All posts by Procurious HQ

Are Supply Chains Already Feeling the Trump Effect?

President-elect Trump doesn’t take office until January 20th 2017, but his impact is already being felt in global supply chains.

Yes, it’s been a little over two weeks since Donald Trump won the US Presidential election. And it’s still nearly two months until he officially takes office. Yet, it’s hard to get away from media reports on what will happen during Trump’s first 100 days in office.

NAFTA, the Trans-Pacific Partnership (TTP), and import tariffs have all been in the news. And if global supply chains weren’t already watching with interest, they certainly should be now.

NAFTA – Overhaul on Cards

During the election campaign, Donald Trump made much of the movement of US manufacturing jobs to Mexico. One solution was to end US involvement in NAFTA, pushing companies to move jobs back to US heartlands.

The North Atlantic Free Trade Agreement was signed in 1994, effectively eliminating tariffs between the USA, Canada and Mexico. The agreement has allowed for seamless movement of goods across borders. It also means that the US currently has more trade with Canada and Mexico, than Europe and China.

An estimated $1.4 billion worth of goods cross the US-Mexico border every day. However, it’s not all been positive, with many organisations moving production to Mexico, where costs are lower.

However, in the past week, the stance from the Trump camp appears to be one of overhaul, rather than withdrawal. The President-elect wants to ensure a “better deal” for America, as well as reduce America’s $76 billion trade deficit.

This could include tariffs of up to 35 per cent on Mexican imports, and penalising companies moving production there. Other changes could include issue to do with currency manipulation, as well as labelling of meat products, and lumber production.

However, experts have warned that any or all of these measures could hurt the USA too. Increased meat prices in US supermarkets, higher house prices, and Mexican tariffs on US goods could all be on the cards. And that’s without the guarantee that jobs would come back to the US.

Relocating Supply Chains

One company subject to plenty of Donald Trump’s ire during the election was Apple. The President-elect singled out Apple several times as an example of a company that should re-shore its production.

To emphasise his point, Trump has threatened to put a 45 per cent import tariff on all Chinese-made goods. At present, Apple devices are assembled in China, with key components sourced from specialised suppliers throughout Asia. In spite of this, however, re-shoring is not that simple for Apple.

Experts have warned that moving production would be challenging, citing a lack of skilled workers and a steep hike in costs. There is also the matter of the highly complex supply chain Apple has established in Asia.

Analysis carried out by the MIT Technology Review stated that higher labour costs, and logistics costs of transporting components to the US, would add between $30 and $40 to the cost of producing each iPhone.

However, the Nikkei Asian Review has reported  that Apple is actually looking at moving some elements of production. It would not be unprecedented either. In 2012, key Apple supplier Foxconn set up an iMac assembly line in Texas. And in 2013, Apple supported Flextronics, another contractor, in building a Mac Pro production line in Texas too.

The media this week reported a call between Donald Trump and Apple CEO, Tim Cook, leading many to suspect that discussions are already taking place. However this ultimately plays out, global supply chain movement and disruption could happen. And if Apple were to move first, it seems like that others would follow suit.

‘Made in China’ Great Again?

One country not looking favourably on President Trump’s policies and tariffs is China. It has been reported that China is unhappy with potential import tariffs, as well as being labelled as a currency manipulator by the future President.

Reports from state media have stated that any tariffs would be met with tariffs of China’s own. There was also a thinly veiled threat against raising tariffs above agreed WTO levels, and starting a trade war.

However, at the same time, China could be a major beneficiary of Trump’s plans to pull the US out of the TPP on his first day in office.

The aim of the TPP was to create a common market, similar to the EU, between its members – the US, Japan, Malaysia, Vietnam, Singapore, Brunei, Australia, New Zealand, Canada, Mexico, Chile and Peru. As these countries make up 40 per cent of the world’s economy, it was seen as a great opportunity for many.

However, critics argue that it favours big business, and Donald Trump looks set to abandon it in favour of freshly negotiated trade deals. The belief is that, without the USA, the TPP would be dead in the water. But that would open up markets to greater deals and trade with China.

Australia was one country that signalled it would be interested in a China-led trade deal. Deals such as the Regional Comprehensive Economic Partnership (RCEP) could see China increase its power in Asia, leaving America in the cold.

What do you make of the policies announced by President-elect Trump in the past week? Could the US suffer by going down a protectionist route? Tell us your thoughts below.

So you’ve got more time to bargain hunt this Cyber Monday, we’ve tracked down the top news headlines this week…

Samsung and Panasonic Investigate Labour Abuses

  • A Guardian investigation has revealed exploitation of migrant workers in Malaysian factories producing goods for leading electronic brands Samsung and Panasonic.
  • The group of Nepalese migrant workers claim they have been deceived about pay, as well as having to pay large sums of money to secure the jobs.
  • Working conditions are reported to include 14 hours on their feet without adequate rest and with restricted toilet breaks.
  • Samsung and Panasonic have opened investigations into the conduct of their suppliers following the claims.

Read more at The Guardian

BMW Logistics Using Autonomous Robots

  • The first fleet of autonomous transport robots to be used in everyday operation has been launched by BMW.
  • The first fleet of ten robots has been put into operation at the car maker’s Wackersdorf plant.
  • The robots will transport components around the facility, and are capable of carrying loads up to 500kg.
  • The move comes as the company aims to remove as much CO2 emission from its manufacturing processes.

Read more at Supply Chain 24/7

Shell May Face UK Trial Over Nigeria Spills

  • A High Court is to make a decision on whether two Nigerian communities can bring cases against Shell.
  • The communities claim that pollution from repeated spills has caused lasting damage to their environment.
  • Lawyers representing the communities argue that Shell controls and directs its Nigerian subsidiary, and is therefore responsible.
  • However, Shell have also lodged applications to challenge the jurisdiction of the English courts in the matter.

Read more on Supply Management

Canada Energy Decisions to Impact Freight Carriers

  • Canada has announced a plan to phase out all coal power by the year 2030.
  • Four affected coal power plants will will have the option of switching to lower-emitting resources or using carbon-capture and storage technology.
  • The move will have a knock-on effect on the country’s freight carriers, particularly the railroads.
  • Volumes of coal carried by railroads have fallen by 12 per cent this year, and are likely to get smaller still in the next decade.

Read more at the Wall Street Journal

China’s ‘Global Giants’ Defy Worldwide Economic Slowdown

‘Global Giants’ in China are bucking the global growth trend. Against a backdrop of economic slowdown, these companies are striding forwards.

China’s emerging global businesses are bucking the trend of domestic and international economic slowdown. According to a new report from global accountancy body ACCA and Lancaster University, growth rates are currently sitting between 12 and 64 per cent.

The report, China’s next 100 global giants, reveals the top 100 fastest growing businesses in China for 2016, tipping them as most likely to become ‘global giants’ in the next three to five years.

Huapont Life Sciences Co, which manufactures pharmaceutical, pesticide and active pharmaceutical ingredients, took out the top spot in 2016. This is an improvement from its second place ranking in the inaugural 2014 Global Giants report. It is followed by Hongfa Technology Co., and Hangzhou Hikvision Digital Technology Co.

“It is impressive to see that businesses in China are maintaining such high growth rates. Against a national GDP growth of 6 per cent, many of these countries are doubling this, some even multiplying it by 10,” said Faye Chua, head of business insights at ACCA.

“Almost half (46) of this year’s global giants also appeared in 2014. This demonstrates impressive growth maintained over a prolonged period. The number of new entrants, however, also indicates the dynamism of competition and business emergence here in China.”

Factors for Growth

The report indicates that there are common features between the top 100 businesses, with one of the most prolific being a highly effective business model.

“The successful fast-growing businesses in China are creating a ‘home base’ for globalisation. They are building market share and power domestically before, then applying these successful business models in other markets,” explained Ms Chua.

“Almost all of the top 100 have become either strong or dominant in their domestic markets. They are then able to pursue a more global strategy of acquisition and distribution in key overseas markets like Europe or the United States.”

Moving on from Manufacturing

Sector representation in the top 100 indicates an increasingly diverse economy in China. There has been a move away from the traditional dominance of manufacturing and production, towards services and intangible products.

The computing and communication equipment industry is the most-represented in the list, with 21 entrants.

Open for Business

The report indicates that, while successful businesses are based all over China, there are several metropolitan hotspots for growth.

Shenzhen is a rising headquarter for fast-growing businesses, home to 11 from this year’s list (up from seven in 2014). Beijing is home to 13 of the global giants, down from 17 in 2014.

There has been a movement towards headquartering in the south of China, in cities such as Fuzhou, Foshan and Shantou City. The report also shows an increase in the number of headquarters based in second-tier Chinese cities including Wuhan, Hangzhou, Suzhou and Nanjing.

The China’s next 100 global giants report considered companies listed on domestic Chinese and international stock exchanges, ranked against five measures:

  1. size (as measured by turnover);
  2. growth (in revenue);
  3. domestic presence;
  4. international presence; and
  5. business model and strategy.

The full list of China’s next 100 global giants is available at ACCA’s website.

Big Ideas Summit 2016: Big Idea #24 – Sharing Procurement Expertise

Procurement professionals have a great opportunity to develop themselves, and helps others, by sharing expertise in the charity sector.

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Sharing Expertise

David Lyon, CPO at Cancer Research UK, believes there is a now great opportunity for organisations to share procurement expertise. Procurement professionals can push their development, and give something back, by working with the charity sector.

David states that, in the age of CSR and transparency, young people can grow their own careers by gaining insight and knowledge in procurement by working with charities.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 18,500 like-minded procurement professionals from across the world.

So You Want to Be a Content Writer, Do You?

We’re always encouraging our community members to get involved. Here’s your chance to become one of our content writers.

content contribution

At Procurious HQ, we pride ourselves on the quality of content we produce. Over the past two and a half years, we have carefully crafted a selection of high-quality content for you to peruse, digest and enjoy.

And while we’ve had a lot of fun doing it, we think it’s high time for even more of you to get involved.

We’d like to offer you the opportunity to get your work published on Procurious. There are great storytellers in the community, with great stories to tell. And we want to hear them all!

Not only is it a great opportunity for you to dip your toes into the blogging water, but it’s also a great chance to raise your own profile.

I Don’t Know Where to Start…

If you’ve attended a social media workshop run by Procurious, you’ll have heard us say that procurement needs to do a better job of selling itself. We need to improve the brand of procurement by better communicating the interesting stories that we know are out there.

Every single procurement and supply chain professional has a story or experience that is unique to them. From the weirdest thing they have bought, to the worst negotiation experience you have had, your story can help others no matter the subject.

And even if you don’t think you have a story to tell, your experience in procurement is just as valuable. There’s a pretty high likelihood that your experience could help one of your peers sometime in the future.

My Specialist Subject is…

Ok, so you don’t think your a great storyteller. There’s nothing wrong with that! But how about a subject only you can talk about? If you had to go on Mastermind and answer procurement questions, what topic would they be on?

Over the past couple of years, our community members have talked about a range of subjects, including:

Or how about telling us what it’s like to work in procurement in your part of the world? In the past, we’ve had a range of countries and experiences, including, Wales, Brazil and the Ukraine.

fountain-pen-on-paper

Content to Spark an Idea

Still stuck for something to write about? Why not draw inspiration from the events Procurious has held in the past year?

The Big Ideas Summit 2016 brought together thought leaders and procurement executives from around the world. We had great discussions on:

Or how about our Career Boot Camp, held back in October. We asked some of the biggest influencers in procurement to share their tips on boosting your career.

Get inspired by:

Build Your Profile

Being published on Procurious is going to help to raise your own profile in the procurement space. We will share your article across social media, where we have a global audience of over 50,000 people.

What’s more, if your blog is one of the most popular during a week, then it may be added to our weekly ‘Best of the Blog’ eDM.

So now it’s your turn. Sharpen those pencils, put fresh ink in your pen and tune up your keyboard – and get writing!

If you want to contribute to the Procurious blog, send an e-mail to [email protected] or [email protected] and tell us what your idea is.

Is Black Friday Still Important for Retailers?

Millions of consumers will be after a Black Friday bargain today. But, as a single day, is it still as important for retailers?

ComicSans/Shutterstock.com

It’s that time of year again. The Thanksgiving turkey is digested, attention turns to Christmas, and Black Friday has arrived. Traditionally an American shopping day, Black Friday has expanded to hundreds of countries around the world.

An estimated £4 billion (nearly $5 billion) will be spent over the next 4 days between Black Friday and Cyber Monday. Of this, around half will be spent today, and an estimated £1.27 billion will be spent online.

However, as consumers change their shopping habits at this time of year, retailers are doing likewise. There are a couple of reasons for this, which we will have a look at now.

In Store vs. Online

The abiding image of Black Friday for most people is massive crowds, stampedes, fights over bargains (and the occasional punch up). The potential deals that stores offer are enough to turn the shoppers against one another.

And for many, this is enough to put them off leaving their house at all. In fact, the number of people heading out to the shops in the US on Black Friday has dropped to below 25 per cent, driven by more Millennials choosing to shop at home.

However, that doesn’t mean that less money is spent. In the USA, experts predict that total holiday spending (the months of November and December) will hit $632 billion. And, for the first time, over half of that money will be spent online.

Retailers are also changing their habits when it comes to opening times today. In previous years, many have started their sales at midnight, in order to maximise the shopping time available for consumers. But many stores are now choosing to revert to normal opening hours (something of a relief for staff, I’m sure!).

Surveys have shown that 59 per cent of shoppers do not agree with stores opening on Thanksgiving. But it’s not just consumer pressure, and benevolence to staff, keeping stores closed. The fall in in-store trading over the Black Friday weekend means that retailers aren’t turning as big a profit as they would like.

Add to the mix increased costs of opening (higher staff wages, security, logistics, and potential bad press), and it shows why retailers are stepping back from early opening.

Black Friday ‘Creep’

Another reason for retailers not seeing the benefits of Black Friday in store is the so-called ‘creep’. Much like adverts for Christmas 2017 started a few weeks ago (I kid you not…), online retailers have started to spread the sales out.

Amazon, largely considered to be the biggest exponent of Black Friday, started their sales in early November. And it plans to run these daily sales until the 22nd of December too. They weren’t the only ones, with Tesco amongst a host of companies starting sales earlier this week.

Some online retailers have done this to spread the logistical load of ensuring everyone gets their purchases in time for the holidays. Amazon are clearly learning their lesson from a few years ago, when it experienced serious bottlenecks in deliveries.

Bad Deals and Brexit

One thing that consumers need to be aware of before splashing the cash is that they might not be getting the best deal. A report from Which found that only half of Black Friday deals are actually cheapest on that day.

Retailers have been accused of inflating their pre-sale price to make a deal seem better. And, in fact, shoppers may have been able to find products cheaper at different times of year. The UK Government’s Pricing Practices Guidelines (PPG) states that any sale “must reflect the most recent price an item has been sold at for 28 consecutive days or more.”

So it’s worth being careful when it comes to your shopping, and not get swept up in the promotions. However, that said, UK shoppers might want to take advantage of the lower prices this year. As has already been seen this year, prices for goods and services look set to rise in 2017 as a result of Brexit and a weak pound.

The majority of rises are likely to happen in January, with Next, electronics retailer AO, Apple, Microsoft, and Dell, all either anticipating rising costs, or putting prices up already. So it might be that British shoppers won’t get the same deals this time next year.

The Last Word

Deals or no deals, I’ll be one of the Millennials shopping online today (after working hours, of course!). However, I wanted to leave the last word on Black Friday to Asda. The retail giant was one of the first UK stores to bring Black Friday deals to this country, thanks to its links to Wal-Mart.

However, following chaotic and violent scenes in 2014, the company shelved its plans last year. And for 2016, they’ve taken a novel approach to announcing a similar strategy for today, and why they’ll aim to have low prices all year round.

If nothing else, the video should make you smile. Happy shopping!

Crowdsourcing is the New Black – Use it to Your Advantage

The revolution in business financing is opening up a new world for small businesses. Here’s how to turn crowdsourcing to your advantage.

Crowdsourcing is the new black. Over the past few years, this approach has enabled organisations to not only raise working capital, but also to build brand advocates, as a marketing tool, and a way of raising additional dollars for marketing purposes.

Startups have turned to crowdsourcing as a legitimate form of capital raising for a while. However, now established brands are following their lead.

Major brands like Dodge, Honda, Kimberly-Clark, DC Entertainment, American Express, Proctor & Gamble, Phillips, Microsoft and Coca-Cola have all turned to crowdfunding.

These brands have realised that crowdsourcing is a fairly inexpensive way to quickly reach thousands of potential customers and find out what they really think. It’s a pretty incredible tool when the backer dollars start rolling in.

Coca-Cola & Crowdsourcing

Coca-Cola has undertaken a few prominent crowdfunding projects in a bid to reap the social media and branding benefits. These include projects such as one to provide more clean water resources in rural areas in Mexico.

In another example, Coca-Cola turned to crowdfunding as a way to cracking a troublesome marketing brief. The company was amazed to receive 3,600 responses, and was blown away by the quality of the submissions. It said the film quality was better than it was getting from its agency partners.

The reason crowdsourcing can be so successful for brands is that is allows customers to become part of the plot line. Instead of passively consuming your brand’s marketing material, suddenly, they’re engaged and following your brand’s story.

Giving people the opportunity to experience brands actively in this way creates a connection that stays with them, helping them to evolve into a brand advocate.

Crowdsourcing can also create a call for action and real-time story creation, which is unparalleled. And while inviting customers to participate might be unpredictable, the reward is marketing that feels genuine, memorable and two-sided.

There are a range of crowdfunding platforms to choose from, including Kickstarter, Indiegogo, GoFundMe in Australia, TeeSpring and Patreon, among others.

Harnessing social media for crowdsourcing campaigns can significantly amplify your campaign, too. Start by choosing appropriate social channels, select a memorable hashtag, create a campaign page, and leverage the community with informative posts.

Turn Crowdsourcing to Your Advantage

Here’s four ways to use crowdsourcing for your brand’s marketing:

  • Product validation and feedback: A crowd can validate a new idea, or tell you quite openly that it’s a bad idea. Either way, generating this feedback is a key component in creating something that people want.
  • Grow brand advocates: Crowdfunding can get people talking, and preferably, they’ll be saying good things. It’s a great way to cut through the clutter and tell your story. This can, in turn, create passionate brand advocates.
  • Build stronger exposure: Crowdfunding makes the news. When this exposure is harnessed, it can give projects the final nudge they need to cross into ‘viral’ territory.
  • Be loved by your customers: Utilising a crowdfunding platform as a storytelling tool helps a brand cut through the clutter and connect with existing and new brand advocates by showcasing your innovative side. When harnessed effectively, crowdfunding can enable brands to break down the corporate walls and express their uniqueness and innovative side.

Has your business dabbled in crowdfunding as a marketing tool? Tell us about it below.

Why Procurement Needs to Open the Door to Supplier Diversity

Procurement is under pressure to engage more in supplier diversity. But help is at hand from organisations who can help make connections.

In May 2015, the Australian Government set out Indigenous company contract targets for federal departments and agencies. Starting from 0.5 per cent, the targets were set to rise to 3 per cent by 2019-20.

The joint message from the Minister for Indigenous Affairs and Minister for Finance claims, “the policy will ensure that Indigenous businesses have the chance to compete and showcase the products they have to offer.”

Supply Nation is the Australian leader in Indigenous supplier diversity. The organisation exists to connect Indigenous-owned businesses with the procurement teams of government and corporate organisations.

Supply Nation has worked closely with government to collaborate and influence the evolution of procurement policy that is now represented by the Indigenous Procurement Policy.

We sat down with Supply Nation’s CEO, Laura Berry, to talk more about the importance of this benchmark, and how organisations across Australia can strive to meet it. 

Why is engaging with Indigenous-owned businesses and suppliers so important for organisations across Australia?

Supply Nation strives to increase opportunities for Indigenous-owned businesses to supply their goods and services to large organisations. Supplier diversity puts under-represented businesses on a level playing field with other qualified suppliers when it comes to competing for the supply of quality goods and services.

One of the major benefits of opening the door to additional markets and engaging in supplier diversity, is that it facilitates the growth of Indigenous businesses. This results in increased economic activity and employment, and channels greater social value back to Indigenous communities.

In addition, data clearly shows that supplier diversity drives significant and measurable long-term business benefits, aside from the goods and services, which can ultimately provide a unique experience to customers. The addition of Indigenous-owned businesses can bring increased competitiveness, innovation and savings to the supply chain.

What qualities and capabilities have you built that supported you in achieving better procurement outcomes?

Creating an environment where our members and suppliers can connect, develop relationships and identify future procurement opportunities is integral to the work of Supply Nation.

Supply Nation assists our government and corporate members with tools and strategies to embed supplier diversity within their supply chain through a tailored account management model.

We also provide support for business matching, opportunity briefings, supplier promotions, external training opportunities and networking events.

What are the biggest challenges Supply Nation faces in procurement at the moment?

As a not-for-profit organisation, the procurement challenges facing Supply Nation itself are not significant. However, for our Indigenous suppliers, the challenges are the same as those faced by small businesses across Australia.

These include the difficulty in breaking into established supply chains and conventional procurement processes, or in developing relationships with buyers.

With the Federal Government’s Indigenous Procurement Policy, there’s more pressure for government buyers to find and engage with Indigenous-owned businesses. We see a real challenge – and a real opportunity – in facilitating the connection between the businesses and procurement professionals.

What’s the first step for organisations looking to alter their processes to meet new supplier diversity requirements around Indigenous suppliers?

Step 1 would be to become a member of Supply Nation (if you’re not already)!

Take the opportunity to search for goods or services through our directory, Indigenous Business Direct. You can engage with a Supply Nation Relationship Manager who can help you navigate the process.

We can help with changing internal policies and procedures, connecting with businesses that meet your requirements, and setting up established and sustainable supplier diversity practices that are modelled on world best practice.

How can attendees benefit from attending GovProcure 2016 (where Laura is speaking)?

We have some amazing, successful and diverse Indigenous-owned businesses that are growing fast and delivering incredible products and services. I’d recommend everyone comes along to understand how they can engage not only to hit their targets, but also to get some insight into the benefits these businesses can bring to your supply chain.

Among other Australian procurement leaders, the event will also feature Ian Rudgley, CPO for the City of Sydney, a council that despite not being subject to the federal targets, has award-winning engagement and mentorship of Indigenous suppliers.

For more details on the agenda please download the brochure.

The Power of the Hackathon: Putting Theory into Practice

The concept of a hackathon is nothing new. But more and more organisations are realising the benefits found in these events.

Many people associate the concept of a hackathon with the emergence of the digital age. However, it may come as a surprise to you, but the term ‘hackathon‘ was first coined in 1999. They started out as highly collaborative events, aimed at pooling computing resources for testing ahead of Beta launches.

However, in recent years, the hackathon has been hijacked by organisations who have recognised the benefits of these events. Now, everything from technological innovation to Blockchain have been the subject of a hackathon.

And there are more coming that you might be able to get involved with too!

This Hackathon is Spotless

This week, integrated facilities service provider, Spotless Group, are hosting a hackathon in conjunction with global start-up accelerator network Startupbootcamp. The two-day event, held at the iconic MCG in Melbourne, Australia, will focus on the Internet of Things (IoT) and DataTech.

Spotless recently highlighted innovation as a key priority for its business. The organisation is hoping that the event will help provide solutions to real problems, enhancing its overall customer service.

Julian Fogarty, Spotless’ General Manager of Brand, Innovation, and Technology, said, “By investing in external strategic programs, partnerships and events, Spotless is demonstrating to customers and shareholders its commitment to pioneering industry-leading services.”

The partnership with Startupbootcamp will ultimately help with a key issue found with hackathons – turning innovation into reality. The organisation connects corporates with start-ups and entrepreneurs, and helps put the ideas generated at a hackathon into practice.

The winners at the event will receive up to $10,000 and six months in Startupbootcamp’s start-up workplace. These teams will also receive advice from mentors and fellow hackers as they work on their ideas.

Digital Cities

It’s not just organisations that are organising hackathons to drive innovative ideas. The city of Sacramento, California, recently hosted a Startup Weekend to generate new business ideas for the city.

Teams were created on the first day, then ideas were generated over the course of the weekend, with business pitches on the Sunday evening. From there, the three winning ideas went to pitch to investors at a venture capitalist event in the city, with the hope of securing funding to go forward.

Another place looking to hackathons to generate innovation is Delta State, Nigeria. The event is aiming to generate new solutions in line with the UN’s ‘Sustainable Development Goals’, with a particular focus on critical needs and solutions for African countries.

The hackathon is being supported by Google, who is not only hosting, but providing some of their own developers to help kick-start the process. It’s expected that around 3,000 people will attend the event in December, either as participants or in the audience.

Hackathons and the Blockchain

One term that has been coined recently is ‘The Hackonomy’. The concept is derived from the Blockchain, and has much in common with bitcoin. To drive a more official side of hackathons, and to provide reward for innovation, a crypto-currency, HackerGold, has been developed.

The currency will allow “frictionless” access to a marketplace of developer talent pools and code libraries for start-up companies. By opening up this market, it should also enable previously unconnected ‘hackers’ to connect and work together.

Blockchain Lab, a blockchain technology pioneer, is set to be the first organisation to accept HackerGold. It will use the currency to pay for services, such as auditing on smart contracts, and code development.

There’s plenty more to come from this space in the shape of a 5 week hackathon, ether.camp, currently being held in London. It’s the first hackathon to be held entirely using Blockchain, and looks set to create a new generation of start-ups using this digital technology. We’ll be interested to see the outcomes when the event finishes on December 22nd.

Have you used a hackathon in your organisation? Or have you been involved with one? Was it a success? Let us know below.

While we try to get our heads around a whole new set of terminology, we’ve sourced your top headlines for this week…

Apple’s Rumoured Expansion into Digital Glasses

  • Apple is rumoured to be considering an expansion into the production of smart glasses.
  • Apple Inc. is reported to have spoken with potential suppliers about the wearable technology, and ordered small quantities of near-eye displays from one supplier for testing.
  • CEO Tim Cook is a known enthusiastic for augmented reality (AR), particularly after the success of Pokémon Go earlier this year.
  • The Apple glasses would be the company’s first product targeted at the AR market.

Read more on Bloomberg

Solar-power Shingles Cheaper Than Roof Tiles

  • Tesla and SpaceX Founder Elon Musk has unveiled a new product – a roof consisting entirely of solar-power generating shingles.
  • The tiles are comparable to high-performing solar panels in terms of power generation.
  • The roof costs less to manufacture and install than a traditional roof, on top of the predicted electricity savings.
  • The anticipated cost savings are due to lower shipping costs, as the tempered-glass tiles are only a fifth of the weight of traditional roofing materials and are less susceptible to breakage in transit. 

Read more on Bloomberg

Procurement Fraud Worsens in Australian Public Sector

  • A recent investigation has found that public sector fraud in the Australian state of New South Wales (NSW) cost the government up to $10 million between July 2012 and June 2015.
  • Procurement and contract management fraud caused the heaviest losses, with each case costing an average of $225,000 and, in one case, $1.7 million.
  • Scams involved invoices for work never done, inflating invoices, or invoicing for non-existent work done by non-existent companies.
  • Incidents also included falsified timesheets and records created for goods and services that had never been delivered.

Read more on Government News

VW to Cut 30,000 Jobs from VW Brand

  • Car-maker Volkswagen has announced it will cut approximately 30,000 jobs at its VW brand over the next five years.
  • 23,000 of the jobs set to be cut will be in Germany, the company’s biggest unit.
  • VW said the decision was aimed at improving profitability in addition to funding a shift towards producing electric and self-driving vehicles.
  • However, it added that it will create around 9,000 new jobs by increasing investments in electric car technology.

Read more at International Business Times

Could Brexit Cloud have a Silver Lining?

The Brexit result upset the apple cart. It also left many people searching for a silver lining to the clouds on the horizon.

This article was written by Daniel Ball, Director, Wax Digital.

Marmite – you either love it or hate it as they say. Well, Tesco for one was probably agreeing with the second of those sentiments recently when its rocky relationship with the brand’s owner Unilever hit the press.

As you’ll remember the food giants’ spat was triggered when Unilever stated it would need to raise its UK prices. This was in order to offset the impact of the pound’s post-Brexit weakness against the Euro in its supply chain.

Tesco retorted by removing Unilever products from its shelves. A bold move considering the food manufacturer owns many leading consumer brands.

Weakening Sterling

To recap, in mid-October the pound fell to a value below €1.10 for the first time since March 2010. The pound had generally been on the slide ever since the UK’s EU referendum back in June. It was also performing weakly against other major currencies including the US dollar and those in most emerging markets.

In many ways this is bad news for UK consumer and business to business purchasing. Both as individuals and organisations we’re pretty heavily reliant on global supply chains, meaning that it will cost domestically-based organisations heavily.

UK manufacturers sourcing parts and materials from overseas to make products locally, will pay more due to poor exchange rates.

Equally retailers and wholesalers buying end products from other countries will pay more to put them on their shelves or fill their warehouses. These cost increases will inevitably be passed on to UK business customers and consumers alike.

Returning to Domestic Focus?

However the situation may not be all bad and there could be a silver lining in this post-Brexit cloud. One potential positive outcome from this situation could be some British supply chains choosing to return to a more domestic focus.

Weighing up the options in a less than favourable global financial position, it may make sense for some UK businesses to explore the cost benefits of buying locally. This will help to remove exchange rate risk, even if local supply is not the cheapest price book option.

After years of decline, UK manufacturing may actually receive a boost and resurgence of ‘Buy British’ standards of the past. However this will be fuelled by necessity, rather than a Brexit campaign.

Admittedly it’s an ambitious scenario. Imagine the impact of Tesco commissioning UK food producers to come up with viable, locally made alternatives to replace Unilever’s full range. Especially considering its brands comprise around half of the worldwide grocery market share.

Secondly, consider how a weak pound may also drive overseas buyers to look to British suppliers for pound-based pricing. This will allow them to realise the benefit when the Sterling costs are converted back into their own stronger currencies. UK suppliers could see new market openings and opportunities to trade overseas that once didn’t exist.

British supply may suddenly become in vogue.

Silver Lining in Currency Battles

For procurement teams choosing to buy domestically, a move such as this will mean significant focus on supplier sourcing and close inspection of supplier relationships. Necessary checks and due diligence would have to be built in, in order to ensure any changes in supply didn’t leave the business at risk.

Equally procurement professionals working supply side in the UK should seek to advise the business on how to make the most of new opportunities and negotiate effectively in supply relationships.

Brexit is rather like Marmite in that it divided the nation. But while there are fears about the UK’s future after Brexit, recent currencies-related battles have highlighted a potential silver lining.

Now could actually be the time where we see both onshore and offshore buyers eyeing up UK supply options over going overseas or opting for their foreign domestic choices.

Procurement would need to ensure necessary checks, due diligence and information management in new sourcing activities. There would be a need to ensure swift and effective onboarding. New contracts and relationships would have to carefully managed to minimise ongoing trading risk with new partners.

But if procurement can pull this off, who’s to say this cloud couldn’t have a silver lining?

Big Ideas Summit 2016: Big Idea #23 – Engaging Social Innovation

Are enough procurement professionals taking account of social impact in their work? Are they risking missing out on innovation?

At the Big Ideas Summit 2016, we challenged our thought leaders to share their Big Ideas for the future of procurement.

From ideas that have the potential to change the very nature of the procurement profession, to ones that got the assembled minds thinking about the profession’s impact outside of the organisation, the response we received was amazing.

Procurement’s Social Impact

Timo Worrall, Senior Category Manager FM EMEA at Johnson & Johnson, talks about J&J’s ‘Social Impact Through Procurement’ programme. The programme is focused on driving job creation and increasing spend with social enterprises.

Timo argues that by engaging with social enterprises, procurement is not only accessing innovation and new suppliers, but giving something meaningful back to communities.

Catch up with all the delegates’ Big Ideas from the 2016 Summit at the Procurious Learning Hub.

Want to find out more about Big Ideas 2016? And maybe what we have planned for 2017? You can visit our dedicated website!

If you like this (and you haven’t done so already) join Procurious for free today. Get connected with over 18,500 like-minded procurement professionals from across the world.