Tag Archives: procurement conference

Is Your Technology Serving Up Greater Procurement Performance?

To what extent is your organisation using technology to improve the performance of procurement?

serving up procurement technology

Procurement’s adoption of technology has been surging in recent years, and it’s showing no signs of slowing down.

But what is the best way to transform the processes and performance of your Procurement organisation, while facing up to the need to restrict budgets and generally tighten up on spending?

Next week, Procurement professionals from all over Europe will gather in Amsterdam at ProcureCon IT Europe to discuss exactly that, as well as a host of other transformational topics.

In advance of the event, we asked 100 IT Procurement executives from some of the world’s largest organisations what they are doing to drive performance using technology. Here’s a preview of the results.

Procurement on Cloud 9

ProcureCon IT technology improvement

Technology is serving up Procurement teams with a wealth of tools with which to enhance their ability to add value to their business.  From social media to the cloud, automation and the Internet of Things, the list is growing ever longer.

Our research identified the cloud as one of the biggest areas of adoption today. Almost half of surveyed procurement organisations are already heavily invested, and a further 30 per cent are currently experimenting.

However, Procurement organisations will have to learn on their feet to get the most out of this new technology. Poorly implemented systems can end up being little more than expensive white elephants.

In addition, procurement professionals need to evaluate how to best implement transformational systems and processes, while reducing costs. One solution is to avoid hiring permanent new staff with the requisite skills, but instead to find strategic external technology partners who can manage the supply chain cloud on their behalf.

Adapting to these kinds of tectonic shifts in the procurement landscape is done best by the nimble. And to the victor will go the spoils.

The Future’s Bright, The Future’s Digital

Cloud technology is just one element of the digital transformation of procurement. Another important area of investment and focus for procurement teams is harnessing the power of big data.

More than 35 per cent of respondents to our survey are already heavily invested in big data, and more than half are currently experimenting. Going hand-in-hand with big data is spend analytics, another huge investment area for procurement organisations according to our research.

However, big data means different things to different people. Procurement’s approach needs to be moderated by a focus on desired outcomes.

Without a set of clear objectives, the insights offered by analytics will be limited and difficult to put into action. Once you have decided your goal, you’ll be better placed to select the ranges of data which are most appropriate.

Join Us at ProcureCon IT

ProcureCon IT is all about finding practical solutions to the challenges which IT procurement pros face on a daily basis. It’s the only truly peer-led conference of its kind in Europe.

Not only will you meet hundreds of people who are successfully taking their IT procurement technology strategy to the next level, but it’s also a superb opportunity to meet with some of the most innovative solution providers in the market place today.

To get industry-leading insight on the issues mentioned here, as well as lots more, join us on the 5th and 6th of December at the Mövenpick Hotel Amsterdam for ProcureCon IT.

Take a look at the full event agenda and download the research on procurement technology here.

Big Ideas Summit 2016: Big Idea #24 – Sharing Procurement Expertise

Procurement professionals have a great opportunity to develop themselves, and helps others, by sharing expertise in the charity sector.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Sharing Expertise

David Lyon, CPO at Cancer Research UK, believes there is a now great opportunity for organisations to share procurement expertise. Procurement professionals can push their development, and give something back, by working with the charity sector.

David states that, in the age of CSR and transparency, young people can grow their own careers by gaining insight and knowledge in procurement by working with charities.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 18,500 like-minded procurement professionals from across the world.

Why Procurement Needs to Open the Door to Supplier Diversity

Procurement is under pressure to engage more in supplier diversity. But help is at hand from organisations who can help make connections.

open door supplier diversity

In May 2015, the Australian Government set out Indigenous company contract targets for federal departments and agencies. Starting from 0.5 per cent, the targets were set to rise to 3 per cent by 2019-20.

The joint message from the Minister for Indigenous Affairs and Minister for Finance claims, “the policy will ensure that Indigenous businesses have the chance to compete and showcase the products they have to offer.”

Supply Nation is the Australian leader in Indigenous supplier diversity. The organisation exists to connect Indigenous-owned businesses with the procurement teams of government and corporate organisations.

Supply Nation has worked closely with government to collaborate and influence the evolution of procurement policy that is now represented by the Indigenous Procurement Policy.

We sat down with Supply Nation’s CEO, Laura Berry, to talk more about the importance of this benchmark, and how organisations across Australia can strive to meet it. 

Why is engaging with Indigenous-owned businesses and suppliers so important for organisations across Australia?

Supply Nation strives to increase opportunities for Indigenous-owned businesses to supply their goods and services to large organisations. Supplier diversity puts under-represented businesses on a level playing field with other qualified suppliers when it comes to competing for the supply of quality goods and services.

One of the major benefits of opening the door to additional markets and engaging in supplier diversity, is that it facilitates the growth of Indigenous businesses. This results in increased economic activity and employment, and channels greater social value back to Indigenous communities.

In addition, data clearly shows that supplier diversity drives significant and measurable long-term business benefits, aside from the goods and services, which can ultimately provide a unique experience to customers. The addition of Indigenous-owned businesses can bring increased competitiveness, innovation and savings to the supply chain.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

Creating an environment where our members and suppliers can connect, develop relationships and identify future procurement opportunities is integral to the work of Supply Nation.

Supply Nation assists our government and corporate members with tools and strategies to embed supplier diversity within their supply chain through a tailored account management model.

We also provide support for business matching, opportunity briefings, supplier promotions, external training opportunities and networking events.

What are the biggest challenges Supply Nation faces in procurement at the moment?

As a not-for-profit organisation, the procurement challenges facing Supply Nation itself are not significant. However, for our Indigenous suppliers, the challenges are the same as those faced by small businesses across Australia.

These include the difficulty in breaking into established supply chains and conventional procurement processes, or in developing relationships with buyers.

With the Federal Government’s Indigenous Procurement Policy, there’s more pressure for government buyers to find and engage with Indigenous-owned businesses. We see a real challenge – and a real opportunity – in facilitating the connection between the businesses and procurement professionals.

What’s the first step for organisations looking to alter their processes to meet new supplier diversity requirements around Indigenous suppliers?

Step 1 would be to become a member of Supply Nation (if you’re not already)!

Take the opportunity to search for goods or services through our directory, Indigenous Business Direct. You can engage with a Supply Nation Relationship Manager who can help you navigate the process.

We can help with changing internal policies and procedures, connecting with businesses that meet your requirements, and setting up established and sustainable supplier diversity practices that are modelled on world best practice.

How can attendees benefit from attending GovProcure 2016 (where Laura is speaking)?

We have some amazing, successful and diverse Indigenous-owned businesses that are growing fast and delivering incredible products and services. I’d recommend everyone comes along to understand how they can engage not only to hit their targets, but also to get some insight into the benefits these businesses can bring to your supply chain.

Among other Australian procurement leaders, the event will also feature Ian Rudgley, CPO for the City of Sydney, a council that despite not being subject to the federal targets, has award-winning engagement and mentorship of Indigenous suppliers.

For more details on the agenda please download the brochure.

Roll Out the Red Carpet – David Cameron to Deliver ISM2017 Keynote

The Institute for Supply Management (ISM) announces its most impressive keynote to date as registrations for ISM2017 open.

david-cameron

Former UK Prime Minister David Cameron will deliver the opening keynote at ISM2017, it has been announced today.

Cameron will speak about the geopolitical impact of policy and current events on global business. Over 2,500 assembled procurement and supply chain professionals will witness a riveting and eye-opening first-hand account of Cameron’s own experience during his tenure as UK Prime Minister.

With Brexit arguably being the defining moment of his career, Cameron will share his unique understanding of what the result means for US businesses and supply chains the world over, including its effect on globalisation.

Sharing Leadership Lessons

Cameron’s appearance continues a strong tradition of impressive keynote speakers at ISM’s annual conference. He follows in the footsteps of former President and CEO of Ford Alan Mulally, author and introversion expert Susan Cain, former Secretary of Commerce and professor of public policy, Susan Schwab, and former US Secretary of Defence, Robert Gates, as keynote speakers.

Learning and Networking in the Heart of Disney World

ISM2017 will be held at the Disney Coronado Springs Resort in Orlando, Florida, in the heart of Disney World. This surely makes the one annual conference where attendees will be sure to bring their families along! The conference will feature:

3 Learning Tracks – designed to help attendees deep-dive into three large themes over the conference:

  • Economic (Boom or Bust)
  • Business (Top Line and Bottom Line)
  • Professional (Inside and Outside)

As per previous years, all sessions are tagged with ISM Mastery Model experience levels, ranging from Fundamental through to Mastery.  

11 Signature sessions, including:

  • Unleash the magic of transformational supplier Relationships
  • Accelerating your career path with “insides” from procurement leaders
  • How to lead a successful transformation
  • Be a hero in boom times, not just in bust times
  • Shift the focus to change the results: Procurement’s opportunities to grow the top line

73 other conference sessions on overcoming shared challenges, featuring procurement and supply chain experts from around the world. 

Pre-conference training seminars and certifications, including the CPSM Exam 1 now offered onsite at ISM2017.

Presentation of three major awards

  • The R. Gene Richter Scholarship Program, providing scholarships to six students gaining an education in supply management or procurement.
  • The J. Shipman Gold Medal Award, presented to individuals whose unselfish, sincere and persistent efforts have aided the advancement of the supply management field.
  • ISM and ThomasNet’s 30 Under 30 Rising Supply Chain Stars program, recognising young procurement and supply management professionals for their passion, creativity and contributions to supply chain.

Finally, and perhaps most importantly, ISM2017 offers unparalleled face-to-face networking opportunities with thousands of peers from the profession.

Whether you attend ISM2017 to hear from thought-leaders, hone your skills, witness David Cameron’s keynote, network with peers or simply to have your kids meet Mickey Mouse at Disney World, be sure to share your experiences with the online community here on Procurious.

Registrations are now open for ISM2017. Find out more by visiting http://ism2017.org/

Procurement Translation? Now You’re Speaking My Language

Sometimes in procurement it feels like you’re speaking a different language to the rest of the business. 

speaking my language

Procurious is at ProcureCon Europe this week. Stay up to date with what’s happening on Procurious, and by following us on Twitter.

If we’re perfectly honest, procurement wasn’t the first thing on everyone’s minds this morning. With both media and social media, dominated by US Election coverage, you might have been forgiven for not having your eye on the procurement ball.

However, if you didn’t, then you were likely to miss some great nuggets of procurement knowledge on Day 2 of ProcureCon Europe.

Do You Speak the Language of the Business?

A prevailing theme at the conference has been communication and collaboration between procurement and the rest of the business.

Kristian Saksida’s gave a Finance to Procurement perspective yesterday in his keynote. Today gave us the Engineering to Procurement perspective from Gordon Tytler, Director of Purchasing at Rolls-Royce.

It’s worth noting that none of these speakers have used this as a criticism of procurement. In Tytler’s case, his Engineering and Supply Chain background gave him a broader perspective both inside and outside the profession.

According to Tytler, Procurement as a role and a function is appreciated but, crucially, not fully understood by the rest of the business. If procurement is too insular, then it can’t be sure it’s delivering what the business actually wants.

However, by communicating well (and speaking the right language), procurement can be sure it’s meeting the strategic needs of internal and external stakeholders.

Fly the Plane While Fixing It

Collaboration was also picked out as a vital part of procurement transformation and procurement excellence.

Thibault Eissautier, CPO at pladis (a newly formed organisation in the FMCG industry), was discussing the factors procurement must consider when choosing its operating model. He highlighted collaboration between functions as the only way to definitely deliver significant value.

Procurement needed to speak the language of the business to make sure that senior managers were on board. From Decentralised, to Centralised, to Centre-led, there was no way that procurement could operate in isolation.

The current POM is often defined by the maturity of the organisation. However, many organisations will be changing their POM, while still trying to deliver for the business. Eissautier likened to “flying the plane while fixing it” – not really an image you want with a flight back to the UK later on!

The Future of Air Travel?

The flight metaphor leads nicely into an afternoon session on the construction of a new airport in the Netherlands. Not your common fare for procurement, but there were some amazing insights into the potential future of low-cost air travel.

The Royal Schiphol Group has been charged with the project to build Lelystad Airport by 2018. Two of the team, Budi Darmadi and Peter Mustert, showcased the very different approach the Group is taking to the project’s procurement strategy.

Competition in the sector is fierce, and Lelystad Airport is aiming for the low-cost market, so needs to price accordingly. Given a $58 million maximum budget to work with, Mustert said that they knew a best-value approach would be needed.

For this, they needed to work with experts, but first they needed to identify them using a 4 step model:

1. Approach the Experts

Using a functional, rather than technical specification, and a maximum budget for a ‘good’ solution.

2. Assessment

Experts are asked to supply a 6 page only bid. This is to focus on proven performance and results.

3. Clarification

Following selection, the two parties discussed unclear items, risks, etc. to form a contract.

4. Execution

Let the supplier do their job, procurement is not to interfere. A weekly risk report helps to ensure that there are no blockers for the supplier in completing the project.

And that was it! There was no question of SRM, or partnerships, or even the endless meetings usually associated with contracts. The process aimed to have all parties working together in an open, functional way.

Whether this proves to be successful, we’ll have to wait until April 2018. But if it is, Lelystad Airport will showcase the future of the form of travel. Fully automated, simple, but highly innovative designs, all aimed at providing customers what they need, and want, from low-cost travel, and nothing more.

And who knows, maybe if this is a success, then best-value, non-interference contracts will become the norm. A great vision of the future (so long as you don’t manage contracts…!).

Why Some Supplier Relationships Are More Equal Than Others

All suppliers are equal, it’s just that some supplier relationships are more equal than others. It’s just one of the challenges facing procurement.

some supplier relationships more equal

Procurement in the public sector can provide its own set of unique challenges. Learning from the experts is one of the best ways that professionals can aim to overcome them.

Marea Getsios is the Coordinator of Procurement at Kogarah City Council in New South Wales, Australia. Marea has worked with both Local and State Government departments in Australia over the past 20 years.

This has given her an in-depth understanding of the procurement process from a strategic leadership perspective, as well as what it takes to drive procurement success.

Ahead of her appearance at the 3rd annual GovProcure 2016 conference, Marea highlighted some of the key challenges she faces in her current role, and the ways she has overcome them. She also shared some tips on the practical side of procurement, including best practice in supplier relationships and risk management.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

I’ve used my sales and marketing background to communicate, and engage, with stakeholders more effectively, in order to achieve better procurement outcomes. It’s been important to educate stakeholders on the differences between a procurement and a purchasing role.

By communicating the procurement cycle, and discussing the importance of good procurement practice, it’s been much easier to achieve better governance and practice amongst my colleagues.

The other area I focus on is the importance of planning your procurement program. It is important at the beginning of every project to sit down with key stakeholders and work out the key objectives and risks of the project.

It sounds like you are really harnessing your strengths and experience to minimise setbacks at your organisation!

What would you say the biggest challenges you and your organisation are facing in procurement at the moment? Do you feel that these challenges translate to local government at large and why?

At the moment the most challenging aspect of my role is amalgamating two very different frameworks into one. You have to methodically go through each process and work out which method is going to work best for the new entity going forward.

It’s a good opportunity to look at what has worked in the past for both organisations and decide what will be the most effective in the new framework going forward. Many Councils are presently going through this process, and its not any easy one.

In addition to trying to amalgamate the differing key procedures and policies, the most challenging factor is the culture, and trying to break down the silo mentalities of individuals who are adverse to change.

Interesting you mention the change adverse cultures that exist in business. We know that procurement operations within local government can have far-reaching, visible impacts on the community.

Can you tell us a bit more about the key procurement trends that might impact procurement and supplier relationships at the local level? How you can make the most of these challenges and opportunities?

Obviously we are embracing cloud-based networks to streamline ordering processes. We also have lots of new technological platforms that can automate certain procurement functions, including spend analysis, contract management, and saving trackers.

I don’t believe local government has embraced enough of these opportunities, but they are beginning to play in this space. There is opportunity now to start implementing some of these platforms and managing the workflow more effectively.

The other area I believe could also be embraced better is social media, especially where the engagement of both the community and suppliers is involved.

Procurement technology with built-in social collaboration tools can encourage innovation through improved collaboration with suppliers and other stakeholders. At the same time it can minimise risk, and enable effective decision making.

Moving outside your business to your external suppliers. Do you have any advice or key lessons learned from your supplier relationships and risk management strategies?

I believe if you are fair and transparent, and allow all suppliers and contractors the same opportunities, you will be successful in developing good supplier relationships and managing any potential risk to your organisation.

I try where possible to give suppliers the best insight to the business and our requirements in order to allow them to work out if the organisations requirements are a good fit for their business. This way they don’t waste their time or our time.

It’s important to be clear at the beginning of any relationship, and to set expectations at a realistic and achievable level. I have found that problems arise if suppliers feel they have entitlements, or are basing their livelihood on anticipated revenues.

As long as the communication is clear, it enables the supplier to work out whether they are able to service or supply your organisation accordingly. If they feel they are building their business fairly, then they will do whatever they can to grow their business and in turn provide a good service to your organisation.

It’s important not to treat suppliers and contractors with contempt, or as if they owe you. This can create issues and open up the organisation to unnecessary risk.

It’s been wonderful hearing from you, your insights are extremely useful and there are many thought starters here!

How can attendees benefit from your panel participation at the GovProcure 2016 conference?

The GovProcure conference is a good opportunity for procurement professionals to get access and exposure to a variety of principals and processes that operate across the three levels of government.

It’s interesting to see where there are alliances in the various government sectors and it’s a good opportunity to share ideas and network with other likeminded procurement professionals.

My contribution will have a strong Local government focus, but I also try and talk about how my sales and marketing background has helped me promote procurement in my sector. Much of my procurement practice focuses on the engagement of stakeholders, which I believe is the foundation for success in the procurement sector, and all other sectors for that matter!

Too find out more or to download a brochure, visit the event website.

Take the Disney Approach to Procurement

Take some advice from Disney – storytelling lies at the heart of every successful change programme.

disney approach procurement

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!

ProcureCon Europe, now in its 17th year, is Europe’s most strategic procurement conference for CPOs and senior procurement executives. See the full range of topic and speakers at the event here.

Will Procurement Have a Fight to Stay Relevant in the Future?

Is procurement facing an uphill struggle to stay relevant? Could strategy and technology hold the key to both destruction and survival?

fight for relevant

Procurious is at ProcureCon Europe this week. Stay up to date with what’s happening on Procurious, and by following us on Twitter.

It’s the end of Day 1 at ProcureCon Europe, and the Procurious team are looking forward to winding down with the best Berlin has to offer. First, though, we’re reflecting on what we heard from the speakers and delegates at the conference.

Procurement’s Burning Platforms

After fortifying ourselves with the great coffee on offer, Procurious stepped into the conference hall to listen to David Noble’s ‘State of the Profession‘ address. The CIPS CEO was positive about the situation procurement currently finds itself in, but had words of warning for the future.

One particular quote stuck in our minds as we considered the question of how procurement could remain relevant:

“If we don’t show our true value, our profession will cease to exist in its current form.”

Noble outlined what he termed as procurement’s “Burning Platforms” – those factors the global profession needs to be aware of now, and in the next few years.

First, the spectre of supply chain risk. Global risk is at its highest level (a peak of 80.8 in CIPS’ Risk Index in Q2 this year) since 2013.

Second was ethical supply. Linked heavily to supply chain risk, it appears that procurement is still struggling with transparency and ethics. Only 57 per cent of buyers have visibility of their Tier 1 and Tier 2 suppliers, and the percentage drops to single figures when it gets to Tier 3 and beyond.

The final burning platform was professional relevance, and how procurement could embed strategies to remain relevant. Noble touched on the ‘gig economy‘. This area is a double-edged sword, giving procurement the opportunity to train those not in the profession, but also challenges in maintaining the profession’s reputation.

Innovation & Frank Assessments

Automation and technology was a topic covered by a number of keynotes (more on that in the near future). However, it’s worth touching on a couple of areas of innovation, particularly in the area of stakeholder engagement.

JJ van der Meer, Partner at PA Consulting, outlined some of the activities that procurement can do to bring stakeholders on board. He and his team have coined a new word, “entreprocurement”, as a way of describing this innovation. While a bit unusual, it’s a term that’s likely to stick in the procurement world, we’re sure!

Innovation, and the drive to do better and better, was also the focus of Kristian Saksida’s keynote. Saksida, CPO at Solvay, offered a refreshingly honest assessment of his team’s transformation journey.

He was open to admitting the mistakes they had made while striving for more, but it was clear he wanted the room to have the benefit of this knowledge to avoid the same pitfalls.

Saksida’s background in Finance helped put an interesting spin on his material. However, he made some key points about the need for procurement to be speaking the same language as the business.

For two functions which have often had a troubled relationship, Saksida’s keynote gave a sense of positivity for the future at Solvay.

Sport and Procurement – A Creative Mix

Lastly we stopped in on Celia Sanchez San Juan’s interactive case study on optimising business partnering. Having seen Sanchez San Juan in a panel earlier, it offered a chance to dig deeper into Adidas’ fledgeling procurement team.

You may not see how sport is relevant to business partnering, but the link was far from tenuous. Adidas look at sport as having the power to change lives, and approach their procurement in the same way.

Sanchez San Juan offered Adidas’ maxim, “The Guiding Principle is Helping to Make a Difference, in the Game and in the World”, by way of explaining how the company puts its people at the heart of its change in procurement.

The journey to becoming a strategic business partner drew on the ideas of insights, impact, and innovation. Moving procurement from ‘Support’ to ‘Creator’ drives greater collaboration, and ultimately delivers greater value for the customer. In the world of sport and procurement, it was all about playing on the same team.

Isn’t that a good thought to finish the day with!

Business Backwards – Putting the Customer at the Heart of Procurement

Everyone knows that the customer is always right. And it’s time for procurement to put them at the heart of their work.

customer at the heart

Procurious is at ProcureCon Europe this week. Stay up to date with what’s happening on Procurious.

They say every day is a school day. And today is no different for the 250 procurement and supply chain professionals in the room.

Far from focusing on the supplier relationships (though there is plenty of that too), one panel discussion got the assembled masses considering a relationship that doesn’t always get the focus in procurement.

The internal customer interactions have not traditionally treated procurement well. Blamed for late deliveries, for complicating processes, and for being a “roadblock”, the profession takes its fair share of flak.

However, a change of thinking, to put the customer at the heart of the relationship, could change all this.

Don’t Stray too Far from the Customer

Titled ‘5 Changes to Make to Your Procurement Teams to Transform to a Higher-Performing Organisation’, the discussion showcased some great ideas about how procurement could change its focus.

The panel, chaired by Richard Beaumont, former CPO at Prudential Digital Services, consisted of:

  • Antonia Wanner – Director Global Commodities Procurement at Nestlé
  • Axel Horst – Operational & Commercial Excellence Manager at Shell Global Solutions
  • Celia Sanchez San Juan – Director Group Procurement at Adidas

The overwhelming message from all three procurement leaders was that there needed to be a greater focus on the customer. According to Sanchez San Juan, the right business plan should put customers at the centre. If procurement is too far from its customers, then it’s too far from the core of the business.

Antonia Wanner gave an example of the focus that Nestlé gives to its customers in procurement. In the past, the organisation had used 10 types of topping for its chocolate ice cream (competitors used 2).

However, procurement established that its customers were more interested in having natural vanilla in the ice cream, than the chocolate toppings. By reducing the number of chocolate toppings, it allowed Nestlé to procure the natural vanilla, ultimately meeting an important customer requirement.

Business Backwards

Axel Horst then shared the strategy that Shell are using the help drive a customer focus – “Business Backwards”. The strategy takes the traditional top-down process model, and turns it on its head, starting with the customer requirements.

Once these are known, strategies can be defined as to how to deliver this, and then finally, leaders know what they need to do to make the strategy a reality. And it’s not just in process that Shell are demonstrating the drive for serving the customer.

Each Shell employee, including the procurement function, is required to work one full day each quarter on the retail site. According to Horst, this helps each employee understand the customer more, and, for procurement, what they need to consider when buying for the retail side of the business.

Advice from the Future

Beaumont finished the panel by asking the three leaders what advice they would give to their past selves. Though they focused on the key to current success, all three showed that customers were still at the forefront of their thinking.

Wanner highlighted the constant innovation required to stay ahead of the game, with the key being to “try, fail, and learn fast”. Horst built on this by saying that if you were going to fail, fail fast, so that innovation wouldn’t be held up.

Finally Sanchez San Juan said that she would tell herself to push harder for what she really believed in, which was key to driving great innovation across the business.

Will customer-centric procurement really take hold? Or will we be looking back in three years at an opportunity lost? Sadly, without a crystal ball, only time will tell.

ProcureCon Europe, now in its 17th year, is Europe’s most strategic procurement conference for CPOs and senior procurement executives. See the full range of topic and speakers at the event here.

Raising the Curtain on the Future of IT Procurement

Few categories receive the same attention as IT procurement. So how can professionals demonstrate the value they deliver to organisations?

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IT procurement is the most important spend category for most large businesses today. As a result, the category is under pressure to demonstrate its ability deliver cost savings against a backdrop of financial pressure and restricted budgets.

In just a few weeks, Procurement pros from all over Europe will gather in Amsterdam to discuss the future of their industry at ProcureCon IT Europe.

Progressive procurement leaders know that it’s not just about saving on the bottom line, it’s about adding value to the business too. It’s a subject which is bound to be top of the list of priorities in Amsterdam.

We asked 100 IT Procurement executives from some of the world’s largest organisations what they are doing to innovate, inspire and add value as part of our research for ProcureCon IT.

Creating a Best-in-Class IT Procurement Function

Procurement is becoming a more integrated part of many organisations, and IT Procurement increasingly has the skills required to deliver value to its stakeholders and make a significant impact on this important category of spend.

But what are the best-in-class procurement pros focussing on now to improve their effectiveness?

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Our research highlights a focus on tightening up the relationship with suppliers. Nearly 60 per cent of our research participants named contract management as their number one focus. Procurement teams seek to optimise all contract-related costs, and provide both clarity and transparency for both parties.

Other priorities speak directly to the supplier relationship. More than half of respondents named vendor innovation as a key area of focus, and a similar amount highlighted supplier rationalisation.

Clearly, IT Procurement is on the hunt for the innovative solutions which will create a competitive advantage for their business. It’s not all about quantity though. It’s about slimming your roster down and making sure that every supplier is pulling its weight.

Thriving in the Future IT Procurement Landscape

What does some of this innovation look like? There is no doubt that the digital innovation which has turned the world upside down in the last ten years is also changing procurement too.

Cloud technology is an important area of growth for our respondents – more than half of our respondents are already heavily invested in these solutions. Some of the latest innovations in this area use app-based user interfaces and cloud-based analytical platforms to provide real-time access to information about who is spending what and when (and that’s just the beginning).

Even better, these systems generate an incredible amount of data with which to hone your operations further.

Data on this scale has the power to enhance planning, delivery and reporting on opportunities for cost savings, value creation, and a host of other things. Trend analysis can uncover patterns which will predict both future opportunities and future threats.

As a result, learning how to harness the information you already have inside your business is now of critical importance for those seeking to thrive in this new economic reality.

The Solutions Zone

ProcureCon IT is all about finding practical solutions to the challenges which IT procurement pros face on a daily basis. It’s the only truly peer-led conference of its kind in Europe!

Not only will you meet hundreds of people who are successfully taking their IT procurement operations successfully to the next level, but it’s also a superb opportunity to meet with some of the most innovative solution providers in the market place today.

To get industry-leading insight on the issues mentioned here, as well as lots more, join us on the 5th and 6th of December at the Mövenpick Hotel Amsterdam for ProcureCon IT.

Take a look at the full event agenda here.