Tag Archives: Zycus

Let’s Get Internet of Things (IoT) Ready for Procurement!

What can the the Internet of Things (IoT) do for you and your procurement team? 

IoT is a big buzzword these days. From industry experts to academia to specialised thought leaders, everyone is talking about how IoT as a technology has the potential to disrupt not only the day-to-day workings of our companies, but also the lives of the individual.

The Internet of Things: A History

Let’s go back a bit and see how it all began. In 1999, Kevin Ashton, a British technology pioneer and cofounder of the Auto-ID Center at MIT, proposed the Internet of Things (IoT). It refers to gadgets and applications with built-in wireless connectivity that can harness great amounts of data from their surroundings and help monitor, control and organise things better. From home appliances to fitness gadgets to technology helping industries automate their processes, IoT can do it all!

And two decades later, IoT is the live wire. Smart homes, smart gadgets and smart cars- IoT has already given us a glimpse how is future going to be. But what does it hold for procurement?

Procurement and the Internet of Things

For Procurement particularly, IoT works as an enabler, empowering companies to gain visibility into their spend analysis and keep a vigilant eye on their consumers consumption pattern. The supply chain data generated is monitored continuously and analysed for behavioral sets to make better-informed decisions. Having a proactive overview helps companies to estimate the demand and supply statistics, as they are aware of the needs and usage pattern of their consumers. This empowers them to negotiate with supplier side in a more streamlined manner as they know in advance what material and what quality and quantity is required. All these factors combined contributes to cost savings and brings value for the procurement function.

Another area where Procurement can benefit significantly is in the tracking and monitoring of the movement of goods within supply chains. Deploying the right set of sensors, which are tracked remotely with an IoT-enabled device can identify equipment faults, stoppages and leakages in real time allowing service and maintenance teams to respond to issues more promptly and accurately. This also ensures diagnostic data is obtained in order to deploy the right set of technicians.

These factors directly impact the maintenance costs incurred by a company, contributing positively to the overall cost savings.

There is more that IoT can bring to the table for Procurement function. But to realise the utmost advantages, companies must ensure that they are investing in the right kind of technology, processes and people. They need to invest in setting up the infrastructure that will unleash the possibilities IoT has to offer. In short they need to be ‘IoT ready’.

If you are curious to learn more about how IoT will impact procurement, do join our upcoming webinar where our expert group of panelists will examine the practical impact of IoT on how our supply chains will work and what you will need to do to become IoT ready.

Webinar Speakers

  • Jon Hansen – Editor and Lead writer at Procurement Insights
  • Robert Handfield – Executive Director of the Supply Chain Resource Cooperative
  • Mark Hubbard – Managing Director at Smart Brown Dog Ltd

Webinar on ‘Getting Internet of Things (IoT) Ready for Procurement’ is on January 18, 2018 | Thursday. Register here for free to reserve your seat.

Deal Or No Deal? The Brexit Effect

What are the implications of Brexit on Procurement? And how should the function be preparing for the various possible outcomes? 

Zycus’ webinar The Brexit Effect Understanding Brexit and Its Impact On Procurement takes place on Tuesday, 21st November 2017. Register for free here.

On June 23 2016, the world woke up to some very unexpected news.

This was the day around 17.4 million people in UK, by a sizeable margin of 52 per cent to 48 per cent, voted to become the first country to leave the European Union.

As the world looked on in shock, the then prime minister David Cameron immediately resigned, leaving his successor Theresa May to handle proceedings. She soon confirmed that Article 50 of the Lisbon treaty would be triggered and did so in March 2017.

From the time the UK submitted its Article 50 letter to the European Commission, a two year formal process of leaving the EU began.  A number of events were set in motion that cannot now be halted without significant agreement between the two governments.

What will happen in these two years?

Within these two years, the UK and the European Commission will either agree upon an interim agreement or trade will be governed under a pre-agreed set of tariffs. The impact of Brexit on the UK economy will be determined largely by whatever relationship the UK manages to forge with the EU, and this may not become clear for number of years.

In these uncertain and unpredictable times, how can procurement professionals prepare and what risks does the function face? In the EU, the public purchase of goods and services has been estimated to be worth 16 per cent of GDP and it is nearly 20 per cent of UK’s GDP.

Regardless of whether you work in the public or private sector, there is no doubt that Brexit’s impact extends across the entire breadth of the procurement industry. It’s really hard to understand how significantly regulations are going to change for procurement.

The worst case scenario for procurement

  • Cost: The costs to import goods within supply chains are likely to rise, whether it’s due to commodity prices or labour cost. In terms of commodity prices, we cannot know for sure of the impact; there could be a major change depending on the value of the pound or we might see no change at all. Labour cost will be dependent on the new immigration regulations, which could make it more expensive to hire EU nationals in the UK and vice versa.
  • Freedom of movement and supply chain delays: There is a chance that there will be a loss in freedom of movement both in goods and services for UK and European businesses with supply chains operating across borders. There is also a possibility that there will be some disruption in existing supply chains because of time-consuming border checks and paperwork at UK ports, which could increase custom processing time.
  • Procurement recruiting and talent management may suffer: Not only the flow of goods and services will be impacted but procurement talent will also be considerably affected. If the “leave” campaign succeeds in stopping migrants from the EU, there is a chance that the procurement talent pool in UK will be considerably reduced. Many of the EU procurement professionals might not want to be a part of UK given the current instability.

Procurement’s Pre-emptive Action

CIPS recently conducted a survey with 2100+ supply chain managers, which delivered some very interesting results:

  • Around 32 per cent of UK businesses using EU suppliers are currently looking for British replacements
  • More than one third of UK businesses plan to respond to Brexit by beating down suppliers’ process
  • 46 per cent of European businesses expect to reduce their use of UK suppliers

As supply chain complexity increases, many British companies are considering the possibility of shifting supplier base from continental EU to the UK. In the meantime, European companies that have operations in the UK are looking at moving their operations outside of the UK to ease business. This is because UK will become a separate market for EU and therefore like we discussed earlier, the movement of goods across borders with the UK will be deemed as imports and exports, attracting new customs controls. This will become more time consuming and attract paperwork, taxes, tariffs, excise duties and VAT which will have direct implications for revenue and cash flow of businesses.

If trade negotiations fail throughout the Brexit process, businesses inside and outside the UK should be ready to explore new options. Procurement must plan ahead to find alternative suppliers or start work with existing suppliers to put deals in place, soon!

If you are curious to know more about how Brexit will impact procurement, do join our upcoming webinar on Brexit featuring industry experts Mark Webb and Jon Hansen. They will be discussing:

  • The impact of Brexit on supplier risk assessment and management
  • The influence of trade tariffs on cost
  • Increasing demand for procurement talent
  • What is the procurement technology answer to Brexit? 


Jon Hansen – Editor and Lead writer at Procurement Insights

Mark Webb – Managing Director at Future Purchasing, UK

Kanishka Ghosh – Director of Product Management at Zycus Inc.

The Brexit Effect Understanding Brexit and Its Impact On Procurement takes place on Tuesday, 21st November 2017. Register for free here.