How P2P will Become the Technology of the Future

Discover the value that a procure-to-pay (P2P) system can deliver to your business today and over the next five years.


The evolution of procure-to-pay (P2P) has accelerated dramatically over the past few years. And we can expect the pace to pick up further over the years to come. Originally, procure-to-pay / purchase-to-pay technology was seen as a way to connect procurement to finance via accounts payable, and as such it started life in the form of expensive and rather inflexible bolt-ons to on premise enterprise resource planning (ERP) systems. No wonder that for many years, P2P did not have the greatest of reputations, even among procurement professionals.

In the early 2000s, dedicated eProcurement systems emerged. Yet, many large enterprises still do all their purchasing and accounts payables through their ERP systems, even though this leaves much of the process highly dependent on paper in the handling of purchases orders, requisitions, goods receipts and invoicing. Or, in one word, routine. Many ERP implementations even lack a requisitioning facility and a means to communicate electronically with suppliers.

As to accounts payable, in many organisations that do not have a dedicated, built for purpose procure-to-pay solution, vendor invoices still arrive by mail or email and the data must be keyed manually into an ERP or other finance system. If the benefits of touchless invoicing were not already apparent, they have certainly become so in the wake of the Covid-19 pandemic.

The other major issue that continues to plague many organisations is our old friend, maverick spend (or off-contract buying), which is especially likely to occur when anyone looking to purchase items needed for everyday use is confronted with bureaucratic obstacles. Shopping online and submitting an expense report is much easier than submitting a requisition or purchase order that takes ages to process. Without a dedicated P2P system, maverick spend is difficult to monitor effectively. It results in lost money as employees buy at retail prices when you should be securing handsome bulk or wholesale discounts.

(Although worse than that, it forces happy-go-lucky procurement professionals into the role of jobsworths …)

And heaven knows, after years of online shopping with the likes of Amazon, corporate buyers expect the option to order online and enjoy an e-shopping experience comparable to the one they enjoy as private consumers. They expect an experience that is user-friendly, intuitive, and frictionless. Running low on stationery? Simply pick items from a catalog, review the shopping cart and place the order. And maybe pay with a V-card (single user account) number.

This can all be done via a procurement department’s P2P solution – against contracts negotiated with preferred suppliers. The P2P solution allows end-users to shop and track orders as easily as if they were shopping online, with the added benefit that all the information the procurement department needs is captured too, giving greater transparency. Plus, if the P2P solution is integrated with upstream processes such as contracts management and sourcing, the ability to monitor supplier performance against negotiated terms and non-price terms and conditions.

What you should look for in P2P now

A few years ago, people were still asking if procure-to-pay automation is worth it. I think that case has now been definitively answered. Especially if you wish to demonstrate the value of procurement – your value – to the business.

A P2P software suite integrates and automates the entire back-office lifecycle of requisitioning, purchasing, receiving, paying, and accounting for indirect goods and services. By creating standard workflows between buyers, procurement and accounting departments, a P2P solution should provide more transparency into, and control over, indirect spend and should create a more congenial relationship between all stakeholders. SaaS technology accessed in the cloud, such as the JAGGAER ONE suite, has made affordable, flexible and technically versatile solutions P2P available. A major advantage of SaaS is the ability to update functionality and innovate continuously without affecting the normal day-to-day operation of the core solution.

What you should look for in future 

Over the coming years P2P will increasingly leverage artificial intelligence, natural language processing and robotic procurement automation to deliver an even better buying experience on the one hand, while further cutting costs, increasing efficiency, reducing risk and improving governance and insight on the other. Generally speaking, you can expect P2P solutions to be more open, network-oriented, autonomous, collaborative and intelligent.

Here are seven trends that I think you can reasonably expect to reshape P2P not in some distant future but between now and 2025.

·   It will be a more collaborative environment for all stakeholders (internal and external) with full compliance, validations and approvals. P2P and MRP systems will collaborate through direct material order and fulfilment; P2P and corporate treasury will collaborate to support cash flow planning and optimize working capital

·   It will be more autonomous by taking charge of routine tasks such as all forms payment management and processing, improving the productivity of the payment process and the financial health of the supply chain

·   It will empower open business networks bringing together the entire community of buyers and suppliers, integrating and accessing external services and market intelligence feeds

·   It will be interactive with smart assistants assisting you through guided buying, vendor management and other chores

·   Enhanced intelligence will enable P2P systems to act proactively on behalf of users learning from and using all data sources and knowledge to make improvement recommendations to all stakeholder activities and the P2P process

·   It will deliver win-win finance programs to buyers and suppliers, for example dynamic discounting and supply chain finance programs

·   The focus of P2P will shift further from savings to value, reinforcing procurement’s profile as a strategic partner to the business

Conversational systems for guided buying and vendor management

Let’s stop calling them chatbots! Digital or smart help organizations will increase efficiency and achieve high levels of P2P user adoption because of their easy interfaces and clear answers. AI combined with natural language processing (NLP) has opened the door to new, more natural, and more intuitive interfaces that stimulate conversation with humans. There are many uses for digital assistants in procurement – too many to list here. However, the central issue is that procurement specialists are increasingly dealing with vast quantities of data, which means that a lot of their time is spent looking for information rather than using it. They will enable procurement specialists to converse with their AI-powered procurement software, which will do the heavy lifting involved in finding the relevant information and making intelligent suggestions as to what actions need to be taken in specific situations.

Through machine learning the digital assistant will be able learn about your preferences and your organisation’s policies and procedures. A good example is guided buying, whereby a person who needs to buy something will interact with procurement via a conversation conducted by a digital assistant. Based on the procurement strategy (preferred suppliers, preferred items, contracts in place, history of purchases, etc.), the digital assistant will propose solutions, perhaps looking through huge volumes of catalog entries to identify specific products or suggest alternatives.

Digital assistants can also be deployed for handling queries from suppliers, avoiding a lot of back-and-forth correspondences. I think they will become more engaging and human-like in their interactions with you. That, after all, was the original promise of artificial intelligence. But nobody’s perfect, so if the digital assistant cannot find the right answer, it can of course direct the user to a genuine flesh and blood procurement professional (you, for instance).

What innovations would you like to see, or expect to see, in procure-to-pay over the next five years? Let us know in the comments below! Keep up with the latest innovations at the 2020 Global Big Ideas Summit.

Why Contracts And Cashmere Are The Future, Says Commercial Relationship Expert

Look at your latest supplier contract. Does it specifically mention Zoom catch-ups? If not, why not? Sally Guyer from World Commerce & Contracting talks with Procurious about getting the most from suppliers and technology.

Have a look at your latest supplier contract. Does it specifically mention communication like regular Zoom catch-ups or phone calls? If not, you’re missing a trick.

Procurious Founder Tania Seary recently spoke with Sally Guyer, Global CEO of World Commerce & Contracting on getting the most out of supplier relationships and predictions about the future of procurement. 

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It’s been a wild year, but disruption isn’t unique to 2020. 

“I think it’s really interesting because there have been numerous supply chain upheavals inflicted by disaster in the last decade,” Sally says.

“You’ve got things like the volcanic eruption in Iceland, Japanese earthquake and tsunami, the Thailand floods, numerous hurricanes, not to mention the global financial crisis which also needs to sit on that list; yet we don’t seem to have learned very much,” Sally explains. 

“Most companies still found themselves totally unprepared for the COVID-19 pandemic.”

After this crisis is over, companies will fall into two categories: those that don’t do anything and hope that a disruption like this never happens again, and those that map their supply networks.

Supply networks

You should know how your suppliers (and your suppliers’ suppliers) fit together, which is why mapping out your network is so useful.

Companies who already made the effort to document their network acted quickly when the pandemic spread. Other companies were floundering and reactive. 

“We know from our research that many organisations typically don’t see beyond the first tier of suppliers, or possibly tier two,” Sally says.

“If we ever doubted the importance of visibility, the pandemic has provided a dramatic example of why it’s absolutely essential to have insight into sources of supply.”

Sally is seeing leading organisations require suppliers to participate in supply chain mapping efforts as part of their contract.

And it serves an important part of rebuilding.

“[We’re] moving away from the linear and much more to a recognition that supply networks’ supply ecosystems are a huge number of organisations all interacting with one another where there needs to be fluidity amongst them all. 

“And that’s essential to accelerate and support recovery.”

Sustainable cashmere

Companies are also investing more heavily in technology to help them gain end-to-end visibility.

Blockchain technology is particularly noteworthy.

Sally gives the example of tracing Mongolian cashmere production. The country is famous for its luxurious fibres – producing nearly a fifth of the world’s raw cashmere

And even though cashmere is considered natural and sustainable, soaring consumer demand is fueling overgrazing and damaging the land. 

So Toronto-based Convergence.tech and the UN teamed up to create an app for Mongolian farmers, backed by blockchain technology. 

Now the UN is able to interact with over 70 different herders and eight cooperatives through a simple app.

Farmers use the Android app to register and tag their cashmere. Then their location is pinned on a map to allow for end-to-end tracking. The UN works with the farmers and other producers along the supply chain to improve sustainability.

“Farmers are willing to have their goods marked in return for training on better practises, and then open markets pay fair prices for truly sustainable and high-quality cashmere,” Sally explains.

“Everybody benefits. Everybody wins.”

Better contracts, better relationships

Another way technology is transforming the supplier/client relationship is through communication.

Sally advises all clients to include communication obligations in supplier contracts.  

“It comes down to simple things like if we want to do video conferencing does your organisation support Zoom or not, because if I do and you don’t then [that’s an issue],” Sally says.

It’s not rocket science. All good relationships hinge on good communication, says Sally.

“Fundamentally, partnerships are founded on robust and clear communication, and you know I always talk about professional relationships in the same context as I talk about personal relationships,” Sally says.

“If you don’t have clear communication with your friends, with your partner, with whomever is around you, then you are not going to have a very successful relationship.”

While you can’t provide for every eventuality in your contracts, you need a robust framework to support the relationship which means communication needs to be at the top of the agenda.

Predicting the future

The year is 2030. What are the hot topics in procurement? Here are Sally’s predictions:

1) Sustainability

“We’re still a long way from creating our sustainable planet and it has to be something that we all continue to champion,” Sally says.

“We need to be promoting best practises to reach the next level where we’re actually starting to give back. Not just to seek neutrality but actually give back.”

2) Social inclusion

“I can’t imagine that social inclusion wouldn’t be important in 2030,” Sally says. “Perhaps a scorecard of corporate performance on social inclusion and social value.”

3) Technology

“Numbers suggest we’re only using 30% of the data that we are producing,” Sally says. 

“And if organisations are genuinely on a journey of continuous improvement then they need to be using data and the likes of artificial intelligence natural language processing if they’re going to continue to advance.”

4) Integration

“We need to organise for integration,” Sally adds. “We need to break down the internal barriers that exist.

“We all operate in silos. We’ve got organisations who have a buy side and sell side and they have no idea what’s going on on either side of the organisation. So those companies are starting to look at how they create an integrated trading relationships function.”

Sally Guyer can be seen in our exclusive series The Future of Supply Chain Now.

Defining Procurement 100%

Organic, original, challenging and aspirational – is this what procurement means to you?  Maybe it should.

In a recent conversation with a business partner where we discussed all-things procurement, a new notion came to mind. The more we talked about it, the more it resonated and the more tangible it became. The concept, as simple as it sounds, embodies a holistic vision of what procurement professionals must strive for.  We called it “Procurement 100%”.

“Procurement 100%”, is not the same as “100% procurement”.  It’s a concept that recognises everything an organisation does is not purely focused on procurement, but that procurement must operate at 100% to enable the organisation to achieve its goals. 

Procurement  is 100% Organic

Procurement 100% implies that procurement is alive and complex, and that significant effort is required to achieve it. All the moving pieces of an organisation will influence procurement and we must be forever diligent to maintain performance.

Procurement 100% is a moving target, is a relative concept that needs to be assessed and gauged within its ecosystem, as it is no stranger to everything else within a company. It is a set of goals that defines and redefines itself constantly as risks become real and resilience is challenged everyday.

Procurement 100% is both the exemplification of sustainability, and its susceptibility to external variables. 

Procurement is 100% Original

The most appealing thing about this concept is that the definition of Procurement 100% will be unique and different for every organisation.  Each company must think about what 100% means to the broader vision of the organisation and devise a path and a plan against it to achieve it. 

Only one rule applies. Procurement 100% is about achieving full operational transparency, enabling process compliance and capturing value at all times, no compromise. 

A procurement function that operates at 100% would be world class  – a function that balances process, people and technology in just the right way to enable the most ambitious goals of an organisation without wasting energy. It’s about making the right way to buy the easiest way of buying.

No procurement function is the same, or requires the same energy and resources to reach its full potential. Not every organisation will need the same set of tools, people and expertise in house in order to perform at a high level.

Procurement is 100% Challenging

Procurement 100% is an exclusive club, because it demands mastery of the competing forces of strategic vision and operational functionality. Many companies have great vision, but lack the on-the-ground resources to execute their plan. Others have strong apparatus, tools and operatives, but fail because there is no strategic direction. Everything gets tactical, too granular, and they are unable to change mindsets.

To me, the greatest ideas come from defining, embracing and deploying out-of-the-box approaches that make us a little nervous, where failing is done quickly and learnings are applied before the fear of losing again, anchors us more to our comfort zone where all is safe, where procurement is still tactical at best.

Procurement is 100% Aspirational

Procurement 100% gives everyone  a goal, a vision and mission to attain.  It speaks about something that must, and can be, measured. Anything under 100% means there’s work to do, everything at a 100% means it needs to be monitored.

I cannot define what Procurement 100% looks like for your organisation, but I can tell you that I don’t know a single entity who has Procurement 100%.   It’s not that they don’t strive for excellence and having a high performance procurement function.  Those who acknowledge the value of 100% Procurement are the same visionaries who keep raising the bar just before its reached.

What I can tell you is that in the holy trinity of procurement – people, process, and technology – each make up for exactly 33% of your winning formula. Achieving the right balance is the secret ingredient for you to figure out to unlock the full potential of your procurement function. 

Join us for the Global Big Ideas Summit next month to share what that 1% looks like for others.

“I Want To Break Free” – Is This Procurement & Supply Chain’s 2020 Theme Song/Anthem?

We asked our LinkedIn community for their top pandemic anthems, and the result was an awesome playlist!


Owing to the myriad Supply Chain disruptions this year, many of us suddenly found that the world was no longer our oyster – or if it was, it clamped shut and trapped us inside. On top of Supply Chain chaos, we had to deal with our own incarceration.

Were you Happy like Pharrel or, despite all your rage, still just a Rat in a Cage like Smashing Pumpkins? Did you Always Look On the Bright Side of Life a la Monty Python, or did you swing from Sia’s Chandelier?

Perhaps it wasn’t The End of the World as We Know It but Lord knows you wanted to break free.

Music can either placate your mood or provoke it; it can augment your voice or do all the talking for you. In whichever case, certain songs will already be part of your daily COVID-19 landscape.

We asked our LinkedIn community for their Supply Chain anthems – and here’s the top 10:

Highway to Hell – AC/DC

– Peter Rand, Mastercard

No stop signs, speed limit
Nobody’s gonna slow me down
Like a wheel, gonna spin it
Nobody’s gonna mess me around

When confronted with a crisis, do you let your hair down, throw your glass in the fireplace and yell “game on!”? You crank this rockin’ classic and take on the world!

Then you realise (as some of us did) these are problems we’ve never faced from a catastrophe we never imagined:

Help! – The Beatles

– Peter Rand, Mastercard

97% percent of organisations we surveyed reported a supply chain disruption – and few of us had ever seen anything like it. So if you found yourself thinking:

Help! I need somebody!
Help! Not just anybody!
Help! I need someone!
Help!

… You weren’t the only one!

One – U2

– Gale Daikoku, SAP

It wasn’t one single person or organisation who saved the world: the COVID-19 Pandemic was a textbook case of Procurement and Supply Chains working together:

We’re one, but we’re not the same
We get to carry each other, carry each other

But with the huge pressures of work and the stifling restrictions on freedom, you could be forgiven for not basking in solidarity.

So Sick – Ne-Yo

– Tim Elliott, McLaren Automotive

https://www.youtube.com/watch?v=eG2U2sjshTM

(It’s ridiculous) It’s been months, and for some reason I just
(Can’t get over us) And I’m stronger than this
(Enough is enough) No more walkin ’round with my head down
I’m so over bein’ blue

While working from home may be an introvert’s dream come true, for the rest of us the novelty is wearing thin. We all know this feeling of being locked up – especially Melburnians! Speaking of …

Locked Up – Akon

Warning: contains strong language

– Tim Elliott, McLaren Automotive

I’m locked up, they won’t let me out
No, they won’t let me out

There may not be grey walls and orange clothes, but isolation can still give off those incarceration vibes. Of course we can do most things from home, but … 

I Want To Break Free – Queen

– Rhylee Nowell, The Faculty

While our Supply Chains may be more resilient than ever, we can only take so much:

But life still goes on
I can’t get used to living without, living without
Living without you by my side
I don’t want to live alone, hey
God knows, got to make it on my own 

Or do you?

Bridge Over Troubled Water – Simon and Garfunkel

– Tania Seary, Founder, Procurious; Stephanie Shrader, Pridesports

when times get rough
And friends just can’t be found
Like a bridge over troubled water
I will lay me down

Just as one Supply Chain helped another, all sorts of people put their hands up to help.

With A Little Help From My Friends – The Beatles

– Imelda Walsh, Manager, The Source

https://youtu.be/0C58ttB2-Qg

What do I do when my love is away?
Does it worry you to be alone?
How do I feel by the end of the day?
Are you sad because you’re on your own?
No, I get by with a little help from my friends

When your personal network is as strong as your business network, its support takes on inertia of its own.

Don’t Worry Be Happy – Bobby McFerrin

– Greg Parkinson, Director, Turner & Towsend

The right frame of mind is the key to success: a little mindfulness, coupled with an Attitude of Gratitude a la Nicky Abdinor, goes a long way.

Thus set up for success, soon we’ll be poised to take on the world again:

I Want To Be A Billionaire – Bruno Mars

– Matthew Hadgraft, The Faculty

(Clean Version)

Oh every time I close my eyes
I see my name in shining lights
A different city every night oh right
I swear the world better prepare
For when I’m a billionaire

Keep your dreams, goals, ambitions and plans intact because all this will change. Every Procurement and Supply Chain executive knows the importance of a Business Continuity Plan – make sure your own plans are articulated, because who knows what opportunities the future will bring?

Do you have any suggestions for additional songs? Comment below.

Fresh Supply Chain Talent Will Use Tech To Collaborate, Says Kearney Partner

Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? Procurious talks to Kearney partner Kate Hart about the burning issues in supply chain – from attracting new talent to co-creating with suppliers.


Supply chain is firmly on the executive agenda (at last!). But how can we keep our seat at the table? 

Procurious Founder Tania Seary recently sat down with Kate Hart, Partner at consulting firm Kearney, to talk about the state of supply chain and what’s coming.

Change, pivot, attract

Supply chain management is increasingly about dealing with disruption, says Kate.

“Recent events have highlighted how susceptible our global supply chains are to disruption, from the pandemic to ransomware attacks to global trade wars,” Kate explains.

So how do we cope? It all comes down to two critical capabilities.

The first is the ability to sense the changing environment and pivot. And the second is the ability to attract and retain core talent. 

That need hasn’t changed for a decade, says Kate. So why is it worth mentioning now? 

“What it means today is very different to what it meant 10 years ago in regards to the importance of being able to sense a change environment and pivot,” Kate says.

That’s because the demands on supply chain professionals have changed dramatically – and certain industries adapt quicker than others.

“Some global geographies are a lot more mature than others so far as their uptake of e-commerce and some geographies have really been lagging,” Kate says. 

Why technology means survival

If retailers were hesitant to adopt new technology, they have an extra incentive now. It’s their key to survival.  

“Amazon has been a trigger for some of those geographies to uptake, but obviously the pandemic has just increased the proliferation of retailers offering e-commerce platforms,” says Kate.

Companies are also becoming more innovative in the way they handle the actual distribution of their supply chains, particularly in the business-to-consumer route.  

“We’ve seen a proliferation of sort of rideshare ‘uberisation’ of that last mile,” Kate says.

“What we’re seeing is those companies that invested in the technology and got ahead of the game really have thrived during this. Now it’s going to be a matter of, you know, catch up or who survives, so it’s going to be quite interesting.”

Understanding the risk

So what are smart companies doing now to avoid future disruption? Supply chain network mapping.

Kate has seen a huge influx of companies not just looking at supplier risk, but looking at suppliers’ suppliers risk and building that information through their supply chains.

Interestingly, this is largely driven by senior executive interest. Never before has supply chain resilience enjoyed such a prominent position on the c-suite agenda.

“It’s beyond just enterprise risk. There is reputational risk, there is financial risk, there are lots of different risks that are inherent in the supply chain and that is very much front and centre in many of our board conversations at the moment,” Kate says.

“The key question that we’re getting asked by boards is how they get visibility in their end-to-end supply chain risk and how they manage that resilience.”

Making it automatic

Companies are also investing more heavily in automation to improve resilience.

‘It’s been quite extraordinary. Some global areas, particularly in the US and in the UK, are seeing a lot of advantage from automation,” Kate says.

“But the investment in automation needs to be deliberate, with a very sound business case, otherwise organisations are investing but not necessarily seeing returns in some areas.”

Technology, like automation, is providing supply chain teams with new levels of influence, Kate says. 

“We’re seeing supply chain organisations use digital tools to create a triage process with a front door to supply chain – a self-service functionality,” Kate explains.

“[It] enables their internal talent team to then work with their business stakeholders to drive extraordinary value.

“So, supply chain is really being impacted positively by digitisation and automation. It’s all part of a focus on resilience which elevates the conversations and, in turn, the value that supply chain can deliver.”

Working as partners

That’s why Kate says the future will be all about human decisions facilitated by technology.

“What does that mean for partnerships across your supply chain?” Kate asks. “It means that the problems that need to be solved are increasingly complex. It requires a very strategic view of your supplier base.”

The strategic view increasingly means changing the relationship to a close partnership.

“In some of the scenarios that we’re working on at the moment, the clients don’t know what the solution is and actually need to engage the suppliers to co-create solutions for problems that are new to both of them,” Kate says. 

That means seeing suppliers as extensions of your own organisation, which is positive.

But as Kate points out, companies still need to maintain “control and visibility so you are not anchored to them in perpetuity. So getting that balance of control versus collaboration right is going to be really, really important.”

The right people

As Kate puts it, the bright future of procurement isn’t possible without the right people.

“All of that is very contingent on the ability to attract, retain, and grow talent – the conundrum of supply chain management for aeons,” Kate says.

“But never is it more important than now. For supply chain management to have a seat at the table it needs to be attracting the core talent that we’re seeing coming out of the universities.

“There needs to be a very strong talent pool that’s feeding into the industry.”

Kate Hart – Partner at consulting firm Kearney, overseeing the supply chain practise within Asia Pacific – can be heard in the webcast series The Future Of Supply Chain Now.

Supply chains are changing. Here are 5 things we know now.

How To Create A Procurement Service Desk

How can you centralise disparate tools and requests to receive, triage and manage work across the source-to-pay process without replacing your applications? It’s not as impossible as it sounds.


Are your stakeholders frustrated with finding their way through the procurement maze? As a procurement practitioner are you overwhelmed with navigating your way through a variety of disparate tools and requests, such as procurement, accounting and reporting, to get your work done?

Many organisations are increasingly improving the efficiency of the procurement process by implementing a “Procurement Service Desk,” which is a single, centralised user portal for stakeholder requests, routing, communication and PR/PO status reporting.

One-stop shop for “all things procurement”

By using one portal instead of multiple systems, the Procurement Service Desk provides seamless engagement for procurement and its stakeholders, which helps procurement organisations receive, triage and manage work across the source-to-pay (S2P) process. The single portal improves the overall user experience and outcomes with procurement for stakeholders, including requestors, legal, finance and operations.

With a Procurement Service Desk, stakeholders no longer have to spend days trying to figure out where to go, who to call, and what information is required to engage procurement. The platform provides procurement stakeholders with a simple user experience to submit procurement requests. A dashboard provides full visibility to requests and statuses throughout the end-to-end procurement process. Stakeholders and procurement now collaborate directly in the centralised portal instead of through numerous emails, files and phone calls.

Procurement organisations typically realise these value-based outcomes after implementing a Procurement Service Desk:

  • Automated triage of work to appropriate practitioners through intelligent routing
  • Improved user experience for clients, supplier and S2P practitioners
  • Workflow data captured in a structured manner for utilisation to improve processes, deliver efficiencies and provide an improved experience
  • Enablement of metrics that matter
  • Intuitive, easy-to-use platform
  • E2E flow supported by a single platform

Shortening the process through intelligent triage

Through the Procurement Service Desk, stakeholders submit requests covering the full S2P process, including sourcing, contracts, supplier onboarding, purchase orders and invoices. By using standardised processes and forms, the Procurement Service Desk ensures compliance and gathers required data from stakeholders.

Requests are based on standardised processes and forms, ensuring compliance and that required data is received upfront from the stakeholders. Because procurement professionals don’t have to chase down additional information from stakeholders, the Procurement Service Desk enables a more efficient process and quick turnaround times.

When a request is submitted through the Procurement Service Desk, the platform triages the request through intelligent routing rules to the appropriate procurement practitioner for no-touch handling.

Triage rules based on commodity, request value, country and supplier match the request with the most appropriate procurement practitioner. This automated triage ensures work gets to the right team quicker and more accurately, improving stakeholder customer satisfaction.

The Procurement Service Desk provides procurement with full visibility to the types of requests coming into the organisation through an executive dashboard, helping managers measure and address workload balance and required skills. The platform also provides improved data-driven insights based on the volume and types of requests received from stakeholders.

Integrating processes and systems

Because the Procurement Service Desk sits on top of an integration layer, the intake request process connects with the back-end disparate tools and micro services. Procurement manages their full workload in a single platform regardless of the back-end transactional systems. By sharing data from the intake process bi-directionally with the back-end transactional applications, the Procurement Service Desk eliminates data re-entry, improving process efficiencies and analytics.

The Procurement Service Desk also easily connects to other services, such as Marketplace and Analytics, making them easily accessible. Previously disparate tools and services, they now easily scale and function as a fully integrated platform.

After making the decision to move to a services desk, procurement organisations should begin looking for a system platform to manage the Procurement Service Desk and integrate their key systems. By working with a company with specific procurement experience, organisations reduce business disruptions and speed up implementation.

Learn how IBM Procurement Services can help to reduce business costs and meet the challenges of complex global enterprises through effective data-driven source-to-pay operations by visiting www.ibm.com/services/procurement

Quick Read – 4 Steps To Get Post-COVID Ready

How can organisations preserve integrity of their supply chains, protect their workforce and prepare to ramp up operations in the post-COVID world? Here are four quick steps.


At some point soon, the worst of the COVID impact will have passed. And so, organisations need to work now to preserve the integrity of their supply chains, protect their workforce, and prepare to ramp up operations in the post-COVID world.

With lockdown restrictions easing across the globe, returning to a regular work schedule is imminent. Some of the basic near-term measures include:

  • Scanning body temperature at work site entrances
  • Reorganising the workplace to minimize common touchpoints.
  • Implementing effective disinfectant processes
  • Training employees on workplace hygiene practices
  • Developing contingency to respond to suspected infections

These can be achieved through a four-step process:

1. Plan a Phased Reintroduction to Worksites

A large number of workers returning to a shared worksite pose a significant risk of the virus spreading in the workplace. The higher the number of workers the higher the risk of contagion. Remember that managing the number of workers entering a worksite will be critical in ensuring overall workplace health in a post-COVID world.

2. Revisit the Workplace Setup

Granting worksite access to employees doesn’t essentially mean removing all the restrictions imposed during the COVID-19 outbreak. You will still need to closely follow all the government regulations pertaining to employee gatherings, social distancing and workplace hygiene best practices. And, it’s likely that the pre-COVID working environment will be unsuitable for these new restrictions to be implemented.

3. Transport Inventory and Operations to Non-Affected Areas

Many regions at the heart of several global supply chains have been severely affected by the COVID-19 pandemic. Sudden supply shortages from these regions or over-dependence on a single supplier for inventory in these regions may lead to operational delays.

Shifting inventory and production lines elsewhere or opting for local sourcing alternatives can help lower your risk exposure. Additionally, you can also start sourcing pre-approved inventory or raw-material substitutions from regions where a primary supplier has been impacted but a Tier 2 supplier is still operational.

4. Mobilise Support Structures for the Extended Enterprise

Proper technology can help you quantify the pandemic’s relative impact on contractors’ supply chains. Leverage advanced cloud-based workforce management platforms to collaborate with workers working on remote locations. Keep communication as consistent and frequent as possible to remediate pitfalls.

The Long-Term Landscape: How to Evolve Your Business

Short-term measures will provide businesses and supply chains with the much-needed foundation for proactive resilience. However, enterprises are steadily coming to terms with the fact that the COVID-19 pandemic has clearly and irreversibly transformed the future of supply chains. In order to ensure long-term pandemic-proofing of global supply chains, organisations need to take several measures.

These measures are outlined in Avetta’s recent whitepaper, What Happens After COVID-19? Download for free today.

9 Ideas To Reduce Costs Using Supplier Relationship Management

At a time when costs need reduction but healthy Supplier Relationships are paramount, here are 9 ways to reduce costs using Supplier Relationship Management.


There isn’t a procurement pro on the planet right now who isn’t looking at ways to reduce costs.  But this comes at the end of a year where we’ve all been sorely reminded that strong supplier relationships are paramount … especially during a crisis.

Common practice is to look at procurement categories with large amounts of spend and start searching for ways to reduce that spend. One of the more routine approaches is to run an RFP, inviting incumbent suppliers along with potential new partners to help drive competition for your business, with the end-goal to ultimately reduce cost.

But what if your cost base has already bottomed out? What if you are buying a good or service that is difficult to come by, thereby putting the power in the suppliers’ hands? How are you able to reduce your spend in a category where all the signs are pointing to a cost increase?

In order to answer these questions, we must start at the beginning by looking at Supplier Relationship Management.

What is Supplier Relationship Management (SRM)?

Supplier relationship management is the discipline of strategically planning for, and managing, all interactions with third party organisations that supply goods and/or services to an organisation in order to maximize the value of those interactions. In practice, SRM entails creating closer, more collaborative relationships with key suppliers to uncover and realise new value and reduce the risk of failure.

Getting back to the initial goal of cost savings, the question becomes ‘when cost savings is a critical driver in supplier selection, how do you balance the collaborative relationship with low cost?’

The key is internal alignment between procurement and the business units. Supply Chain leaders must be able to explain why vendors who may not be the low-cost option for reasons like customer service, on-time deliveries, payment terms, reporting, etc. are actually the best overall value option for the business.

Category leaders must be able to explain how new suppliers versus incumbent suppliers will impact the company. There are too many cases where the grass appears to be greener on the other side. Sometimes, by selecting a low cost, new supplier, operational differences get lost in the shuffle and the transition becomes a disaster.

Why is Supplier Management Important?

In plain simple terms, it creates a competitive advantage. Whether you are the procurement or the supply chain leader for your organization, having a strong supplier management system will maximise cost-reduction opportunities, value driven services and overall systematic efficiencies, which otherwise would not be achieved. 

Supplier Relationships

As stated previously, a critical component to any company’s success is their ability to maintain strong working relationships with their suppliers and vendors. Supplier relationship managers should always look to avoid complacency. You should never be satisfied with the idea of “if it’s not broke, don’t fix it” and be always be looking for opportunities to improve the relationship, streamline processes or procedures, or change costing models. Relationship Managers should always be looking to challenge the status quo.

Another key to strong supplier relationships is to open the lines of communication and not be afraid to ask the question, “what we can be doing better?” Here are some quick ideas how you, as a customer to your key suppliers, can help enhance your relationship and make those suppliers want to compete for your business.

·   Trust and Loyalty (treat them as more than just vendors)

·   Improve technology and automation

·   Adhere to payment terms

·   Develop communication plans

·   Differentiate between price versus value

·   Have a dedicated Supplier Relationship Manager (SRM)

·   Internal alignment between Procurement and Supply Chain Category leaders

Putting Supplier Relationship Management to Practice

Now let’s look at a specific category – supply chain and logistics – and see how we can apply some of this thinking.

How to Become a ‘Shipper of Choice’ within your Supply Chain and Logistics Network

Logistics spend often plays a role in a company’s effort to reduce costs. Logistics spend can be a substantial percentage of accounts payable, at both the direct and indirect categories. When looking to reduce spend in shipping, taking the low-cost approach can potentially cause more headaches than the savings are worth.

What are some key goals of the shipper?

·   Avoid Disruption

·   On-Time Delivery

·   Low Cost

·   Damage Free

What are some key goals of a carrier?

·   Finding the right shipper

A carrier has a valuable commodity and finding the best shipper to partner with to utilize that commodity is very important for maintaining a good operating ratio. There is a finite amount of space within the global logistics network. What would make a carrier want to move your products versus someone else? Prior to any cost negotiations, a shipper should be looking for ways to make their freight something a carrier wants in their network. They will fight for your business because they value you as a partner, and vice versa.

What can a shipper do to ensure carriers will want their freight?

·   Effectively label freight

·   Safely and adequately package freight

·   Provide accurate descriptions of the freight

·   Use standardized dimensions when possible

·   Use quality pallets

·   Provide ample lead-time when possible

·   Be flexible on your end while remaining consistent in your process

·   Provide a clean, safe and overall attractive driver facility

Achieve Supply Chain Savings: Cost Reduction Negotiations

Once the proper groundwork has been laid and a solid foundation is in place, the relationship developed between a procurement and supply chain organization and its suppliers is now, finally, ready to discuss cost optimisation. By going through the Supplier Relationship Management process, you are now well equipped to conduct cost negotiations. Here’s 9 talking points to reduce costs and build the relationship with your suppliers:

·   Contract length

·   Reduced future cost increases with caps

·   Better discounts or incentive tiers

·   Rebates

·   Volume Thresholds

·   Delivery Costs

·   Payment Terms

·   Ancillary Charges

·   Everything Else (Better reporting, more transparency, communication plan)

One of the keys to entering these negotiations is to come to the table prepared to discuss these types of cost savings opportunities. If your main goal is to just hammer down the unit price, then there is a good chance your supplier will not be overly receptive to that approach. Listen, collaborate, compromise and develop a partnership that will ultimately be a win-win for all those involved.

In conclusion

Top suppliers are always looking to do business with companies who value the partnership and are willing to make improvements in order to make the relationship smooth and efficient.

This type of partnership will lead to your suppliers offering the best possible discounts and pricing and give you the peace of mind that you are getting the most out of your supplier.

Supplier Relationship Management is key to developing a long-term PARTNERSHIP with your key vendors!

What key insights and strategies have you taken from 2020? Share your experiences and hear from the most innovative thinkers on the planet at the Global Big Ideas Summit on November 18.

How to Be Super Normal: 5 Must-Have Traits to Get Ahead in 2021

What does it take to be Super Normal? Here are the 5 must-have traits to get ahead in 2021 without driving yourself crazy.


There’s no turning back. There’s only the here and now. And whatever you call it – the new normal, now normal, the end of the world, or as we’re labeling it, the Super Normal – it no longer matters. What matters is how you adapt, move forward and make a difference.

There’s a lot of difference-making that still needs to happen. Procurement and supply chain must lead the way, just as we’ve done in the past. According to McKinsey, “in the five years immediately following the 2008 financial crisis, total return to shareholders for companies with top-quartile procurement capabilities was 42% higher than for companies whose procurement operations were in the bottom quartile.”

That’s a significant impact. Clearly, we have what it takes to succeed. But this is not the same environment as the global financial crisis. The game has fundamentally changed and we need a new playbook to win, manage stress and get ahead.

The Super Normal: Start by Owning Your Vulnerability  

Resilience is core to the Super Normal. We’ve been talking about it since March, which begs a deep discussion: What actually makes us resilient?

It has nothing to do with our age, gender, ethnicity or nationality. Instead, according to a Harvard Business Review study, there are two driving factors. The first is exposure. The more exposed you are to the suffering or event, the higher your resilience levels are. As HBR puts it, “this strongly suggests that we discover our resilience only when we are forced to meet unavoidable suffering full in the face. It’s when we face that reality, and see ourselves and how we respond to it, that we find the basis for resilience.”

The second factor is the extent of the threat. The more tangible, the more resilient we become.

An HBR survey asked how many people had experienced workforce changes as a result of COVID-19. There were 11 possible changes to select, such as sheltering in place, layoffs and furloughs, and changing use of technology. Ninety-six percent of respondents globally said they’d experienced at least one issue. This is similar to our business study, which found that 97% of organisations experienced a supply chain disruption related to COVID-19.

This isn’t surprising – so why does it matter? Because as leaders, we need to own our vulnerabilities. Our Super Normal requires us to be open, transparent and direct. You can’t force a return to normal just to calm anxiety and stress. We have all suffered to some extent and glossing over the potential implications – whether it be layoffs, longer work hours, hard conversations with suppliers and customers, a demand for new skills, or changes at home – is counter-intuitive.

Instead, own the vulnerability, be clear about your team’s exposure and communicate what needs to change. When people understand what’s at stake, they are remarkably resilient.

The Super Normal Playbook: Heart, Brain and Vision

Resilience amidst chaos requires evolution. We need to change and adapt, even if we don’t know what the future holds. While there’s no easy button or universal blueprint, we’ve learned a lot in 2020 about how to be Super Normal.  

1.       Super Normal Professionals Think the Unthinkable

If we’ve learned anything in 2020, it’s that anything can happen. Pandemic, trade wars, recessions, natural disasters… the list goes on.

Being Super Normal requires us to come to terms with an inherent truth: Uncertainty is certain.

We need to engrain this mindset into our team, decisions and actions. Once we see that the big picture is cloudy and unpredictable, we can better prepare ourselves for success, and quickly overcome the shock factor when everything abruptly changes. Being ready for sudden change – and having a plan of action – puts you ahead of nearly everyone. 

2.       Super Normal Professional See Limitless Opportunity

Don’t let the state of our world get you down. Instead, get up, make a plan and get going. Be positive.

Changemakers see opportunity in crisis. They understand that the dynamics have completely changed, and there are limitless opportunities to improve your reputation, get noticed, move up and make an impact.

We know that procurement and supply chain operations are intrinsically linked to organisational survival and success. Whether you are at the beginning of your career or leading operations for a Fortune 100, there’s a greenfield opportunity in front of you. Thriving in the Super Normal requires you to see it and take advantage.

3.       Super Normal Professionals Invest in Themselves

Warren Buffet put it best. “By far the best investment you can make is in yourself.” 

This advice isn’t relatively new or unique, but it’s a game-changer for those that take advantage. What skills do you need to thrive in our Super Normal? What about the Next Normal? How will your day-to-day job change in the next 5 years?

Our recent survey found that the majority of organisations (93%) are investing big to propel procurement forward. The top three investments they are making in procurement are in data and analytics, talent development and technology.

Soft skills matter as well. According to LinkedIn, the top five most in-demand skills in 2020 are “creativity, collaboration, persuasion, adaptability, and emotional intelligence—all skills that demonstrate how we work with others and bring new ideas to the table.” 

If your organisation isn’t providing the necessary training or experience you need, make the time to get it yourself. The pandemic has accelerated the global tech transformation and heightened the need for modern skills, expertise and experiences, like analytics, digitisation, emerging technology, emotional intelligence and leadership. Super Normal leaders see where the world is going and stay ahead of the transformation by investing in themselves and their teams. 

4.       Supper Normal Leaders See the Big Picture and Know How to Focus

Where is your organisation going and what does it need right now? Super Normal leaders are always in the know, and when they aren’t, they are confident and proactive enough to request an immediate alignment meeting with leadership.

We only have so much time and resources and need to spend them where it counts. Today, for most procurement and supply chain teams, that means cost savings, supply chain risk and business continuity. But your actual goals and priorities may be different and could change suddenly. Going above and beyond your day-to-day supply chain and procurement operations to stay fresh on the strategic priorities of your organisation is paramount to success. Similarly, bringing modern and fresh thinking to the table that breaks through traditional results and delivers compounding value on key projects, like cost containment and savings, will make C-suite stop and take notice. 

5.       Super Normal Leaders Have a Heart

They put people first – and recognise that success starts with teamwork and human connection. They recognise that vulnerability – financial, mental, physical and social – is very real, and that people need time, space and support during difficult times. They know that talent wins 100% of the time.

While putting people first may sound simple, that’s not always the case, especially amidst the chaotic nature of our world today. Super Normal leaders are intentional about it every single day, with their decisions, actions, engagements and relationships. People are core to what they do – and why they succeed. 

You Have What It Takes: Embrace the Super Normal 

Life is chaotic and stressful. And you have everything you need to be successful now and in the future. Everyone’s Super Normal will look a little different – but if we continue to learn from each other, share our successes and look ahead, we’ll all be more than alright.

And finally, wherever this Super Normal takes us, always remember to make time for yourself and your family. Find something you love and embrace it. We are all tired, stressed and anxious. Happiness helps solve all three. If you are looking for more inspiration, check out what your peers say it means to be Super Normal.

It’s Time To Collaborate Not Compete, Says YouTube’s Top Supply Chain Influencer

Supply chains are under intense scrutiny right now. That increases pressure on supply chain leaders, but also creates new opportunities to do things better for everyone: companies, customers, and the planet. Top influencer Rob O’Byrne gives his take on where we’re at and what’s coming next.


Procurious founder Tania Seary recently talked with Rob O’Byrne, CEO of Logistics Bureau, and a top 10 supply chain social media influencer.

Here’s his take on where we are, how we got here, and what’s next.  

“Now, everyone knows how toilet tissue gets from factory to store.”

Not long ago, many of us struggled to explain supply chain management to our friends and family.

Now? The pandemic hit and suddenly everyone’s a supply chain expert, says Rob.

“Now, everyone knows how toilet tissue gets from the factory to the store, and it’s really put supply chain in the spotlight,” Rob says.

With that extra awareness comes an expectation that supply chains should work more efficiently — and that will change the way we all operate.

“We lost touch with local markets.”

Before we can make impactful changes, we need to understand how we got here.

Rob says the two biggest trends that shaped the pre-Covid era are centralisation and rationalisation.

Increasingly, large global players were centralising their supply chains through regional or global hubs.

Why? To improve management, visibility, and consistency — all of which are important for optimizing supply chain operations. But centralisation comes at a cost.

“The challenge is [these companies] are a lot more remote from their markets and sometimes you actually need to have a finger on the pulse,” Rob says.

“[You have] headquarters in one part of the world trying to dictate what happens in a supply chain in another part of the world. Sometimes they lose touch a little bit.”

Rationalisation led to similar challenges.

For all of the cost savings and visibility benefits, rationalising led to less contact with markets.

“[Companies] are tending to rely a lot more now on AI-based communication systems to talk with customers,” Rob explains.

Great for the bottom line, but frustrating for customers who often want to speak to an actual human instead of a bot.

“We can be in danger of alienating our market.”

“Companies still don’t understand the ‘cost to serve’ in their supply chain”

One of the greatest challenges right now in supply chain management is managing costs, says Rob.

And it’s more than “total cost of ownership.” It’s about knowing the end-to-end costs.

“So many companies still don’t understand the cost to serve across all the different channels in their supply chain. And that’s become even more critical during the pandemic because our distribution channels have changed,” Rob says.

“In the current climate, it’s really challenging because there’s so much expediting going on. We’re having to use different transport modes than perhaps we would normally.” 

Visibility is also a struggle.

“That really came to the fore during the pandemic because everything was moving so much more rapidly,” says Rob.

“Supply and demand peaks and troughs have been so much more severe. The visibility of that real demand was so important, so there’s a much greater need for improved demand planning and inventory management.”

“Forecasts are always wrong”

To illustrate that need, Rob points to the huge demand for one specific medication during the pandemic. 

Patients who used the drug to treat symptoms of a specific disease,  were stocking up, while other people were buying it because they thought it might fight the virus. Hospitals also stocked up because people who needed the drugs would need more if they caught the virus. Demand skyrocketed.  

“So I think that’s part of the challenge in terms of inventory visibility,” Rob points out. “It’s separating the true demand from the noise…that’s where we’re going to see much more sophisticated inventory management tools coming in the future.”

Although some companies still use spreadsheets for forecasting, “on the other end of the scale, there’s some really, really advanced tools being used and all of that is giving us much greater visibility of our supply chains.

“We can use the weather to predict food sales.”

One example is creating demand forecasts based on weather, not previous sales.

Companies can actually predict food requirements at a shopping mall food court by analysing parking spaces and the weather.

They harness data on parking space occupancy, (from those red and green lights) combine it with the weather forecast, and predict how many people will turn up at the shopping centre.

“That’s real forecasting,” says Rob. “It’s not looking at what we sold last month or the month before.”

“Less lean and more fat.”

Along with smarter forecasting, what does the future hold?

Rob says a rapid retreat from lean management might be on the cards for many businesses.

“Lean was all the fashion for the last 10 years or so,” Rob recalls. “And at the time it was probably the right thing to do for the right businesses and the right products.”

But that’s all changed now.

“I just wonder for a lot of supply chains whether it was a step too far when we’ve seen the fragility of our supply chains over the last six months or so,” Rob says.

Where you have the traditional supply chain like an automotive factory, lean and ‘just in time’ works really well, but where you’ve got volatile markets we’re starting to see the cracks appear.”

“I think we’re going to see a little bit more fat, certainly in terms of inventory, just to buffer for uncertainties.”  Because it will be a long time before market demand becomes anywhere near normal, and it may never look like pre Covid demand again, as alternative distribution channels become more popular.

Rob also says we can expect the decline of ‘traditional’ third-party logistics. 

“There are a lot of companies around that ‘uberised logistics’ – whether it be transport or storage, and I think we’re going to see third party logistics particularly moving much more towards the gig economy. There’s no reason why not.”

“There are people delivering to my home at the moment who are doing it a few hours a day, and that’s where third-party logistics is going.”

“Let’s not waste packaging.”

Rob also predicts swelling interest in circular supply chains.

“We’ve got to wake up and start making our supply chains much more sustainable in every element of the supply chain,” Rob says.

“We’ve paid lip service to it and there are companies around the world that we hold up and say, ‘Look what they’re doing; they’re amazing.’

“But I think generally as an industry we’re just not really very good at it. People think it’s about reverse logistics but it’s not. It’s about removing waste in our products too.” 

“Let’s not waste transport; let’s not waste packaging.”

“Supply chains aren’t competing against each other.”

Finally, Rob says supply chains have the opportunity to work together.

“We’ve been very slow in collaboration,” Rob says.

“I think in supply chain, a lot of companies have been fearful of sharing warehousing sharing transport – that physical end of the supply chain – because their competitors are going to see what they are doing.”

“We’ve had that mantra for years that supply chains compete, not companies. I don’t know that they do anymore.

“I think it’s more about brands and it’s about service. I really don’t see a reason why we can’t see a lot more collaboration in our supply chains.”

Rob O’Byrne is CEO of Logistics Bureau and one of the top 10 supply chain influencers on social media.

This interview is part of “The Future of Supply Chain Now” – a week of webcasts with the fresh opinions from the most influential people in supply chain. Brought to you by IBM Sterling Supply Chain and Procurious. Read more on Digitally Perfecting the Supply Chain and How Inventory Visibility will Drastically Effect the Customer Experience.

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