Tag Archives: supply chain professionals

Supply Chain Management – Much More Than Just The Wire Between Switch And Light…

Sometimes supply chain is viewed as an abstract part of the business – we’re the wire between switch and the light. But that wire is not always fully understood…

Career Boot Camp 2018 kicks off this week! And this year’s series, Your Supply Chain Career: Accelerated, has been designed to help you sprint outside of your comfort zone and get into the best career shape of your life!

On Day 1, we catch up with Rick Blasgen President and CEO of CSCMP who has a lot of hope for the future of the supply chain profession.

“I think our professions have come such a long way already and have such a long way to go. Procurement and supply chain management will be an embedded feature of every competive global company around the world because they see so much of what goes on.

“[At CSCMP] we see it really growing into the fabric of successful companies. There is so much opportunity before us as our global economies kick in and we use technology and productivity processes to improve our ability to serve customers in markets that are yet to be conquered.”

The value in professional certifications

The debate rages on over the true value in professional supply chain certifications. But Rick is pretty sure they’re here to stay!

“This profession changes so rapidly –  think about risk management or about deliveries by drones or autonomous vehicles. These types of systems or technologies were not even part of our lexicon ten years ago and so certifications allow us to keep fresh, allow us to continue to demonstrate that we have a mastery of the supply chain and procurement professions by being on the forefront of what’s coming down the line that we might be able to use in our professions.

“One of the things important to CSCMP is to advance the logistics, supply chain and procurement professions and the careers of those working in them. The only way we do that is by being thought leaders and thinking about using the new technologies and tools that have never before existed. Our certifications will educate you on these things and then test that you have the understanding and can utilise the complexity within them.

“So I think [professional certifications] are a normal course of continuing to educate yourself and continuing to be knowledgeable about such a dynamic and ever-changing field.”

Upskilling your supply chain team

How does Rick feel about experienced hires versus the value in up-skilling talented professionals from diverse backgrounds?

“There is no reason that someone with a lot of experience in a different field can’t be very successful working in supply chain. If you have the ability to analyse data or if you’re an engineer – those types of talents and skills play a very important role within the supply chain world.

“Sometimes supply chain is viewed as an abstract part [of the business] – we’re the wire between switch and the light. You flick the  switch and the light goes on you don’t call your power company and thank them because you expect the light to go on.

“Well that wire is sometimes not truly understood – supply chain and procurement professions struggle a little bit with awareness.

“But there’s so much opportunity and different types of jobs that folks can come into. If you have a set of skills like great interpersonal skills or great managerial and leadership skills you’re going to do just fine in a supply chain position as long as you can analyse data and think logically about this flow of inventory and information.

“We’ve seen folks come from the medical industry, consumer products, consumer electronics or even different types of functions such as English or History majors who have come and done a wonderful job.

“Is it great to get supply chain education? Sure it is!  Universities these days are doing a great job of explaining modern day supply chain theory. But you can certainly be successful as you fly into this profession with a set of skills that really make a difference.”

Rick’s parting words to any aspiring supply chain professionals?

“Young folks have a great opportunity – I have never seen a hiring market like it is now. If youre looking for a job on another continent I can’t think of another field where you can go ahead move to another part of the world If you so desire and have a very fruitful experience. If you have a global experience or a global mindset  you’ll do very well in supply chain because it is such a global field.”

Rick Blasgen is speaking on Day 1 of Career Boot Camp 2018. Sign up here (it’s free) to listen now! 

Has Procurement Dehumanised The Sourcing Process?

It’s only a matter of time before the procurement profession realises that it’s dehumanised the sourcing process, a move that will negatively impact the industry.

Procurement needs a new measure of success that reflects its impact, not its output. This is according to a Melbourne-based procurement coach, and self-proclaimed procurement disrupter, Matt Perfect.

Procurement with Purpose

Just as conscious businesses are learning that profit is a by-product of business with purpose, so too savings will be a by-product of procurement with purpose.

Perfect argues, “What have we really ‘saved’ if we drive down our suppliers’ pricing to unsustainable levels?

“Levels where they are forced to compromise on service and quality, or worse, safety and ethics? Procurement needs a metric that reflects the exponential impact of its decisions throughout the supply chain.

“The impact on suppliers and their employees…and suppliers’ suppliers and so on. This metric must measure real human value. Not just economic value,” Perfect says.

Cost at Any Cost

The Melburnian has carved an enviable niche in the Australian procurement landscape. Perfect has worked in numerous procurement roles, including for FreeMarkets, National Australia Bank, Toll and The Faculty.

Now as an independent coach and facilitator, he advocates the importance of supplier relations, and feels that major disruptive change within the procurement industry is only a matter of time.

Perfect writes about the disruption of the procurement sector in white papers. One, titled Supplier Love and Why You Need More of It, published in July last year, explains that as much as 70 per cent of revenue now goes to third parties (according to Proxima Group). Never before have suppliers been more important stakeholders in an organisation’s success.

Yet, despite significant investment in procurement capability and strategic focus over the last few decades, many supplier relationships remain transactional at best and at worst, adversarial.

Businesses continue to prioritise shareholder value above all else, sometimes even at the expense of customers, employees and the environment, but almost always ahead of suppliers’ interests.

One might be forgiven for thinking that ‘cost at any cost’ is the primary operating model for these businesses.

Conscious Business

Conscious businesses understand that this is not sustainable. Fortunately, there is a better way, but it requires a fundamental shift in the way we define stakeholders and value.

“We need to be looking at ways to win the hearts and minds of suppliers, rather than purely relying on negotiation tactics. When you look at the mindsets of procurement professionals, relationships just aren’t playing a big enough part at the moment,” Perfect says.

“You need to look at supplier relationships and help improve those relationships to get better outcomes. I work to improve that level of trust in a relationship, with the view of generating greater impact. I also look at the broader impact of relationships, which comes down to how it affects the lives of people.”

Perfect says that procurement is ripe for disruption, and is in fact on the cusp of a major shift. Part of this shift should include the consideration of whether procurement accurately sums up the role – supplier relations could be closer.

“There will be a shift to a new age. A human age, which is a process that procurement doesn’t have its head around yet as a profession. We need to be more engaged with vision and purpose moving forward as a profession.”

Perfect believes the younger generation will drive the changes as they strive for a more human-centred career.

Remembering the Human Element in Sourcing Process

A focus on supply chain issues, and the human elements within supply chains, is another driver for change.

Other industries embrace change more readily than procurement has to date. Marketing, for example, understands that to be really effective and cut-through, it has to touch the lives of people.

The human relations industry has also moved away from seeing staff as a number and has improved the way it operates within the business environment by focusing on the people. Procurement hasn’t made this leap yet, he says.

“We’ve also got to be thinking about how to appeal to the hearts and minds of consumers. We need to head into this space as a broader industry if we’re ever going to survive. I urge my clients to be the change they want to see in the world.”

At the moment, the industry is narrowly focused on shareholder value, rather than a broader stakeholder orientation, which is drawn from the realm of conscious capitalism.

“There needs to be an interdependence that creates value without trading off one another,” he says.

People Over Process

Matt Perfect
Matt Perfect

Perfect has an undergraduate degree in economics from Cardiff in the UK, and pursued a consulting career before landing an analyst position, specialising in e-sourcing and online technology. This kick-started a procurement career spanning multiple consulting and management roles in a variety of industries.

He left The Faculty a couple of years ago to focus on coaching. He works to help his clients create better and more conscious relationships with their internal and external stakeholders.

“This is where I focus my energy now. Looking at all spending in procurement and how that impacts on people. I believe we all need to have a greater focus on people than process.

Since working as a procurement coach, Perfect has worked with Social Traders, CPA Australia and The Trusted Negotiator, among others.

You can follow Matt at mattperfect.com or on Twitter at @m8ttperfect.