Tag Archives: training and development

eLearning Videos: It’s The Final Countdown

They say all good things must come to an end, and,  sadly it holds true for our FREE e-Learning videos. The good news? You’ve still got a little time to enjoy them! You’ve got four weeks to access our eLearning course “Introduction to Procurement” for FREE: enrol here

Good times don’t last forever, and boy has Procurious had some good times in the last three years – don’t worry, that’s not going to change anytime soon!

What is about to change, however, is the pricing of our eLearning videos, which you can find in the Learning Area of Procurious.

If you’ve been with us, and supported us, from the beginning, you’ll know that our fantastic eLearning course, Introduction to Procurement, is currently available to our members free of charge.

But, on the 30th June, everything changes. The entire course of 17 modules, covering everything from Profiling the Supply Market to Developing a Scope of Work and Negotiation for Procurement will  instead be available for the price of USD$135.

Get ’em while they’re hot* (*FREE)

We’d hate for you to find yourself half-way through our eLearning course, which you’d started for free, and suddenly faced with a charge.

We also want to give you, our loyal Procurious members, plenty of notice and opportunity to share the course with your networks and procurement teams, before the new pricing comes into effect.

Tell your mother, tell your father, tell your sister and your brother (and, most importantly, your procurement peers) that they’ve got four more weeks to enjoy the course free of charge! With over two hours of video footage, you better get started. Go, go , go!

About the eLearning course

Introduction to procurement provides the optimal foundation for tomorrows procurement leaders. Structured around our own six-step strategic sourcing tool, participants will acquire strong commercial skills across a broad range of procurement functions.

But it starts off simple. If you’ve ever wished you had an easy and pain-free answer to that awful question from a distant relative, “So…what exactly is procurement?” here’s your answer:

The course progresses to highlight all aspects of the procurement profession. It gives you food for thought on your own approach and capabilities. It discusses topics such as the value of procurement, processes, market research, negotiating, strategy, social procurement and much more.

Module 6, for example, focuses on Spend Analysis:

What happens after 30th June 2017?

From the 1st July, the course will be available for USD$135 (£110) and includes:

  • 2 hours of on-demand video
  • 14 supplemental resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of completion

Don’t forget there’s a whole host of free eLearning content on Procurious ranging from podcasts to webinars and videos.

That’s right! The majority of our eLearning content will still be available completely for free!

Procurement Needs People: How To Nurture Your Top Talent

As the global marketplace changes exponentially, the need for both personal and professional development becomes ever more crucial for procurement pros. Jim Baehr explains why  organisations need to invest in their people.

Category Management. Risk Management. Contract Management. Supplier Relationship Management. All are part of the Supply Management vernacular in 2017. They represent best practices. Those who have mastered these competencies are sought by companies wanting to take their Supply Management to the next level and beyond. Yet, step back and look at the big picture. How many Supply Management professionals have the time, the skill or the support to pursue these best practices?

Applying the 80/20 Rule In Procurement

Continuing to look at the big picture, let’s apply the 80/20 principle to this question. Considering all the spend of all companies – large, medium and small – it’s reasonable to believe that 20 per cent of the professionals in Supply Management are managing 80 per cent of spend. (This number may be even more acute based on benchmarking articles found elsewhere at My Purchasing Center.)

Bigger companies have more spend and are more likely to have invested in their organisation as led by a Chief Procurement Officer. The professionals in these organisations are expected to be proficient in these higher-end responsibilities – the Managements (Category, Contract, Risk, Sourcing, Supplier Relationship, etc.). These professionals can practice and hone their competencies daily. This is a good thing. This means that in many ways the profession has taken the lead set by the Peter Kraljic “Purchasing Must Become Supply Management” article found in the September 1983 issue of the Harvard Business Review.

Flipping the principle would make it logical to believe that 80 per cent of Supply Management professionals are handling 20 per cent of the spend. Here’s the challenging part: It is likely that these are the same professionals who are handling 80 per cent of the purchasing churn – dealing with requisitions, purchase orders out the door, tracking delivery, invoice reconciliation, etc.  The result is they don’t have the same opportunity to apply best practices like their counterparts in bigger companies. Not because they don’t want to. They simply don’t have the time. Or, more frustratingly, the ability. But, seeing the articles and blogs – all the attention given to “the Managements” they want to do the same.

Purchasing Vs Procurement

While the terms Purchasing and Procurement tend to be used interchangeably, there is a big difference; moreover, the responsibilities of a Purchasing and Procurement professional are not the same.

Purchasing is operational, process driven,  ordering, receiving and paying for goods or services. Procurement is more tactical, more purposeful. Procurement calls for establishing requirements, performing market research, evaluating/selecting suppliers, and negotiating contracts or purchase orders. (Yes, POs can be negotiated.)

For the purpose of the remainder of this article Purchasing is used as the title for the group that handles  buying, procurement and, in some cases, sourcing.

It’s understood that technology is automating many of these routine functions. It’s agreed that that the developers of these systems are doing their best to “democratise” the technology – making it available, applicable and affordable to all companies – regardless of size. While the technologies are making inroads, there’s still a long way to go. And, when we get there one of two things will happen – positions will be eliminated or, companies will direct their Purchasing professionals to become more Procurement-like. Hopefully, it will be the latter.

Do we need to wait until technologies and automation address operational needs to free up the time for (paraphrasing Kraljic) Purchasing to become Procurement? The answer is “no.” Good Procurement, efficient and effective,  for the foreseeable future, is a people matter.

Is Purchasing Only About Getting The Lowest Price?

Before offering any recommendations, we first must recognise the realities. Purchasing, in many cases, is still viewed as “getting the lowest price”. This perception impacts relationships internally with business units and externally with suppliers. It creates a misunderstanding of purpose. The Purchasing professional is relegated to coordination of buying activities instead of having the opportunity to collaborate with internal clients, and suppliers, to produce value.

If we go back to the 80/20 rule the negative perceptions of Purchasing are conceivably based on the interaction of internal business groups and suppliers with the 80 per cent group. They are the majority population and they drive a perception that Purchasing “gets in the way” rather than adds value. Again, flipping the numbers, 80 per cent of the expectations for Purchasing come from what senior leadership reads or hears about the state-of-the-art techniques that the (upper) 20 per cent apply to the “Managements.” The result is that many businesses think their Purchasing group is not effective.

Research shows that staff and talent constraints inhibit Purchasing professionals from being all they can be and, more importantly, all they want to be. The abilities of these professionals are, and may continue to be, underdeveloped. But, there is an opportunity to build on what they already know and have experienced. We can reinforce what they know and make them comfortable with the basics and then introduce them to the “Managements.”

Personal and Professional Development Is Crucial- So What’s The Solution?

As Purchasing becomes more sophisticated, as business becomes more demanding and as the global marketplace changes exponentially, the need for both personal and professional development becomes proportionately as important. Let’s accept that not all the next generation of Purchasing professionals will come with MBAs from universities with Supply Management programs.-

So, now that the problem has been stated, what’s the solution? Keeping it simple – consider the following:

  • Recognize that the 80 per cent is underdeveloped but able and wants to do more.
  • Accept that this same 80 per cent  is under-appreciated and underserved.
  • Acknowledge that talent management requires talent development.
  • Commit. Business leadership, as well as professional associations, must step up and do more for the 80 per cent.
  • Invest in developing the 80 per cent as the cost pales, in comparison, to the potential return in value.

Here’s the good news: There are companies that already recognise this need. They are making the commitment to invest in their people. But, there must be more – many more. Quoting Eleanor Roosevelt – “Nothing has been achieved by the person who says, ‘It can’t be done.’”

Jim Baehr is the Lead for the Sourcing Strategies Group LLC (SSG).  Currently he is the President of the ISM – Pittsburgh Affiliate, a member of the Board of Governors of the Joint Chemical Group of Pittsburgh and a member of the Visionary Council of Coupa Software Incorporated based in San Mateo, Calif. This article was first published on My Purchasing Center

Why It’s Critical to Keep Your Skills Up to Date

Technological change is disrupting every industry and profession around the world, and obliging professionals to ensure their skills are up to date.

Keep your skills up to date

In recent weeks, Procurious has published a number of articles on personal development, training and up-skilling. The idea of keeping skills up to to date, and making time for learning and development, are applicable not only in procurement, but also to virtually every profession in every country.

However, this is not to say that all the onus is on the individuals to take responsibility for their development. It’s important also for organisations to ensure that resources are made available to allow employees the opportunity to take advantage of the training that is available.

AT&T – Remaining Competitive

AT&T is a US-based telecommunications company, currently owned and operated by SBC Communications. In the USA, the company is the second largest provider of mobile phone services, and the largest provider of fixed phone services. The company also provides broadband services.

The rapid pace of technological change in the telecommunications industry has left AT&T vying to remain competitive against larger technology organisations, such as Google and Amazon. Part of the strategy for remaining competitive in this industry is ensuring that employees’ skills are up to date.

It was estimated that approximately 280,000 employees need to update, or learn, coding skills, something that the organisation is supporting through the provision of eLearning. The company will reimburse around $8,000 (USD) per year per employee for this training, although this will still mean employees are funding some of the training themselves.

Up-skill. Or else…

While this may sound like the organisation is being supportive of employees’ efforts to ensure they have the skills they require to perform their job, there is something of a darker undertone. In essence, AT&T are forcing their employees to learn these skills, or find that their career choices are “very limited”.

CEO, Randall Stephenson, has been quoted as saying people who do not spend 5 to 10 hours per week in online learning will “obsolete themselves with the technology”. The time commitment involved means that many employees are now working evenings and weekends, on top of their day jobs, just to keep up to date.

The company also plans, eventually, to include personal development and learning as part of performance reviews too. This will be based on what people have studied, how well they did, and whether they are willing to keep learning.

The Right Reasons

It would be easy to point the finger at AT&T and say that they are being unfair. That they shouldn’t be forcing employees to learn skills, or essentially be out of a job. However, there are many organisations who do not offer the support that AT&T are giving their employees.

Yes, employees own time and money are required in order to keep pace, but if these employees don’t have the same skills as those at competitor organisations, then the chances are good that AT&T will cease to exist, and those employees will be looking for new jobs in an ultra-competitive job market.

It is also not to say that AT&T are leaving their employees to fend for themselves. The company has a programme called “Vision 2020”. It combines online and classroom-based work in subjects like digital networking and data science, but also looks at old skills that can be transferred to new careers.

AT&T management want to ensure that the company has a future, and the employees have got on board with this, and are actively working to make sure that they have the necessary skills to do so.

Stay ahead of the personal development game by making use of all the eLearning resources at your disposal. Check out the Learning Hub on Procurious for over 80 free video and audio resources, from learning about procurement, to learning from the experts.