Tag Archives: Watson Supply Chain

A Supply Chain That Never Forgets

How do you retain knowledge and talent and how do you ensure your supply chain team doesn’t forget key information?  Imagine having a supply chain that never forgets…

By Kletr/ Shutterstock

At last month’s CPO roundtable in London we discussed the importance of improving diversity and inclusion in the workplace, how to nail your next big career move and how AI is enabling supply chain professionals to add greater value to their organisations.

At this point, supply chain and procurement professionals might be getting a bit impatient with AI. We’ve all heard how this technology is poised to revolutionise the supply chain, but day to day you’re not working in R&D; you’re responsible for P&L. You need the insight across the business and with your suppliers – but don’t have a technical degree.  The obvious question you might be asking yourself is – what’s in it for me and the bottom-line performance of my business?

Roger Needham, IBM Supply Chain Consultant, led an insightful discussion on why AI does matter to supply chain and procurement professionals.

IBM’s $2.47 billion supply chain consists of a 12,000-strong supplier base across 100 countries with 150,000 contracts managed. It’s no mean feat managing the risks associated with such a large-scale operation. So when it comes to AI, Roger argues, it’s not a theoretical concept. “AI has been deployed in IBM’s supply chain over four years and it is delivering real bottom line benefit.”

“What led to AI being directly implemented within our supply chain centered around the trade lane and visible logistics elements and how these impacted the supply chain. You can set up a factory perfectly but if you can’t get the materials you need to it then it’s a completely wasted effort.”

“After a Japanese tsunami disrupted our supply lanes in 2011, we asked ourselves how to get better predictive insights of real world supply chain disruptors. IBM Watson Supply Chain is the result.” AI can help manage unforeseen disruptions by alerting key decision makers and working towards solutions.

In Roger’s experience AI can supply chain teams to learn on a daily basis and to do more with less. From concept to final delivery the platform is developing but as a minimum we have to be able to do more with the same. With AI We don’t need to hire three more people, we can do more with the five we already have. And we are learning every day how to deploy this AI into our supply chain.”

Roger outlined the four pillars of Watson Supply Chain.

  1. Identify and alert – Control towers are able to alert supply chain professionals when something goes wrong
  2. Analyse and understand – Watson is able to analyse the impact of a disruption on the business. How many orders will be affected by a tsunami in Japan and what is the value of those orders? A supply chain that can feedback that critical business data is important.
  3. Interact, Collaborate, Resolve – If there’s a challenge that needs solving, Watson can bring all the relevant people into a virtual room and resolve it quickly, also advising who should be in that room.
  4. Learn and Share – How do you retain knowledge and talent and how do you ensure your supply chain team doesn’t forget things?  If your team encounter a problem that has happened before – you won’t know to resolve it if those involved the first time around have now left the business. You’re effectively starting from scratch. Watson, on the other hand, is like an elephant – it never forgets.

“Human and machine always get a better answer than human alone or machine alone” Ginni Rometty, THINK 2018

“Watson gives the information, and the ultimate decision rests with a human being,” explains Roger. “But an issue is solved with two individuals and three email exchanges with Watson advising versus three weeks to resolve with fifteen people and dozens of emails.”

Putting the D in D and I

In today’s workforce, diversity has become a buzzword, with organisations increasingly communicating its importance through their advertising and core business values.

But what does diversity mean, why is it important, how do you achieve it and, once you have it, what do you do with it?

Joelle Payom, Global Strategic Sourcing & Vendor Management Lead explained that there is an enormous pressure for organisations to hire people that are different. But alongside that moral pressure to ‘do the right thing’ is a very strong business case.

“A UK report revealed that the British economy could be boosted by as much as £24 billion if black and minority talent was fully utilised. When you have a diversified workforce you have a broader [talent pool] who are able to bring different ways of working, different ways of dealing with issues and can provide greater innovation.”

As Joelle points out, there is no point in building a diverse workforce if it is not nurtured into being an inclusive one. “To reap the benefits of a diverse workforce it’s vital to have an inclusive environment where everyone is treated equally, feels welcome to participate and can achieve their potential”

Diversity = The What 

A mix of diverse types of people

Inclusion = The How

The strategies and behaviours that welcome, embrace and create value from diversity

“What I want people to take away is that diversity and inclusion (D & I) is not only for women or for people of different ethnicities or sexual orientation. It is for everybody. D & I, which is much more important than diversity, means that we need to provide each human being with equal treatment in the corporate world. By having an inclusive corporate environment for people we can make a change and improve the way society works.”

Being a business leader

Lucy Harding, Partner and Global Head of Practice, Procurement and Supply Chain at Odgers Berndtson led a discussion on what it takes to get to the top and the qualities that will set you apart from the pack when aiming for the C-Suite.

She advises that ambitious procurement and supply chain professionals put the business first and the function second.

“The biggest reason CFOs go to market [for a CPO or Head of Supply Chain] is because they need a business leader, not a function leader.”

They will assume you can do the mechanics of a procurement or supply chain role and will spend far less time testing these specifics, particularly given that most CFOs aren’t in a position to test technical procurement and supply chain competence. “You should know your stuff and they’ll assume that.”

What a hiring CFO really wants to know is how you’ll apply what you know to their business and how you’ll build a talented team below you. Everyone else on the shortlist will equally qualified, from a procurement and supply chain perspective, so it’s about differentiating yourself.

Lucy highlighted a further four crucial capabilities for a prospective CPO or Head of Supply Chain

  • Breath of experience – function and broader business
  • Leadership
  • Learning agility
  • Embrace technology and innovation

IBM Watson Supply Chain sponsored Procurious’ London CPO roundtable on 13th February. 

To request an invitation contact Olga Luscombe. If you’d like to read additional related content or get involved with thought provoking discussions check out the Supply Chain Pros group – a one stop shop for all your supply chain needs

Streamlining Your Supply Chain With AI

How can AI help supply chain professionals streamline their processes and improve visibility?

By Chakarin Wattanamongkol / Shutterstock

Did you ever manage to find out what happened when one of your shipping containers went missing? Are you able to recover your products in time?

Many global companies are struggling with this in an ever-changing, digitised world where there is an increasing demand for transparency and visibility. Consumer satisfaction is being tested by speed of delivery, and as a result, accuracy in your supply chain is essential. Supply chain professionals must find ways to deconstruct the barriers in their organisation’s communications, improving visibility, for example, between a supplier in the North and customers in the West.

AI (artificial or augmented intelligence) technology can keep a constant overwatch on your supply chain looking for signs of trouble and alerting you early granting extra time to solve the really damaging issues, such as an impending weather event likely to close a vital port.

In supply chain management, people often work in silos: detached, isolated, and often far removed from the decisions being made in the C-suite or within other functions of the business. This leads to an unnecessarily complex chain of communication that is difficult to untangle when something goes wrong. Imagine if, in the future, all the elements making up your supply chain could be connected into a fully transparent process where internal barriers are broken down.

When you improve visibility across your network you can gain wider insights into your customer demand and be better prepared if things fail to go to plan. For example, if the demand for your product is outselling your current supply you need to communicate with the supplier to increase the stock in order to maintain your profit margins. Instead of an arduous trawl through past invoices, imagine a service that simplifies this, increasing your customer satisfaction by offering accurate and guaranteed product and shipping information.

In addition, by using AI-enabled orchestration your analysis of total costs and value is more precise and time effective, allowing you more time to concentrate your energy on satisfying customer engagement. This ensures the greatest level of accuracy giving you an overview of your products’ end-to-end supply chain journey.  Supply chain professionals will be able to look beyond their network itself and review potential impacts from other areas, such as weather, news, and transport conditions. As your process evolves and becomes more efficient real-time product guarantees, such as same-day delivery, become the norm instead of an anomaly.

As your supply chain becomes more transparent, it furthers the opportunity to increase business results as the time previously spent on administrative tasks can be refocused.

A real-world example that could benefit from this style of operation is the supply chain in the run up to a major sporting event, such as the Rugby World Cup later this year. Supplier A of miniature replica rugby balls needs to ensure these products are well stocked in their customers’ stores two months prior to the start of the tournament. Unfortunately, due to the extreme weather conditions currently hitting America, Supplier A’s usual plastic provider cannot deliver on this order. By making the supply chain more transparent and with the help of AI, this blocker is flagged early in the system before any time delay arises and Supplier A opts for a European plastic provider instead. The issue is managed successfully and in good time. As a result, the quick response enables Supplier A to meet their quota with their retailers, guaranteeing delivery in time before the start of the event, at a lower cost than if they’d spotted the issue later. Supplier A and their retail customers will not be pipped-to-the-post by competitors.

Now let’s consider the situation when Supplier A’s sellers have spotted that the market for their miniature replica rugby balls is projected to be a lot smaller than at first thought. In many organisations, the supply chain team might go to extreme efforts to get the product’s problem sorted, while the sales department is shifting away from selling the product: an exemplar of common miscommunication resulting in delays and increased costs. Up-to-the-minute communication and feedback from the supply chain right the way through to the consumer provides the correct knowledge to facilitate informed decisions. This enables flagship products to be given first priority, as opposed to products that can get away with a delay of a few weeks.

The efficiency illustrated in the example above highlights how supply chain isolation no longer needs to have a detrimental effect on business results because the internal organisational silos have been broken down. Instead, a more transparent system acts as the catalyst for even greater customer satisfaction. Not only does this positively influence Supplier A and their retailers but, most importantly, the fans’ experience of the Rugby World Cup will be that little bit brighter.

In summary, by increasing visibility across communication channels it furthers delivery accuracy, time efficiency, and business results. All of which can contribute to providing your customer with the very best service you can offer.

IBM Watson are sponsoring Procurious’ London CPO roundtable on 13th February. To request an invitation contact Olga Luscombe. 

If you’d like to read additional related content or get involved with thought provoking discussions check out the Supply Chain Pros group – a one stop shop for all your supply chain needs.



Procurement Leaders: Stop Talking About Headcount Reduction!

If you want your procurement teams to be more open to adopting cognitive solutions and less scared of them, stop talking about headcount!

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There are many factors that require careful consideration to bring about effective cognitive solutions.

It’s akin to conducting a group of musicians – it might be possible (easy even!) to attain a pleasant sound from a solo instrument… 

But, if expertly managed,  you could accomplish a symphony from the entire orchestra! 

This week, our podcast series will guide you through the five steps required to conduct a dazzling cognitive symphony. 

On Day 4 of Conducting A Cognitive Symphony Marco Romano – Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM talks on the common pitfalls in the adoption of cognitive solutions, the most impactful actions procurement pros can take to increase the speed of adoption and how to overcome the fear factor!

The Fear Factor

“How the leadership works with the teams to remove barriers (operational, physical and psychological) will ultimately have a huge influence on the rate and pace of adoption of cognitive and analytics solutions” explains Marco in his white paper. 

When it comes to the fear factor, “there is no doubt that there is a concern that rich insightful analytics will show opportunities that imply the practitioners have historically failed in their jobs.

“There is also no doubt that there is fear that cognitive solutions could replace some of the activities currently carried out by practitioners.”

One factor that causes this fear is the “poor messaging on why you want to commit these tools, and what the desired outcome is which creates fear and resistance, to adoption and change.”

How can organisations manage their employees fear to ensure the adoption of cognitive solutions isn’t impeded?

Stop talking about head count!

When procurement professionals look at something that brings new information and insights that haven’t been available before, it leads them to question a number of things:

  • Is it a challenge to what I’ve done before?
  • Is it a challenge to the accuracy of what I’ve done before?

and, ultimately:

  • Is this technology going to make what I do now redundant?

“Fear is something that we see. CPOs are constantly talking about robotics, automation, right?”

“And very often, I hear head count being brought into the discussion, Head count reduction being brought into the same discussion with cognitive analytics, and whilst that might be the eventual outcome, I think it’s a dangerous way to enter into the dialogue”

“If that is the primary driver, to reduce head count in the organisation, I find that very often that’s reflected in your metrics. It’s reflected in the behaviours. And in turn, it’s reflected in poor adoption, and resistance by practitioners.”

“You’re creating that fear of job security. And invariably, I find practitioners push back, and they’ll find they spend their time trying to justify why a tool won’t work for them.”

“To overcome this you need the right methods, but secondly, and very importantly, I think you need to provide practitioners with the road map on how to change, and sharpen their skills in this changing environment.”

Educate your teams

Procurement professionals need to have an understanding of the strategy and impacts new solutions will have.

You need to be able “to show the practitioners how the change benefits them, not just the enterprise” Marco explains.

“And this sounds really basic, but it is so important. [You need to be able to show them]  I’m going to help you spend less time on those lower value, tedious, time-consuming tasks, allowing you to focus on the higher value activities.  Most professional practitioners that I know, prefer to spend their time on those higher valued tasks -negotiating with suppliers, rather than crunching numbers”

That’s the first thing. But the second thing  is, providing them education and training, on this new data skill set. I think you very quickly erode that resistance. They see a path for them, within the enterprise, within the organisation, but you’ve given them a marketable skill, which in turn removes resistance and fear.

“I’m not talking here about turning practitioners into data scientists. I’m talking about arming them with knowledge about how they impact data, teaching them the art of the possible, with regards to how technology can help them to be more effective consumers of that data, and insights.”

Striving to conduct a cognitive symphony but in need of some expert guidance? Our podcast series runs throughout this week and will have your orchestrating cognitive success in no time! Register here.

How To Conduct A Cognitive Symphony

If cognitive technology is not normally your forte, let us be of assistance. In one week we’ll have you conducting a cognitive symphony! 

furtseff/Shutterstock.com

There are many factors that require careful consideration to bring about effective, scalable and sustainable analytics and cognitive solutions.

Intelligence is the conversion and enrichment of data into meaningful business insights.

It’s akin to conducting a group of musicians – it might be easy to get a pleasant sound from a solo instrument but, if expertly managed, you can avoid falling flat and accomplish a symphony from the entire orchestra!

Conducting a Cognitive Symphony

From the 26th February let Procurious and IBM guide you through the five steps required to conduct a dazzling cognitive symphony as we present a new five-part podcast series. 

Day One: Building Your Orchestra

Procurement process and acquisition of data need to evolve to meet data needs. How should procurement teams embark on their knowledge journey to Cognitive and analytics transformation?

Day Two: Orchestrating Your Melody

It is not sufficient to know that you are buying software or how you are buying software; you need to know what software you are buying. So how do you implement an effective taxonomy strategy?

Day Three: The Rehearsal Room

Automation is a buzzword of the moment and fast becoming a business necessity. How can procurement professionals achieve a happy balance and effectively implement transaction automation.

Day Four: Getting the brass on Board

How procurement leaders works with their teams to remove barriers will ultimately have a huge influence on the rate and pace of adoption of cognitive and analytics solutions.

Day Five: The Conductor

In a fast-paced and ever-changing environment, some instability and churn is inevitable, which is why all these data instruments need a decent conductor and a single data strategy.

Podcast Speakers

Marco Romano Procurement Chief Analytics Officer, Global Procurement, Transformation Technology, IBM

Marco applies more than 15 years of experience as a procurement practitioner and project manager to understand complex environments that separate the noise from real issues and determine near-term and strategic solutions in realising business value. He leads a team that has saved IBM Procurement a significant amount in third-party costs and efficiencies through analytics data solutions and innovative sourcing strategies over the past three years. His team is also developing commercial analytics and cognitive procurement offerings leveraging data and technology for IBM clients’ competitive advantage.

Anna Madarasz Analytics & Cognitive Lead IBM

Anna has 14 years of procurement experience, out of which 12 is in project leadership. She is a master at change management, and loves working in a complex, cross-functional environment. She is an expert at procurement taxonomy in support of increasing companies’ negotiation power. Anna is a certified Lean Six Sigma Black Belt.

Peter Hrabovski Analytics and Automation Lead, IBM Global Procurement

Peter is the leader of the Analytics and Automation organisation at IBM Global Procurement. He has a masters degree in economics, in the field of business and administration. He has more than 5 years of experience in managing the data analytics and robotics process automation teams in IBM procurement globally. Being a technology and data enthusiast his focus is on applying the latest technologies in solutions being developed. This enables procurement in delivering exceptional value to IBM and its clients.

How does the podcast series work?

This series will run for five days with a daily podcast released from 26th February.  Each morning, we will deliver the new podcast straight to your email inbox.

If you’re a little late signing up to the series, don’t panic! We’ll still be sure to send you all five podcasts so you can listen at your leisure.

How do I access the podcast series?

Simply register for the series via this link and you’re good to go!

From the 26th February we’ll deliver a podcast straight to your doorstep.*

*straight to your email inbox!

Are the podcasts available to everyone?

Anyone and everyone is welcome to sign up and it’s totally, 100 per cent free to do so- simply sign up here and we’ll handle the rest.

From 26th February, Procurious present a new five-part podcast series – Conducting a Cognitive Symphony – sponsored by IBM. Sign up here (it’s free!) to access the series. 

Why Procurement Should Give Cognitive Tech A Warm Embrace

When you pushback on the advances of cognitive technology, you’re buying yourself, and procurement, minimial time. Working side by side in a warm embrace is the way to do it! 

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place TODAY at 1pm BST on 24th October 2017. Register your attendence for FREE here.  

There’s no question that procurement teams needs to prepare for their own cognitive journeys, to consider what their company’s digital transformation will look like, and then think about how to prepare, or even influence it.

But in doing so, are they also mapping out a talent journey?

The 2017 Deloitte CPO survey interestingly revealed that whilst the vast majority of procurement leaders see the need to train and develop their people, only 31 per cent were planning to focus on training in digital skills in the coming year.

John Viner Smith, Principal, Mercer and speaker on today’s webinar has some thoughts on why this is the case, “I think part of the reason is that there’s no consensus at present as to what the skills people need to acquire are to be ready for this [cogntive] world.  It’s just not clear for the leaders concerned yet.”

Last week we outlined the key soft skills procurement professionals should be developing to prepare for the cognitive age.  But what about the attitude on the ground? Procurement professionals are still wary of the impact cognitive technology will have on the function, which results in a level of pushback and reluctance to accept the changes that are coming.

The warm embrace of cognitive technology

“It may be reasonable to look at the state of technologies today and think ‘No worries, I can’t see anything out there that could do my job’, but that’s not the risk.” John explains. ” The risk is that these technologies, coupled with other disruptors, could make your job obsolete and truly redundant. Imagine being a farrier at the very beginning of the 20th century; if you were thinking ‘Thank goodness they haven’t invented a machine that can shoe horses better than me’, you were kind of missing the point.”

So what is Justin McBryan, Learning & Development, Strategy, Communications Manager- IBM ,seeing in terms of pushback within his organisation?

“I don’t know if I would characterise it as a pushback so to speak.

“We see it as a warm embrace across the organisation but a wary embrace as well. As we digitise the organisation and continue to march forward into the cognitive era, certainly the technologies on the horizon are noticed and seen [by our employees.]

“But I say a warm embrace because a lot of the technologies we are building, have built and continue to build need the procurement skills and institutional knowledge that we’ve built over the years including all of our great people. In terms of where we are today and as we’ve been rolling out Watson Supply Chain etc. we see it as more of an embrace.”

Cognitive tech is “not necessarily a replacement of the person, it’s someone sitting next to you and helping you.”

The environment that Justin describes is one of collobaration, with seasoned procurement pros looking to help machines learn and work alongside them. But that doesn’t mean they aren’t doing so with the wary eye of “what’s next?”

But as Justin points out, as procurement teams embrace and integrate these cognitive technologies, they can also be asking themselves “What can I do to begin to point my skill development in the right direction?”

Exploiting the advantages of cognitive technology

There’s a lot of scare mongering out in the field that says that if you’re not a data scientist, you don’t have a future in Procurement.

But we’re reassured by the fact that IBM is working hard on developing its employees’ soft skills and is a strong advocate for how cognitive tech will allow professionals to better perform their roles not seek to replace them.

When it comes down to data scientists versus soft skills experts, Justin believes they’re sequential from each other and likens it to climbing up two different kinds of hills, “We want the majority of our organisation to build up on their soft skills. We’re happy if everyone builds up their analytics skills. We certainly need a solid group up at the top who can drive the innovation and integration of the cognitive tools.

“We need our best and brightest from a data scientist perspective but not all of us need to be there.”

“If we continue down the cognitive path we’re going to have a lot of tools to add to the procurement portfolio. The digitisation of our organisations  free up time for our employees to focus on two big things that are important for procurement:

  1. Getting closer to clients
  2. Creating time and space to innovate on our processes and innovate on the solutions that we’re delivering to our client

“The more we add to the digital cognitive portfolio of tools that procurement pros can use, the more time that is freed up on the innovation and client engagement space, [which is an opportunity for procurement] to exploit the advatages of the cognitive era.”

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place TODAY at 1pm BST on 24th October 2017. Register your attendence for FREE here. 

5 Soft Skills Procurement Pros Should Be Developing…NOW!

If you want to hold on to your procurement career  in the long term, you ought to be worrying about mastering your soft skills!

Africa Studio/Shutterstock.com

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place at 1pm BST on 24th October 2017. Register your attendence for FREE here.

We got wind of the fact that IBM, arguably the world’s most robotically advanced procurement team,  is focussing on its employees’ soft skills.

As Justin Mcbryan, Learning & Development, Strategy, Communications Manager- IBM, explained,  why would IBM need a high volume of data scientists in their midst when they have Watson!?

Technological advancements will soon permit the automation of our processes; handling the sourcing and the market intelligence. In this environment, it’s the softer skills procurement professionals must master to ensure a long-term career.  That’s the real skills gap procurement should be worried about!

Ahead of next week’s webinar Beat The Bots – How Being Human Will Win The Day,  we outline the specific skills procurement pros should be mastering to prepare for the post-cognitive age, with the help of Justin and our second webinar speaker John Viner Smith, Principal-Mercer.

1. Design Thinking

There are some “incredible and transformative technologies that offer solutions to problems that were unimaginable just a few years ago ,but they’re just half of the puzzle.” begins John.

“Subject matter experts will have a role to play in framing  [these problems] in the most efficient way.”  It’s important that the solutions aren’t simply “sticking plasters but fundamental root cause fixes”.

This is a role for procurement’s best and brightest, and the skill needed to fulfil this role is Design Thinking; “the process of being at the forefront of bringing new technologies to bear on business problems.”

2. Thinking at the speed of digital!

Joh asserted that procurement must recognise that “thinking of digital solutions requires some understanding of new processes and ways of thinking.”

“Procurement people should be learning about methodologies like Google’s Design Sprint or Eric Ries’ concept of Intrapreneurship as defined in the Lean Startup that are used in other types of digital business.

“Too often procurement thinking is slow, bound in process and incredibly risk averse. Technology problem solving is experimental, iterative and views failures as key to learning. The idea of developing hypotheses, testing them, failing fast and iterating or pivoting in the course of a week, as per Google’s Sprint methods, would be alien to many Procurement people.”

Procurement has worked at a certain pace,  thus far. And it’s going to  have to get faster!

3. Active questioning and listening

This wouldn’t be a piece about soft skills without a mention of communication! We already know how important this skill is for procurement people but it’s going to be all the more valuable in a post-cognivite age.

Justin reminded us that communication is vital for everything “from presentation skills to phone etiquette and how to ask probing questions to your suppliers.”

In a post cognitive world you’re “going to become more of an owner and less of a process facilitator” asserts Justin, which is where active listening comes in.

When it comes to managing negotiations with suppliers, clients and colleagues, “We all have scripts e.g. How many widgets do you need, when do you need them by etc.”

“Every now  and then, you’ll have  been in a situation where a client has given a little bit more than you asked for. This is where the active [and critical] listening comes in.” How do you use that information to do the best job possible?

4. Negotiation

“We rely on the threat of competitive pressure to do our negotiating for us” says John.

“We source the spec and don’t always listen to challenges from Suppliers. When we’re engaging them to help solve complex problems, we will need to be more commercially empowered and highly skilled negotiators; able to get the best from our suppliers by offering the best of ourselves while optimising value.”

5. Imagination

“The future role of procurement can be solved in one phrase: problem solving” says John.

But procurement’s problem solving needs to take on a more innovative and imaginative approach.

“Not every situation is going to call for an RFX” explains Justin. “That speaks directly to the change we’re looking for [at IBM].” Too often “we see a need and our reaction from a process point is let’s go and do the RFX.”  Instead professionals “should take a deep breath and start understanding the client and exactly what they need,” and approach the problem in alternate ways.

John concedes, arguing that “running tender might be the solution (increasingly rarely!) but collaborative innovation with the suppliers we have is important.”

Procurement peoples’ jobs will largely focus on bringing innovation to the supply chain in the first place and really helping the business to understand their demand.

In short, Procurement needs to have a relationship with the organisation that is much more strategic and puts the function in a partnering and consultative role.  As Justin sums up, ‘ [at IBM] We’re still looking for the procurement experts, we’re still looking for people who can do the job. But we’re adding to the soft skills portfolio.”

Our webinar, Beat The Bots: How Being Human Will Win The Day, takes place at 1pm BST on 24th October 2017. Register your attendence for FREE here. 

Against The Clock: 60 Seconds With IBM….

What makes for an exciting workplace, how do you identify the great leaders and what skills are crucial for procurement? We put IBM’s Graham Wright to the test in a round of quick-fire questions.

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Register now  as a digital delegate for The Big Ideas Summit Chicago!

With less than two weeks to go until we launch The Big Ideas Summit in Chicago, we thought we’d have a quick catch up with some of our keynote speakers to discover what makes them tick, where they see the procurement function heading in the near future and how they would reflect on their successful careers.

First in the hot seat is Graham Wright, IBM Vice President, Global Procurement and Cogntivie Procurement services. He’ll be enlightening our Big Ideas audience on Procurement’s Radical Transformation and the impact of cognitive technology.

But today, we want to know what makes him excited about his work, what he wishes he’d known at 20 years old, and the key skills he’s looking for in a killer team.

How do you stay relevant in a world of fast-paced innovation?

Firstly, client interaction. This gives you exposure to a huge variety of approaches by industry, country and company to innovation. You have to remain selective.

Secondly, you cannot read everything.  Instead, take the time to focus on the few key areas you want to learn about.

Thirdly, make time to network and engage through all types of media and professional and industry associations to get the information and bounce ideas to ensure you have learnt and can develop your points of view.

Finally, take the time to think !

What makes you excited to go to work on a Monday morning?

  1. Desire to win.
  2. Clients, my team and the engagements.
  3. Excitement of driving an agenda through IBM that can truly change the world through data, the next natural resource.

What skills and talents contribute to an all-round, great team?

  1. Self motivated, client focused individuals with an operating environment allowing learning from mistakes.
  2. Soft skills, but I’d call them consultative!
  3. An enquiring, questioning mind with the ability to apply innovative, design thinking.
  4. Passion and drive for the business, profession and self.

What 3 attributes make a great leader?

  1. Confidence to lead and use multiple styles.
  2. Being a good listener and a coach.
  3. Communicator with the strength to give “Straight Talk”

What do you know now that you wish you’d known when you were 20?

  1. Time goes very quickly. Have a plan and follow your dreams. Experience as much as you can.
  2. All those successful Internet Stocks !
  3. The benefit of exercise and healthy balance.

Want to hear more from Graham? On 28th September, Procurious is bringing The Big Ideas Summit to Chicago.  Register now  (It’s FREE!) as a digital delegate to gain access to all of the day’s action and LIVE video from our speakers and attendees. 

IBM Global Procurement’s Radical Transformation

Transformation has become the new norm as organisations respond to an onslaught of shocks. But is there a best-practice way to go about transforming a procurement function? We interviewed Procurious Partner, IBM Global Procurement, to discover why they’ve been recognised on the global stage for their approach to the challenge.

If you were to stop any procurement professional on the street and ask what their function is currently up to, you’re unlikely to hear the reply, “Oh, you know – business as usual”. Instead, you can expect to hear a description of some sort of transformation. Whether it’s enterprise-wide or procurement-led, everybody’s doing it. In fact, you could argue that the process of transformation itself has become business as usual, especially if you’ve ever worked in a company where one transformation follows another, ad nauseum.

Where once your organisation may have needed to reinvent itself every few decades, today, an onslaught of shocks – technological, cultural, economic, and regulatory – is forcing companies to transform every few years. Five to ten years ago, your CEO might have become a business icon through a single transformation. The minimum requirement now is being able to execute multiple transformations, while success today is measured in your ability to foster a culture of continuous reinvention.

Showing how it’s done

IBM Global Procurement recognised the need to transform as market dynamics put increased pressure on its customers, which consist of internal IBM business units and external clients. Graham Wright, Vice President, Global Procurement and IBM Procurement Services, described some of these pressures. “We realised that our internal and external clients needed less complexity, more transparency, consistent processes executed with speed, and new solutions. The challenge was to find new ways to stay relevant and be successful – that’s why we launched a radical transformation not only to address the needs of the business but to keep pace with smaller, more agile competition and remain an industry leader”.

The team went about this by ramping up activity across three key areas:

1.Innovation: Leveraging strategic partnerships and key relationships to drive innovation.

The team unlocked the value of supplier innovation by implementing a state-of-the-art Supplier Enabled Innovation (SEI) program and using new, engaging tools, including cognition. The SEI initiative included 3rd-party ‘Voice of the Supplier’ surveys, supplier incentives including annual awards, and clear performance metrics.

2. Engagement: Delivering simple, engaging user experiences.

After identifying key client pain points around complexity, slow execution and delayed problem resolution, IBM Global Procurement followed a mantra of speed and simplicity to improve visibility, enhance workflows and reduce cycle times. Innovative engagement solutions, such as an “Ask Procurement” chat function for clients, have contributed to an impressive improvement in client satisfaction. The chat application is highly intuitive – it suggests self-service solutions for users, and provides direct access to live agents who can answer questions simply and quickly.

3. Analytics & Cognitive: Capitalising on foundational analytics and cognitive solutions.

No mention of IBM Global Procurement would be complete without a reference to its not-so-secret weapon – the Watson Cognitive Platform. Through catalog data enrichment and cognitive procurement solutions which provide users with refined real-time data for risk mitigation, market and supplier insights, pricing information and recommendations, the team realised significant efficiencies including hand-free POs and greatly improved process compliance.

As an extremely positive side-effect of this transformational effort, Wright reports that the team’s efforts are being recognised within the wider organisation. “The transformation has helped change the perception of procurement evolving from a cost centre to a value centre.”

While internal recognition of the procurement team’s value is gratifying, the Global Procurement Team was even more delighted to see their efforts celebrated at Procurement Leader’s World Procurement Awards, where the team won the award for “Transforming External Partnerships (Pioneering Business Impact)”. The team’s submission went through a rigorous 3-stage judging process including online judging, peer review and a face-to-face regional debate.

And that’s not all – amongst 350 submissions across 15 categories, IBM Procurement was short-listed for each of the 6 entries it entered a submission for, and picked up 2 major awards – the Transformation award, and another for Risk Mitigation.

Procurious is working with our Knowledge Partner, IBM, over the next 12 months to promote cognitive procurement to our global community. To learn more about IBM Global Procurement, click here.

A Whole New World: The Cognitive Computing Era

The age of cognitive tech is coming, whether procurement likes it or not! How can we be ready for the changes coming our way? 

Syda Productions/Shutterstock.com

Register your attendance for our free webinar, Man & Machine, which takes place on 8th February 2017. 

A New Era Of Computing

 We’ve entered into a new era of computing: “the cognitive computing era”, which follows the eras of programmable and tabulating systems and represents a massive jump forward that will transform how enterprises operate.

This new era is defined as such because there is a fundamental difference in how these systems are built and how they interact with humans. Traditional programmable systems are fed data, knowledge, and information, and they carry out and return results of processing that is pre-programmed. In this case, humans are doing most of the directing.

Cognitive technology is different; it accelerates, enhances and scales human expertise to solve more complex problems by understanding language and interacting more naturally with humans. It can reason to find patterns and form hypotheses, making considered arguments and scenarios planning. And this is exactly what Watson is about.

Watson is a cognitive technology that can think like a human and is available as SaaS products and a set of open APIs (Applications Programming Interface) such as natural language classifier, speech to text, text to speech, visual recognition, etc.

What Does Watson Mean For Procurement?

This disruptive technology, by creating a new digital ecosystem, is pushing Procurement to create a new business model, moving away from objectives centered on cost take out and taking a new customer centric and revenue growth approach. CPOs must employ the right strategy, structure, skillset and cognitive technology if they want to be in a strong position to demonstrate their relevance and value to the organization.

Procurement organizations and their leaders need to embrace the reality and potential for Artificial Intelligence (AI) and cognitive procurement as readily as they would accept other technologies and developments. AI will bring changes and challenges but it will also bring amazing opportunities for the profession.

As we apply AI to certain procurement tasks and processes, we will begin developing internal capability and expertise.

Applying Cognitive Tech To Procurement

Cognitive technology has already proven to be particularly helpful at helping procurement with a number of specific tasks and programs. These include:

  • Quickly sorting through very large amounts of structured or unstructured data. This is especially useful for benchmarking and supplier analysis
  • Providing very detailed supplier assessments of a single supplier, a group of suppliers or the whole supply base
  • Providing in-depth risk assessments, identify hidden risks, and calculate rate risks
  • Supporting and validating decision-making during supplier selection

More generically, cognitive computing will undeniably be a key ingredient to innovation, helping to find new ways of operating, providing new insights, uncovering new opportunities and last but not least it will elevate procurement professionals to the well-deserved advisor role by extending their capabilities and growing their experience.

How Can Procurement Prepare For The Changes That Are Coming? 

The question that so many procurement organisations are asking is how can they make cognitive tech a reality and where to start?

Adopting and integrating cognitive solutions into an organization is a journey and not a destination.

Firstly, CPOs need to be clear about what matters the most. In order to grow their company’s business and best benefit from the technology, they must set realistic expectations and develop long-term plans with incremental milestones

Secondly, transformation doesn’t happen by itself. It requires the vision and support from the top. As an example, Bob Murphy, IBM’s CPO, is the biggest driver of change in terms of transforming his organization. He saw the potential in cognitive technology and the prospects for Procurement and became an evangelist within the team; encouraging, sponsoring and demanding we embrace this opportunity.

Thirdly, leveraging big data is a key area to take advantage of, especially in data management. This ensures that organisations have the right structure and strategy. At IBM, we have appointed a Procurement Data Officer and also hired data scientists within the procurement team as we understood that procurement needed to take a more active role in extracting and analyzing data to demonstrate its value especially by leveraging the data we are managing and generating. (i.e data in RFP answers, ….)

The Race Is On – Can Procurement Shape Up In Time?

With cognitive technology, procurement teams will be equipped with the tools to navigate the procurement process quickly, easily and more compliantly. This will allow more time for procurement teams to focus on strategic supplier activities after contract signature, such as performance management or supplier collaboration and innovation programs. But is the function ready for this shift?

Embedding such advanced technology requires some serious changes in skills and competencies within our teams. Procurement leaders will have to search for procurement professionals not only focusing on their core competencies, such as category expertise, negotiation skills or market knowledge, but it will be more and more important to hire people with the “right” soft skills. The function must onboard and retain people with excellent relationship management and analytical skills and with a high aptitude to work with advanced technology and financial acumen.

The procurement landscape will have to reshape to a more business leading capability that has to operate in a much more virtual and networked environment where emerging roles of data scientists, business relationship managers and innovation scouts, to mention a few, will be increasingly required.

In short, beyond just being capable of creating visible savings, the role of the procurement organisation will have to shift its focus beyond cost reduction efforts, and move towards a trusted advisor role; accurate, fast and efficient.

There’s no doubt about it, late adopters of the digital transformation or organisations failing to take into consideration the growing exigencies such as speed, value for money, collaboration will be soon perceived as road blockers rather than enablers.

Join Procurious’ free webinar, hosted by Tania Seary with Manoj Saxena, Pascal d’Arc and Nathalie Fekete to make sure you’re ahead of the cognitive technology game. 

 

 

No More Supply Chains? Another Procurement Term Bites the Dust

With the advent of the supply ecosystem, the concept of the linear chains is outdated and misleading. Perhaps it’s time to let this term disappear.

Introducing Watson Supply Chain from IBM. Get to know Watson here.

The thing about chains is that they’re linear.

No matter how complex they might be, supply chains are sequential by definition. They stretch from one geographical point to another, each link representing one of many upstream or downstream businesses that make up the whole.

But in a hyper-connected, interdependent world, the concept of the chain no longer does justice to the complexity of a supply manager’s role. Any attempt to map out a modern international supplier network will end up looking more like a cluster diagram, or a series of cogs and gears.

Or, to take an analogy from the natural world, a “supply ecosystem”.

Supply Ecosystems versus Supply Chains

To unpack some of the key differences (and similarities) between ecosystems and chains, let’s examine some key terms.

  • Interdependency

While a single link in a supply chain is only directly connected with its two immediate neighbours, each part of an ecosystem relies upon every other. This has been referred to as “super-connectivity” or “hyper-cooperation”. This comes with enormous benefits in terms of visibility, data collection and knowledge transfer.

  • Cooperation

Rather than having a single purchasing organisation sitting at the top of a supply chain, a supply ecosystem may involve a network of competing business with shared challenges. Collectively, they create and nurture a sourcing base that will benefit their individual businesses and the ecosystem as a whole.

  • Fragility and resilience

When a link in your linear supply chain snaps, the whole structure is at risk of collapse. A supply ecosystem is similarly fragile, as each component has its own important part to play. However, the difference is that the entire extended stakeholder network can work together to rapidly replace any missing part.

  • Knowledge

While organisations are eager to unlock potential innovation among their suppliers, they are often frustrated by a lack of visibility beyond the first-tier, or the neighbouring link in the chain.

Within the super-connected ecosystem, there is an increased flow of data, and better exchange of skills and knowledge. This means shared challenges are more likely to be solved through crowdsourcing among the entire network’s talent pool.

Again, problems will be tackled and solved with the conviction that what is good for the overall ecosystem will also benefit every member therein.

IBM Watson Gets It

IBM Watson helps supply professionals illuminate risks and opportunities to make better decisions through a proactive, predictive and innovation supply network.

The cognitive procurement technology leverages the entire ecosystem rather than the usual first-tier suppliers. This enables collaboration across every supplier organisation in your network to identify gaps, share capability and mitigate risks before they become obstructions.

The Supply Management Lexicon is Changing

The procurement and supply management profession is changing rapidly, and the language we use is changing with it. In 2016 alone we’ve gone so far as to declare obsolete three frequently used terms in procurement:

Do you agree that these terms have passed their use-by date? What other frequently-used supply management terms are also likely to disappear within the next decade? Leave a comment below!

Procurement exists in an ever-changing environment. Keeping up to date, even with terminology and concepts, can be a struggle. However, technology, like Watson Supply Chain, can help by making information available wherever we are. Find out more here.