Tag Archives: procurement technology

Disrupting or Disrupted? Why The Status Quo Won’t Do Anymore

If you’re not disrupting, then you are being disrupted. If procurement doesn’t get to grips with the right technology, then the profession’s future path is uncertain.

Watch our free webinar, ‘200,000,000 to 1: Using Technology to Find Your Perfect (Supply) Partner’, here.

The current pace of change around the world is unprecedented. Procurement and the wider organisation are quickly recognising that maintaining the status quo will not suffice in staying ahead of the pack.

However, that’s not to say that simply implementing a technology solution will solve every problem. No technology is perhaps better for the long-term health of an organisation, than a poorly chosen technology, implemented poorly.

Procurement 4.0 is a term many of us are using to encapsulate the changes Industry 4.0 is making in the supply chain. Also known as the fourth manufacturing revolution, Industry 4.0 marks the convergence of physical and digital manufacturing capabilities, where increasing automation and computerisation allow us to create so-called ‘smart’ workplaces.

Technology is at the core of the Industry 4.0 changes. Procurious hosted a webinar last week, in conjunction with Oracle, to discuss the critical role technology will play in the evolution and advancement of the procurement profession in this “brave new world”.

Ask the Experts

We invited David Hobson, Business Development Director, Cloud Solutions at Oracle, and Darryl Griffiths, Enrich Director of Delivery and Presales, to help us answer the tricky questions.

The discussion covered four key topics and challenges that face procurement, and provided some solutions as to how the profession can deal with them in the future.

Innovation

“IT is only ever an enabler for change.”

Procurement is under a lot of pressure today to find suppliers who will deliver the ground-breaking innovation that will give their company a huge competitive advantage.

However, real innovation is now coming from smaller, more agile companies, which procurement hasn’t traditionally worked well with. Traditional procurement structures and processes have been designed to work with large strategic suppliers, and are now inhibiting innovation.

We heard:

  • Why most rationalisation and standardisation efforts in the supply base have failed.
  • How the right technology or platform can ensure that performing supplier relationships are fully leveraged.
  • Why the challenge for business is to be able to adapt and apply new solutions and technology for competitive advantage
  • Why highly customised legacy systems, fragmented data, complex integrations and inefficient processes are hindering the digital innovation agenda.

Predictive Analytics

“Increasingly the evolution of the procurement function is to more proactive, rather than reactive.”

Spend management and standardising processes can come across as a pretty uninspiring (yet essential) part of what we do. Technology, innovation and digital strategies are where people want to be, but it all comes undone if we’re not managing risks in the supply chain.

On the table in this topic was:

  • The question of are procurement using the right tools in the right way?
  • The vast array of data available for tracking compliance, and how organisations can best leverage this.
  • How automating non-differentiating processes will free up time for value creating parts of the business, such as gathering insights into changing market dynamics.
  • Why many organisations are still grappling with getting data into a structured and accurate form that they can use for predictive analytics.

Streamline Processes

“Organisations that are effective in integrating data outrank their peers by 70 per cent across revenue and margin.”

If procurement can get its processes frictionless, we could then focus on the sexier, more value-adding, parts of procurement.

Standardised processes are a huge enabler for this. And, of course, technology plays a huge role in helping realise the benefits of standardised processes.

We found that:

  • In the past, often the best the system ever was on go live day, thanks to sporadic, or non-existent updates
  • Few organisations are entirely harmonised across business operations, as result of M&A, divisional evolution and conflicting business demands.
  • People tend to underestimate the complexity of stitching together the myriad vendor solutions as they aim for a more B2C-type interface
  • We will see gaming industry concepts and increasing virtual representation as part of Industry 4.0

Implementation

“The journey to Cloud is often viewed as a when, rather than an if.”

Time and time again, we hear stories about how the business case a software solution hasn’t been realised due to a failed implementation.

Among some of the most common reasons for this are a lack of understanding that this is a change management process, not just a technology roll-out, and cuts to budget for training and support.

Our experts also argued that:

  • Solutions providers need to move from being software companies, to being service companies, or risk losing their customers.
  • Grand technological visions of the past failed as the solutions we too far out of line with the business needs
  • Regardless of solution some common foundations exist for any project success which include rubbish data in means rubbish data out.
  • Change management is vital in implementation, or people will revert to old habits
  • Focus needs to be on proving the tools first to help quickly establish credibility

Watch Now!

These are just some of the highlights from the webinar. You can catch up with the full discussion by signing up here.

And the learning doesn’t stop there. If you have any questions, please let us know below, and we’ll make sure it gets passed along to the experts.

For more information, and to watch the full webinar, visit our dedicated page.

Why Procurement Can’t Have Its Head in the Cloud Anymore

Cloud computing is set to dominate every aspect of our personal and professional lives. So why do we still understand so little about it?

rangizzz/Shutterstock.com

Download ‘Parting the Clouds‘, Smart by GEP’s latest whitepaper, to understand the difference between Cloud Solutions and SaaS Software.

The world’s biggest search engine provides a great window into human psychology, at least of those humans that it’s algorithms decide are sufficiently similar to oneself.

Try it, it’s fun.

Today, if I type “how” it immediately offers me “how…to roast pumpkin seeds”.  Interesting if not immediately an issue.

“Should” suggests “Should…I text him?” Oh, the angst of so many web users! The answer is, of course, no. But will that stop you texting? Of course not.

And “Did” rather disturbingly suggests “Did the killer clown purge happen?”

I’m not sure whatever happen to incredulity and scepticism but people will literally believe anything these days, it seems. And, apparently, the clowns are coming to get us all.

Cloud Computing – Why…?

As so often happens, all of that came about because I got side-tracked while typing another question into my search bar, “Cloud computing, why…”

I was intending to research why a cloud was first adopted as the symbol for the distributed computing concept as opposed to, say a web. But instead I was offered, “Cloud Computing, why…”:

  • do we need it?
  • use it?
  • it matters?
  • is it important?

These are all equally fascinating questions, and clearly asked sufficiently frequently to reach the top of the suggestions list.

Like so many rapid developments in technology such fundamental questions tend to get over-ridden by the pace of change and adoption.

Do we need it? It’s a bit late in the day to ask that question when increasingly we have no choice.

Why use it? Same answer, perhaps.

It matters because virtually every aspect of our lives is in some way connected to it and that in itself answers the fourth question.

Before the most basic of questions can be even asked, the offered answers already indicate some kind of fait accompli.

An even more basic question, that begins “Cloud computing what…” tellingly generates as its top two suggestions:

  1. Cloud computing what…is it? (naturally); and
  2. Cloud computing what…accountants need to know

Well, I wasn’t expecting that.

Cloud Computing – What Procurement Should Know

But it is perhaps an indication of where we are in this particular technology revolution. Cloud computing is set to dominate every aspect of our interaction with the world and traditional ways of doing business are being shaken up and transformed before we can even get satisfactory answers to the most basic of questions.

In our world of procurement the future seems certainly to be in the cloud.  All the software vendors, like ourselves are offering cloud solutions.

But does that mean procurement professionals know everything they need to know about what that means? Is it even relevant? Should you care whether your software is in the cloud or not? Does it matter, as long as it works?

In principal you shouldn’t have to worry about any of it.  But when it comes to making a decision, it’s probably best to be informed.

Cloud, it turns out, is very loosely defined and when selecting a “cloud” solution it’s important to know what you’re actually going to get.  Without a doubt the most important factor is what the software can do for you in delivering maximum value to the organisation. But just as important is knowing what questions to ask to find the best solution for you.

After all, if the internet is to be believed at face value we’re about to enter a new phase dominated by an even more terrifying technology. Clown computing anyone?

Do you know there was a difference between Cloud solutions and Software-as-a-Service? With all the Cloud technology available, sometimes it’s hard to keep track.

Download Smart by GEP‘s latest whitepaper, ‘Parting the Clouds to find out all you need to know.

The Efficiency Value of a Marketplace Approach

Procurement talks a good game when it comes to efficiency. However, few are walking the walking when it comes to taking real action.

This is the second in a three-part series of posts. If you missed my first, ‘Instant Access to Supplier Information a Step Change for Procurement Productivity’, click here to read it.

In that post, I presented a challenge to anyone who assumes that having technology guarantees progress. Make sure your technology is earning its keep and not just putting your inefficient, manual methods online.

In this post, I’m going to take the same approach to efficiency.

What is Real Efficiency?

We talk a lot about efficiency in procurement, but we take very few steps to actually improve it. Real efficiency is more than doing more with less. It is also about timing. Sometimes, doing the same task at a different time increases the impact potential of the effort behind that task.

Take risk management or risk mitigation as an example. Addressing risk should be an active part of the sourcing process, not something to be managed afterwards. While risk information is readily available, sometimes what procurement really needs to know what their peers think of a supplier.

That is why tealbook combined internal supplier knowledge, data from Dun & Bradstreet, and aggregate intelligence from your industry peers into each supplier profile. Adding a peer view to the supplier discovery process not only makes it more robust, it significantly increases the trust factor for everything procurement learns.

Addressing risk early is critical. Two of the first opportunities procurement gets to mitigate risk arise during the supplier discovery process:

1. Inviting more qualified suppliers to participate in the sourcing process improves the final award decision.

You’re always going to lose some suppliers to disqualification or elimination. Investing in the discovery process up front decreases the fall-off rate, and ideally presents the team with a larger number of more qualified suppliers to negotiate with and consider for contracts.

2. Looking at supplier-related risk factors before the sourcing process begins makes it possible for procurement to push back on requirements if they are too confining.

Procurement tries to be good about collecting risk information in RFx’s, but many times it is too late to change the direction of a project based on what the team learns from suppliers.

By doing an early assessment of the available pool of suppliers and their relative risk before going to market, procurement creates an opportunity to widen the pool of prospective suppliers.

Making Efficiency Proactive

In addition to thinking about the timing of tasks and what impact that has on efficiency, procurement needs to look for opportunities to combine activities.

If you are going to conduct a supplier discovery exercise anyway, why not search a platform that incorporates third party risk data in addition to supplier information and buyer knowledge? tealbook incorporates D&B information into supplier profiles so procurement see which suppliers offer the product or service they are looking for in one place.

Taking efficiency to a more proactive level, why not pre-vet hundreds (or thousands!) of suppliers across a wide range of categories? With the right technology and information, procurement could, in essence, create a custom virtual marketplace of suppliers that are ready to bid at any given time.

A broad approach drives efficiency because the suppliers are already vetted and risk is moved up in the process without adding a step or a delay. This is an ideal application of technology because it enables something procurement can’t do on their own on the same scale.

Value creation goals notwithstanding, good procurement teams want competition as well. Without the supplier discovery pre-work being done, procurement is stuck with the same old suppliers time and time again.

And there is nothing efficient or strategic about that. Marketplaces are certainly not a new idea, but they are a path to efficiency that we should look for ways to improve.

Now that I’ve shared my point of view on scalable technology and marketplace efficiency, I’m going to wrap this series of posts with an optimistic view of procurement’s forward looking potential.

Gregg Brandyberry is a recognised pioneer in procurement and sourcing technology. He has over 40 years experience in industries such as automotive, textile, manufactured goods, electronics and healthcare.
He is the former Vice President of Procurement – Global Systems and Operations for GlaxoSmithKline, and a Senior Advisor for A.T. Kearney’s Procurement and Analytic Solutions organisation.

3 Ways the IoT Can Benefit the Supply Chain

We’ve heard about the IoT disrupting our personal and home lives. But where will these technologies really stand up in the supply chain?

We’ve come to know the Internet of Things as a technological phenomenon that is revolutionising many ways of life. The idea is that devices and computer systems can communicate and work with each other, and make things easier. And we’re starting to see applications in all manner of places.

The IoT is making exercising more intuitive, making homes more secure, and making offices and hospitals more efficient. But these benefits are only scratching the surface. There are also many IoT benefits that are less visible to the general public. One that is becoming fairly interesting is the effect on business supply chains.

This may not be the sexiest application of the IoT, but it’s one with significant potential to change the nature of big retail companies and even lower costs for consumers. Here’s how it’s happening.

IoT In Production Plants

IoT sensors are allowing manufacturers to collect key data from various physical spaces within production plants and manufacturing facilities.

Sensors can be used to monitor machine temperatures and send automatic alerts to problems by way of changing lighting. They are also able to monitor the use of safety equipment (and the condition of that equipment) automatically.

Additionally, factory conditions such as temperature and humidity can be tracked and controlled. Individual pieces of inventory can be tagged the moment they’re created, so as to be kept track of in the future. Other functions more typical of ordinary office environments can also come into play, like security and communication measures.

It’s easy to see how basic IoT sensors can help to automate some of the trickier aspects of production that kick off the supply chain process.

IoT On The Road

Perhaps the most fascinating impact of the IoT on supply chains is occurring on the road, in shipping vehicles. Tracking sensors on individual pieces and crates of inventory help companies to “watch” those materials until they arrive at retail locations or other points of sale.

However, there are also IoT measures being put in place to keep fleet vehicles operating safely and on schedule.

By outfitting fleet vehicles with high-end GPS and WiFi, companies can provide managers with real-time sharing of vehicle diagnostics and more important data. These devices can keep track of vehicle performance, driver activity, and routing information, effectively automating the management and scheduling process that was once a headache for everyone involved.

Vehicles can be repaired precisely when needed, and be directed on the most efficient routes. Plus drivers can be kept on reasonable schedules, and held accountable for their own tendencies on the road.

IoT In Stores

Finally, once the product has been shipped to retail locations, there are also IoT-related technologies in place to monitor that selection for the sake of restocking inventory when necessary.

The IoT has the potential to drastically alter numerous aspects of the retail experience. However, when it comes to the supply chain, “smart shelves” are making the biggest difference.

These are shelves that can recognise when inventory is getting low and send automatic alerts to store managers, or even directly to production facilities, communicating orders and keeping the store in supply.

That about covers an overview of how the IoT is changing the supply chain in retail businesses. On the business end of things there’s no telling how much these changes can cut costs and improve the speed and accuracy of production.

And for consumers, those same benefits should ultimately translate to fair prices and consistently stocked store shelves. All in all, it could be one of the more impactful mainstream IoT developments.

Blaine Kelton is a programmer and freelance writer currently living in Beverly Hills. From technological advancements to new albums by favourite artists, he’s eager to just write and get his work out there.

5 Common Failures in Technology Implementation

Technology should provide huge benefits in procurement. So why do so many projects fail at the implementation phase?

Join our webinar on the 7th of November and find out how to drive successful technology implementation.

If you’ve been a procurement professional for any length of time, this is probably a familiar situation.

Your company has decided to implement new technology in the procurement function. A date for go-live has been set, and some training has been arranged for current users. There are grumblings about yet another system to be used, but that doesn’t fit with current procurement processes.

When you ask around, very few, if any, of the department have been asked to input into this decision. The company certainly doesn’t seem to have spoken to people who are actually going to be using the system.

When the time comes, the technology is implemented, and training is rolled out. The procurement team accept the new system (perhaps grudgingly), and start to use it.

Within a few weeks, the (very short) honeymoon period is over, and the issues and bugs have appeared. Far from improving or simplifying the processes, the technology isn’t working out as planned. It’s begun to make even simple tasks more difficult.

Within months, the shiny, new, purpose-built technology is being used for the bare minimum that the procurement team can get away with, and they have begun to come up with novel ways to work around the system.

Difference Between Success and Failure

While situations like this may be decreasing in number, they still occur with uncomfortable regularity. When it comes to technology across organisations, not just in procurement, implementation is the stage in the process that is most associated with the success or failure of the project.

Ahead of the free webinar between Oracle and Procurious, Darryl Griffiths, Acting MD at Enrich, and implementation expert, shares his key reasons for why implementations fail.

  1. Alignment of Strategy and Technology

Ensuring that the business, procurement and operational strategy all aligns is the first step in this process. However, too often, strategies aren’t aligned, or have been created in isolation without proper discuss.

Without fully understanding the strategy, the objectives for the technology implementation can’t be fully understood. This can lead to the wrong technology for the project being selected, and not being fit for purpose against the objectives.

  1. Lack of Change Management Plan

The plan for how the technology is going to be implemented should be laid out clearly from the start. Frequently, organisations work towards their go-live date, but give little thought to the short, medium, and long-term plan following the launch.

Too few plans take into account training requirements, or how new users will receive this training when they start in the department. 

  1. Lack of Communication or Champions

Without good communication, it’s likely to be a fight to get buy-in. Without buy-in, the implementation is doomed to failure.

Organisations don’t take into account the end users of the technology. This leads to the ‘why’ of the project never being disseminated.

This leads to the perception of new technology being forced on them, and breeds resistance. This resistance undermines the project, creating a situation where users are expecting the technology to fail, rather than having an open mind on how it can help them.

  1. Poor or Out-of-Date Data

The old technology didn’t work properly because the data wasn’t right. But there’s no data clean-up been carried out before the new technology is implemented. Which means the new system won’t work any better.

There is a vast amount of data available to procurement, which technology is frequently implemented to help sift through. However, putting poor data into the system, as well as not keeping the data up to date, will inevitably result in bad data out.

  1. Built to Last vs. Built to Change

In years gone by, products were built to last. It was common for things to last 10 years or more. However, in a marketplace and environment where agility and flexibility are valued, a built-to-last system may not fit the bill.

If the system hasn’t been built to be changed easily, then it’s going to go out of date very quickly. And it’s unlikely that budget will be available for a new system after 1-2 years, when it was designed to last 10 years.

Secret of Success

It’s easy to pin-point where technology implementation fails, but far harder to ensure that it’s a success from the outset. However, if the right strategies are in place, and all the planning is carried out, procurement gives itself a greater chance of success.

If you want to find out more about how to manage your implementation, and hear more from Darryl on how you can set yourself up for success, join our free webinar on the 7th of November.

Darryl will join Oracle Business Development Direction, David Hobson, in a discussion chaired by Procurious Founder, Tania Seary. The webinar is aimed at helping Procurement Leaders come to terms with volatility, understand the role and benefits of technology, especially cloud, in procurement strategy, planning and decision making.

For more information, and to register, visit our dedicated page.

Why Instant Supplier Information Access Can Fire Productivity

Procurement needs to maximise its productivity if its going to meet business needs. Having access to real-time supplier information is a step in the right direction.

GaudiLab/Shutterstock.com

When I started my career in procurement over 40 years ago, we used notebooks to store all of our supplier information.

Go ahead – be shocked or have a little chuckle about how ‘primitive’ we were! But guess what? Things haven’t changed nearly as much as people like to think.

Today, most procurement teams have modernised their supplier information management by using some type of a shared database. These solutions, while centralised and searchable, still rely on internal team members manually entering and then searching for supplier knowledge.

And while most companies are doing the best they can with scarce resources, it is important to remember that it is possible to make progress without actually resolving any key business issues, or becoming the slightest bit more strategic.

Value in Scalability

We had notebooks and you have a database. But if the information isn’t (a) current and (b) fully leveraged, it doesn’t really matter where it sits.

The true transformative value of any technology is its scalability. How much of an effect does it have on the amount of work each person can accomplish?

tealbook, a platform that centralises supplier provided information, internal supplier knowledge, data from Dun & Bradstreet, and aggregate intelligence from industry peers, has set this challenge of scalability as their target.

Making it possible for procurement to accelerate the discovery process through instant supplier recommendations, and improving the match between business needs and prospective suppliers, gets at that need for scale.

With better suppliers available sooner, procurement can achieve a step change in their productivity. This also helps to move the needle on the all-important metric of spend under management.

Productivity – Focusing Your Efforts

Let’s say you’ve got 20 people working 40 hours a week, 50 weeks a year. That gives you a maximum of 40,000 procurement hours per year. You’ve got to ask yourself how many of those hours the team spends looking or searching for something to satisfy an information need. Every hour not spent on value-added activities is an opportunity to improve productivity.

When we look at procurement’s productivity in the context of supplier discovery, we have to focus our attention on how much time procurement spends searching for the right suppliers before a sourcing project can get off the ground.

In order to decrease the time required for discovery – and increase the quality of the suppliers invited to participate – we need to make sure we’re searching a resource dense with suppliers and supplier information, preferably using a common language search rather than archaic codes.

Whether you’re looking at a supplier discovery platform or a more traditional supplier marketplace, the point is to focus your efforts where they are most likely to generate positive results.

There’s a huge advantage in somebody being willing to take the time to centralise the right information and maintain it. The resulting resource will make a dramatic improvement to what procurement is able to deliver, how often we can deliver those results, and just how BIG those results are.

There aren’t many companies adding employees, so if you can find a solution that dramatically changes the amount of work each employee can do, you’ve really got something strategic.

Meeting Real-Time Supplier Information Needs

Today, an increasing number of corporations want to believe that their procurement teams operate strategically. As that reputation spreads, more and more projects will come from the business.

In order to handle the increased demand for our time and skills, procurement has to be really good at making decisions about how to spend time and allocate scarce resources.

If we are going to facilitate purchases, strategically source every category, AND meet the real-time needs of the business, technology has to be capable of actual heavy lifting, not just function as an electronic supplier notebook.

In my next post, we’ll go beyond the supplier information modernisation process to look at the strategic value of a marketplace approach.

Gregg Brandyberry is a recognised pioneer in procurement and sourcing technology. He has over 40 years experience in industries such as automotive, textile, manufactured goods, electronics and healthcare.

He is the former Vice President of Procurement – Global Systems and Operations for GlaxoSmithKline, and a Senior Advisor for A.T. Kearney’s Procurement and Analytic Solutions organisation.

European Business Abandoning Manual P2P Processing

New research has revealed a move by European business towards a completely digital P2P environment.

Andrey_Popov/Shutterstock.com

Canon, world leader in imaging solutions, recently announced that just 3 per cent of Western European businesses believe that manual P2P processing will continue into the future.

The finding originates from The Future of Purchase to Pay (P2P) 2016, a Canon trends report compiled by ICM Unlimited. The report asked finance and procurement leaders how they believe the world of P2P would to evolve over the next few years.

The study, conducted by ICM Unlimited, and developed in conjunction with Purchasing Insight, is the result of 706 online interviews with business influencers and decision makers spanning 12 European markets.

The respondents were sourced from board level directors within corporate finance and procurement functions, and from businesses of varying sizes.

Spend Under Management?

Most businesses report that they have yet to fully control spend using Purchase Orders (PO), while half say they have less than 50 per cent of their spend under control. Despite this, however, there is almost universal agreement that the P2P process will be automated in the future. Over half of the European companies have already begun that journey.

The report found that while there are concerns around cost and productivity, businesses seem motivated to explore how P2P technology can help. Half of finance decision makers (50 per cent) feel their department productivity is below average, while 42 per cent of procurement leaders feel their department is operating below the desired level of productivity.

However, the trend towards automation in finance sees no sign of slowing down. 23 per cent of European decision makers are saying that their businesses will achieve full digital transformation for P2P in the next two years.

It seems businesses view manual processing of P2P as wholly or partly to blame for the situation. This is shown by 10 per cent of businesses in Europe saying they have already achieved full digital transformation of P2P.

Increasing European Collaboration

Rachel Griffiths, Business Process Consultant, Canon UK, comments: “In this challenging market, European businesses clearly feel that they need to get a better grip on P2P. They want to be able to access and pay for goods and services in the most cost effective and efficient way possible.

“Efficiency and productivity are key elements to any successful business. And technology is seen as the best platform through which to improve in these areas. In order to boost these factors through technology, businesses will need the support of trusted partners.

“At Canon, our expertise at providing cutting-edge technology not only solves business challenges, but supports the delivery of superior results in any business function, including P2P,” Griffiths said.

This view was echoed by Pete Loughlin, Managing Director at P2P consultancy firm, Purchasing Insight.

“The selection of a partner for P2P is very important and European businesses want to collaborate directly with solution vendors for this challenge.

There is a remarkably strong sentiment towards working with a single vendor across the entire P2P spectrum, rather than cherry picking point solutions. This ability to work with a single partner is what will provide end-to-end P2P solutions and services, under several delivery models. This will be crucial to the successful transformation into a P2P excellence organisation.”

Communication Queen – Not Your Typical Procurement Pro

There’s a step change coming in the procurement technology and software industry. And communication and relationships will be the central pillars of it, says this Millennial.

There is step-change coming in procurement, and the change is going to be keenly felt in the procurement technology and software industry. But for this change to take effect, it needs support on both sides of the aisle – buyer and supplier.

Simona Pop, Head of Partnerships & Global Communication at InstaSupply, is not your typical procurement professional.

She’s one of a new breed of professionals involved in procurement and supply chain, who believes change is on the horizon, and that it can’t come soon enough.

A tattooed Millennial, with a stake (both monetary and emotional) in the company she works for, Simona presents a refreshing view on buyer and supplier relationship management, and believes in creating emotional connections with clients.

Not only that, but she also walks the walk when it comes to leveraging social media in business.

Procurious caught up with Simona, and chatted to her about her career, her approach to social media, and why she believes we shouldn’t have to leave the real-time efficiencies of our personal lives at the office door.

Tell us a bit about yourself – how did you get to where you are today? 

It has to be said, my career trajectory isn’t what you might call straightforward. I got out of school thinking I was going to be in advertising. Then I moved to the UK and started working with Brakes, the food supplier, in a sales role. I then went 180 from that path and started working in events.

Finally, I started working with InstaSupply as Head of Partnerships and Communication. One thing lead to another really, and in the end, it makes a lot of sense.

I love communication and building relationships. That’s what makes the world go round, as far as I’m concerned. My communications background is ultimately the driving force behind my take on business.

You’ve recently won your place at Virgin Disruptors – congratulations!

Yes, I am very excited about it. It was all about presenting my vision on what industry needs disrupting and how I would do it. I went straight to the core and illustrated how ALL business needs disrupting.

You can see my video below. It’s all about changing procurement and finance. They are the engine of each and every business so they need to be as well oiled as possible.

What role did social media play in the award?

As with every bit of communication I put out there, this was also a social affair. I got to chatting with Virgin via Twitter and found out about this opportunity. As everything in social media moved pretty fast, I only had a couple of days to script and create the video in order to stick to deadlines. I then uploaded it on YouTube and shared it via Twitter again.

I am a true believer in the power of social and its ability to not only bring us information in real time but also challenge us to become more creative and innovative. It’s why I am so happy to be part of the Virgin Disruptors community as a technology company.

So many procurement technology implementations fail – why do you think this is?

It comes down to how people interact with the technology and the company providing that technology. Is there a match there in terms of values? Or is it more about ticking a box and signing a three year contract so you don’t have to worry about it?

So many businesses will go for old technology just because someone else in their industry has used it before. Even if it’s not a great fit for them and their staff, they will implement it anyway just to tick that “tech” box and consider it done.

More often than not, businesses pay the price tag of an Aston Martin, and end up using it like a second hand Ford.

The fact that back office operations, procurement and finance technology involve so many different roles and levels of seniority, makes it paramount that the interface and functionality appeals to all age groups.

There shouldn’t be a difference between the way we interact with brands in our personal lives, and brands that we see at work.

What are the key changes you think need to be made? Can we make procurement/B2B software more like B2C counterparts?

The way I see it, every business relationship is a partnership – it’s not a case of sell and move on. As a tech supplier, you are going to be working closely with your client, as they will interact with your product every single day.

You want to allow them to work smarter, be more efficient and ultimately make their lives easier. You need to provide top notch tech, but also real time support. There’s no place for a helpline that keeps people on hold for hours, or an email they get a response to in three months. That would be unacceptable in B2C nowadays!

There needs to be a shake-up. We need to remove the jargon, the boring pages of bland text, the hieroglyphic appendices, and the contracts that tie you into five years, whether you like it or not.

Software providers want partners, not prisoners. We are here to simplify buyer-supplier relationships, and make life easier for everyone involved in running a business, regardless of role and seniority. Ultimately we want to support them in growing their business, and having a better quality of work.

After all, why should we leave all the efficiencies of B2C, our personal life, at the door, when we get to work?

How to Stay Ahead of the Curve with Process Automation

Traditional supplier relationships are under scrutiny as organisations assess capabilities for the future. Could process automation help procurement teams stay ahead of the curve?

ProcureCon Europe 2016 is rapidly approaching! The ProcureCon team has been investigating some of the fast-moving issues which are affecting CPOs across Europe today.

Perhaps more than any other factor in the industry right now, process automation and advanced analytics are having a huge effect on the ability of Procurement teams to deliver improved cost performance.

This changing landscape calls into question traditional supplier relationships. Of the CPOs and Heads of Procurement we interviewed in advance of the event, 76 per cent told us that they are concerned about the ability of their existing supplier base to serve their business needs in future.

At the same time, more than half of our research participants think that implementing automated procurement is a high priority for their business. This raises questions about how best to manage your supplier network to make sure that you’re ahead of the curve when it comes to process automation.

We spoke to Kelly Babbit from jCatalog and the Opus Capita Group to find out more.

ProcureCon: How is digitisation and process automation affecting CPOs today?

Kelly Babbit: In the digitised, networked economy, companies find themselves in a changed competitive field. The game is no longer primarily based on unique business relationships.

The success of a corporation is premised on the performance of its network of supply chains – its entire business ecosystem. Corporations are looking to strengthen relationships, and create new forms of collaboration – and gain control and compliance over their extended business processes.

It is significant that more than half of respondents to this research gave high priority to the implementation of automated procurement processes. Furthermore, we expect a future adjustment to the demand drivers and criteria used for selecting P2P service providers.

This trend is due to a far-reaching shift in business priorities toward digitisation and automation.

What kind of processes are we talking about?

Progressive solutions cover the complete process from sourcing to payment – from managing the first request for quotations (RFQ) to optimised working capital management and supplier settlement.

This is where the traditional view of P2P processes needs to be expanded. Enterprises will no longer evaluate the quality of solutions with a sole focus on basic procurement functions. Solutions need to be part of a global strategy and based on pivotal interconnections between buyers and suppliers.

As a result, the responsibilities of the CPO and CFO functions will begin to converge. Cloud based SaaS solution providers will need to support this interconnection with a global perspective and inclusion of diverse company stakeholders.

Connecting and automating processes from sourcing through to payment will become the expectation of leading companies.

What features should CPOs / CFOs be looking out for in a source-to-pay solution?

Cloud-based business network solutions must support effective sourcing, procurement, invoice, and payment automation. This includes implementation and adoption across their global business.  Some of the key features to look out for are:

  • Complete transparency, real time control and compliance with full audit trails across the entire source to pay process.
  • P2P automation and integration of the purchasing department with the accounts payables department. Plus full visibility to all purchasing and accounts payment data.
  • Visibility to company spend with total cost monitoring and supplier performance tracking as well as contract improved contract compliance.

Thanks very much for your time, Kelly.

To read the full results of our research amongst 100 CPOs and senior procurement executives, download the Procurement Challenges report here.

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.

Cloud, Not Laughter, The Best Procurement Medicine

A spoonful of Cloud makes the medicine go down. Healthcare patients in England could benefit from a move to Cloud eSourcing.

VGstockstudio/Shutterstock.com

This article was written by Daniel Ball, Director at Wax Digital.

Healthcare organisations are under constant scrutiny to deliver high quality care to patients. In England, it’s The Care Quality Commission which regulates all health and social care services to ensure fundamental standards of quality and safety are met.

The findings of its reviews are published to the general public. This puts organisations not coming up to scratch at risk of suffering from a negative public reputation.

Improving Quality of Care

However, help is at hand from The Healthcare Quality Improvement Partnership (HQIP). The organisation works with healthcare organisations to identify areas where quality of care can be improved.

The HQIP is an independent organisation responsible for managing clinical audit contracts on behalf of NHS England. It was launched to promote quality in healthcare, and, in particular, to increase the impact that clinical audits can have on healthcare quality improvement.

Commissioning and managing clinical audits means having to source a range high quality external experts to carry them out. To do this, HQIP recognised that best practice procurement tendering processes were needed to to run an audit.

HQIP saw the value in moving to an eSourcing platform so that it could speed up the procurement process. It knew that if it was able to source experts quicker and do away with paper-based, manual tender processes, it could save itself valuable time and resources.

Moving to the Cloud

HQIP decided to go with Wax Digital’s cloud based web3 eSourcing. This allows the organisation to publish tenders electronically and make use of existing templates. It also enables suppliers to submit responses online.

The system also offers a mix of automated and manual scoring facilitates, with subsequent contract awards also taken care of electronically via web3.

Its project management function also allows HQIP to plan its eSourcing activities so that all relevant information is stored in one central place, which can be easily accessed by system users.

Judith Hughes, interim Head of Procurement at HQIP said: “As we’d aimed for, Wax Digital web3 has greatly improved our processes. Moving away from paper-based tendering has significantly reduced the time it takes to review and award teams for projects.

“It has also helped further ensure our quality guidelines are upheld and we now have a much more efficient way of engaging with our suppliers and them with us.”

An increasing number of healthcare organisations can benefit from the speed and efficiencies offer by cloud-based software. Innovation starts within the supply chain. By rolling out eSourcing technology, HQIP enjoys a more efficient supply chain for audit management. This in turn can aid healthcare organisations meet required care standards, and improve the quality of service for patients.