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Three Reasons Why Procurement Has A Beautiful Future

Why should you be excited about procurement’s future? Three experts weigh in as we close out 2020 and look forward to a new year.


Now is the perfect time to be in procurement.

Think about it – when have we ever enjoyed so much trust, influence, and freedom to make changes?

We asked three experts why they’re excited about procurement’s future.

We can protect our companies 

Procurement is finally shedding its image as a support function. Now the c-suite is learning how much strategic value we can add.

Just ask Dr. Jonnie Penn, an artificial intelligence expert at the University of Cambridge and keynote speaker at the 2020 Big Ideas Summit.

He says the last 40 years of supply chain management were characterised by a push for efficiency.

“We see now that that’s too fragile a metric amid deglobalisation,” Penn says. 

“You need to start to incorporate other measures that give you security in the resilience of your system. 

“In the past you might have made a push for weekly or monthly planning. We’re now looking at a shift to continuous planning.” 

That puts supply chain management forward strategic leaders, able to prevent future disruption.

And the c-suite desperately needs that help.

Just look at one pharmaceutical CEO, who predicts the industry will move from global supply chains to more localised providers.

You have the opportunity to use data in a similar way to improve resilience.

But you might have to think about the way you see data, says Penn.

Great data meets three criteria:

  • Real-time
  • Structured in a way that’s easy to consolidate
  • Combines information from lots of different areas

Penn calls this ‘thick’ data, “which means that as opposed to just hiring let’s say a data scientist to crunch your numbers you’re also bringing in remote sensor engineers or ethnographers, sociologists.”

Those different perspectives are crucial to finding the best solutions.

We can drive innovation  

And that includes collaborating with your suppliers. 

Just look at Apple.

When Steve Jobs unveiled the first iPhone in 2007, the screen was plastic.

Yet the next day, Jobs noticed the screen was covered in scratches and called his VP of Operations, Jeff Williams, demanding a glass screen for the official release.

Williams said it couldn’t be done in just six months. Every glass prototype they tried had smashed, and it would take years to create a shatter-resistant, thin glass.

But Jobs insisted.

So Williams worked with speciality manufacturing company Corning to create damage-resistant Gorilla Glass in time for the launch.

Now every smartphone in the world uses Gorilla Glass.

It’s interesting to note Williams joined Apple as Head of Worldwide Procurement. He’s now COO and tipped to replace CEO Tim Cook someday.

That proves procurement teams can meet specific business needs by working with suppliers to innovate, says Dr. Marcell Vollmer, Partner and Director at Boston Consulting Group

He says every procurement function of the future will drive supply innovations – including saving our environment.

Dr. Penn agrees. 

“To go it alone is just not sustainable,” Penn says. “You need to look at building common frameworks and using standardisation.”

And that includes sustainability.

We can save our environment

After all, Penn cites McKinsey research that 80% of greenhouse gas emissions and 90% of the impact on biodiversity come from the way supply chains are managed.

Depressing, right? It’s actually great news. It means we can have a huge influence on creating a sustainable supply chain – together.

Penn uses the example of the 240 million packages sent daily. Of that, 40% is dead space.

But new technology can scan each object and use optimal packaging. 

“That means that you can reduce the 40% air and ultimately all the derivative effects, down the supply chain of the plastic use and shipping and storage requirements.”

Another example is monitoring factory emissions in real time by combining satellite imagery with machine learning.

Clearly, there are countless ways supply chain professionals can make the planet better, says Supply Chain Revolution CEO Sheri Hinish.

“Supply chains are the conduit for building a better world; designing a better world,” Hinish says.

“We can come from different backgrounds, different parts of the world but at our core, we fundamentally want the same things. 

“So, it’s real and when you think about collaborating within a global context… this is what wakes me up every morning – to create a world that’s bearable, viable and equitable.”

Our beautiful future

That’s why all three of our experts say procurement has a beautiful future.

Combine your skills with technology advancements, and you’ll have endless opportunities to lead significant change.

And if that seems daunting, don’t worry; you’ve got experts on your side.

“Feel free to be in touch as you develop your data strategy and your AI strategy to accomplish your sustainability and resilience goals, says Dr. Penn.

5 Ways To Separate The Successful Supply Chains From The Rest

New computers can analyse a million rows of data in minutes. So why not let the computer do the heavy lifting? As a supply chain professional of the future, you won’t be manually processing data.  You will have data you can trust at your fingertips, as well as meaningful insights.  The rest will be up to you! IBM’s Takshay Aggarwal explains.


In the future, what will separate the successful supply chains from the rest? 

Procurious Founder Tania Seary sat down with Takshay Aggarwal from IBM to get his take on where we are, and where we are going.



Everything has changed

In 20 years of supply chain experience, Takshay has never seen a supply and demand shock at the same time.

“It’s completely changed how supply chain planning is done,” Takshay says.

Before, people used historical data to project demand – usually with a 5-10% variability or 1-2% percent for really mature organisations.  

But even with a high level of accuracy, too many companies were unsure which supplies were coming when. 

“Processes were so monthly and weekly orientated,” Takshay adds. “There was no sense of response; it was all about, ‘We’re used to this stepwise process and will get to it when we get to it.”

The result? Slow response time and lost sales. And reaction time was seriously hampered by years of cost cutting.

“An easy analogy is that you can cut and cut the fat to the bone, but when you need to run, where is the muscle?” Takshay says.

Sensing the market

That’s not true for all organisations, of course. Some companies invested in the right technology to detect changes in the market, which enabled them to respond quickly.

Takshay uses the example of two big retailers during the early days of the pandemic.  

“One retailer had sensing and response capabilities,” Takshay explains. “They secured all the available supplies in the market. Their shelves were stocked and their sales were booming.”

On the other hand, the second retailer’s supply chain officer was slow to respond. “They had traditional ways of doing stuff and their shelves were empty.” 

The difference between the two? “One supply chain officer is now promoted to the board and the other is finding a new job.” 

That’s why it’s so crucial to have the tools in place to detect market fluctuation and respond.

Looking at data differently

Going forward, how will you prepare for disruption – not only for your suppliers, but your suppliers’ suppliers?

The solution is incorporating non-traditional data for demand planning, Takshay says.

“Let’s say a discretionary spend category like electronics or fashion; you need to understand how unemployment is panning out in certain areas because that determines the footfall in your store,” Takshay says.

Non-traditional data includes areas of demographics like looking at unemployment or how a disease is spreading.

“You will start seeing a lot of what we call demand sensing in the near term, and driver-based forecasting which is trying to understand larger drivers in terms of promotions, in terms of macroeconomic factors,” Takshay explains.

“I think that’s where we’ll see demand sensing capabilities, like trying to understand the near term impact of weather or demographics and how they affect demand.”

Spreadsheets won’t cut it

Technology will also change how you use that non-traditional data, Takshay says.

That’s because higher computational power creates the ability to process data at lightning speed.

“The basic math hasn’t changed, but what has changed is how fast you can ingest that data,” Takshay says.

Think of it this way. How long would it take you to analyse a million rows in an Excel spreadsheet? Yet for some of these new models, a million rows is nothing.

Artificial intelligence can quickly process large amounts of data, making it easier to extract meaningful data. 

It will also be easier to bring in different sources of data – as and when –  they’re relevant.

For example, data about the pandemic spread might be a big consideration now, but six months from now it might not be relevant (fingers crossed!)

Instead, you may be more interested to ingest data at scale about economic recovery. AI can help you make sense of a huge amount of data and understand correlations – something that used to take an army of data scientists to uncover.

Welcome to efficiency

That ability to analyse vast quantities of data will also make demand planning a lot easier.

“If you ask any demand planners, 60 to 70% of their work today is about cleansing and harmonising data, and 20-30% is figuring out what it’s saying,” says Takshay.

Now, technology can eliminate much of that manual processing. In fact, Takshay says IBM estimates around 40 to 60% of that work will be covered.

“Now imagine if you’re a demand planner and you don’t have to go through those daily tasks to get the data cleansed,” Takshay says. 

Making it personal

So what does the future hold for supply chain?

Takshay predicts consumer demand is moving toward mass personalisation. The challenge for procurement teams will be supporting that personalisation in production, without losing efficiency or driving up costs.

“Ten years from now, we will be talking more about how we can better understand the consumer,” Takshay says.

“Everything will be done by machine. Supply chain may become irrelevant. It all becomes about mass personalisation so that’s where we start putting our efforts.”

That’s why human empathy will be an even more essential skill. Quantum computing could eliminate 80% of today’s procurement tasks, so our greater contribution is using human emotion to meet customer needs.

Hear Takshay’s full talk with Tania Seary in our exclusive webcast series The Future of Supply Chain Now.

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.

What Will The 4 Hot Topics In Procurement Be In 2030?

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. 



Hide or take action

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.

Procurement Innovation – What’s Next?

Procurement has seen some revolutionary changes over the last two and a half decades. From manual processes to powerful P2P Suites, there is no denying that procurement is becoming more innovative and tech savvy. But as a whole procurement tends to lag behind other professions – it’s time to lead the way for innovation, but where do we go from here?


Technology is driving industry forward at an exponential rate, globally. It’s hard to think of an industry that hasn’t adopted a new technology, at least to some extent, in the last several years. Technological breakthroughs are changing the world over, both from a consumer perspective, but also from a business one. From smart phone companies using fingerprint scanning and facial recognition to car companies implementing park-assist, adaptive cruise control, and in some cases, even self-driving capabilities. This is truly a world driven by innovation, and most industries and business sectors are investing heavily to that end. But what is procurement doing to keep up?

Where We’ve Been

To answer that, first it is important to see how far the profession has come. Although it has taken longer than other markets – the progress has been remarkable.

·   Manual Processes – Like most, this is what dominated the industry for a large period of time. Everything was done manually, from drawing up contracts, to sourcing and purchasing materials. This was quite a time-consuming process at a time when procurement lacked the complexity of today.

·   Emails & Spreadsheets – As technology began to become more mainstream the manual communications started to give way to emails, no longer requiring procurement professionals to travel onsite as often. The use of spreadsheets began to build the framework of an organizational system with excel becoming the main database of choice for many in procurement.

·   ERPs – Enterprise resource planning (ERP) is a software that handles business process management it allows an organization to use a series of integrated applications to control and automate many functions related to technology, services and human resources. This is one of the most widely adopted pieces of technology used in procurement today.

·   S2P Systems – This is the current cutting-edge procurement technology. A good S2P suite can bring cost savings, efficiencies and data visibility to your business. Our source-to-pay (S2P) platform, JAGGAER ONE, is a comprehensive suite that automates, optimizes and provides insights across the source-to-pay spectrum. Integrating seamlessly with your ERP, JAGGAER ONE can provide data transparency and visibility, while giving access to a powerful suite of end-to-end supply chain and sourcing solutions.

Procurement is at a Cross-Roads

Procurement has long been a cost-focused profession, largely relying on siloed processes and teams, taking a reactive and tactical approach. And, at one time, that was all that procurement needed to do. But it is now time for procurement to move into a new role – one that takes charge of the business and leads the way, becoming an integral part of the overall business strategy.

I believe that procurement professionals around the world stand on the threshold of a new age. The old paradigm of cost reduction, being reactive and only focusing on purchasing is drawing to a close. In this dynamic, complex and disruptive era, procurement leaders and experts the world over are searching for a secure, successful future.

With technology like artificial intelligence (AI) and robotic process automation (RPA) becoming more mainstream, the applications for procurement are virtually limitless. Technology like JAGGAER’s Smart Assistant, which is powered by AI, is one such possibility. This conversational platform designed for procurement is a powerful tool, which will eliminate much of the tedious and manual processes that still plague the procurement profession today. AI will be a driving factor in the development of the procurement profession.

Where We’re Going

The result of all these technological advances in several years’ time will be autonomous procurement. As I’ve written in a previous blog “autonomous procurement is a platform with embedded intelligence, but a system that also continues to build on those capabilities to automate the full source to pay process without human interaction. However, this will happen only in instances where human input isn’t necessary or desired, such as repetitive or time-consuming tasks”.

It is incredibly important to remember that autonomous procurement is not meant to eliminate human input or the role of procurement professionals. The end goal here is to augment people, freeing up time to focus on value adding tasks and strategic thinking. Human insight is crucial in business – but this is all about using technology to eliminate mistakes, monotony and cut out repetitive patterns. The future platform will assist you at every step of the source-to-pay process and over time it will manage more & more complex activities autonomously, so we can focus on doing strategic analysis to unlock new opportunities.

The procurement leaders of the future will need to combine strategic thinking, along with an analytical mindset. Leaders are crucial in today’s times, especially with the rise of AI, algorithms and automation. In order to stay ahead of the curve procurement professionals will have to evolve – becoming more data-driven and strategic, because that is something that will always require a human touch. 

To find out more about where procurement has been, where it’s going, and what you can do to stay ahead register for our webinar with Gartner, Deloitte and Blue Shield.

Where do you think procurement is headed? Let us know.

3 Ways to Improve Your Supply Chain Risk Management Strategy

We can’t just get our own house in order. We need to help our suppliers’ suppliers if we want a truly resilient supply chain. Procurious gets expert advice from riskmethods’ Bill DeMartino


How can companies of any size manage the huge number of risks in any supply chain?

Procurious Founder Tania Seary recently sat down with Bill DeMartino, Managing Director of North America at riskmethods, to find out about risk and the future of procurement.



Become resilient or lose credibility

The word of the moment is definitely resilience. But where do you start?

Bill says it’s a process. Not long ago, most organisations were hunting for better information to react faster as threats emerged.

“So this is what I would really categorise as being reactive,” Bill explains. “We want to get better at reacting to events (which is a fantastic place to start by the way) and what I would think of as the journey to resilience.”

The pandemic obviously changed many companies’ perceptions of their own resilience.

Yet he points to data that we’ve seen a 300% increase in disruptions of all kinds over the past three years.

“That means that for organisations who weren’t before acting the mandate is clear; this is the responsibility of supply chain leaders,” says Bill.

“If they are unable to deliver on this responsibility, they’re going to be losing credibility within the organisation.”

The good news is senior management is recognising the importance of proactive supply chain risk management, which will likely lead to more funding.

Treat suppliers better

So we’re all after resilience. But what does that actually look like?

It starts with a shift in the way companies treat and manage suppliers, Bill explains.

“I think we’re on the precipice of moving into what I would call the era of collaboration,” Bill says. 

“Traditionally, we’ve seen working with most of our suppliers in kind of a generic manner and we treat a few of them very specially. 

“But I think that collaboration needs to extend to a broader set of enterprises and so that continuum will continue to be a major transformation element.”

From reactive to transformative

Changing the way we see supplier relationships is a good step, but it’s only the start. 

Once an organisation can react quickly and be more resilient, it’s time to transform. That’s why the most mature and forward-looking organisations are overhauling their processes right now.

“Transformation is not just enough for me to figure out how to be reactive, but I really need to think more proactively on how I can change the elements and the way that I think about the category,” says Bill. 

These advanced organisations are asking how well they understand category risk exposure. And how they can incentivise people to act on the risks they uncover.  

“So it’s really more of a holistic approach to risk resilience,” says Bill.

Automation frees up resources

The other hot topic is automation. Bill says it’s incredible how much of our supply chain can be automated. 

“Supply chain folks are just automating everything that they can and it’s crazy,” says Bill.

“We’re trying to automate all the AP functions, we’re trying to automate all the contract functions, and now we’re actually moving up into the next level and trying to automate the analysis in the diagnosis of the data and the information and insights in those systems.”

“[W]ith this automation we’re able to free up the scarce resources and get our folks to focus on some of the proactive resilience and collaboration efforts they really need for the organisation to thrive,” says Bill.

Risk management in today’s environment

What does great risk management look like today? 

Bill narrows it down to three priorities:

1) Change jobs descriptions and incentives. You need to think about culture change. 

2) Put in place technology that can standardise processes, then measure them.

3) Manage your people well. Ensure that staff are actually following those processes in the way you expect.

“That’s the shift in the maturation that we’re seeing from our customers.  Before, they would just get the information.  Now they are working out how to best utilise that information and become proactive in their risk approach,” says Bill.

Minimise risk, no matter company size

You might be thinking, “That’s all well and good, but I work for an SME. How does that work for a smaller company like mine?”

And it’s true. You may not have the resources or capability at the moment with everything going on, says Bill.

“A lot of smaller organisations are so busy just keeping the business going, no one is taking the time to take a look back and actually think about what it’s going to be in three to five years out,” says Bill.

“They’re  just worrying about survival today.” 

Even if your organisation is small, you’ll likely notice a rising interest in risk management – whether it’s from your customers and executive team. 

“Customers are asking them, potentially assessing them and looking to measure them in terms of their risk preparedness so that’s definitely helping [put risk management on the agenda],” Bill says.

“We are also starting to see a really strong sense of awakening from [senior leaders] and with the idea of a supply network.

“[They’re] thinking it’s not just enough for me to take care of my house, but I need my suppliers to also do the same for theirs.”

What can you do?

So whether risk management is at the top of your agenda already, or it’s just starting to gain importance, Bill suggests three key areas to get your house in order.

1) Using technology to manage risk: “There is an enormous amount of information that’s out there and the largest challenge that organisations have is how to filter through that information and uncover specific and relevant insights.” 

2) Make risk information visible: Can people in your organisation easily find information about risk? 

“We’ve seen a lot of folks who create risk scorecards or risk audits, and that information gets locked away somewhere,” says Bill. 

Instead, he suggests putting that information on your employees’ phones and laptops so they can easily access it when they’re talking to suppliers.

3) Integrate: The final step is to embed all of that risk information and data into other company systems.

As a supply chain professional, Bill says you should ask, “How can I integrate the technology and make it something that really impacts the way that we work?”

Going forward

Now that risk management is firmly on the agenda, you can use it to get ahead in your career. 

Bill predicts the most valuable procurement professionals in the future will be able to manage risk in two ways.

The first is artificial intelligence. Companies will need people who can use AI to spot patterns in suppliers to predict future events. 

“For example, if a supplier shutters a plant and fires the CFO, I could predict a bankruptcy is coming and reorganise my supplier geography to avoid disruption,” says Bill. 

“We can utilise artificial intelligence techniques to start doing pattern recognition and help folks better predict – never with 100% accuracy – but better predict what may be coming down the pipe for them.”

The second is to make suggestions on the best way to react if a threat actually comes to fruition. 

“There’s a number of different approaches that we’ve seen utilised to respond to an event, so we can bring all that information together and present to the individual in a way that allows them to very quickly assess their options, make decisions, and run.”

Bill DeMartino, Managing Director of North America for riskmethods, can be heard in the webcast series The Future Of Supply Chain Now.

How can you limit supply chain disruption and proactively plan for market shifts? Check out this IBM report to find out.

The Recruiter Games

Ever wonder what recruiters are REALLY thinking when they give you “the news”? I’m dishing out the real dirt to help you better understand the process behind finding your next job!


If you have ever played a game with a small child, you know it can be frustrating because they seem to change the rules halfway through. My daughter is always making up new cards for Uno [she wanted to create a card that made us switch hands whenever I called “Uno”!]  so I never quite know what to expect when we play! 

Looking for a job isn’t much different, is it? 

Each company has its own process, its own application, and not too many are very transparent about what to expect once you hit that submit button. Wouldn’t it be handy to have a few ideas of what might be happening on the other side? 

Even though from the outside, company applications all look different, the general recruitment process is essentially the same.  All recruiters seem to use the same playbook when giving feedback to candidates. I hope my insights can help you better interpret their comments, see the other side of recruitment and make you feel a little more confident when playing the game.

What recruiters say: “We decided to go with an internal candidate”

What recruiters really mean: It really can come down to who you know. You should be networking within your industry before you need a job. Someone you know can open a door for you for an interview. You still need to have the knowledge, skills, and abilities, but sometimes there are so many people in line for a position, you need a hand up. 

What recruiters say: “We are looking for someone with “x” experience or “y” education”

What recruiters mean: As much as we’d like to give you (and everyone) a chance, we aren’t working for you. We are working for the hiring manager to fill a role with a specific set of qualifications that need to be met. And we aren’t writing job descriptions; we try to write job postings (and we aren’t all that good at it).

Many times the application system is set up to just post the actual job description. We aren’t huge fans of this. But it can be cumbersome to change the posting and chances are the day-to-day recruiters weren’t involved in the selection or implementation of the system anyway. The main point here: we aren’t setting the qualifications.

  • Which means, if you don’t meet the qualifications of the position, we won’t send you on. Sorry. (See above) And yes, we likely don’t quite agree that a Master’s degree or a minimum of 10 years of experience should be required. There may be lots of folks we want to consider for a role but just can’t — and trust me, this frustrates me as well, as both a recruiter AND a candidate. I’ve been rejected for many positions because I haven’t had the right title or right years of experience. I’m confident I could have done the job and done it well, but as there are many others with similar experience, I can’t fault the recruiter for rejecting my resume.
  • Experienced Recruiter Amy Miller explains “we take direction (and work for) the companies that pay us … the hiring manager is the ultimate decision-maker on who gets hired (or invited to the interview in the first place!); we can only work with the information we’re given, which is why a targeted resume which fully demonstrates fit for the role you want is so important.”
  • And sometimes, even if you meet the qualifications of the role, you might not get an interview. You aren’t owed an interview just because you meet the qualifications. If you are in a role that isn’t in high demand, there may be 30 others who have similar qualifications. We can’t interview everyone.

What recruiters say: So, we don’t actually say anything here, you just get the generic rejection email, but it doesn’t feel like we even reviewed your application. So you complain that the “system” kicked your application out or look for someone to help you rewrite your resume so it won’t get kicked out.

What recruiters mean: We were likely reviewing applications when yours came in or in the process of finishing up the hire. Artificial Intelligence likely did not reject your resume. I did. Most recruiters I know do not work with an applicant tracking system (ATS) that automatically rejects anyone’s resume. Most applications are reviewed by a person. And getting rejected quickly doesn’t mean it was AI either – just means I happened to be reviewing applications when yours came in.

What recruiters say: “We’re still reviewing candidates and should be back in touch soon”

What recruiters mean: The hiring manager STILL hasn’t made a final decision. Most hiring managers really do believe there is a “perfect” candidate out there. Rarely is this the case. We want the right fit, but often we have to talk the hiring manager out of keeping the posting open “just a bit longer” for that “perfect” candidate that they think is out there. We know that there are likely many people that can do the position and we want to find one of them.

  • It is also likely the hiring manager hasn’t been well trained in the selection process. So, sometimes, the hiring manager will pass the buck onto the recruiter for a bad experience. As experienced recruiter Laura Mazzullo shared “it is the hiring manager who needs education! It’s the hiring manager who may need more training on overcoming bias, being more open-minded with qualifications, learning candidate experience —it’s a bit of a “don’t shoot the messenger” situation more often than not!”

Recruiting can feel like a game. It can take time to figure out what you need to do to move forward, and then the rules change. But just like in a game, once you understand the rules, you may enjoy the challenge and even have a little fun. May the apps be ever in your favour!

Three Ways Businesses Can Emerge Stronger From The Pandemic

Three main trends will positively impact the Procurement space post-COVID-19 and beyond and help in responding to unexpected challenges


What a strange year it’s been. As we marked the start of 2020, and news started to circulate about a virus in China, no one could have anticipated the global health crisis that was on its way.

As more countries ease lockdown restrictions and business find new and creative ways to meet the needs of their customers, there are many learnings we can take from the pandemic. These range from critical changes to growth plans to adjustments to company culture to operational improvements to increase supply chain agility.

Like many companies, we recognized early in the crisis the difficulties we would all face in this new reality. To get ahead of the curve, our co-founders Samir Bodas and Monish Darda, along with our leadership team, developed a framework based on our values of Fairness, Openness, Respect, Teamwork and Execution—FORTE—to help everyone at Icertis make decisions to meet the demands we faced.

We call that framework our four rings of responsibility—taking care of self, taking care of family, taking care of community and taking care of business—and prioritize them in that order. We see the Four Rings of Responsibility as our way of amplifying our FORTE values to ensure we do our part to help win the battle against COVID-19.   

COVID’s Impact

Outside of our own workplace, I’ve been speaking with our customers about how the industry is coping with the upheaval. Their experiences map closely with the findings from the ‘How Now? Supply Chain Confidence Indexfrom Procurious that show only 1% of procurement/supply chain professionals felt ‘frozen’ by the COVID crisis. This is a testament to the rate of innovation across the profession and the strong role technology is now playing in helping drive speed and agility within procurement.

There’s no doubt that the pandemic exposed weaknesses in modern supply chain strategies as evidenced by the survey’s finding that 38% of respondents plan to expand their supplier base over the coming months. One of the main lessons that we are hearing from customers and prospects is that businesses need to create stronger, more flexible and diverse supply chains. To do this, it will be essential for businesses to identify areas in their supply chain where efficiency improvements can be made.

Leading brands are increasingly realizing this work starts with contracts, which define how your supply chain runs. By harnessing the critical business information in their contracts, companies can quickly address areas like value leakage and regulatory compliance, while accelerating the pace of supplier onboarding and reducing business risk.

Three Post-COVID Trends

In fact, a greater focus on risk management is one of the three main trends that will positively impact the procurement space post-COVID-19. Risk management used to be an abstract concept in the C-suite, only a concern for the CFO or the audit committee; now it is painfully tangible to everyone in the organization. Every business now recognizes (or should recognize!) that they need to take a programmatic approach to responding to black swan events. This underlines the need for having solutions in place that will allow organisations to clearly understand the risk/reward trade-off in all business processes. For example, being able to identify and manage risk throughout the contract lifecycle, is enabling procurement teams to examine their sourcing strategies to ensure they are not overly dependent on a single supplier. In the current business environment, where unfortunately many businesses are still struggling to survive, having a multi-sourcing strategy in place is a business imperitive.

Secondly, we will see greater alignment between the CFO and CPO. By the nature of their roles, CFOs have always been focused on those technologies that can give them business oversight of income and spending. However, the impact felt by COVID on that cashflow—from supply chain failures to shift in demand—has increased their focus on working with other areas of their organisations to identify and mitigate risk. As a result, they have become more invested in being able to structure and connect all of their company’s contract data, applying Artificial Intelligence (AI) tools to enable them to quickly surface and respond to threats, growth opportunities and challenges.

And finally, it’s well documented that the pandemic has forced an acceleration of digital transformation efforts. Satya Nadella put it best when he observed, “We’ve seen two years’ worth of digital transformation in two months.” It is clear that innovation will take a front seat in the post-pandemic business world. Companies have seen the benefits of having cloud-based technologies and processes such as contract lifecycle management available to them when working remotely. I anticipate that we’ll start to see increased investments across the board as businesses look to protect themselves for future disruptions and reinvent how they do business.

Then beyond digitisation, a greater focus will be placed on investing in technologies that can enable advanced data analytics, so that businesses are able to use this insight to keep out in front. This is where contracts will take a central role, providing more intelligence and connecting to key business processes so they are able to provide the right foundation for growth and evolution, and allow organisations to respond to unanticipated challenges and changing marketplace dynamics. 

It’s been a challenging few months for everyone, but I am more confident than ever that if we keep our four rings of responsibility top of mind and take the lessons learned from COVID seriously, we will look back at this strange time and realise that it transformed the way we do business for the better. 

How Technology Will Make Your Office SuperNormal

Ready for the office of the future? Here’s a glimpse into the technology that will  transform your workplace.


Good morning! Ready for work? Before you leave, take your temperature at home and report it through your work app. Also answer questions about any symptoms you might have.

Then tell the app what time you’ll arrive at work, and away you go.

Smart that you already completed the self check-in, or else you would be stopped by the facial recognition system when you tried to enter the building. 

The staff canteen is open, but you’ll need to use your work app to order your food ahead of time.

When your lunch is ready, you’ll get a text message to come pick it up. The staggered approach keeps crowds to a minimum.

That’s all quite high tech, right? But it isn’t the future; it’s just another day at IBM headquarters in New York. The system, based on IBM’s Watson Works, uses AI to keep people safe and productive.

Keeping the office comfy

Siemens also has an app for staff, called Comfy.

According to the company, Comfy limits the number of staff in the building at any one time. It also helps staff maintain distance at work.

People use it to reserve desks, meeting rooms, and even see office occupancy in real time. 

But here’s where it gets really interesting, the app allows staff to control their environment. That’s right; employees have the granddaddy of all controls – the ability to change the temperature in their immediate workspace.

Using the app, they can control the thermostat and even dim the lights if they want. Imagine how many office arguments that would solve.

“Our priority is to protect our people so they can return to the workplace safely and confidently wherever they are,” says Roland Busch, Deputy CEO at Siemens AG. “By using smart office technologies, we can reshape how we work.” 

“Our Comfy app supports our new mobile working model, by enabling employees to better plan when they choose to work from the office.” 

Call the germ-busters

But once you’re at work, how can you stay safe? There’s no shortage of products on the market aimed at office hygiene.

Like the Hygenx wand from Hamilton Buhl. Simply wave the wand over your keyboard, and the UV-C light will kill bacteria.

Before you rush out to get your own wand, do your research, warns the US Food and Drug Administration.

That’s because there isn’t enough data about how much UV-C exposure your surfaces need to quash COVID-19.

You could always use something low-tech like antibacterial wipes. But where’s the fun in that?

Instead, make sanitising more dramatic with a ghostbuster-style office fogger

Closer to home

Let’s be honest though; many of us won’t be going back to the office for a while. 

And some may not go back at all. Twitter made headlines this year for allowing employees to work from home permanently.

With that in mind, how can technology help you from home?

Well, fear not if you have “Zoom fatigue.” Microsoft Teams’ solution is the new “together” feature, which puts you all in the same virtual room. Say goodbye to squares.

In fact, this same technology is being used to bring fans closer together for NBA basketball games.

Access for all

Technology opens up opportunities for people to work in the way they choose. And companies have no choice but to adapt, allowing people greater flexibility in how they work.

Now, employers have the chance to include all employees by making accessibility the default.

“We must ensure businesses apply the learnings from this period to improve inclusion of people with disabilities worldwide by using the same tools we’re using now to allow this community to participate fully in the workforce,” writes Caroline Casey, Director of The Valuable 500 – a World Economic Forum initiative to put disability on the business agenda.

Jane Hatton, founder of inclusive UK recruitment firm Evenbreak, agrees.

“People are frightened of disability because they think it’s going to be incredibly expensive for all the adjustments,” Hatton recently told the Financial Times. “But in fact they’re simple and cheap.” 

“The technology is there already — it’s just a question of using it in a way that’s inclusive.”

Employers might be surprised to find just how many accessible tools they already have at their fingertips.

Kristy Viers went viral after tweeting a video using the accessibility features built into an iPhone. 

It’s now been viewed over 7 million times.

Work accelerated

As ever, companies will adopt new technology at different rates. So it may be a while before your workplace uses facial recognition, or lets you control the thermostat on your phone.

But there’s no doubt that all companies are on the accelerated track now. In fact, consultancy McKinsey says US ecommerce experienced 10 years worth of growth in the first three months.

The world is changing fast, and technology will be the key to creating a workplace future that works for all of us.

How Some Strategic Sourcing Technologies Fall Short

Moving to a true strategic sourcing plan can bring increased efficiency and huge cost savings. But why do so many fall short of this? Technology is evolving rapidly making many once cutting-edge solutions obsolete. Finding the right fit can be a struggle – this article has everything you need to know about sourcing tech.


Strategic sourcing is not a particularly new concept, but the market is evolving rapidly. Applications have become increasingly sophisticated and in the near to medium term future we will see more strategic spend management via advanced analysis and AI-based sourcing with more “fuzzy” intelligence that increasingly guides the user to the optimum solution.

TechTarget defines strategic sourcing as follows:

Strategic sourcing is an approach to supply chain management that formalizes the way information is gathered and used so that an organization can use its consolidated purchasing power to find the best possible values in the marketplace and align its purchasing strategy to business goals. 

One reason that organizations often struggle to achieve true strategic sourcing is that the tools they are using, such as reverse auctions and eRFXs, which once represented the cutting edge of sourcing technology, are too limited in scope and lacking in integration, both with other procurement modules and with third party software suites. This is especially problematic when it comes to large events and bundling items in which there are many variables and business objectives.

In its recent Market Guide for eSourcing applications, Gartner Group identified four phases of the evolution of eSourcing:

Basic RFQ and RFI (request for quote/information)

This is where things started back in the nineties. Specifications had to be very precise and buyers generally sought the lowest price and/or best delivery availability. Early digital sourcing platforms were primarily designed for indirect sourcing of categories such as IT hardware, computers, office furniture and supplies, where there are multiple suppliers with little differentiation. This worked just as well for non-strategic direct categories (materials and components used in production). Purchasing teams could therefore shop around to find the fastest, cheapest option available, and so long as the tool could take into account cost breakdown models, resource costs, taxes, and one-time costs like setup and onboarding, there was a good chance that projected savings would be realized.

Standard eSourcing 

Standard eSourcing then built on RFQ capabilities to support more complex RFIs and RFPs (request for proposals). According to Gartner, “They are typically used to solicit supplier responses and pricing for strategic spend categories. Specifications may or may not be clearly defined.” At this stage eSourcing becomes more strategic, multiple stakeholders are included in the buying process truly creating a strategic team. The modules are increasingly deployed as part of an entire suite which also includes spend analysis, CLM and supplier management. Also, we see distinct solutions for indirect and direct (or bill of materials (BOM)) categories. As Gartner states, “more advanced analysis and capabilities require integration with PLM and BOM. This is often better suited for vendors that specialize in direct spend or those that support all spend categories.” 

These applications also typically support various auction formats, multi-round bidding, response scoring and proposal analysis. A further aspect is that the detail level of direct procurement requires special capabilities in software, and all of these needs to integrate seamlessly with the ERP/MRP system.

Advanced sourcing optimization (ASO)

ASO is the current state of the art for handling complex category bidding that must analyze large volumes of data points. This is best represented by JAGGAER’s Sourcing Optimizer, capable of analyzing thousands of data points using algorithms to determine the optimal award decision quickly. This makes it suitable for highly complex sourcing events such as multimodal transportation, where there are hundreds of potential scenarios and dozens of rules which buyers use to try to identify a “sweet spot” with the optimum number of suppliers for an optimum number of scenarios. Users do not always know exactly what they are aiming for in such events, as they need to navigate through complexities such as limited knowledge, tradeoffs and time limits.

Artificial intelligence in sourcing

AI-based sourcing is where we are headed. This emerging technology will integrate itself across all aspects of sourcing. In the coming years AI will transform sourcing and will have the ability to automate entire sourcing events. This will be a very attractive option for handling the vast majority of sourcing functions that are high volume-’low cost’ and can be accurately recommended from AI. This will free up professionals’ time to focus on the high value sourcing events as well as the larger sourcing strategy.

One direction that is already clear is the development of preference-based extensions to advanced sourcing optimization, enabling the user to add fuzzy preferences on top of the firm rules already entered. In a transportation event, the AI technology explores possible solutions to narrow in on the best options. The user can go through several iterations to get the ideal result. On top of this advanced decision support, AI-based sourcing will include increased automation, eliminating much of the routine involved in sourcing.

Sourcing for CapEx Events

We have mentioned indirect and direct sourcing, but capital expenditure projects offer a third type of sourcing event with dramatically different requirements. They are project-based, meaning that many different purchase orders and contracts need to be bundled together and tracked against a common project budget. Furthermore, these events are extremely complex and detailed, and they have long timeframes. Projects may last multiple years. Any sourcing platform for CapEx needs to be able to track events over time.

Capital expenditure projects also often involve many different supply bases in one project. Consider a building project that involves a concrete foundation, steel framing, glass work, electricity, and more. Then there’s paving for the parking lot and landscaping for the surrounding areas. It’s essential that the digital tool can track multiple types of expenses in one solution. Plus, many items might be sourced weeks or months in advance. The solution should support this kind of detailed project planning.

For all of these reasons, strategic sourcing is challenging for major CapEx projects. There is also ample scope for the integration of artificial intelligence to predict and reduce costs, schedule and reduce cycle times while increasing customer satisfaction and managing regulatory and CSR data. It is important that all providers should be compliant, and the sourcing process needs to capture this information. Having the right strategic sourcing approach and the appropriate tools to support that are vital.

What are your thoughts on how technology is creating an opportunity for more strategic sourcing? Let us know in the comments!