

  1. Educate Yourself

If you want to be prepared, you need to be in the know. Don’t be scared of new technology and bury your head in the sand – be aware of what’s out there. Have a list of the most relevant and best technology and know what it can do for you.

Part of that awareness is also preparing for new technology. Procurement teams need to know what’s happening in the market place, and how it impacts them. You don’t need to know everything, but you at least need to be cognizant of it.

That way, procurement can look at the big issues in organisations through the lens of how technology can help. Is there a technology out there that could help with this issue?

If global collaboration is a major issue, there are social platforms that could help connect all your teams to each other, and even their suppliers.

Maybe there’s a technology that could augment (not just automate) a procurement activity that you are performing today. You might finally have access to all kinds of data, but it’s about knowing what you can do with it to extract competitively differentiating insights.

  1. Create Agile Teams

If you aren’t agile then you can’t prepare for any of this. In fact, it’s unlikely you’re even in a position to be ready to start preparing.

To create agile teams you need to have the basics in place, get ahead of these issues, and aim to be predictive. If you knew what was going to happen (sadly crystal balls are in short supply), you would have the ultimate level of agility, and be able to get ahead of any issues.

However, it’s critical that procurement retains the ability to deliver against organisational objectives at the same time. There’s no use being agile if it means that procurement fails to deliver on the basic requirements.

If you can’t get the basics done, then there’s no point in even trying the ‘fancy’ stuff.

Reimagining What We’re Trying to Achieve 

The main problem at the moment is that we can’t even imagine what is going to be possible in the future. The pace of change is so fast that technologies are adapting and evolving in a matter of months, rather than taking years as it did in the past.

It is critical that procurement becomes more adaptable, and ensures that professionals are as informed as possible. Until you have this understanding of technology, you’re losing out. It’s not about the problems you want to solve, it’s also about the problems you’ve not even thought about yet.

The future is an ‘Unknown Unknown’, but with a match fit, agile procurement team, at least you’ll be prepared for what comes next.

 Join the conversation and register as a digital delegate for Big Ideas 2017 in London.

How To Inspire Creativity With The Three Fs!

To achieve creative cultures  within our organisations and inspire creativity in individuals, we need to Fund, Foster and Fill!

Register as an online delegate for the London Big Ideas Summit 2017 here.

James Bannerman, a creative change agent and author of Non-Fiction best-seller Genius! firmly believes that everyone has the capacity to be creative and innovative. He’ll be speaking at the Big Ideas Summit 2017 in London on 23rd February but we’ve picked his brains ahead of the event to find out his top tips for inspiring creativity and his plans for the future..

What is a creative change agent?

A creative change agent is essentially a ‘lateral thinking’ specialist. It’s someone who combines creativity with psychology to help businesses innovate and perform more effectively in a rapidly-changing world.

What’s one thing you know now, that you wish you’d known at the start of your career?

When I was younger I was a laid-back song-writer and did not fully appreciate how important it is, in business and life, to ‘make your own sunshine’. Over the years, however, and especially  when I wrote my books Genius! and Business Genius! I came to realise that books don’t write themselves; they ended up taking me far longer to write than I ever imagined, and involved far more hard work than I ever envisaged. However, fortunately the hard work paid-off – because they ended-up becoming best-sellers in the UK and then being translated into multiple languages from Chinese to Japanese, and Italian to Thai – and that taught me that ideas alone are not what makes the difference; it’s turning those ideas into reality that makes the difference.

What are your three top tips for inspiring creativity in organisations?

My three top tips for inspiring creativity in organisations would be what I call The 3 Fs: Fund, Foster, Fill.

Fund (i.e. invest in) ‘Creative Thinking’ training

Upskill people by teaching them ‘how’ to be more creative. Evidence suggests, for example, that virtually all of us were incredibly creative up until the age of about 5, but then this natural creativity was ‘schooled’ out of us by the double whammy of criticism and conformity. Effective ‘Creativity Thinking’ training can help to redress this situation by inspiring people to re-become creative.

Foster an atmosphere of Psychological Safety

Einstein once said that ‘a person who never made a mistake never tried anything new.’ With this in mind, if an organisation genuinely wants to inspire creativity, it needs to provide employees with enough ‘wriggle room’ to make the occasional ‘excusable’ mistake – rather than ‘inexcusable’ mistake (which is a very different matter).

Fill the well 

I’ve long believed that in order to inspire others we need to feel inspired ourselves. Psychologists refer to this as ‘mood contagion’. So, if an organisation wants to inspire creativity, it needs to keep ‘Filling the Well’ (as the author Sheila Davis describes it) by encouraging people to branch out and watch new films, read interesting books, travel to different places etc… After all, bang in the middle of the word ‘Innovation’ we find the word ‘Nova’ – which meant ‘new’ in Roman times – so a constant inpouring of fresh stimulus is likely to inspire a culture that goes beyond ‘what is’ to explore ‘what could be’.  

You’ve composed hit pop songs, written best-selling books and work as an innovation consultant. What’s next?

I’m currently working on a wide range of projects – linked to ‘Lateral Thinking’ in business and academia. However, longer-term, I’d love to take my Business Genius and ‘Lateral Thinking’ work to whole new level, and develop Lateral Thinking TV, movies, and animations etc…

How do latest technology developments influence the way you consult with organisations and drive innovation?

To be honest, although technology developments have influenced the way I consult with organisations and drive innovation – eg. by making it far easier for me to communicate with clients around the world without always having to ‘be there’ in person – technology itself does not influence me as much as it helps other innovation consultants I know.  I tend to focus more on ‘innovativeness’ than ‘innovation.’ In other words, I focus more on the people-side of innovation – the psychology side.

It’s easy to think that our modern age is infinitely more ‘innovative’ than any other with its amazing advances in technology. Without a doubt the ‘pace’ of change does keep getting faster and faster, which academics label ‘accelerated evolution.’ However, just look at the Edwardian Age. Within ten years along came the Car, the Plane, the Radio and the TV. Each one of them radically transformed the world we live in, far more than the latest XI78 or X189, that will soon end up somewhere in a design museum like the DVD or the first Blackberry.

I work with the ESA,  European Space Agency, who are putting 3-D printers on Space Stations. In fact, there are even 3-D printers now that can make 3-D printers ! We must not lose sight, however, of how technology is driven by ‘people’, and inspired by ‘people’.  The human factors that make innovation happen can also ‘stop’ innovation from happening if they are not addressed and resolved.

Do you ever get tired of thinking up ideas?

Yes and no. I personally get a buzz from ‘divergent thinking’ – i.e. thinking outwards towards multiple possibilities – more than ‘convergent thinking’ – i.e. analysing and dissecting data.

However, when I’m working with groups on Idea Generation, I fully appreciate that ‘thinking up ideas’ can be deceptively tiring for some people. Especially those who have a strong preference for sequence and structure.

Tony Buzan,  the inventor of mind-maps, is a great inspiration of mine. I spoke with him a few years ago and  was struck by how well he manages to fuse the two. Mind-maps, for example, can energise people by stimulating ‘radiant thinking’. They also make it easier for them to think up new ideas, yet at the same its ‘systematic’ approach can also give people a flexible structure to prevent them feeling overwhelmed and swamped by imaginative solutions.

It’s important to remember that everybody has an imagination. We continually ‘think up ideas’ whether we see ourselves as creative or not. In fact, one of the biggest buzzes I get in business is helping people to realise that they are a lot more creative than they give themselves credit for…

Join the conversation and register as a digital delegate for Big Ideas 2017 in London. 

Just When You Thought Our Ideas Couldn’t Get Any Bigger…

Spend 15 Minutes with five procurement power-players in our podcast series, Even Bigger Ideas, presented by State of Flux.

Register as an online delegate for the London Big Ideas Summit 2017 here.

As a Big Ideas Summit 2017 digital delegate, you’ll gain access to insightful discussions, connect with our procurement influencers, access video content from the event and have the chance to share your own big ideas with the Procurious community.

And, if that wasn’t enough, your digital experience just got that little bit richer and more intimate as we announce Even Bigger Ideas!, a 5-Part Podcast Series, which will be available exclusively to our Digital Delegates on Procurious.

Over five, bite-sized podcasts you will hear from some of the most intriguing thought-leaders on the trends disrupting business and the Big Ideas to benefit from them.

Without further ado, we’d like to introduce you to the stars of the show who’ll be helping you to think the unthinkable, nurture your big ideas in the biggest companies and unleash your creative genius.

James Bannerman – 15 Minutes to Unleash Your Creative Genius – Tuesday 21st February

Tuesday 21st February

Our podcast series kicks of with James Bannerman, Creative Change Agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter. James believes that in a world where innovation is the new currency, procurement teams that fail to execute their ideas with originality just won’t cut it. He’ll be offering some top tips on how to unlock creativity in order to help us all achieve additional moments of pure genius.

Linda Yueh – Should Procurement Pros Be Concerned About Global Trade?

Wednesday 22nd February

Linda is a renowned economist and Adjunct Professor of Economics for London Business School. She was the BBC’s Chief Business Correspondent and host of “Talking Business with Linda Yueh”, as well as Economics Editor at Bloomberg TV.  She’s the go-to expert on issues relating to global trade, Brexit and Trump’s presidency. Concerned that a rise in protectionism might have a negative impact on your global supply chains? Linda’s  on hand to quell your fears and put your mind at ease.

Chris Lynch – Nurturing Big Ideas through Big Companies

Thursday 23rd February  

Chris Lynch, Chief Financial Officer at Rio Tinto, has had nearly 30 years’ experience in the mining and metals industry. He joined the Rio Tinto boards as a non-executive director in September 2011, and was appointed chief financial officer-elect, an executive board director and a member of the Executive Committee in March 2013. Chris has spoken extensively about the importance in fostering a culture of “intrapreneurship” within large organisations. He’ll explain how individuals will face more resistance, the bigger their idea is but, with the right nurturing and persistence, their is a chance of success!

Nik Gowing -Thinking the Unthinkable – The Update

Thursday 23th February

2016 Big Ideas Summit speaker, Nik Gowing is back to give us his latest update on Thinking the Unthinkable. Nik is a visiting Professor at King’s College & former BBC-Broadcaster with over 35 years analytical expertise in diplomacy, defence, international security. Last year, Nik explained that executive leaders are experiencing the very human sensations of feeling overwhelmed,  under pressure and unable to think unthinkables. What, if anything, has changed in the last 12 months?

Anders Sorman-Nilsson Seamless – Digital Adaptation and Human Transformation

Friday 24th February 

Anders is a Futurist and the Founder and Creative Director of Thinque, a strategy think tank that helps executives and leaders convert disruptive questions into proactive, future strategies. He’s an active member of TEDGlobal, has keynoted at TEDx and guest lectured at Sydney University and University of Technology Sydney Business School. Anders will help you prepare for a digital future lead you to question if your procurement team suffers from change fatigue!

Even Bigger Ideas is presented by State of Flux.  

No budget, no problem! Join the conversation and register as a digital delegate for Big Ideas 2017 now!

The Procurement Love Triangle

Love the idea of software solving all your procurement problems? You’d better make sure it’s working in harmony with your people and your processes. 

Paul Blake,  Senior Manager, Technology Product Marketing at GEP Worldwide is a keynote speaker at Big Ideas Summit 2017.  He’ll be talking about digital procurement transformation and why it’s so important for procurement to  adopt  digital-first models. We chatted to Paul ahead of the event to get his take on procurement’s current position.

Describe a perfect client for GEP?

The perfect GEP client is a large company with a lot of complexity in its spend but with a desire to do things better and drive more value into the business.

Do you think cognitive tech signals the end for the procurement profession in the near future?

I don’t.  Procurement has always been driven through human innovation and creativity, but that has often been constrained by the necessities of labour intensive transactional processing and data analysis.  Emerging technologies have the capacity to free the procurement profession from the bounds of document processing to focus more on driving new sources of value.

You’ve been at GEP for five years. What’s changed for the procurement function in this time?

Three major things:

  1. The cloud has come of age for procurement.  The industry can now conduct its entire operations completely independent of any infrastructure considerations.

2.  The unification of procurement and order processing.  Procurement’s remit used to end at the contract, with value realisation outside of their purview.  A single overview of “source-to-pay” gives a much greater ROI

3. The trend toward global harmonization of the supply chain is under threat.  That means increased risk, volatility and uncertainty.  Today, procurement teams need greater reserves of agility and responsiveness to remain successful.

What should we expect from the most successful procurement leaders of the future?

A recognition that procurement has a much broader, collaborative role to play across the entire business.  Reflecting changes in technology, the isolation of business functions into silos is retrograde thinking and a changing world will need a broad-minded approach to procurement operations

What 3 attributes make a great leader?

Education, education, education!

When is software not the answer?

When the question involves people and/or processes!  The three are so deeply interdependent that software itself is never the whole answer.

Join the conversation and register as a digital delegate for Big Ideas 2017

Do You Belong to a Procurement Dream Team?

The age of workforce 4.0 is fast-approaching. Have you ensured you’ve got a dream team in place to help you navigate your way through the rapid changes ?

Register as an online delegate for the London Big Ideas Summit 2017 here.

So. Here’s the scenario. After years of effort, elevating the role of procurement and complaining that Procurement doesn’t have a seat at the table in sectors where procurement is yet to tread (yes, in 2017 there are still organisations and sectors that do not have procurement teams or resources), your phone rings. It’s a CEO. And you’re invited to their office.

Now, this is the age of Workforce 4.0, so as we know, the CEO is agile and their office is the coffee shop near the school where their young children are running the lunchtime class teaching the adults how to tweet on facetube and grow vines on instachat.

Procurement is Awesome

As you sit down and your coffees arrive, the CEO looks you in the eye and says “Enough already. I get it. Procurement is awesome. Right. I want you to set up a dream team. Hire any five people you want. I’ve followed you on Twitter, read all your @Procurious_ and LinkedIn blogs, I’ve listened to the @aopshow and I get that there are some serious issues to deal with. I need you to do it and I want you to pick your team. Facetime or Skype me when you’ve done it.” And off you go…

How many of us are ready for that call? Whether it’s for a greenfield procurement team, or for a transformation programme or business critical project, do you have a list of five people in your head that without hesitation, you would call and bring on board to work with you to get it done? We can ignore minor administrative issues like availability, notice periods, or people processes for the purposes of this, but are there five people that you would hire, brief and set loose on the task without a second thought, safe in the knowledge that “it’ll be fine, [insert names] are on it and success is safe in their hands”.

What does the procurement dream team of the future look like?

I can’t quite remember where I was first posed this question. It was more than likely in a pub in the dim and distant past, but I remember first applying it when I worked in recruitment. If I was sifting CVs for a client, I tried to put myself in their shoes and ask, “If I was them, would I hire this candidate and put my success in their hands”. If I couldn’t say “yes”, or at least “maybe”, then I wouldn’t waste the client, or the candidate’s time.  That was a long time ago and before I’d even heard of Procurement!

Are you ready for “The Call” is a question I’ve asked colleagues over the years too, usually on car journeys, and it keeps them awake and puts them on the spot.

Anyway, where am I going with this?  Here are three things to consider about the future of procurement teams.

Procurement-as-a-service could be a big deal

Not my concept and not new, yet is a concept which has been increasingly discussed and heralded as the future of the function. It may well be that the future of working in procurement begins to sound a little more like this. Organisations will access resources to deliver specific outcomes rather than hiring employees and then wondering what to do with them.

Seriously, who is in your dream team?

You never know when that call might come, or when that platform starts to burn and you have that project you need to deliver. Can you pick your ‘dream team’ from current or former colleagues, or from all the people you’ve met and developed relationships with through all the networking you do?

Where’s your name?

Is your name on the team sheet of others? You may not be the one that gets the call. Your colleague or your peers may be the one having to decide who to bring in. Are you doing the best job you can, delivering results and developing the soft skills needed for tomorrow as well as networking, sharing your stories and taking ownership of your personal professional brand?

The dream team

Now, I might be about to do some oversharing here, but I personally have a ‘Dream Team’ WhatsApp group. A bit of fun to start with, especially as the joke was that ‘Group Admin’ does not count as a demonstration of leadership qualities! But over time, it has kept me connected to those people. We use it most days to share news, keep up to date (it’s all 100% professional of course). However, if I received the call, these are the people that have earned my respect and trust. I wouldn’t hesitate to contact them.

I am fortunate that my team currently has more than 5 people in it. When I get the call tomorrow I’ll be ready. But what if we were asked for a team of 10, or 20? My mindset is that I’m still hiring, and still looking to be hired by others too. I wonder if this mindset might prove useful in future?

Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Three Economic Indices You Can’t Ignore In Procurement

Procurement professionals need the ability to understand – and react to – changes in inflation, employment and optimism.

Register as an online delegate for the London Big Ideas Summit 2017 here.

The interesting thing about procurement’s typical line of sight is that it very closely aligns with the terms of the sourcing projects we run and the contracts – and therefore supplier relationships – we manage. This might be 6 months, 12 months, 3 years, or 5 years long, but regardless of the exact length of time, you can be assured it is far longer than the changes being seen in global and local economies.

Since the summer of 2016, I have been the Business Survey Chair for the ISM-New York Report on Business. It has been an amazing learning opportunity, and I am fortunate to be working with a career economist to learn to decipher and draw meaning from the data. There are two pieces to the report: 1. the indices (some seasonally adjusted and some not) which provide a monthly trend up or down as the economy contracts or expands, and 2. the narrative, which highlights some of the key figures and milestones and adds some context to the numbers.

You don’t have to be a professor to see the connections between procurement and economics, but it is easy for us to become overly focused on information that is internally available or provided by suppliers. Based on what I’ve learned, the following categories of information tie directly to procurement’s efforts and objectives. And although they may not often come up in internal conversations, they need to be present in procurement’s thinking and strategy development.

Inflation

Investopedia defines inflation as “the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.” Most of what procurement buys tends to be based on pre-negotiated contracts, so we’re unlikely to see annual changes in prices based on inflation. What we might see, however, is a difference in the prices we are able to negotiate every three years. This will be especially true of anything we buy internationally or that has significant foreign-sourced materials in it because the relative purchasing power of the U.S. Dollar in global markets will be affected by inflation. But it’s not just an international issue – for any procurement team that reports into finance, keeping an eye on inflation will give you a benchmark for the minimum project-level ROI, as the alternative might be to just hold onto the cash if the project is expected to return less than 3% (the average rate of inflation) per year.

Employment

Higher levels of employment are usually considered a good indicator or economic growth and stability. From a procurement perspective, however, employment also tells us what to expect about trends in services-category spend. With an increasing portion of organizational demand being met ‘as-a-Service’, employment rates (and therefore costs) are critical to our cost to operate. For some industries, services are so important that even the factors driving alternate economic measures like ‘Prices Paid’ are services too – the New York Metro area is a perfect example of this, as are many other major cities. It’s why you must know the product/service mix in your spend before trying to figure out what approach to take. The other consideration relative to employment is talent availability. Higher employment means lower UNemployment (see how I did that?) and therefore less candidates available to compete for open positions. Luckily for procurement, we have a wide array of talent options at our disposal through contingent workforce programs. Striking an optimal mix of employment models presents an opportunity to maximize both costs and capabilities.

Optimism

The final economic index I’ve learned to appreciate is optimism – in the ISM-New York Report on Business we call this the Six-Month Outlook. In other words, as of today, how much better or worse do you expect things to be going six months from now. It would be unrealistic to expect the outlook to be more specific than a trend up or down, but even this insight provides important information for others watching the economy. The fact that this question is even asked is an indication of how special procurement’s perspective on the economy and business activity is. This perspective is due in part to our understanding of the organization’s anticipated demand levels and the prices we are paying, but also the conversations we have with suppliers about the conditions they are doing business in. Competition drives prices down, differentiation drives margins up, increases in demand drive prices up, and large increases in price may push buyers and suppliers to innovate together to come up with alternatives, and procurement has a front row seat for it all.

Many people in the business world watch the monthly reports on business, whether the ISM national reports or regional reports, like ISM-New York. If they value procurement’s perspective on the economy enough to wait for the numbers to be released each month and report on the findings, then we should have a greater appreciate for our own insight and do everything we can to deepen it.

 2017 could be a pivotal year for the procurement profession. The Big Ideas Summit in London will help lay the ground work for all of  the changes ahead. Our London event takes place on 23rd February and you can now register as a digital delegate now! 

Procurement Leaders: Don’t Be A Creativity Killer

Everyone is born with a lot of creative potential. So what’s been holding us back all this time from releasing our inner creative genius?

Register as an online delegate for the London Big Ideas Summit 2017 here.

Last week, we introduced James Bannerman as one of our Big Ideas speakers.  A creative change agent and author of Non-Fiction best-seller Genius: Deceptively Simple Ways to Become Instantly Smarter, James  firmly believes that everyone has the capacity to be creative and innovative.

To start unlocking creative genius within our procurement teams it’s important to first understand the reasons that creativity is often so lacking. What happens between childhood and adulthood that means the average person is so deterred from expressing their creative genius in the workplace? James has a good idea about what’s holding us all back and it often comes down to three things…

Labels

It’s all too easy to get categorized by managers, colleagues and even our own self-doubt. Perhaps someone has identified you as having a particular type of creative talent but written you off in other aspects. Maybe you’ve been discounted as a creative genius altogether! Everyone has different strengths, weaknesses and areas to which they are more suited but in pigeon holing people, we are also limiting them. James believes that by labeling ourselves we are stifling our imaginations and he points out that often the best ideas come when we least expect them and from the people we least expect them from!

Organisational Structures

We’ve all had that one boss who greets every new idea with a perplexed look, a raised eyebrow or complete disinterest. Sometimes, it’s the age-old story of senior management wanting to keep things simple, avoid too much risk and a reluctance to alter the status quo.

Even within organisations who are sincere about wanting to innovate, it’s easy to discourage employees without even realising it, leaving a team of budding intrapreneurs fearful of getting it wrong or what their colleagues might say and too embarrassed to express their best and wackiest ideas. Organisations must create an environment of psychological safety that allows employees to feel comfortable to be creative even in the highly regulated environment of a workplace.

Time

Bannerman is keen to affirm that miraculous and fully-formed ideas won’t simply land at your feet. Instead, he recommends a technique called deliberate creativity:

“ If people had all the time in the world they could patiently wait for genius ideas to fall from the sky. In the real world of business, however, most people are time-poor and don’t have that luxury. That is why Edward de Bono – the author of Lateral Thinking – championed ‘deliberate creativity’.

De Bono showed us how we can use provocative mindtools to jolt the patterns of the mind, as and when required. Look at the highly-innovative organisation Pixar, for example, who appear to make great use of the Oppositions tool. If the rules of superheroes are that they have to be ‘young, fit and athletic’, for example, what do they do? They create ‘The Incredibles’.

Or if the rules are that ‘children are afraid of monsters’, what do they do ? They create ‘Monsters Inc’ where it is the monsters who are afraid of the children. Or if the last thing a chef wants in their kitchen is a rat, what do they do ? They make the rat the chef and create ‘Ratatouille’.

So if you’re looking for innovative solutions for your Procurement team or your organisational Supply Chain Management, ask yourself what might happen if you creatively questioned the habitual ‘rules’ ? The rules of cereal, for example, used to be that they were always eaten in a bowl with milk and a spoon. Questioning these rules, however, helped to inspire the invention of the ‘cereal bar’. Similarly, as Kelley of IDEO points out, for years high-jumpers used to jump forwards, but then – at the 1968 Mexico Olympics – Fosbury wondered what might happen if he deliberately jolted this pattern and jumped backwards, and now the ‘Fosbury Flop’ has become adopted around the globe.”

Join the conversation and register as a digital delegate for Big Ideas 2017 now!

Should Procurement Pros Be Concerned About Global Trade?

Renowned economist and Big Ideas Speaker Dr Linda Yueh explains why CPOs needn’t panic about the President Trump administration but there are causes of concern. 

Register as an online delegate for the London Big Ideas Summit 2017 here.

Donald Trump made good on a campaign promise on the first day of his presidency by signing an executive order indicating the United States won’t ratify the Trans-Pacific Partnership (TPP) trade deal.

Though expected, the move caused a media storm and a flurry of responses from politicians and businesses all around the globe. But what does this mean for supply managers?

Many CPOs are understandably nervous about the Trump administration’s policies with regards to global trade. The resurgence of protectionism in the U.S., coupled with the continuing fallout and trade effects of Brexit, has left many procurement professionals wondering which region of the world they should plan to source from in the future.

The TPP was a massive free-trade agreement advocated by the Obama administration, aimed at deepening economic ties between the U.S. and 11 other Pacific Rim nations, cutting taxes, and fostering trade to boost economic growth in the process. Trump argued on the campaign trail that the agreement would be harmful to the U.S. manufacturing sector. As he signed the withdrawal order, he called it “a great thing for the American worker”.

Economist, broadcaster, author and Big Ideas Summit guest speaker Dr. Linda Yueh’s message to CPOs is one of caution but it’s not time to panic.

Don’t panic

According to Linda, there are three reasons not to panic about what Trump’s protectionist tendencies will mean for procurement, trade, and global supply chains.

  • We need to keep in mind that trade takes place under WTO rules. China is the U.S.’s biggest trading partner, despite no free trade agreement being in place. Of course, if Trump were to pull out of the WTO, then that would be a game changer. But, globalisation, especially e-commerce and the Internet linking markets and people, will mean that trade is likely to continue across borders as it’s hard to see a significant roll-back Costs of trade, of course, are another issue to be focused on.
  • Luckily, the Trump administration hasn’t honed in on e-commerce, which is good news for procurement and supply chains. Currently, one in ten transactions are already undertaken via e-commerce, and this figure will continue to grow.
  • Trump may have moved quickly to sign the TPP withdrawal order on his first day in office, but that wasn’t a formal agreement. Extricating the United States from NAFTA for instance will require renegotiation time and then a period of notice before that free trade agreement would end. Even then, most trade agreements include implementation periods, so a “cliff edge” is unlikely which gives businesses time to plan. Therefore, there’s no need to panic or overhaul your supply chain immediately. But, of course, forward planning and following economic policies would be wise. Also, take Brexit as an example – if Britain succeeds in triggering Article 50 in March 2017, then the UK is scheduled to leave the EU by the end of March 2019 – almost three full years after the people’s vote. And even there, the Prime Minister has indicated that there may be an implementation period to allow more time for businesses to adjust to leaving the Single Market.

Things to watch

So, Linda warns that supply managers should keep an eye on certain factors as global trade adjusts to these seismic political shifts.

1) U.S. border taxes – recently, Trump threatened BMW with a 35 per cent border tax on foreign-built cars imported to the U.S. market. This isn’t an isolated incident and American companies are under even more pressure to produce in the U.S.. Congress is also considering a similar tax, so that is worth bearing in mind as that would have the force of legislation.

2) U.K. Tariffs – one of the consequences of a “hard” Brexit where the UK leaves the EU without any preferential trade deal, which would include no agreement on the Single Market, Customs Union, is the re-emergence of customs for EU trade. Right now, significant customs procedures only apply to non-EU shipments. But, with around half of UK exports going to the EU, taking leave of Britain’s membership in the EU with no deal would means the end of free movement of goods. More customs declarations and duties would raise costs, slow down supply chains and certainly add time at border checks. A potential ‘hard border’ would be a particular issue for Ireland.

3) Resourcing Brexit – the UK Government also needs to think about the resourcing challenges involved in ramping up staff as well as IT systems to cope with the doubling of customs checks on the UK border.

4) NAFTA – As mentioned earlier, Trump has also flagged that the North American Free Trade Agreement (between Canada, Mexico and the U.S.) is up for renegotiation. If you’re a U.S. company, you need to start making plans now about how these changes will affect you. The same applies to any other of America’s free trade deals with 20 countries that Trump would have the authority to re-examine.

What about China?

Globalisation has helped China become a manufacturing powerhouse, but with numerous closed markets.

However, there are very good reasons to continue to do business with China. Wages may be rising but that helps businesses to think about China as a market as well as one production locale in a supply chain. Plus, with growing protectionism in America, China’s President has signalled that China may take more of a lead in globalisation. There’s a lot to watch for.

In short, Linda’s advice to CPOs around the world is keep calm, but keep an eye on the details as the globalisation landscape is shifting significantly. Global trade won’t end tomorrow but it will likely look rather different in the coming years.

Join the conversation and register as a digital delegate for Big Ideas 2017 in London.

Leading Procurement into the Future – Big Ideas Summit 2017

2017 is a pivotal year for the procurement profession. The Big Ideas Summit 2017 will help lay the ground work for the changes ahead.

We firmly believe that 2017 will be the year that everything changes for procurement. No longer a transactional function, procurement is driving value for organisations across the world. But the journey doesn’t stop there.

As the pace of change increase even further, procurement needs to adapt and evolve in order to maintain its position. Technology will play a major role in this evolution across the profession, and throughout the supply chain.

To help procurement find its feet in Industry 4.0, and to help lead it into the future, Procurious is once again gathering the brightest minds in the profession for the Big Ideas Summit 2017. This year, we’re doing a spot of globe trotting as we host events in Singapore, Sydney, Chicago and Dubai but we’re kicking things of in London!

Leading from the Front

If you’re new to Procurious, or missed our previous events, let us set the scene for you. The first event of 2017 will take place in London on Thursday the 23rd of February. The event will bring together 40-50 established thought leaders, senior decision makers and industry experts, to discuss procurement’s future.

This is a unique opportunity for delegates, and the wider community, to gain insight into the trends shaping our profession. Once again, we’ll be inviting the community to get involved as digital delegates, and to help drive the conversations online.

By getting current and future procurement leaders discussing key trends, risks and issues, it will help prepare us all for the journey ahead. These leaders will then have tangible outcomes they can take back to their organisations to drive innovation and change.

Among our key themes underpinning the entire event this year are:

  • Industry 4.0 and how it’s reshaping procurement
  • Rebuilding your workforce for  Workforce 4.0
  • Procurement in the digital age
  • Authentic Leadership – Inspiring Trust and Driving Change in Uncertain Times

Be Brave or Be Dead

Procurious has once again secured a fantastic list of keynote speakers and expert panellists. Kicking off Big Ideas 2017 will be respected futurist, entrepreneur, and author, Mark Stevenson.

Setting the scene and providing a context for the day ahead, Mark will draw on his own experience to discuss the key components procurement need to be aware of. These are: geo-politics; geo-economics; and geo-technology.

Stevenson will also outline the technology ‘waves’ coming in the next decade, and argue that companies that can take advantage of these waves will not only attract the best staff, they will seriously outperform all their rivals.

Why take part?

As savvy social networkers you’ll already be of the mind that social media can be used to create a global stir. We want to amplify these Big Ideas throughout the global procurement community, connect with one another, start meaningful conversations, and ultimately drive change.

All keynote sessions will be captured on film and offered exclusively to registered attendees. As a ‘digital delegate’ you’ll also be able to access a rich collection of supporting material including articles, interviews and video content following the event.

Register for the London Big Ideas Summit 2017 here. You can also get involved in real time via social media, on Twitter, LinkedIn or Facebook, using the hashtag #BigIdeas2017.

Be brave -Join the global movement today.

Claim Your 60 Seconds of Fame: What’s Your Big Idea In 2017?

Looking for a way to build your personal brand and market yourself as a global procurement superstar? Here’s your chance to share your Big Idea with over 19,000 colleagues on Procurious! Get ready to launch your reputation as an influencer and help shape the global conversation for 2017.    

The Big Ideas Summit 2017 in London takes place on 23rd February. Register as a digital delegate here

Put yourself in the frame

In the lead-up to the world’s most innovative procurement event, we’re putting out the call for members of the Procurious community – that’s YOU – to share your Big Ideas via a 60-second video.

Why? Because we’re flexing our 19,000-strong community muscle to crowdsource innovation directly from our members! By sharing Big Ideas, we’ll break down competitive barriers, learn from colleagues with unique insights into procurement, and come away energised by a rush of new concepts that will launch the profession into new and exciting territory.

Amplifying your Big Idea is not only important for the profession, but it’s very good for your career. Although it’s not quite Hollywood, putting your video up in lights on Procurious offers an unprecedented chance to grow your profile as a thought-leader and a true influencer in procurement.

Join an all-star line up 

At the Big Ideas Summit 2016, we asked the thought-leaders gathered in the room to record their Big Ideas live on camera for the world to see. The result? We now have a remarkable library of Big Ideas available to all members under the Procurious Learning tab. The quality of ideas was amazing, and the range of viewpoints was even more so. From Guardian Journalist Lucy Siegle talking about fast fashion…

To RBS CPO, Laura Faulkner, on why procurement needs to focus on people…

… the scope for fresh, innovative ideas is unlimited! But Big Ideas videos aren’t just for the superstars appearing at the Summit itself – it’s over to you to help build on this groundswell by creating a 60 second video that will make YOUR mark on the profession.

Who can contribute?

Anyone and everybody! Whether you work in indirect or direct procurement, whether your focus is manufacturing, technology or logistics, whether you’re a CPO or a student – your ideas deserve to be shared. That’s because every procurement professional possesses unique insights based on differences in personal background, role, industry, and business type.

It’s super easy to create a 60-second video via your computer, phone or YouTube. You’ll find our recommendations on the best ways to create and share your video with Procurious at the end of this article.

Need more inspiration? Check out this 2016 Big Idea video from one of our community members (and competition winner), Kelly Barner:

How to submit your Big Idea

It doesn’t matter whether you film your Big Idea on your phone, tablet, laptop or PC- we’re not picky! But, to help you out, we’ve put together a list of some of our recommended methods for reaching out to us. Once you’ve completed your film, you can reach us by email (Procurious@Procurious.com) or on Twitter (@procurious_).

Youtube

Alternatively, if you have always dreamed of being an Internet star, YouTube might be the tool for you.

  • Head over to https://www.youtube.com/uploadand either select a readymade video to upload, or hit ‘Webcam capture’ to film your piece on the spot.
  • Select ‘Start recording’ to get the camera rolling (remembering to tick ‘Allow’ should you be prompted by YouTube’s Privacy Settings)
  • When done press ‘Stop recording’ followed by ‘Continue’.

Don’t be daunted by filling-out the ‘Basic info’ – all that’s required is a title, short description, and some tags. For your title we’d suggest using something along the lines of: My Big Idea is… [insert here]

In order to make your video easy to find, we’d recommend using the #BigIdeas2017 and Procurious tags – but feel free to add more!

Click ‘Publish’ when you’re happy and remember to send us the YouTube URL when it’s live.

Email and phone

Want to submit your video using a good old-fashioned email? We’ll accept that too! Did we mention we’re not picky?

Attach your video to an email with the subject line ‘My Big Idea Video’ and send to Procurious@Procurious.com.

If you’re using an iPhone or iPad you can also record your video using iMessage. Android and Windows Phone users can choose to use Skype (Windows Phone has Skype already built-in)

We look forward to sharing your videos with our Procurious community of 19,000+ members! Happy shooting, and be sure to register as a Big Ideas Summit digital delegate so you can catch the wave of Big Ideas in 2017.