Here’s 5 ways to make yourself indispensable to your organisation.
Indispensable. I’ve never been a big fan of that word, particularly when talking about the workplace. Indispensable employees can never take uninterrupted time off. Indispensable employees don’t move into new roles. When indispensable employees leave, we try to find their duplicate who can “hit the ground running” so our organisation doesn’t miss a beat. And many times, that replacement ends up disappointing us because we see them as the replacement and don’t look at what they are bringing to the table. That’s because we don’t see indispensable as someone important and needed, but as irreplaceable.
But what if we relook at indispensable to not mean irreplaceable and look at every employee as indispensable, as a needed, valuable part of the team from the moment they walk in the door?
If you felt you were a needed, valuable part of the team, would that change how you walk into work each day? Because here’s the reality: everyone is indispensable. Everyone brings something unique to the workplace. Even the low-skill, skilled trade positions that we sometimes think of as easily fillable. If we start looking at each employee as an individual, we can create a more positive workplace, focusing on the strengths of each employee and what they bring, rather than trying to turn each employee into a clone of each other.
“No one thinks like you. No one has your background. No one has had the experiences you’ve had. No one has your unique talents. There’s no one like you.”
I think there are 5 ways to take advantage of this thought process in your day to day work to not just become indispensable, but to enjoy your work more.
1. Do one thing better than most.
Everyone has something they are good at. Yes, even you. Find that one thing at work that you want to be the go-to person for and share it.
Many times in the workplace, we tend to focus on our weaknesses: where we need to improve so we can be a well-rounded employee. To be indispensable, you can’t be just like everyone else. You need to stand out from the rest. It can be tempting to want to just blend in with the crowd. But I want to encourage you to stand out and share where you shine.
Become the go-to person on that subject or process. In doing this, you will find the other go-to people to partner with and get the job done.
2. Be reliable.
Do what you say you will do. You need to be trust-worthy. Communicate clearly on deadlines and expectations. Follow-through is key. One thing I’ve learned is that you also need to update, even if you feel like there’s nothing to add. We need to get out of “no news is good news.” Get in the habit of providing regular updates to let those on the team know what’s happening – even if it’s just to say, “No updates at this time, but everything is progressing as it should.
When people know they can count on you, they will bring you new, interesting things to do because they know you will get it done.
3. Share information.
Create information channels. Many times people will keep knowledge to themselves; but this isn’t about being indispensable, this is about being irreplaceable.
“Indispensable employees are the jacks-of-all-trades, and they do not necessarily want to hold all of that information in. Instead, they desire to share institutional knowledge with coworkers, and gain an understanding of their coworkers and their organisation by doing so.” (Lifehack.org)
While this may seem to contradict the first recommendation, it doesn’t. Sharing knowledge creates a stronger team.
You want to be able to take time off, undisturbed, so the truly indispensable employee ensures others have the information they need.
4. Know the business.
Understand the big picture. Every industry is different, just as every profession is different. Many times, you can work across many industries if you are good at your profession. But you will find that hiring managers like it if you know the industry. Understanding not just what your organisation does, but the purpose of the industry and how your role fits into the industry will help you find your niche to better articulate your indispensability.
Become a student of the industry and find out what sets your organization apart. Share with others.
5. Be curious.
Find creative solutions. Most breakthrough discoveries happen because of curiosity. Great things happen when someone asks Why or What If.
“When our curiosity is triggered, we think more deeply and rationally about decisions and come up with more-creative solutions. In addition, curiosity allows leaders to gain more respect from their followers and inspires employees to develop more-trusting and more-collaborative relationships with colleagues.” – Francesca Gino, Harvard Business Review
There you have it: 5 ways to make yourself more indispensable at work. Each person can take a few steps to not only improve your career personally but also within your organisation. If we start to think about being indispensable about being needed, wanted in the organisation rather than the idea that you can never be replaced, we’ll also have a healthier organisation.
As 2021 dawns, it’s time for a new-look site with new capabilities for a new era – find out how it can help you catapult your influence.
There are so many benefits to increasing your network and influence. It won’t come as news to you that it helps to advance your career … but did you know that having more influence actually helps to increase the value you’re able to negotiate?
Think about it: people with more influence always get more – more deals, more access, more benefits – which prompted us to offer you more. After all:
Influence = value
In 2014 we created Procurious to help professionals like you grow their network and increase their influence, and it’s served our community well. Now, after what has been a remarkably challenging year, we felt it was the perfect time to enhance, upgrade and refresh the platform to help you achieve this, so we’re excited to share some of the updates we’ve been working on …
1. More tools to connect and grow your professional network
We believe one of the most important aspects of our profession is the development of strong relationships and a diverse network. This has always been at the heart of Procurious and has been a key focus for the new platform.
By introducing new features such as live-chat and profile additions like skills we’re making it easier to find, connect and collaborate with like-minded professionals.
2. Enhanced micro-communities and groups
Whether you’re sharing a valuable resource, discussing an idea, establishing a think-tank or reflecting and asking for feedback on a recent experience, Procurious has you covered!
We’re always looking for new ways to support the activities that help you and your team learn, grow and achieve excellence, and the upcoming enhancements to our groups and discussions are no exception.
3. New and convenient ways to find and participant in live events
We love assembling our community to share and discuss new ideas, important trends, emerging challenges and exciting opportunities, and our new approach to events aims to make this easier and more powerful.
With simplified search and registration, event specific community feeds, upcoming session alerts and integrated live-streams, we’re looking forward to helping everyone in our community to make the most of these opportunities to connect.
Procurious is here to help you take control of your procurement and supply chain career. The more you give, the more you get, so be generous: together we can all move forward through Procurious.
If you have any questions at all about Procurious, please get in touch at [email protected]
We successfully leveraged the COVID-era attention we got – now how does Procurement remain relevant and authoritative in the long term? Alex Saric shares how to build the influence to make your presence felt.
The pandemic has had widespread adverse effects, from health to finances to education. Yet for procurement leaders it has also been an opportunity to shine. As supply disruptions, cash flow and protecting margins became boardroom priorities and front page news, procurement was called upon to save the day. And for the most part the function has risen to the challenge. Companies and citizens should be thankful.
Yet to capitalise on their moment in the sun and remain on the board meeting agenda, CPOs must demonstrate how they can contribute long term value as well; how they can help companies restore growth via innovation; how they can improve the brand by driving CSR improvements; and much more. To do so, CPOs have to build their influence within the organisation.
Influence is Essential
There are a couple of reasons for this. First, the more strategic objectives procurement can support increasingly involve other departments and/or suppliers. Supporting company cash objectives requires collaboration with finance. Driving innovation requires collaboration with production, sales and suppliers. Sustainability often must be aligned with related departments and involves supplier collaboration. For that alignment and collaboration to take place, influence is key.
Second, increasing procurement’s impact requires transformation, with accompanying investments in people and technology. Digital transformation helps free capacity via automation, improve decision-making with better access to insights and scale collaboration by connecting stakeholders. The number one obstacle identified in a Forrester Survey to getting a digital transformation off the ground is executive buy-in / budget. Influence is essential to overcoming that initial obstacle.
The successful path to building that influence will certainly vary based on the organisational culture, individual personalities and other factors. That said, there are some common factors I have found to be important.
Sell the Vision
Too many organisations don’t comprehend how procurement can add strategic value and contribute to many objectives. It is essential to craft and clearly articulate a compelling vision for procurement and the various ways it can add value. And not just the what, but the how and the path to get there, including tangible benefits that can be achieved at each stage. Particularly in times of crisis, there will be resistance to any vision that requires years of investment to see the results. Explain precisely how procurement can deliver on or contribute to each objective, what’s needed and the timeframe.
When presenting the vision you should be simultaneously making the business case for necessary investments. You are selling your vision: remember that the best sales people understand how to speak to (after first listening to) their audience. There are a few “tricks” I’d recommend. First, build the case from the bottom up. The ROI on procurement investments is often tremendous and leaders naturally balk at a large top level number. But by explaining each value driver separately, each with a small contribution that seems logical and is easy to accept, you can build up the overall number in a way that leaders understand and accept. Show the typical range of benefits for each driver (vendors or consultants can help you with this information) and lean towards the low end on most, to avoid setting goals you may not achieve and increase executive confidence in the overall ROI.
Second, focus on value drivers that will resonate based on your current organizational pains. If cost containment is top of mind for the board, explaining how investments will bring more spend under management and the typical savings on each dollar that is managed is a logical place. For others, minimising supply disruptions or compliance costs may be top of mind. This helps the message resonate.
Lastly, back up the business case with example of companies (ideally competitors) that have achieved this. That plays on human emotion – anecdotes resonate and no one wants to feel their competitor is outdoing them. Together this approach is very likely to result in a convincing business case supporting your vision.
Show them the Money
Painting that clear vision is essential, but can damage your influence if not followed through. Hence, it is key that you deliver quick wins to demonstrate the potential, thereby building organisational support and credibility. Be sure that is built into your plan. What those early wins should be will vary by organisation. For some, it may be key to drive some quick savings. For others it might be improving visibility in the supply chain so they’re not disrupted and dealing with some of the issues they’ve had during COVID. By showing early progress against your vision, you will gain tremendous credibility as a trustworthy partner. You can then scale up over time, to more processes, objectives, spend, etc.
I have found that demonstrating certain values is as important as demonstrating results – you need both. Top of the list for me is ownership. If procurement is to build its influence, it needs to take ownership of objectives. Naturally, procurement will rarely be able to control everything required to succeed. That lack of control is often an argument against taking ownership. Resist any such pushback. Yes, there is risk to taking ownership of a result you can’t fully control. But the real risk is failing to deliver because of internal confusion. I’ve seen far too many initiatives fail because no one felt ownership and hence no one stepped up to steer the effort and course correct when needed. Building a culture of ownership, in procurement or any other function for that matter, is key to building influence. Your team won’t lead if they don’t feel a sense of ownership. If they do, you will establish yourself as the go-to team for strategic initiatives.
Less controversial but equally important, is demonstrating integrity. The more success depends on others, the more integrity is key. We may have moved to a heavily virtual workplace, but relationships are still key to success in many areas, especially building influence. Unless your team demonstrates integrity in every interaction, you will struggle to build influence. This depends more on your people than any policy of course, so it’s harder to fix if an issue exists, but leaders must insist on it and jump on any potential shortcomings.
Building influence is an art, not a science. If procurement is to make its move from the backroom to the boardroom permanent, CPOs will need to master it. For all its horrors, the pandemic is a rare opportunity to elevate the function. By painting a clear, compelling vision, effectively executing against the first stages and demonstrating the right values, CPOs will be well positioned to do just that.
Category management is still misunderstood as a specific function in procurement. While understanding the category is important, the focus should be on the word “management”: managing internal stakeholders, understanding their needs, and managing suppliers by understanding their needs to find win-wins, generate value and ensure continuous improvement.Jaggaer’s Georg Roesch explains.
Category management is not a difficult concept to grasp. Really. Just answer the following question: Which do you prefer: a) shoddy or mediocre goods and services at high prices, or b) excellent value? When it comes to execution, however, things get a lot more complicated. Category management is a technique used to understand markets, analyse spending, and make good purchasing decisions that save you money while securing quality goods and services.
If you are new to the subject, there are many tactics, but a common one is to start with bundling items to take a bigger deal to market in order to be in a better position to negotiate a better price. One of the most popular and accessible books on procurement poses the question that goes to the heart of category management, and very simply: Why are hot dogs cheaper in IKEA than in the supermarket?
That’s all well and good, but IKEA sells a standardised range of products through near-identical superstores all over the world. It makes total sense that it bundles everything it buys from hex keys to drapes to hot dogs and gets a fantastic deal. What’s not so easy to understand is how that works for a company whose products are highly sophisticated and/or non-standardised. Take, for example, the Swiss company Bühler. Each day, two billion people enjoy foods produced from raw materials such as grain, coffee and rice processed on Bühler equipment; and every day one billion people travel in vehicles manufactured with parts produced with Bühler machinery. But the important point here is that every single machine that Bühler produces for its customers is unique. In that sense it is the absolute antithesis of IKEA.
Yet in another sense, it faces a similar challenge. The global orientation of the company’s products, its presence in 140 countries worldwide with 20 business units, 30 manufacturing sites, 100 service stations and 25 application sites mean that sourcing is a global operation – and for Bühler, category management is crucially important to business success. And it is incredibly complex because, whether Bühler is producing air pressure systems, silos, compressors or steel constructions, the company always sources for specific projects, which means there is a huge range of differentiated categories.
Of course, companies like Bühler want to minimise spend, but for companies that believe “you cannot put a price on quality”, category management has many other dimensions.
A misunderstood term
Category Management remains a largely misunderstood term. The confusion arises in the fact that it was originally coined by marketers in the retail industry: Nielsen defines it as “a process that involves managing product categories as business units and customising them [on a store-by-store basis] to satisfy customer needs”. Others define it as managing a line of products as a business unit, as opposed to individual brand management.
Only later did the term get adopted by procurement, where it is defined as “a strategic approach to procurement where organisations segment their spend into areas that contain similar or related products, enabling opportunities for consolidation and efficiency” (CIPS). Many procurement professionals might argue that this is what procurement has always done: understanding markets and looking for ways to strike a good deal. However, what category management as a distinct activity and organisational structure brings to the table is greater depth and sophistication.
A category is basically any group of similar items that you want to buy under a single deal: goods and services that are available from the same or a similar supplier base. Examples are stationery, fuel, travel services, transportation and logistics, advertising and legal services. But we should focus more on the management part, which is about applying robust methodologies (and a good deal of business acumen) so that you not only maximise savings (for example by designing the right sourcing events that are appropriate for each category) but also achieve other goals such as shortening time-to-market, reducing risks, increasing environmental sustainability, broadening supplier diversity or even creating new revenue streams. All of this implies a much stronger connection between the procurement function and the organisation’s strategic objectives and even its mission, vision and values.
The key to effective category management here is understanding the internal customers’ needs, as well as what’s going on in the supplier market. Category management is by its very nature a role that is normally a center of excellence, but it must be responsive to local needs and win stakeholder buy-in. To be successful and to command respect, a category manager must know how to leverage internal knowledge and expertise and must be able to work cross-functionally. In practice, this could involve, for example, involving key stakeholders such as operations and quality control managers – and in the case of strategic suppliers, senior executives – on factory or site visits to build confidence that suppliers have what it takes (human and technological resources, financial strength and resilience, physical size of the business etc.) to satisfy everyone.
Time-to-market, for example, has become a decisive factor in the success or failure of a product, and in particular, the launch of a new product. Category managers can play a critical role in reducing lead times, as long as they are involved in the production process early on. For example, the lengthy request process for customised parts can be drastically cut down with excellent supplier communication supported by the right IT tools. To ensure that the price of a material or a part is not the only deciding factor in their selection, the category specialists need to look for further streamlining potential in purchasing and striking the right balance between stimulating competitive pressure on suppliers and consolidating spend.
In practice, you might for example negotiate a bonus to suppliers for beating the delivery deadline, or a penalty for missing it. With the emphasis on the former: the best category managers treat suppliers as partners, rather than people you need to beat up on price. In a complex category such as transportation, category managers should seek to balance savings with objectives such as reliability and operational integrity. The outcome should be a win-win for buyer and seller alike. Often the best way to do that is to keep the strongest incumbents on good rates while leveraging smaller operators who offer great performance.
If category management can achieve all of the above, it will succeed in raising the profile of procurement across the organisation, changing the perception from a functional, operationally focused activity to a business process. As well as making breakthrough savings, the organisation will notice improvements in service levels, quality, availability and value for money, and a reduction in disruptions to the supply chain.
The supplier’s perspective
Understanding things from the supplier’s perspective can be approached scientifically and systematically. Just as we are accustomed to plotting suppliers on a matrix to assess their status (as strategic, tail spend etc.) so a category manager should do the same from the supplier’s point of view, which means plotting Attractiveness of Account against Relative Value of Business. Suppliers see their customers as falling into one of four basic categories:
Nuisance: The customer has driven a very hard bargain on price and is highly demanding, which gets in the way of my other business. I have no incentive to compete for their business in future and am not motivated to give them good service.
Growth:The customer is not profitable right now, but the account is worth developing as I expect bigger opportunities. So, I will show willing and “use a sprat to catch a mackerel”, as the saying goes.
Profitable:The account can bring me potentially huge gains in the short term, but I don’t see it going anywhere. I will respond to requests but get the best price, even if that means losing the account. So, let’s make hay while the sun shines.
Core: I value this relationship. It’s profitable in the long term, so I will do what’s necessary to give excellent service in order to beat off any competition. That means I have an incentive to work collaboratively with the customer to reduce costs, innovate and add value.
Whereas strategic sourcing will tend to recruit new suppliers into the “growth” segment, the job of category management should be to move them into “core”. This requires category managers to develop the ability to walk in the supplier’s shoes. And once again, this will require cross-functional stakeholder engagement across the organisation so that both parties understand each the other’s needs in greater depth, appropriate training and joint activities are arranged, etc.
In this way the initial savings secured through sourcing will not be eroded over time; on the contrary, the benefits will be extended as the relationship matures. Both parties have an incentive to look for ways to reduce costs and increase value, e.g. through process improvements, which typically drive year-on-year benefits equivalent to around 5% cost saving with each renewal.
Above all, category management is a continuous process, and one that is multidimensional. Therefore, it is not always easy for mere human beings to grasp in all its aspects. Increasingly, category managers are relying on business analytics and artificial intelligence to undertake continuous analysis of market data and supplier performance against benchmarks to deliver a range of benefits across multiple inter-related projects. The future of category management will be a matter of harnessing what advanced analytics is good at to what humans are good at. If you’re interested in hearing more on category management and how to effectively digitize the process, tune into our webinar with The Hackett Group and AstraZeneca! We’d love to hear your thoughts in the comments!
With the world economy in such a state, layoffs, redundancies and furloughs are commonplace – but even so, you can appear indispensable to your organisation.
There’s no denying that this year has been a year that will be remembered, and definitely not for the right reasons. Many of us know of, or personally know, someone who has lost their job, which is unsurprisingly given that more people have lost their jobs this year than during the Great Depression. Fortunately, many of us in procurement and supply chain have been protected thus far, but we do not know for how long. So is there anything we can do to ensure we keep our career on track and avoid being laid off?
When you work for large corporations as many of us do, it can be easy to feel powerless against a potential redundancy. But rest assured, there are a few significant things you can do to keep your career (and your job). Here’s what you can do to keep afloat when everyone else seems to be on the sinking ship:
1. Be visible
In a perfect world, you would be judged on your work and your work alone. But career success requires so much more than that: to learn and grow, you’re also expected to volunteer for extra projects and committees, network, pursue development opportunities, and so much more.
Doing so makes you more ‘visible’ to more people, but it also makes your effort far more visible. And ultimately, if more people value you and your input, it’s more likely that if the time comes to lay people off, your job will be seen as essential.
Of course, visibility has taken on a whole new meaning this year. You may not be able to show up in person anymore, but if you’re looking to keep your career on track, volunteer for that committee you might have skipped in the past. Be as engaged as possible, even when meetings bore you. And make time to connect with colleagues, even if it’s just for a quick social video chat.
Work is not a popularity contest, but the more connections you have, the more likely you will be to stay.
2. Be optimistic
Being optimistic in this environment is challenging at best, impossible at most. And why should you bother? It’s doom and gloom for most of the world for the foreseeable future, with no real end date.
Could optimism actually help your career, though? Science says yes.
When a company is considering layoffs, they will consider how much work each individual or department needs to do. If you’re optimistic and great to work with, you’ll likely get the lion’s share, and will be less likely to be able to be replaced.
3. Support your leader
When times get tough, it’s tempting to make an enemy out of your boss. After all, they often have a say on whether or not you’ll keep your job, and sometimes are in the terrible position of having to deliver you the bad news – while keeping their own job, which can feel crushingly unfair.
Yet if you’re looking to keep your career on track during a recession, going dark on your boss is not advised.
Managers, just like everyone else, suffer through recessions and not many (if any) enjoy laying people off. Recognising this, and showing empathy for them, can help create an important emotional bond. In turn, this bond will help them see you as mature and resilient, and hopefully, all things being equal, an asset to the company, and one that is not easily replaced.
Keeping your career on track in this economy is certainly a challenge, and sometimes you simply go into survival mode. But remember, you’re not powerless. There are things you can do every day to show how invaluable you are to your company, so next year – hopefully – you can not just survive, but thrive.
With digitisation focused on Operational and Tactical aspects of function, and the next wave predicted to focus on technology that enables Strategic work, what are the implications for our future Category Manager’s skillset? Gregory Romney shares his expertise.
In a recent post, I made the observation that in large part the Procurement digitisation that has happened over the years has been focused on the Operational and Tactical aspects of the function (i.e. Buying, Sourcing). I also made the prediction that the next wave of Procurement digitisation will be more focused on technology that enables the Strategic work that organisations still struggle to prioritise. If I’m right, this will have significant implications on the skills that will be required to be successful in the role of a Category Manager and poses a fundamental question:
What is the future role of a Category Manager and what skills will be most important?
I’m not sure the answer to this question really differs all that much from what we would see on most aspirational job descriptions today, however, there won’t be any room for compromise. Future success in the Category Manager role will be dependent on the ability to closely mirror the skillsets of 3 roles: Strategist, Advisor, and Broker.
Similar to a game of chess, a strategist has a well defined plan in where he/she knows the the steps necessary to win the game, or in this case to bring the most value to the organisation both from a traditional bottom-line perspective, but top-line as well. As a Strategist, deep understanding of strategic frameworks will be required and their practical application for the category the CM supports. Additionally, sharpened data analytics capabilities will be increasingly important. However, the most important skill the Strategist will have is the ability to interpret the analysis, “connect the dots”, and then effectively communicate this internally to key Business Partners & Stakeholders. This leads me to role #2.
I recently read the book The Trusted Advisor by Robert M. Galford and it expounds upon 3 core skills that are key to becoming an Advisor: earning trust, giving advice effectively, and building relationships. I believe it sums up perfectly how to transition from playing the Strategist role to the Advisor role. The activity of “advising” may sound more familiar when you use it in the context of engagement with internal Business Partners. According to a study conducted by CAPS Research, only 24% of organisations consider their advisement or engagement Strategic, meaning it is highly collaborative and proactive, there are shared dashboards between Procurement and the Business Group they support, as well as aligned metrics. Despite such a low percentage of Strategic engagement, the study did find that 72% of engagement was Transitional, meaning engagement was increasing, and Business Partners were engaged with the category strategy. This certainly is a positive trend. The reason I believe achievement of Strategic engagement or advisement with our Business Partners is still so low is due to the fact that this work looks very different from the Tactical and/or Operational work that Procurement teams have been tasked with managing historically. However, if we are able to make the transition to “Advisor” successful, it will open the door to significant opportunities that Procurement is already well-suited to help deliver due to role #3.
Most Category Managers play this role decently today and in most cases have sufficient skills to broker deals between the company he/she represents and its suppliers. We have tools and well-defined processes to help us in this role, however, most of the deals that CM’s are brokering today are focused heavily on delivering value in form of cost reduction and less in the form of supplier innovation that can impact the top-line. In order to capture this form of value from the supplier base, a Broker needs to truly be willing to learn from the supply market and foster an environment within his/her own organisation so that they are prepared not only to receive, but act upon the supplier-led innovation. The skillset required in this type of deal brokering is different from what we have traditionally done when playing this role and so will the tools that we leverage to enable this activity (hint: eSourcing will not be the optimal tool from the toolkit for this kind of brokering). A perfect example of this is found in the recent announcement from Coca-Cola European Partners (CCEP) in regards to the introduction of CanCollar, a sustainable paperboard packaging solution, for multipack cans in Spain. Through collaboration with its packaging supplier WestRock, the company projects that the new solution will save more than 18 tonnes of plastic annually and has invested €2.6 million in its Barcelona plant in order to support the initiative. Hats off to the Procurement team that I’m sure was intimately involved in brokering this deal!
As I mentioned earlier, these roles at face value are not a drastic shift from what Category Managers are being asked to play today, but if we are honest with ourselves and the members our organisations, there are very few that excel in one let alone all three. This is the capability gap that Procurement faces and in a parallel there is a Technology gap to help enable it, both of which will require an overhaul across a myriad of current mindsets, practices, and investments.
This is why I predict the future wave of digitisation will be focused on empowering the Procurement function across these 3 roles and I’m confident that the function, as well as the supply market, will rise to the occasion and make the necessary changes to address these gaps. In doing so, I’m hopeful Procurement will become a profession of choice not mishap.
Agree? Disagree? Please share and let me know your thoughts in the comments section!
A new survey of 500+ professionals reveals where procurement must focus to establish leadership and earn executive trust.
Procurement: it’s your time to lead. New research from Procurious and Coupa, released today, reveals that nearly two thirds of professionals have seen trust increase with the c-suite over the past three months. Similarly, more procurement leaders report having a seat at the executive table today compared to May, when we asked the same question as part of our Supply Chain Confidence Index.
“Procurement leaders continue to step up and executives are taking notice,” said Tania Seary, Founding Chairman of Procurious. “Procurement plays a critical role in navigating the uncertainty we face today. The function’s stellar performance opens the door for more – more recognition, trust, and opportunities to lead. It’s time to take advantage.”
Procurious and Coupa surveyed over 500 procurement and supply chain professionals in July to assess the state of the function and what’s on tap for the second half of 2020. Reflecting on procurement’s strategic position within the organisation, just one-fifth (21%) report that they are still being viewed tactically internally. While that number is still higher than we’d like, most would agree that for a function that’s historically struggled to stand out and get the recognition it deserves, we’re moving in the right direction – in a big way. Consider that over the past three months, only 7% said they did not see trust increase between procurement and the c-suite.
“Procurement today has a clear opportunity to capture our seat at the table. The findings of this survey highlight how important it is for us to think strategically and ensure our objectives are aligned to the board and our peers in the c-suite,” said Michael Van-Keulen, CPO, Coupa. “We must step up to help our organizations not only control costs, but also mitigate risk, maximize value, and increase the agility needed in today’s business environment.”
These results build off Procurious’ research findings from earlier this year. “In June, we uncovered clear indicators that the c-suite was paying more attention to procurement and supply chain. This trend is accelerating as executives recognise procurement’s unique and essential position in the ongoing recovery,” said Seary.
Procurement leaders looking to capitalise on this newfound opportunity should focus on delivering results that increase resiliency and continuity, and improve the bottom line. According to our research, the top three areas the c-suite wants procurement to contribute to are mitigating supply risk (70%), containing costs (69%) and driving business continuity (64%).
“At first glance, we’re seeing a back-to-the-basics approach for procurement teams, with a laser focus on savings, spend visibility, resilience and risk mitigation. However, when you step back you quickly realise this approach is anything but traditional. The desired outcomes may be similar, but companies are investing more strategically, aggressively and intentionally,” commented Seary.
Second Half Procurement Priorities: Controlling Costs and Risk
Procurement’s top three priorities for the second half of 2020 are similar to what we referenced above: containing costs, mitigating supply chain risk, and supplying the products and services needed to maintain operations.
Naturally, managing supply chain risk remains front and center for organisations across the world. But risk takes on many different forms. What are executive teams most concerned about right now? The top five areas, in order of concern, are:
· Operational risk
· Supplier Risk
· Business environment risk
· Reputational risk
· Cyber risk
Interestingly, the most prominent risk differs geographically. In North America and Asia Pacific, executives are most concerned about cyber. In Europe, the primary concern is operational risk. Either way, stronger investments in supply chain risk management will undoubtedly become one of the lasting marks of COVID-19. Mature procurement teams will never take supplier health, collaboration and risk lightly again.
When it comes to business risk, there’s often more than meets the eye. The survey also found that more than 80% of organisations have significant gaps in spend visibility, which is its own risk. This finding poses an important question: How can procurement teams lead and control supplier risk if they lack full visibility into where money is being spent?
Equipping Procurement to Lead and Thrive
Looking at the next 6 – 12 months, economic uncertainty was the number one concern for survey respondents, followed by cash and risk. Given the stakes – and procurement’s proven ability to add value in business-critical areas, including risk, resiliency, and cost containment – the majority of organisations (93%) are investing big to propel procurement forward. The top three investments organisations are making in procurement leadership are:
· Data and analytics
· Talent development
“COVID-19 continues to act as an accelerant for procurement transformation. The business case is right in front of us, and organisations are investing accordingly.” said Seary.
While organisations are finally stepping up to fund procurement initiatives, the function still has an important role to play to shape the future.
“We need to ensure the investments are strategic, and not tactical. We need to set the agenda, and ensure the c-suite’s vision for procurement is aligned with what we know is possible. It’s our time to lead, and we need to do it right,” said Seary.For more insights – including details on procurement priorities, operational gaps, investment strategy, supply chain risk and more, join Procurious and get the full report:Procurement’s Time to Lead.