Tag Archives: procurement report

Procurement 2030: Preparing For The Revolution

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

Without careful preparation, revolutions fail.

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

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

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

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

Download Procurement 2030: Level 2.

Low Maturity

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

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

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

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

Procurement’s Kryptonite

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

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

What’s Your Priority?

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

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

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

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

The Right Team For The Job

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

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

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

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

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

Interested In Learning More?

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

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

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

CLICK HERE TO DOWNLOAD PROCUREMENT 2030: LEVEL 2.

Why Don’t You Trust Your Procurement Boss?

Ever feel like you’re being stabbed in the back by your procurement boss? You’re definitely not alone and we have the stats to prove it!

Ta Animator/Shutterstock.com

When Procurious put out a call for procurement survey participants, we were delighted when 500+ professionals across more than 50 countries shared their insights and wisdom.

Amongst our most startling discoveries was that over half of those surveyed don’t trust their boss to be proactive about their career progression. This result indicates that professionals need to seize control of their own career advancement, while managers need to be incentivised to support and progress their direct reports.

The Results Explained By Global CPOs

At The Big Ideas Summits in Chicago and Melbourne earlier this year we revealed the results of the survey to our CPO delegates.

We were particularly interested in their thoughts on what procurement managers should be doing in order to regain the trust of their team members. The video below shows a compilation of their responses:

What’s the root cause of these  trust issues?

Why is trust so terribly lacking between procurement professionals and their leaders?  A number of  key factors arose from our research:

Rate of Change – David Henchliffe, Group Manager Procurement OZ Minerals attributes the lack of trust to the astounding rate of change in today’s organisations, “What people seen as firm and certain today, is gone tomorrow. That constant change erodes trust. And it erodes peoples’ view of your genuine-ness.”

My boss doesn’t want me to leave – Many of us can relate to the experience of having an overly protective boss, a boss who is keener to hold on to their talent at all costs rather than priortise career development. Alan Paul, CEO Sourceit, takes his responsibility in this area very seriously, “As a manager I need to demonstrate to my staff that I’m not afraid of them leaving the organisation. I want to develop them I want them to improve themselves.” If employees feel like they are missing out on opportunities because of an unsupportive boss, it’s likely they’ll leave anyway!

My boss doesn’t engage or communicate with me – The value in talking and listening can never be underestimated.  Imelda Walsh, Recruitment Consultant, The Source believes that “fantastic leaders encourage honest and open conversation. If procurement managers can take that step, you’ll naturally build trust”

My boss isn’t helping my career development – If it appears that your boss doesn’t care about helping you to advance your career, of course you’re not going to trust them! Michelle Varble, Procurement Director, United Airlines, asserts that  “we need to take a geuine interest in [our employees] success- we need to take on the roll of mentor even if we havent recieved a specific invitation to be a mentor.”

My boss isn’t ethical – Employees will hold a leader in high regard who both demonstrates good ethics  and demonstrates that they genuinely care about good ethics. People want to work for companies that are not soley motivated by savings and profit, that aren’t covering up immoral behaviour and where they aren’t suspicious of the goings on at the top of the company.

A lack of ethical behaviour at the top sets a terrible example to the rest of the organisation and destroys trust.

What can procurement leaders do to regain trust?

Encourage development – Anna O’Dea, Director and Founder of Agency Iceberg, believes that “a  good employer should encourage the development of their employees. If your employer isn’t investing in your training or opportunities, you could be in a one-way relationship.”

Spend time with your talent – David Henchliffe advises leaders to regain trust by devoting more quality time with employees, “spend time with them, get to know them, admit your mistakes and praise them when they do well.”

Put clear career progression procedures in place – Implementing clear structures within an organisation reassures employees that their progress is being monitored and the value they contribute is recognised.  John Foody General Manager Procurement, U.S Steel explain how his organisation “We’ve put in place some tools that we call Career Ladders, that evaluates and gives feedback to our people. It provides them with feedback on their skills, their capabilities, areas to continue to work on. It gives them a sense of progress as they continue to move through our organisation.”

Take the fear away – Don’t let your employees worry about your lack of commitment to them. Reassure them that you  have their best interests at heart, and not your own!  Alan Paul asserts that “for a manager, a true leader, it’s about taking away the fear that your people are going to leave and trust that they’re going to stay. But also accept the fact that eventually they are going to move on.

How can you advance your career without the help of your untrustworthy boss?

As Procurious founder Tania Seary asserts, “It’s all too easy to find excuses for why your career is not panning out the way you intended. Soft targets for blame include your employer, your peers, your organisation or even your own personal life- challenges for blocking your charge to the top.

“We know there are some significant problems with procurement bosses around the world but…as I have always said, and will continue to say, the only common denominator in your career is YOU.”

So join that professional network, start updating your online CV, enroll on an eLearning course, listen to that podcast series you keep forgetting about  and start connecting with influential peers and thought leaders! The procurement world is your oyster…

Request your copy of the Gen NEXT Report

The Gen NEXT report, exclusively available to Procurious members, is packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings that are raised in the report. Email us to request your copy. 

Are You One Of Procurement’s Gen NEXT?

Did you know that 50 per cent of procurement professionals don’t trust their bosses to help them win promotions? No wonder most of us are going online to proactively manage our own careers! Exclusive to Procurious members, the Procurement Gen NEXT report shares career-boosting insights from 500+ global professionals. Get your copy today.

Looking for the Procurement Gen NEXT report? Register for free or log in to Procurious, then click on the banner to download!

Evidence of a divide has emerged between procurement professionals who are proactively seizing control of their career management, and others who are waiting for a promotion or big break that may never come. At Procurious, we’ve labelled the proactive group “Procurement’s Gen NEXT”.

This is not a generation defined by year of birth. On the contrary, it’s defined by a positive attitude that can be found across every age group, from Baby Boomers to Gen Z. The members of Gen NEXT are using a whole range of levers to supercharge their careers. From developing vital mentoring relationships, to building social media profiles that have eclipsed the importance of CVs, to seamlessly leveraging their professional networks to find a new role, to crowd-sourcing a solution to a procurement challenge, the members of Gen NEXT are collaborative, proactive and ambitious.

When Procurious put out the call for participants, we were delighted when 500+ professionals across more than 50 countries shared their insights and wisdom through the survey. The result? Confirmation of the ever-growing need for members of the profession to proactively manage their own careers – online – as the profession hurtles towards Industry 4.0.

The Gen NEXT report is packed with data, insights, recommendations, and links to over 20+ Procurious articles that further explore many of the findings raised in the report.

Five ways Gen NEXT does it

  1. Make a long-term career plan, but keep it flexible

Over two-thirds of surveyed professionals are unclear about their long-term career plans. As many organisations move towards agile methodology, why not do the same with your career plan? This means being crystal-clear about your long-term goals and aspirations, but ensuring you have the flexibility to continually adjust and improve those career plans as you progress in short, culminative stages.

  1. Don’t wait for your boss to act in your best interests

The fact that over half of survey participants indicated that they don’t trust their bosses to help with their career progression demonstrates that waiting for a promotion is no longer a viable career strategy. Don’t be passive about your career advancement – seize control and take every opportunity to progress. Remember, the only common denominator in your career is YOU.

  1. Is your online profile up to scratch?

You may have the best-looking CV in the world, but if your online profile isn’t up to scratch, you won’t stand a chance of landing that job. Two-thirds of survey respondents regard their online profile to be equally important as their CV when job-seeking. It’s not only about deleting those embarrassing party photos from Facebook – candidates should ensure their professional profiles on sites such as LinkedIn and Procurious tick all the right boxes.

  1. Don’t neglect your professional network

Results show that professional networks are equally important as on-the-job performance when it comes to career advancement, confirming the adage that it’s not what you know, but who you know that will help you get ahead at the office. Alternately, if you happen to find yourself out of work, results show that your professional network is the number one pathway to finding your next role.

  1. If you’re a manager, it’s time to shift your thinking

Think you’ve built a procurement team that’ll be with you for the next five years? Think again. Managers can expect to see just under 40% of their procurement team leave the organisation within the next two years and 70% within the next five years. It’s time to throw away the retention plan and accept the reality that today’s workforce is increasingly mobile. But this doesn’t mean giving up on developing your team. If you’re known as a supportive manager who gives others the opportunity to go on to a stellar career, you’ll become a talent magnet in the profession.

And that’s not all…

The Procurement Gen NEXT report has insights into the biggest career hurdles faced by procurement professionals; trusted sources of career advice; the most common routes to finding a new role; connectivity within the profession; crowdsourcing solutions on social media; personal development and eLearning; online collaboration platforms; using communication tools to drive change; opinions on the value of professional memberships and certifications; and much more.

Get on board!

Download the report to discover how you can join Procurement’s Gen NEXT by seizing control of your own procurement destiny and charting a career course to the top. You’ll discover how to:

  • overcome career hurdles and take advantage of career springboards
  • tap into the power of your professional network to supercharge your career
  • reap the benefits of being truly connected with peers inside and outside your organisation
  • solve any challenge through the power of crowd-sourced solutions.

How do I get hold of the report?

Did we mention that this report is for Procurious members only? But don’t worry, signing up is quick, easy and FREE.

  1. Simply register or log in to your Procurious account.
  2. Click on the banner, which looks like this:

3. Your download will begin automatically.

Procurious will share insights from this report at GovProcure 2017 in Sydney on 6th December. Click here to learn more and download an event brochure.