Author

Nell Walker

Published

14 November 2024

Estimated Read time

6Mins

There were many inspiring themes on peoples’ lips at DPW Amsterdam 2024, including collaboration. One of the major reasons procurement…

There were many inspiring themes on peoples’ lips at DPW Amsterdam 2024, including collaboration. One of the major reasons procurement professionals flock to DPW is the opportunity to learn from their peers, strategise with them, and make connections in order to partner up and grow. We sat down with Dr Matthias Dohrn and Sudhir Bhojwani, business collaborators of several years who prove the benefits of coming together for growth.

Dohrn is the CPO of BASF, a global chemical company, making him responsible for direct, indirect, and traded goods. Prior to this role he headed up a business unit – and things weren’t going well. It got to the point where the question of how to drive performance became a priority. The business needed to consistently drive value, not just be, in Dohrn’s words, a “one-hit wonder”. 

“I’ve been in a lot of meetings where people come together and say, ‘we should do something’ – but the next month, you have the same meeting and nothing has changed,” Dohrn explains. “Structuring an organisation in a manner that really drives and extracts value, that’s key.”

This eventually led to meeting with ORO Labs and asking how it could help BASF build a solution that enabled the growth it needed. Sudhir Bhojwani, CEO and Co-Founder of ORO Labs, knew Dohrn already from his SAP Ariba days He even credits him with explaining what ‘supplier management’ means. When he co-founded ORO Labs, his team wanted to focus on being a procurement orchestration platform and build smart workflows. 

“When Matthias was running his business unit, as he mentioned, he had this Excel-based process where he was running thousands of measures,” Bhojwani explains. “It was an interesting process. We let him know that our workflow could solve his problems way more efficiently. So we worked with this business unit at that time and saw some positive results. Roughly a year later, Matthias took over as CPO and wanted to bring in the same structure that we’d implemented at the business unit, but on a bigger scale.”

Kicking off the project

Getting this project off the ground meant having a business case, first and foremost. This required actually sitting down with the people who do the ordering, because procurement needed to understand the options it had. “So, with every plant in BASF – all approximately 150 of them – we had to talk to them, and look at the individual spend of each plant,” Dohrn explains. “This included direct procurement of raw materials, energy, logistics, indirect spend for services, and so on. Then we had brainstorming workshops, generating between 30 and 50 improvement measures per workshop.

“Then, because it’s bottom-up, you bring in the performance management tool to prioritise the measures. Then you go through the business case and confirm the value. As these measures go through the implementation levels, it’s very satisfying because you can see how you’re making progress in driving value every day. The people who own the measures set the timeline themselves, and there are incentive schemes behind the best ideas.”

Driving value to motivate people was a priority from the start, and something BASF discussed with ORO Labs early on. People are able to see the status of their measures thanks to ORO Labs, which means they’re able to see the results and also see other peoples’ great ideas. “You create a wave of people who are driving value, much faster,” Dohrn adds. 

Addressing the challenges

From Bhojwani’s perspective, there were multiple challenges when approaching BASF’s requirements. Fundamentally, ORO Labs was building a brand new workflow, as BASF required a very different take on what that means. ORO understanding how that translated to what BASF needed was the first challenge.

“We needed to understand the structure Matthias has, and what the work streams should look like,” Bhojwani explains. “We had to figure out how to model these work streams within our tool in a way that made sense. An indirect work stream is not the same as something in direct material; those things are very different. So here’s where our workflow tool worked quite well. We could customise how direct material work streams should behave, compared to indirect work streams, how country A should behave compared to country B, and so on.

“It was important that we could bring flexibility, and that we could solve workflow problems in innovative ways. Another challenge was the user experience part. We had to make sure that the system worked for everybody, otherwise nobody would participate in the system. We had to keep working on it, keep fixing it, and that took a good 18 months of tweaking. The biggest thing has been understanding how BASF actually generates value, and how a workflow can help. It’s been very interesting.”

Identifying the value

Collaborating with ORO Labs has unlocked an enormous amount of value for BASF. Dohrn has seen the business come together thanks to the work that was put into communicating and collaborating with every site across businesses and functions, and BASF is continuing to conduct workshops for further improvement. There’s also, of course, the EBIT being gained from the business cases, putting BASF on track to generate sustainable savings.

“There’s been a real mindset change,” Dohrn states. “We’re now really focused on value, and we’re using this ORO Labs tool to hold each other accountable. You can see the progress every day. We call it the iceberg because you can see below the implementation levels. Everything starts off below the water line – no value created yet, just potential. Then you see it moving beyond the zero line into the positives, and every day I can see the difference between now and yesterday with just a click. It’s so fulfilling to see what we have created.

“We’re able to see the interaction with the plants, the interaction between people, and interaction with the requisitioners, and we can create something positive together. I think that’s huge. It’s only going to bring more and more value over the next few years. People are used to the tool now, they find it easy. It has created value and everyone’s happy because the cost pressure on the plants has gone down.”

Author

Sean Galea-Pace

Published

Estimated Read time

6Mins

Tonkean is built differently. Tonkean is a first-of-its-kind intake and orchestration platform. Powered by AI, Tonkean helps enterprise internal service…

Tonkean is built differently.

Tonkean is a first-of-its-kind intake and orchestration platform. Powered by AI, Tonkean helps enterprise internal service teams like procurement and legal create process experiences that transform how businesses operate. The transformation hinges on four key functionalities, intake, AI-powered orchestration, visibility, and business-led configuration (no-code), which internal teams leverage to use existing tools better together, automate complex processes across teams and tools, and empower employees to do better, higher-value work. 

Jennifer O’Gara is the Senior Director of Marketing, Director People and Talent at Tonkean. O’Gara’s route into procurement came when Tonkean became active within the space. “While we initially focused on solving complex process challenges across entire enterprises, we quickly realised how much procurement could benefit from this approach,” she explains. “Procurement processes are inherently complex and collaborative and cross-functional, making them a perfect fit for Tonkean’s orchestration capabilities. We were right. Since we entered the market, we’ve been blown away by how enthusiastically process orchestration has been received. That’s keeping us excited about procurement.”

This year, DPW Amsterdam 2024’s theme was 10X, with a focus on the importance of companies aiming for a moonshot mindset instead of an incremental approach. As far as O’Gara is concerned, achieving 10X improvements in performance is within reach for procurement, but it requires a shift in how the function thinks about growth. “It’s not just about doing more of the same faster—it’s about fundamentally rethinking the processes that drive your business,” reveals O’Gara. “Your processes are like your company’s infrastructure. When you optimise at the process level, you don’t just create incremental gains; you can fundamentally transform the way you operate at scale. You can remove bottlenecks permanently, facilitate easier collaboration org-wide, and drive true, reliable automation across all your teams and systems. The result is exponential performance improvements that can be sustained over time. Aiming for 10X isn’t just a lofty goal—it’s achievable. The key is focusing your improvement efforts at the process level.”

However, the journey to 10X isn’t straightforward. Some organisations believe they can just layer new technology on top of old processes. According to O’Gara, this won’t unlock 10X growth and will still leave your company lagging behind. “Getting to 10X starts, instead, with building better processes—and moving away from the idea that any one technology will do the trick,” she says. “For example, AI. AI is powerful, but it’s just a tool, and it’s only valuable if used strategically. To truly unlock 10X improvements in performance, you need to integrate technologies like AI into your core processes in a way that’s structured, strategic, and scalable. You will only ever be as innovative or adaptive or as effective as your processes are dynamic, dexterous and dependable. How do you build better processes? That’s where process orchestration comes in.”

Process orchestration refers to the strategy — enabled by process orchestration platforms — of coordinating automated business processes across teams and existing, integrated systems. These processes can facilitate all procurement-related activities. Importantly, they can also accommodate employees’ many different working preferences and styles.

Instead of simply adding to an organisation’s existing tech stack, process orchestration allows companies to use their existing mix of people, data, and tech better together. One promise of process orchestration is to finally put internal shared service teams like procurement in charge of the tools they deploy.

This goes a long way towards solving one of the enterprise’s most vexing operational challenges: the inefficiency of over-complexity born of too much new technology. It also allows procurement teams to truly make their technology work for them and the employees they serve. As opposed to making people work for technology. Process orchestration breaks down the silos that typically separate working environments. No longer do stakeholders have to log in to an ERP or P2P platform to submit or approve intake requests, just for example. The technology will meet them wherever they are.

“It helps you create and scale processes that can seamlessly connect with all of your existing systems, databases, and teams, while accommodating the individual needs of your employees and meeting them in the tools they already use,” adds O’Gara. “Orchestration allows you to automate processes across existing systems—like ERP, P2P, and messaging apps—so data flows automatically between them. It allows you to surface technologies like AI when and where they’re most impactful for stakeholders.”

Speaking of AI, it remains one of the biggest buzzwords in procurement. Indeed, anything that offers Chief Procurement Officers cost savings and efficiency will prick their ears, but the question remains: can the industry fully trust it? O’Gara believes it is ‘overhyped.’ “When it first emerged, it wasn’t just seen as a new tool—it was almost treated like magic,” she explains. “The hype still hasn’t died down, and that’s been a problem. It’s created unrealistic expectations and skewed perceptions of what innovation with this sort of technology actually entails; I can’t tell you how many procurement leaders have admitted to us that they’re getting pressure from the C-suite to invest in AI-powered tools just because they have ‘AI’ in the name.”

While clear with her scepticism regarding generative AI’s current place in the market, O’Gara recognises its potential. “Generative AI’s potential is huge—especially if it’s deployed strategically at the process level,” she reveals. “It could truly transform procurement, shifting teams from transactional roles to strategic partners who are involved early in the buying process and appreciated for their unique expertise—and for the unique business value procurement alone can deliver. But AI on its own isn’t going to save procurement. The reality is, many organisations jumped into the AI hype without a real strategy, and that’s why they haven’t seen its full value yet. The key is integrating AI thoughtfully into core processes—that’s when we’ll start seeing its real potential.”

With an eye on the future, O’Gara expects the next year to continue to revolve around AI adoption, but in ways that deliver real value. “I think we’ll see procurement truly stepping into a more strategic role, with businesses recognising procurement as a key partner, not just a back-office function,” she says. “This shift will be driven in part by new technology, especially process orchestration and AI, helping procurement bridge gaps in communication and collaboration across teams. Another big trend will be the rise of personalised, consumer-like experiences in procurement—making buying and approval processes smoother, more intuitive, and better tailored to the needs of individual users. It’s an exciting time, and we’re just scratching the surface of what’s possible.”

Author

Nell Walker

Published

Estimated Read time

6Mins

It’s impossible not to be inspired by the energy at a DPW event. DPW Amsterdam 2024 was buzzing with that…

It’s impossible not to be inspired by the energy at a DPW event. DPW Amsterdam 2024 was buzzing with that same energy, its attendees soaking in information and inspiration from speakers, peers, other experts. We caught up with Rujul Zaparde, Co-Founder and CEO of Zip, at the event to dive into the procurement landscape and chat about the specific qualities DPW brings to the sector.

Zaparde is the Co-Founder and CEO of Zip. At the beginning of Zip’s journey, Zaparde and his fellow founder, Lu Cheng, based the company around their own experiences as end-users of the procurement process. They took their lived confusion around having multiple intakes for a contract, for the purchase request, and all the different complicated components of the process, and created a solution.

“And so, we started Zip and created the category of intake and procurement orchestration. We’re very grateful to have been named the leader in the category,” says Zaparde, in reference to having just been named a category leader in IDC’s first ever Marketscape for Spend Orchestration.

So, as is often the case, procurement is something Zaparde fell into. In this case, he got involved with procurement specifically to solve pain points. Prior to Zip, he was a Product Manager and Cheng was an Engineering Leader, both at Airbnb; they knew very little about procurement. “We were just end-users,” he explains. The upside of this was that they were able to come into the industry fresh, without the baggage and legacy issues that can come with being in a sector for a long time.

UX first

“At Zip, we really try to take a user experience first approach,” Zaparde continues. “What we found is the highest leverage change you can make in any procurement organisation is to make it easier for your employees to actually adopt and follow whatever the right process is. If you do that, then all of finance, procurement, accounting, and even IT find that they’re suddenly swimming with the current, not against it. And you can’t do any of that unless you solve for user experience.”

Taking away problems, the way Zip does, also takes away a barrier to ambition. The theme of DPW Amsterdam 2024 was 10X, a term on the lips of many across all sectors. Once immediate issues and pain points are addressed, 10X is something businesses can aspire to, with many talks and workshops during DPW Amsterdam focusing on how to approach this.

Getting the mindset right

For Zaparde, 10X thinking is a necessity for growth. “You have to aim for 10X to even end up at something X,” he explains. “That requires ambition. I also think that when you think in terms of 10X, and your mindset is angled towards incremental change, you’re much more open to thinking of solutions that are perhaps a little more risky. It changes your perspective.” 

A mindset shift needs to happen before anything else. This involves considering the needs of procurement and the wider company, having a north star in mind, and then breaking changes down to an incremental level. 

“Then you can start to think about the steps you need to take to get there,” Zaparde explains. “A big component of this is bringing along your peers and stakeholders across every function that’s tangential and critical to the core procurement workflow and path.”

Innovating for good

The work Zip does is indicative of the shift towards continuous improvement and advanced technology that procurement has been going through in recent years. There are things that are possible now that weren’t possible even a year ago, thanks to the vast innovations being made. One of the hot topics right now is generative AI, something that’s opening up a world of possibilities.

“It’s the elephant in the room right now,” says Zaparde. “With the capabilities that gen AI unlocks, you can automate a lot more. That allows you to cut down a lot of the transactional and operational work that procurement and sourcing organisations are doing. Procurement is tired of the status quo. It’s been an underserved function for over 20 years, and I’m glad that’s finally changing. I feel privileged for myself and Zip to be part of the conversation, and that we’re seeing all these amazing changes happening.”

Zaparde believes we’re already seeing the benefits of the major changes that have occurred over the last couple of years in procurement. In fact, he knows this, because Zip has helped its customers save around $4.5bn of spend over the last two years, which is an astonishing statistic.

“One customer of ours, Snowflake, achieved over $300m in savings alone,” Zaparde continues. “We’ve seen tangible benefits already. The way procurement is evolving isn’t a hypothetical thing – it’s really happening.”

Fragmentation on fragmentation

The key, again, is overcoming base level issues for the sake of evolution. This is precisely what Zip provides, after all. But sometimes, the issue is at a data level. Unclean data is something that technology leaders are talking about a great deal right now, with some feeling that it holds them back from implementing new technology. Zaparde believes that businesses should be questioning why their data isn’t clean from the start, rather than worrying about trying to cleanse existing data.

“You don’t just clean your data – the real question is why is your data not clean in the first place?” he muses. “You have to have a clean entry point for it. I don’t think I’ve ever spoken to a Fortune 500 CPO that said they had clean data. I think it’s because of the upstream processes in intake and orchestration. If all the cross-functional teams – the IT review, the legal review, the finance – are being manually shepherded by the procurement operations organisation, then how can you possibly end up with clean data?

“People are keying the same information into multiple systems, which might mean they answer in similar – but different – ways. So you end up with fragmentation on fragmentation. But if you have one single door to that data, you’ll be able to drive only clean data, because it’s a funnel. If you let everyone have different swim lanes that never intersect, you won’t have clean data.”

As 2025 approaches, Zip has multiple product capabilities and features coming up that Zaparde and his team are very excited about. This includes leveraging gen AI, something we’re seeing incredible utilisation of across the sector.

For Zaparde, attending events like DPW Amsterdam to talk about what Zip does and interact with peers and clients alike is a joyous part of his job. “DPW is really accelerating the rate of change in the procurement industry. That’s very much needed, and it’s energising to see so many incredible people from the procurement world in one place. I love spending time with these forward-thinking procurement leaders at this event.”

Author

Nell Walker

Published

Estimated Read time

6Mins

When we’re talking about technology in procurement, the importance of partnership is a major component for success. No business is…

When we’re talking about technology in procurement, the importance of partnership is a major component for success. No business is an island, and joining forces with experts is, increasingly, the direction many move in for the sake of growth. 

At DPW Amsterdam 2024, we met many businesses who were looking around at the procurement sector in search of either what direction to move in next, or who they can help. The event is one that brings people together to learn, to teach, to discover the cutting edge of procurement, and be inspired by it. So when we sat down with the CEO of Fairmarkit, Kevin Frechette, it wasn’t surprising that he brought Nick Wright, who leads bp’s Procurement Digital Garage, into the conversation.

For Frechette, one of the best things about working in the advanced procurement technology sphere is joining forces with other businesses to help them keep improving, and vice versa. “Having the chance to work with people like Nick, who are pushing the envelope when it comes to autonomous sourcing, is amazing,” he explains. “We’re fired up to be at DPW, absorbing this atmosphere.”

While it’s something of a running joke in the procurement world that most professionals in the sector don’t deliberately choose it, Wright actually did. “I went to university and thought ‘wow, I fancy a career in procurement or vendor management’. I know a lot of people don’t have that story, but I’ve been doing something I’m passionate about from the beginning. I love making deals, whether I’m buying a car, a house, or something for BP.” The Procurement Digital Garage he leads exists to look at problems being faced across procurement, and figuring out possible solutions. 

For Frechette, the intention wasn’t to start a company in the procurement space, but his team quickly saw the opportunities within it. “We had this ‘aha’ moment,” he says. “It was a tough pivot. There was a lot of debate, a lot of late nights. I’m super glad we made it because we got to be in a space where people can be forgotten about, and we’re able to give them centre stage.”

The realistic approach to 10X

DPW itself exists to put procurement under the limelight. Each event is themed in a way that gets conversations flowing around the next big thing in procurement. For Amsterdam 2024, this theme was 10X – something Frechette believes isn’t achievable right off the bat.

“It’s something to strive towards,” he says. “It’s something where you work on getting a little better every single month, every quarter. You keep getting those small wins, and you build credibility. There’s no silver bullet. You just have to start the journey and learn as you go.”

For Wright, it’s about not getting caught up in the hype, but figuring out what’s realistic. “There’s a lot of hype out there, and the beauty of something like my team at the Procurement Digital Garage is to weed out that hype, because what’s right for us might not be right for someone else. Having a team that’s out there in the market, testing and figuring out what’s real, will put you in good stead.”

“There’s a leap of faith element that can be challenging to achieve, before you can really strive for 10X,” Frechette adds. “It’s like Amara’s Law: humans typically overestimate the value of technology in the short term, but underestimate it in the long term. So the hype is needed. We have to help people on that journey and sometimes, a leap of faith is needed. For the people that risk it, it’s exciting, and they’re then well positioned for the future.”

However, again, managing expectations is important. “People might be on the sidelines expecting a 10X solution,” says Wright. “But the reality is, you’re going to get 5% here, 10% – smaller pockets of improvement.”

The benefits of advanced technology are absolutely being seen at this stage, but being realistic about the future outcomes is important. “The benefits are there – not at the scale of 10X – but if you just make a start, you’ll achieve wins,” says Frechette. “You broadcast those wins across the organisation. That generates excitement, and then you can work on the next thing because you have ground swell.”

How ‘the future’ has changed

What’s interesting is that this 10X focus, this drive towards incremental wins, has reframed the way businesses plan for the road ahead. ‘The future’ used to mean having a three or five-year plan. Now, the future is only 12 months away.

“The thought process right now is ‘what can we do that’s super optimistic in just 12 months’?” says Frechette. “Then you can put in realistic time frames and set off on a sprint to get there. You have to be able to move fast. We have launches every two weeks now, and we have to be flexible with our roadmap along the way. But we always know where we’re going – we have a north star.”

“To me, that’s the only way to do it,” Wright adds. “I don’t have a crystal ball. Nobody knows what’s going to happen in two or three years. So what’s the point of creating a plan that’s going to get you to a certain point in those two or three years? You have to work on small iterations, make adjustments, change direction as necessary.”

It’s part of what makes Fairmarkit and BP an active partnership – the ability to be flexible and open up discussions at every point. It’s all about real-time feedback and trust-building, to the extent that both parties feel like they’re on the same team. 

The right people in the right places

Because ultimately, it’s the human element that makes transformation happen. Having the right people in place is one of the elements that’s key to making sure implementing advanced tech for the sake of business strategy works at all. “It’s about access to talent and making sure you’ve got a capable user group that can make the most of that technology,” says Wright. “You don’t need to be a data scientist, but you do need to have the right mindset to take advantage of the tools you’ve got.”

“I agree – you have to get the right people on the bus,” adds Frechette. “You all have to be committed to going on the journey together. Prioritise where you start and where you’re going to have the most value with the lowest risk, and have people on your side who can give suggestions and ideas.”

While the much-discussed talent shortage can create challenges there, DPW as an entity proves that not only does procurement keep becoming more appealing and exciting, but where there are gaps, there are digital tools. “I’ve noticed a lot of folks under 30 who are here at DPW Amsterdam, and they’re genuinely interested in procurement,” says Wright. “We’re at a tipping point that makes me really excited about the profession I’m in.”

Author

Nell Walker

Published

Estimated Read time

6Mins

‘Digitalisation is just the beginning’ according to Crowdfox, a business which aims to improve procurement by bettering the ordering process…

‘Digitalisation is just the beginning’ according to Crowdfox, a business which aims to improve procurement by bettering the ordering process while lowering costs. That tagline speaks to Crowdfox’s dedication to advancing procurement using the exciting tools the sector now has at its disposal, and this push to innovate is being driven, in part, by Martin Rademacher, Crowdfox’s CSO. We sat down with Rademacher at DPW Amsterdam 2024, the exciting vibe of the event spreading far and wide around us. 

Rademacher is responsible for everything to do with Crowdfox’s customers. From sales, to marketing, to customer onboarding and success, and everything in between – that’s Rademacher’s wheelhouse. His background is in management consulting, with a focus on procurement and supply chain. So, while he started out in sales, he soon decided that procurement was the direction to move in.

“During my time as a consultant, I found procurement very interesting because it’s so versatile,” explains Rademacher. “Of course, it’s about the transactional phase with suppliers – but also you’re so connected with R&D, production, logistics, and so on. You have so many fields of application.”

10X thinking

At DPW Amsterdam, the overall theme of the two-day event was 10X. The concept of the 10X rule is around taking a goal you’ve set for yourself and multiplying it by 10. It’s an aspirational tool, coaxing all of us to aim higher. In procurement, that means innovating.

“In the last two years we’ve seen tools like ChatGPT trigger some big adaptations in the procurement world,” says Rademacher. “I think there is the opportunity now to achieve 10X in terms of efficiency gains. Especially when it comes to making better decisions, more quickly, in order to analyse data. We’re now finding out what AI can really do, and focusing on how that can help with strategy.”

For Rademacher, he believes people have the right tools to achieve 10X – it’s now about implementing those tools properly, and having the right culture.

“In the last couple of years, implementing tools has become much easier than it was a decade ago,” Rademacher continues. “They’re so well designed that they fit into large procurement systems, and can connect with other best-of-breed tools. I’d say implementation should be the focus, but it’s not that complicated anymore. AI tools especially are really intuitive. As a result, you don’t need much in the way of change management. People just intuitively cooperate with AI.”

The question of security

The big challenge, Rademacher believes, is data protection. When it comes to barriers preventing a 10X approach, concerns around data privacy are among the biggest issues. As a result, organisations have to take the necessary precautions before plunging into making major technological changes, or risk falling at the first hurdle.

“In the EU, it’s all about data protection,” says Rademacher. These concerns led to the Artificial Intelligence Act (AI Act) coming into force in the EU in August 2024. It was created in response to the rise in generative AI systems, and ensures that there’s a common regulatory framework for AI within the European Union. “Companies are very concerned about their data, but I wouldn’t call this an obstacle – more like a challenge.

“The key is making sure you have a protected environment. Start with a pilot in a limited space, for instance, and then make sure you can find a solution you can control in a safe environment that suits your operations.”

Shooting for the stars

With these measures in mind, it’s never been easier to implement new technologies and aim for that ambitious 10X goal. Certainly, advanced tools have never been more accessible, or more straightforward for businesses to educate themselves about. Even as recently as two years ago, integrating multiple elements of advanced tech – like genAI – wasn’t really possible.

“It definitely wasn’t easy to combine sources the way we can now,” says Rademacher. “Now, you can provide a much better user experience experience not only for procurement professionals, but for anyone who takes advantage of what procurement introduces to the company. Finding the supply to fulfil your demand is so much easier now. You no longer have to have difficult conversations starting with an email to your procurement professional to identify whether you’re allowed to purchase from a certain vendor, and whether they’re vetted or not. Streamlining processes like that makes that information quick and easy to identify.”

Additionally, we’re at a point with advanced technology where the tools we have access to are capable of handling more and more volumes of data at an extremely fast pace. “In consulting, for example, every project started with an analysis of the status quo of a firm,” says Rademacher. “We’d figure out who the vendors are, the categories, and the spend. Depending on the workforce, this could take one or two weeks. Now, with the tools we have access to, you can gather this information in 24 hours.”

The evolution continues

While we’re seeing many of the benefits that come with genAI and other advanced technologies already, it’s only the beginning of what we can achieve using these tools. GenAI is at a peak right now, but according to Rademacher, it might take another five years to achieve its full productivity level. “There’s also this ambitious idea going around of fully autonomous procurement, and it’ll likely take a good 10 years to reach that level of productivity,” he adds. “On the other hand, nobody is talking about robotic process automation anymore because we’re almost there with that already.”

Another challenge is data quality. The cleanliness of an organisation’s data can make or break its use of advanced technology, which is where making the right connections with service providers comes in. “It’s a good example of when to find the right partner,” says Rademacher. “Find someone from the innovative tech space who you think you can rely on. Don’t try to do it all on your own – that’ll just hold you back more and more. Be bold; find the right partner to make the most of your data and that helps you constantly improve. There’s a lot of talent out there, a lot of solutions that are really helpful for organisations of all sizes. You’ll improve step by step.”

There’s no doubt that it’s an exciting time for procurement. The atmosphere at DPW Amsterdam 2024 was electric for that exact reason. The event, in Rademacher’s words, has “a really strong influence on the sector and enables attendees to learn about how the landscape is developing in real time”.

“The AI-driven future is already a reality for us,” he states. “We’re beyond the pilot phase with our AI tool, ChatCFX, and now we really want to drive market share. 2024 going into 2025 sees us in a good position with high user visibility, and now we’re adding ChatCFX to the game, pushing it into the European market. We’re at DPW Amsterdam to meet the players who are looking for a solution exactly like ours, making it an invaluable place to be.”

Author

Nell Walker

Published

Estimated Read time

6Mins

The buzz of DPW Amsterdam draws in the most innovative minds across the industry. They’re there to have riveting conversations…

The buzz of DPW Amsterdam draws in the most innovative minds across the industry. They’re there to have riveting conversations with their peers, to inspire, to teach and learn in kind. And they’re there to keep an eye on an industry that doesn’t stop changing for the better.

This is a big part of the appeal for Fraser Woodhouse. Woodhouse leads the digital procurement team within Deloitte in the UK. His team historically focused on large-scale transformations, providing a backbone for suite implementation. Increasingly, however, it’s turning its attention to helping clients navigate a plethora of technology solutions. The goal is to help them build and scale, and take advantage of some of the more niche functionalities available. These are things that can be highly daunting for many customers, which is why Deloitte is there for support.

“We’re helping clients ask the big questions,” Woodhouse explains as he sits down with us at DPW Amsterdam 2024. “How do you connect the technology in a way that allows data to flow from one system to another? How do you deal with processes that are connected to solutions which all have their own release cycles? How do you approach change management? That underpins so much of where the value is going to be achieved, and a lot of the providers will be focusing on it. They just might not have the same capability that Deloitte can provide.”

For Woodhouse, getting involved with procurement was a total accident. He even left the sector at one point, but his strong foundational knowledge – and the exciting landscape procurement is enjoying right now – lured him back in. “It changes faster than I can get bored with it, that’s for sure,” he explains. “Procurement is fascinating.”

Aspiring to greatness

Especially now, with constant conversations around genAI, 10X, and beyond. Procurement is only becoming more interesting, more enticing, drawing young professionals in to fill gaps in the talent pool. 10X was actually the theme of DPW Amsterdam this year, a notion that’s on everyone’s lips. And for Woodhouse, it’s absolutely something to aspire to.

“Aiming for 10X is sensible. You just have to consider your timescale. I’d caution against running before you can walk, but a culture of experimentation is important. Running small-scale pilots can help you hone in on where you really want to see value, or where value is likely to be generated. Starting with requirements is a fundamental thing at the moment, but you shouldn’t underestimate how long that will take. And it’s a continuous consideration, because requirements change. Just keep trying to refine your solution in order to take advantage of everything that’s out there right now.”

Fotograaf: MichielTon.com

Having the wrong mindset is one of the major barriers to adopting 10X thinking. It all starts with the company’s culture, and whether that’s one of growth or not. “I imagine most of the people here at DPW Amsterdam have already made that mental shift,” says Woodhouse. “Last year, people were still trying to understand how they, as big companies, could utilise startups. That’s changed now, and it’s amazing to see companies that were startups three years ago working with all these big enterprise customers. 

“They have scaled and grown in partnership with those customers. Mindset is so important, and having the wrong one will only create barriers and missed opportunities.”

Always improving, never slowing down

When it comes to the advantages that technology has brought to procurement in the last few years, the list is endless. Procurement has gone from an overlooked segment of any given organisation, to having a seat at the table and helping make major business decisions. 10X thinking – whether it goes by that name or not – has been spreading across the segment and fuelling businesses to aim higher.

“The layers of automation have really improved,” says Woodhouse. “A year or so back, there were a handful of use cases that you could truly automate, but now you can do it at a much larger scale. Another big change is around security concerns. There are more tried and tested case studies to draw upon now, and solutions are more readily available. You don’t necessarily have to be a pioneer, because someone else has already taken that first step.”

The question of data

Something else that holds businesses back, despite the innovation at their disposal, is an element that can be harder to change: poor quality data. When trying to implement advanced technology solutions, bad data can make or break their success.

“It’s always useful to focus on that and have a dedicated work stream,” Woodhouse advises. “You need someone who really understands data. I think there’s a tendency to try to boil the ocean before you even get going in your transformation, which isn’t necessarily a bad thing. Cleaning up your data before you start, and having a fresh foundation will help you make decisions on what to implement on top of that good data. 

“Doing all of that is obviously hugely beneficial, but it’s going to slow you down, in many cases. There are ways around that, like embedding the cleanup of data within the new processes. Data is important – we shouldn’t underestimate that – but there are different approaches to solving the issue of poor quality data, like buying it or using genAI to restructure your data into something more powerful. Either way, you need a strategy.”

Novel thinking 101

Some businesses fall into the trap of thinking that they can’t achieve specific things because their data isn’t in the right position, but novel thinking around data can allow them to still drive forward. “You’ve just got to focus on it. You can’t assume the data’s going to fix itself,” Woodhouse adds. 

Novel thinking is certainly something that can be seen at DPW events, and DPW Amsterdam 2024 was no exception. People congregated there to learn, to share stories, to inspire. For Woodhouse, the magic of the digital procurement sector right now is that everybody recognises that their journey has no end. While that may be daunting, it’s a positive thing and keeps procurement professionals striving for more.

“It’s a continuous improvement journey, and I think the best-performing organisations will recognise that, and invest in the business capability to continue that journey,” Woodhouse concludes. “That’s how you get proper value. I love hearing about how people frame problems differently, and how they approach the solutions.”

Author

Nell Walker

Published

Estimated Read time

6Mins

Making procurement slicker, more streamlined, is the name of the game right now – and this is precisely why Globality…

Making procurement slicker, more streamlined, is the name of the game right now – and this is precisely why Globality exists. It’s an organisation which leverages advanced, native-built AI to make sourcing more autonomous for Fortune 500 and Global 2000 companies, meaning it has a finger on a pulse of the technology tools procurement now has access to as the industry shifts and evolves.

Keith Hausmann is the Chief Customer Officer at Globality. He has been working in procurement since the early 90s, both in industry as a service provider, and now, at a technology company. He came to Globality from Accenture, where he ran the operations business. During his first real job after college, Hausmann was also part of a training program at a major Fortune 500 company, working closely with a COO. At some point they got into a conversation about salespeople seemingly having an advantage over procurement people due to their access to information, knowledge, and training. The COO suggested that they launch a company to help support procurement. For Hausmann, it was a serendipitous entry to the industry.

“I came to Globality because I saw the business was struggling with how to scale, automate, and deliver a differentiated user experience. Ultimately, I found it really compelling, and joined about five years ago.”

Achieving 10X thinking

Hausmann admits that the concept of what procurement is has only been defined relatively recently, and he’s been in the industry long enough to have seen the shift happen and suddenly accelerate over the last few years. Now, procurement professionals are in a position where they’re able to think big, and they have the tools to support that way of thinking. One of the most-discussed topics right now is 10X, whereby businesses are setting targets for themselves that are 10 times greater than what they can realistically achieve.

“There continues to be, and always has been, so many mind-numbing manual activities that go on in procurement spaces,” says Hausmann. “We’ve built small armies of teams to handle those things. I think 10X has prompted us to take a step back and ask if there’s now technology that can uplift the role of people in the function and take on some of those automatable tasks. Whether that’s writing RFPs, discovering suppliers, or analysing proposals – these are all things that can be automated in today’s technological world. With 10X thinking, you can imagine the many, many, many things that can be automated and just go after them. 

“There are barriers, of course. The biggest one is not being able to convey a compelling vision of what we want people to do in the new world. It’s not necessarily about making them go away – it’s about making their daily jobs, lives, and work more valuable. There are so many things around category thinking and strategy that don’t get done because people are spending so much time on tasks that could be automated. So I think the barrier is creating that vision and that plan to shift the operating models, roles, and the skill sets to something new and different.”

People power

Hausmann believes that if roles are reshaped and honed in response to automation, it’s less likely that there will be resistance to change because employees will know exactly what they’re doing, rather than being concerned about their future. “They have to know what they’re doing before they jump on board. It just requires a mindset change and good change management.”

Hausmann believes it’s down to the CPO to drive that change management by conveying the activities, impacts, roles, and operating model they envision. If they can paint a picture of how humans can impact things in a new way, alongside the new technology rather than against it, suddenly it’s an exciting prospect and people are keen to make a bigger impact. 

CFOs and CPOs joining forces

While CPOs now have a long-deserved seat at the table to help push change business-wide, CFOs’ roles are also expanding and having an increased impact on procurement. “I think they’ve always influenced what’s going on in procurement,” says Hausmann. “CFOs are the champions of many things, but certainly improving the bottom line of the company. They’re also champions of using technology to make the organisation more resilient, more scalable, and more efficient. There was a time when people thought that the CTO or CIO would be doing that, but more often than not, the CFO is the ultimate owner of improving business impacts. More and more, we’re seeing our customers leaning on the CFO to help them make decisions about investments that have a big impact through technology and AI. 

“These days, the relationship between the CFO and CPO is wildly different to what it once was, and CFOs are showing more interest in procurement as a function than ever, making a difference to the bottom line. It makes sense because, in theory, procurement controls one of the biggest cost line items in a company, besides raw headcount.”

Matching the pace of technology

The fact that we still need to focus on change management and relationships confirms that the way procurement is changing isn’t just about the technology. Far from it. However, technology is moving at an incredible pace and needs to be taken seriously. There are things that are possible now which couldn’t be done even one or two years ago.

“A few years ago, technology couldn’t write an RFX document for you,” Hausmann says. “Technology could not instantaneously bring to light the most relevant suppliers from within a customer’s supply base, or in the broader market. It couldn’t write a contract, or an SOW, or a work order. It can now. Those are things that are near and dear to my heart that were impossible 3-5 years ago.”

With these tools in mind, procurement professionals are able to think about the future in short-term stints. Five-year plans are no longer good enough when it comes to the way procurement is shifting – a year is now the maximum for putting plans in place. 

“I’ve always thought that procurement, from the perspective of technological advancement and investment perspective, should sit under a broader business umbrella,” says Hausmann. “I’d guess that probably 50% of companies in the world right now have some kind of program in place to save money or improve agility by investing in technology. And speed to market is more important than ever, so sourcing can’t be a bottleneck.”

Looking ahead, Hausmann expects to see many of the unique, differentiated technology providers becoming interoperable together, because big enterprises want services that operate and scale well in combination with others. 

“We’re seeing that a lot, and working with our customers on how we improve interoperability and integration,” he says. “Tools will become more seamless, more easy-to-use, more scalable. Another big thing is, and will continue to be, analytics. It’s a hot topic in procurement, and I think there are profound opportunities to be deployed. For Globality, we’ll continue to endlessly innovate on user experience, ease of use, and beyond.”

Author

Nell Walker

Published

Estimated Read time

7Mins

“I’m overwhelmed,” are Matthias Gutzmann’s first words when asked about DPW Amsterdam 2024. At the end of the bustling two-day…

“I’m overwhelmed,” are Matthias Gutzmann’s first words when asked about DPW Amsterdam 2024. At the end of the bustling two-day event, we sat down with Gutzmann, the company’s founder, and Herman Knevel, DPW’s CEO, for a debrief. Gutzmann also quite rightly pointed out that the final word on summarising those 48 hours is in the hands of the sponsors and attendees, but if the countless conversations we had with said sponsors and attendees are anything to go by, it was the best DPW event yet. And Gutzmann and Knevel agree.

“I really think that’s the case,” says Gutzmann. “We almost doubled the number of exhibiting startups, we had over 120 sponsors, more startup pitches than ever, and all the feedback I’ve heard so far has been amazing. There are always things you can do better, but I’m absolutely happy.”

Across the 9th and 10th of October, DPW Amsterdam welcomed over 1,300 attendees through its doors at Beurs van Berlage, Amsterdam. Those attendees arrived from 44 countries across 32 industries, and the event itself featured 72 sessions with 140 speakers across five stages. It’s abundantly clear that people are deeply passionate about DPW.

“On day one, it was already packed at 8:30 in the morning,” Knevel states. “The energy in the room was contagious, and the numbers speak for themselves. The startups, the innovators, the corporates, the mid-market – everybody who’s here has a genuine interest in what these guys are bringing to the procurement space.”

Reconnecting with the vision

Gutzmann describes that intangible energy as “bringing a little bit of joy back to procurement”. For many years, procurement was a very ill-defined concept – almost as ill-defined as the role of CPO. The shift has been a quick one, accelerated further by the COVID-19 pandemic, and events like DPW Amsterdam are part of the reason why. CPOs having somewhere to go, to meet, to learn about the procurement landscape is vital, hence that inspiring energy that permeates every DPW event.

“A lot of people are missing that vibe,” Gutzmann continues. “It’s why I founded DPW. I was inspired by Mark Perera [Chairman of DPW], who I worked with at Vizibl, and had great technology while also being so inspiring. I realised we needed to connect founders with CPOs. I think every CPO should talk to one startup founder per week, at least. It’s important that we listen to their vision.”

Striving for 10X

The core of those visions for the 2024 event revolves around the concept of 10X, the idea being that you set targets for your business that are 10 times greater than what you think you can realistically achieve. It keeps people ambitious, always striving for greatness, and it’s especially prevalent in startup culture – hence Gutzmann’s belief that CPOs should be connecting with them more.

“Deciding on 10X for this year’s theme was serendipity,” says Knevel. “The term came along and Matthias said, ‘this is it – this is what we need in procurement’. This is what the industry needs, and we’re exploring it, diving deeper.”

“Last year’s theme was ‘Make Tech Work’, which was all about getting the basics right in order to scale,” Gutzmann continues. “This year we said, ‘how can we take it further?’ We are entering the biggest wave of AI yet. That technology is giving us the opportunity and the possibility to scale outcomes. The world around us is changing so fast, so we need to be more agile, scalable, and faster in procurement. It’s a very ambitious, maybe lofty theme, but it’s a mindset more than anything else.”

“It’s the mindset that drives innovation and speed,” Knevel adds. “That’s really important in this age of procuretech and supply chain tech.”

When it comes to honing that 10X mindset, it’s all about having a purpose in mind. A lot of the procurement professionals we spoke to at DPW Amsterdam called this a ‘north star’, which is the phase Gutzmann uses too. “That’s where it starts. There’s so much procurement can do. There are so many problems in the world, and I believe procurement can be the solution to many of those. So I think it starts with the CPO and their leadership, their vision. You also have to embrace startup innovation, be more experimental in the way you work, instigate new ways of working, and be bold in your thinking. You also have to remember it’s okay to fail.”

Growing DPW

Something that’s particularly impressive about DPW Amsterdam 2024 is that it’s actually the second of the year. Back in June, DPW ventured into the North American market with an intimate summit held in New York City, which CPOstrategy was fortunate enough to be invited to. Planning one wildly popular event a year is one thing, but venturing into a whole new part of the world with an additional one is incredibly dedicated.

“I’m a bit more conservative when planning ahead, so there probably wouldn’t be a New York event without Herman encouraging me,” says Gutzmann. “I’m glad he said ‘let’s go for it’. It was a short-term plan, but it was ultimately very successful and the right decision.”

Knevel adds: “The feedback we got from sponsors and delegates was quite impressive. They were asking for more. And it’s not just Matthias and myself – we have a great team here. This is a massive production, but we made the jump and it’s paid off.”

Inspiration for 2025

When it comes to the lessons Gutzmann and Knevel have learned in response to this event, it’s more about narrowing down the influx of ideas DPW gives them. By the time we spoke with them at the end of the Amsterdam 2024 event, their heads were spinning with inspiration.

“I have so many ideas,” says Gutzmann. “Every year we reinvent the show, so we never rest. We’re always asking what we can do better. How can we improve? I think this year we maxed out the number of sponsor stands that are possible to have. We doubled the number of under-30 attendees. There’s the potential to go a little deeper on the talent side, connecting students with the corporates and building a proper program around that.”

There was also the Tech Safari this year. The idea was to make the expo hall easier to navigate, since it was more crowded than ever this year. Members of the DPW team acted as ‘super connectors’ to help attendees find the right solutions and help startups find new customers. The aim was to simply make it easier for everyone involved to find what they’re looking for in small groups,enabling them to find who they wanted, talk to them, and ask questions. It turned out to be an amazing interactive experience for people, making sure they felt thoroughly looked after and valued.

“Plus there’s an opportunity to cater more to the corporates coming in,” Gutzmann continues. “Perhaps we will build a custom program for them around the event. Some of them are already coming in with teams and doing annual leadership meetings outside of the venue, but I think there’s scope to show them solutions and do some workshops within the event. We can also do more with day zero, where we have site events. There’s much more we can do.”

Giving CPOs what they want

As for the broader future of the event, DPW’s heart lies in Amsterdam and will continue to do so. The organisation is building its team even further and putting strategies in place for future events, allowing it to move forward. “We follow the demand of what our customers want,” Knevel says. That’s what really drives DPW and how the event is themed and set up. The organisation listens to CPOs so it can give them exactly what they need, and what will help the industry level up further and further. 

“There are things we’re still developing,” says Gutzmann. “For example, the podcast studio [something introduced in its current form for 2024] is something Herman is very passionate about, so it was great to test it out here. There’s more we can do with that. We have so many ideas and it’s important to engage our amazing team on these ideas and see what they think along the way.”

“We’re ideating a lot,” Knevel adds. “And we’re asking our ecosystem what we should do more of.”

“Ultimately, we’re bringing in the voice of the customer to make sure we’re giving them what they want and need,” Gutzmann concludes. “That’s the whole purpose of DPW.”

Author

Nell Walker

Published

28 August 2024

Estimated Read time

4Mins

We caught up with Shachi Rai Gupta from ORO Labs to discuss the importance of orchestration in procurement.

Simplifying procurement in smart ways is the ultimate goal for ORO Labs. Utilising the best of AI, ORO Labs aims to implement procurement orchestration across sectors, creating an experience that is simultaneously automated, augmented, and humanised.

Shachi Rai Gupta is VP Strategy at ORO Labs, with a wealth of transformation and technology experience behind her. Rai Gupta’s sharp eye on procurement has allowed her to witness the rise and fall of various trends, and understand what the sector needs as it – along with technology – evolves. 

We caught up with Rai Gupta at the DPW NYC Summit back in June, a special North American version of the event. Procurement trends, especially AI and orchestration, were very much the theme of the day, prompting lively conversations amongst some of the world’s most influential procurement leaders.

Procurement as a net positive experience generator

For Rai Gupta, the trends right now are guided by the fact that procurement has more of a  strategic and evolved role than ever, giving the function the opportunity to have a great impact on the enterprise bottom-line and the environment and community at large 

“Procurement is morphing into a function where one of its biggest responsibilities is to be a net positive experience generator,” she explains.

“Procurement really is a service function for the whole business stakeholders. We, as procurement professionals, need to see things through the lens of the business. This includes what issues the business is trying to solve, and meeting the business where it’s at for good collaboration.

“It’s also important to make this experience as easy as possible, rather than cumbersome and time intensive. That needs to be catered and customised to the individual business segments.”

Prioritising the planet

Another area Rai Gupta is seeing talked about a lot is sustainability. This topic has, for some, been sidelined a little in favour of advanced technology. But it’s just as important as it’s always been, and it’s vital to keep the discussion alive – especially in procurement.

“More and more, companies are realising the impact they’re having on the environment,” Rai Gupta explains. “It’s an increasing priority on all our agendas. The technology is still nascent in that space, in the sense that there aren’t good ways to do benchmarking or tracking. That’s going to be an interesting space to watch out for.”

The next generation

Another hot topic of the DPW NYC Summit was the talent shortage. We at CPOstrategy discuss this topic a lot with procurement professionals, and there’s no one answer for fixing the issue.

“There’s a dearth of good digital talent,” Rai Gupta states. “The skillset you need today in procurement is very different from what we’ve had before. To be able to leverage that, to really make use of the procurement teams you have and the operational model you want, it’s a different challenge. The structure of your team is more important than ever. 

“While that shortage is there, when you do have the right people in place in procurement, that’s where the department shines,” Rai Gupta adds. “That’s where procurement becomes a group of trusted advisors for the business, providing proactive opportunities. We wear a lot of hats in procurement, and we’re stepping up to a new level of evolution.”

Advanced tech for good

And, of course, AI and orchestration are terms on everyone’s lips right now – procurement included. AI is, in Rai Gupta’s words, “a solver”. Many of the blockages and challenges procurement is experiencing as it evolves can be solved, or at least aided, by AI and orchestration. “There’s so much tech out there,” Rai Gupta states. “AI is one such possibility. Every segment of procurement comes with its own risks and requires its own expertise and tool sets. 

“To manage that whole ecosystem is where that orchestration comes in. There’s a real beauty in this because it’s collaborative. It makes the whole bigger than its parts.”

Author

Nell Walker

Published

15 August 2024

Estimated Read time

4Mins

We chatted with Johan-Peter Teppala from Sievo about why procurement needs to use technology wisely.

When CPOstrategy attended the DPW NYC Summit back in June, one of the buzzwords of the day was trends. Trends in procurement, trends in technology, and how to combine the two. The event was filled with productive discussions around how procurement can benefit from data and advanced technology. This led to a hopeful vibe throughout the day, despite and because of acknowledgements of procurement’s shortfalls. 

We caught up with Johan-Peter Teppala, Chief Customer Officer of Sievo, at the NYC conference. For Teppala, that hopefulness is something he took away from the event. “It is great to see so many companies out there with keen interest in adopting new securities and technologies,” he says. “Procurement has increasing demand to do more with less, which explains also the need for technology to drive efficiency and to deliver more. I think it’s just inertia that’s slowing us down.”

However, advanced technology is helping shift the inertia that’s so prevalent across procurement. “Developments in GenAI have been exceptionally fast, especially recently,” Teppala adds. “With an increasing amount of practical Gen AI use cases, this has become a topic that touches each and everyone in procurement. At Sievo, we are dedicating R&D budgets to AI innovations. We have quickly been able to ramp up many practical use cases for our clients to deliver business value in this area.”

Using data and technology wisely

Teppala continues: “Sievo strives to withhold our position as the leading Procurement Analytics partner for large enterprises. We are driven by the goal to close the data-to-action gap. We believe analytics alone has zero value, it’s the actions that we take that drive the value.” This was a topic that was repeated several times during the DPW NYC Summit.

“As a result, SIevo’s goal is to ensure our customers can use their time most efficiently. We help them make business-impacting decisions and best use their expertise, whilst Sievo automatically surfaces insights that they can take action on. First and foremost, our work is about carving out insights. And once you have those insights, how do you automate those actions to create opportunities? That’s definitely one thing we’re keen to solve.”

Sievo is also focusing its attention on gen AI – how it can be adopted and what the use cases are. “AI for data cleansing has been around for a while,” says Teppala. “Right now, Gen AI is getting really good traction from a technology point of view. It’s not just insights, but adopting AI into chat interfaces, and reaping the benefits with implementable actions. It’s amazing.”

The changing talent landscape

The increased adoption of AI is going to also change the talent landscape within procurement. Another heavily-discussed topic during DPW NYC was the talent shortage and how it has the potential to slow procurement down. However, advanced technology may be the thing that accelerates it once again.

“The talent you need is changing,” says Teppala. “The procurement mandate has widened  beyond delivering cost savings. Now, it’s also about driving sustainability initiatives, emission reductions, increasing diverse spending, and preventing supply chain risks. Procurement has to be creative and resource-effective for reaching ideal outcomes. This is a big challenge but also a big opportunity and also impacts the talent needed in procurement. 

“You don’t necessarily need to hire superstars who know everything. It’s about teamwork. Building a procurement team out of people who possess all these modern talents, who can support each other. I can’t know whether this is going to solve the talent shortage, but at least we’re shifting towards a different kind of talent as capabilities change. 

Teppala concludes: “We need to be thinking more about what kind of team we actually want to build – not just what kind of really good, talented individual we can find.”

Author

Nell Walker

Published

13 August 2024

Estimated Read time

4Mins

For a company like TealBook, data is king. The organisation helps businesses to navigate the complex supplier landscape by offering…

For a company like TealBook, data is king. The organisation helps businesses to navigate the complex supplier landscape by offering a foundation of high-quality data. This is something that’s often sorely missing in procurement.

“We have a data problem,” Stephany Lapierre, CEO and Founder of TealBook, told us when we caught up with her at the DPW NYC Summit in June. “It’s always been my view that we don’t have a software or people problem – it’s data. If we could achieve better data – no matter the data stack, no matter the maturity, no matter the vertical – it would be truly transformative.”

Creating a data foundation

Lapierre has watched procurement’s attempt to tackle advanced technology without good data. Simply buying software is the easy part. Some have even tried to build their own architecture around that software. However, that’s often unsuccessful and highly manual. This is what led to the creation of TealBook.

“We’re in this pursuit of how we can deliver to the market,” Lapierre states. “We’ve been building a trusted data foundation for eight years.” More recently, the second version of TealBook’s service is significantly more powerful than the first. This allows it to ingest data at speed and set up new data sources within a couple of hours. “The more data sources, the more suppliers we’re covering, the more attributes per supplier. And, the more signals to improve the TrustScore and the confidence behind the quality of our data.”

Never ignore the fundamentals 

The fact that quality data is all too often overlooked in procurement in favour of advanced technology was something of a theme at the DPW NYC Summit. The opinion of Lapierre is that there’s little point in implementing advanced tech without first having usable data in place. Many others at the event felt the same.

“It’s like buying a house because you love the house, but paying no attention to its foundation, plumbing, or electrics,” she explains. “Procurement has been buying up technology solutions, wanting to see the workflow, the UI, what it can do. However, people aren’t asking where that data comes from. How is it being evaluated? What about the compliance side of having suppliers populating a portal?

“Procurement has more and more requirements to get more and more data, so filling the gaps becomes more difficult. There are also increasing demands for transparency, and for regulators to have better quality information. When you’re reporting something, you have to really trust that information. That’s how you give confidence to your board or leadership team.”

A shift in focus

The upside of this disconnect is that Lapierre fully expects the pursuit of better data to be a key trend in procurement over the next few years. “I’ve found that no-one talks about the data layer in procurement,” she states. “They brush it under the rug or underestimate how critical it is to use data to feed large language models for better insights. As data becomes more accessible, the need for a trusted data foundation becomes more important. You need good data posture.”

With this very topic being discussed openly at prestigious events like the ones DPW hosts, procurement professionals and leaders are actively working towards solving this blockage. “The problems have to be solved in order to leverage the exponential value of Gen AI, automate workflows, and bring intelligence in across all these functions,” Lapierre continues. 

“Consider: what would it mean to your business if you could actually solve that data problem, drive better outcomes, and truly digitise the procurement function?”

Author

Andrew Woods

Published

23 July 2024

Estimated Read time

3Mins

Our cover story this month features a fascinating discussion with Rebecca Howard, Head of Supplier Relationship Management at Coventry Building…

Our cover story this month features a fascinating discussion with Rebecca Howard, Head of Supplier Relationship Management at Coventry Building Society who talks operational transformation, ESG, and procurement as a creator of social value and community engagement… 

Social values

The role of procurement has changed. Today, the function has become a driver of so much more than cost reduction and business continuity. In the past few years—especially since the pandemic—procurement’s potential to not only support sustainable practice, digital transformation, and supply chain resilience, but to champion the values of the business as a whole has become increasingly evident.  

Coventry Building Society touches the lives of millions of people across the UK. We help them save and borrow to support their goals and livelihoods. “We’re owned by our members and our core belief is that we put our members first,” says Rebecca Howard, Coventry Building Society’s Head of Supplier Relationship Management. “Our members want us to keep their money safe and have an impact on people’s lives. That’s why our purpose is making people better off through life.”  

Read the full story here! 

Innovation

Elsewhere, we also have an exclusive interview with Deputy Chief Procurement Officer of IDEMIA’s Smart Identity division, Mark Janssen who discusses his procurement journey with IDEMIA. It’s a role that’s putting trust at the heart of his approach to partnership, procurement, and innovation…

For governments, trust in a company like IDEMIA to deliver reliable identity solutions is vital. Vital not only to the wellbeing of their citizens and institutions, but for national security. Mark Janssen, Deputy Chief Procurement Officer of IDEMIA’s Smart Identity division, emphasises this: “If a government runs out of identification documents, it triggers an immediate crisis.” Without valid forms of ID, he continues, citizens can’t travel, buy a house, or register a newborn child. 

Read the full story here! 

Plus, we have exclusive content from Amazon Business, Tonkean and much, much more! 

Read the latest issue here! 

Author

Andrew Woods

Published

Estimated Read time

3Mins

Shelley Salomon, VP of Global Business at Amazon Business, discusses her company’s commitment to fostering gender diversity in procurement… Procurement’s…

Shelley Salomon, VP of Global Business at Amazon Business, discusses her company’s commitment to fostering gender diversity in procurement…

Procurement’s gender imbalance isn’t new.

Traditionally, the function was regarded as a male-dominated profession. But change is afoot, in more ways than one. While a digital transformation amidst technological innovation is well-publicised, another evolution is underway within the workforce.

Gender diversity has become an important component of many company strategies globally. While progress to encourage more women into procurement has already started. There still remains an imbalance, particularly among those holding leadership positions. With current statistics suggesting around one in four leadership positions are held by women, there is still room for improvement.

So, is progress happening quickly enough? Shelley Salomon, VP of Global Business at Amazon Business, discusses her organisation’s commitment to fostering gender diversity and how women can reach parity in procurement. 

In your opinion, where is procurement today in terms of women’s representation in 2024?

Shelley Salomon: “Women’s representation in procurement has seen progress these past few years, but there remains room for further improvement. Gartner’s data shows that women comprise 41% of the supply chain workforce. It’s encouraging to see greater gender diversity within the industry.

“While these statistics are encouraging, they also highlight ongoing challenges. Particularly at the leadership level. Only 25% of leadership roles are held by women. This disparity underscores the need for sustained efforts to promote gender diversity and support women’s ascension to senior positions within procurement.

“My perspective on this trend is one of cautious optimism. The progress we see is promising, reflecting a growing recognition of women’s unique contributions to procurement roles. Diverse perspectives and gender equity are vital for effective decision-making and problem-solving. Additionally, multiple credible studies show that companies with the greatest gender balance in the C-suite are likelier to achieve above average financial results. However, much work must be done to ensure these advancements translate into lasting change.”

While progress to encourage more women into the workforce seems to be underway, there is still a major disparity in the number of women leaders in procurement. What is the best way to go about rectifying this? 

Shelley Salomon: “I believe there’s a significant opportunity to welcome more women into procurement leadership roles. By establishing robust mentorship and sponsorship programmes, organisations can provide invaluable guidance, support, and networking opportunities. Thus empowering women to thrive in their careers and gain visibility within the organisation. Investing in inclusive leadership development programmes is essential. These initiatives focus on building inclusive skills and readiness for leadership roles, continuing to foster a more inclusive and dynamic workforce.

“In my opinion, implementing inclusive hiring practices that actively promote gender diversity, such as using diverse hiring panels and conducting blind recruitment processes, is essential to minimising biases. 

“Lastly, setting clear, measurable goals for increasing the number of women procurement leaders and regularly reporting on progress to hold leadership teams accountable can drive meaningful change. By taking these proactive steps, organisations can create a more equitable environment that supports the advancement of women into leadership roles within procurement.”

Read the full story here!


Author

Andrew Woods

Published

Estimated Read time

4Mins

Sagi Eliyahu, Co-Founder and CEO at Tonkean and Alejandro Fernandez, Head of Global Procurement at Semrush, discuss the power of…

Sagi Eliyahu, Co-Founder and CEO at Tonkean and Alejandro Fernandez, Head of Global Procurement at Semrush, discuss the power of intake orchestration and procurement’s rise to the top of the agenda in the c-suite…

In a world with almost endless possibilities, why waste time on manual or outdated processes?

Technology is an enabler in everyday and business life. It is there as a vehicle of change and a weapon of efficiency. When used correctly, AI can help people focus on higher-value and more fulfilling work – which is what an entire generation of people crave today. The problem is, technology is not leveraged as efficiently or as strategically as it could be today — especially in enterprise back-office operations, like procurement. 

This is where Tonkean comes in. Tonkean is a first-of-its-kind intake orchestration platform. Powered by AI, Tonkean helps enterprise internal service teams like procurement and legal create process experiences that transform how businesses operate. In part by changing how internal teams leverage smart technology to empower the employees they serve to do better, higher value work.

Process orchestration

Process orchestration refers to the strategy — enabled by process orchestration platforms — of coordinating automated business processes across teams and existing, integrated systems. These processes can facilitate all procurement-related activities. Importantly, they can also wrap around an organisation’s existing systems and accommodate employees’ many different working preferences and styles.

Instead of simply adding to an organisation’s existing tech stack, process orchestration allows companies to use their existing mix of people, data, and tech better together. The true promise of process orchestration is to finally put internal shared service teams like procurement in charge of the tools they deploy.

This goes a long way towards solving one of the enterprise’s most vexing operational challenges: the inefficiency of over-complexity born of too much new technology. It also allows procurement teams to truly make their technology work for them and the employees they serve. As opposed to making people work for technology. Process orchestration breaks down the silos that typically separate working environments. No longer do stakeholders have to log in to an ERP or P2P platform to submit or approve intake requests. The technology will meet them wherever they are.

All in one place

Enter Sagi Eliyahu, Co-Founder and CEO at Tonkean. He explains that over the past few years, Tonkean has focused more on procurement specifically. In part because the challenges the procurement function faces day-in and day-out represent perfect orchestration use-cases. Procurement processes touch so many different teams, tools, and departments. Poor procurement performance can often be traced back to the fact that all these moving parts otherwise aren’t able to communicate easily with each other. Tonkean was built to address exactly that problem. 

“We saw that our procurement customers were having great success with it, but the market started to heat up as well,” he reveals. “It made sense because it happened for us on the procurement and legal side. They are teams that are very central to an organisation and their process is never just siloed into their tools and department. You need that idea of orchestrating all the different moving parts for it to have high adoption, faster cycles, better quality and compliance.”

Tonkean and Semrush partnership

One of Tonkean’s biggest customers is Semrush. Semrush, in turn, understands the potential of orchestration in procurement well. As a result of Tonkean’s intake orchestration capabilities, they’ve almost halved cycle times for intake requests — from 19 days to just 10. Alejandro Fernandez, Head of Global Procurement at Semrush, works closely with Eliyahu and Tonkean and couldn’t be happier about the collaboration…

Read the full story here!

Author

Andrew Woods

Published

16 July 2024

Estimated Read time

7Mins

Supply chain 4.0 – where preparedness and opportunity meet in the digital supply chain 

Supply chains matter. One break in the link and manufacturers can be left with costly disruptions that bring the entire operation to a standstill – and the problem isn’t going away soon. According to McKinsey research, disruptions lasting a month or longer now happen every 3.7 years on average. Whether it is issues securing raw materials, a steep rise in shipping costs, labour shortages, geopolitical conflicts, or sustainability concerns, the pressure is mounting on manufacturers to diversify their supplier partnerships and introduce more flexible operations. For manufacturers determined to create more resilient supply chains, Andrew Newton, Business Central Consultant at Columbus UK, argues that a digital transformation of supply chains will be integral to the industry’s ongoing survival. 

Industry 4.0 has been the main driving force behind recent supply chain transformation with the introduction of IoT technologies such as cloud, data analytics, and AI throughout the manufacturing ecosystem. This includes smart factories that enhance manufacturing with Industry 4.0 tech and smart products offering internet-based services. 

It’s now time for the supply chain to step up to the 4.0 digital plate. Market leaders, particularly in the automotive and electronics sectors, have already launched digital transformation initiatives to establish flexible and high-performing supply chains. And manufacturers of all sizes can learn from their example on how to achieve sustainable change. 

When disruption is constant, an organisation’s preparation for supply chain changes will provide a significant competitive advantage. From effective data connectivity to reshoring operations, operationalising AI, and implementing a long-term sustainability agenda – successful manufacturers must be able to incorporate these factors into supply chains to drive innovation and redefine how products are created, developed, and delivered to meet evolving consumer demands. 

Unearth actionable findings within the data haystack 

Many businesses now have extensive data archives spanning several years, including substantial sales orders and operational performance records but the ability to extract maximum value from this data remains a common challenge. Manufacturers want to establish robust connections with shop floor assets to unlock enhanced operational efficiency and make more informed decisions. However, many lack the data-related skills to successfully link their machinery or manage the influx of data streams from sensors. 

This is where the introduction of business intelligence dashboards with Supply Chain 4.0 can offer real-time production insights to inform decisions, boost efficiency, cut costs, and refine product quality. 

The convergence of operational technology (OT) and information technology (IT) adds to the data challenge, particularly where legacy equipment is still in use. It is important to recognise that the solutions being implemented require tailored approaches due to the unique demands of each manufacturing organisation. Developing applications within a business can be tricky, with not every business having the in-house data skills to do this. 

Custom applications that don’t require extensive coding expertise can address this digital skills gap. Versatile solutions that combine low-code services, self-service analytics, and automation for instance, can make it easier for manufacturers to create applications that precisely align with their specific needs, boost efficiency, and innovate in the process. The establishment of a reliable data environment with Supply Chain 4.0 ensures that manufacturers can enhance decision-making and operational efficiency, all while reducing costly errors. 

Operationalise AI to stay one step ahead 

AI has left a mark on every industry and when it comes to the manufacturing landscape, the story is no different. Already many businesses are using AI tools to process real-time data from shop floor sensors to provide manufacturers with immediate insights and action, especially if quality measures breach thresholds. But the capabilities of AI don’t stop at detection. 

Manufacturers must consider many factors in production and delivery, such as demand versus capacity and how much materials cost along the supply chain – and this is where unsupervised AI can be a useful tool for risk identification and market trend forecasting. 

For instance, AI can suggest preferred suppliers to purchase from based on their supply chain history or issue alerts for impending weather events affecting supply chains. Social media analytics enabled by AI can also be used to project patterns to better understand where the market is heading but it can’t fully predict the future. Instead, the role of AI with Supply Chain 4.0 is to help manufacturers identify shifting consumer interests and trends, spot market trends relating to offerings or brand, and forecast waning or growing interest in product types. 

I want it now! Proximity sourcing can help meet customers’ changing expectations 

As supply chain disruptions become part of the new business environment, it’s time for manufacturers to end the reliance on disparate and siloed operations and instead look to nearshoring as the answer. 

Customer expectations around delivery times are changing, with 62% of UK consumers now expecting next-day delivery when ordering online – an expectation that traditional offshoring business operational models now struggle to match. Yes, regional or local supply chains can be more expensive and add another level of complexity, but they do allow for greater inventory control and bring the product closer to the end customer, which reduces overall lead times. This reduction with Supply Chain 4.0 ensures that manufacturers can promote higher customer responsiveness and allows for constant improvement and innovation based on consumer feedback. 

Nearshoring also provides an opportunity to clamp down on miles covered and will help manufacturers introduce a circular approach to operations. With over 4 in 5 UK adults recognising their role in lessening their environmental footprint, it is clear that the manufacturing industry needs to mirror this popular attitude – and technology will play a key role here. Automation techniques for instance can improve traceability and visibility over the entire product line, highlighting how businesses use and waste materials, along with how they can reuse products for better forecasting and reduce fossil fuel usage and pollution. 

Particularly in the food industry, conscious consumers will base their buying behaviour on transport miles and the environmental impact of the product’s journey. If manufacturing businesses are able to clearly share this information with transparent supply chains, they will not only open themselves up to a larger customer pool but will also play a major role in tackling environmental challenges in the industry. 

Long-term commitment to sustainability goals 

Nearshoring is certainly one way that manufacturers can become more sustainable but with customer sustainability expectations rising, companies now have to show a long-term commitment to creating greener supply chains. 

Many businesses are making efforts to report on internal sustainable efforts such as energy consumption but extending reporting down the supply chain poses challenges, such as effectively reporting on a supplier’s energy usage. To achieve a comprehensive sustainability profile, this reporting must span the entire supply chain. 

Supply Chain 4.0 brings sustainability reporting tools that provide comprehensive tracking and analysis of environmental and social impacts, which will enable manufacturers to make informed decisions, ensure regulatory compliance, and communicate sustainable practices transparently. Manufacturers are looking to achieve this connectivity, particularly in linking shopfloor equipment usage with sustainability goals. 

Leading organisations are pushing for data standardisation among their supply chain suppliers but this brings its own set of pros and cons. Increased standardisation can make the supply chain more efficient and easier to review, potentially reducing a company’s risk. However, there’s more work needed to establish this standardisation. 

As public and regulatory interest grows, having a clear view of supply chain processes will become even more important. In the short-term, expect leading companies to keep investing time and effort to better organise their supply chain data. 

Supply Chain 4.0 – where preparation and opportunity meet in the digital supply chain 

Digital transformation is a long and complex journey but preparedness plays a key role in achieving optimal outcomes. Through the process of transformation, manufacturers can more effectively adapt to ever-shifting business conditions and evolving customer demands with Supply Chain 4.0, all while maintaining a competitive edge. 

The issue remains that each manufacturer faces their own unique scaling challenges that require a calculated approach to processes, planning, and implementation to create a sustainable business model. Often companies have growth ideas but lack a clear path to achieve them. The identification of key supply chain trends will set apart the laggards from the market leaders

Read the full issue of SCS here!

Author

Andrew Woods

Published

Estimated Read time

4Mins

Businesses have been forced to navigate and adapt to these challenges to ensure continuity, limit interruption and reduce risk

From Brexit to the pandemic and the current geopolitical conflict, the supply chain industry has faced a flood of challenges in recent years. This has caused disruption to supply chains. Businesses have been forced to navigate and adapt to these challenges to ensure continuity, limit interruption and reduce risk. 

Alice Strevens, Director Human Rights and Social Impact, Mazars 

As part of this, it’s increasingly important for businesses to ensure they have robust human rights due diligence processes in place. These processes support companies in their decision-making during crises, and help them identify risks in their supply chains. This ultimately protects them in both stable and unstable times. 

Human rights and environmental due diligence provides a basis on which to address environmental, social and governance issues that impact supply chain resilience. Companies that respond to crises with an approach based on due diligence are more likely to protect their relationships with suppliers. Plus, they get to mitigate the impact on workers in their value chain. An example of this is during the Covid-19 pandemic. Many companies saw buyers abruptly cancel orders, request refunds in full and pause orders for months. With many suppliers facing reduced sales at the time, it led to questions as to whether businesses were working alongside suppliers. Or taking advantage of the circumstances to get reduced costs. 

It’s important to learn from these lessons to build strong sustainable supply chain strategies. This will help businesses remain resilient both in stable times. And in the face of significant events. There isn’t a perfect formula. However, the concept of double materiality (i.e. considering sustainability matters from both the perspective of the impact on people and the environment, and the perspective of the financial risks and opportunities to the business) is helping businesses to assess sustainability-related risk strategically.  

Supplier engagement will ensure long-term success 

Building a sustainable supply chain for the long-term requires engagement and collaboration with supply chain partners. Long-term relationships can provide a basis to share challenging risks and impacts transparently. Human rights and environmental due diligence foregrounds the importance of engagement and collaboration to mitigate identified risks and build resilience. 

The responsible supply chain strategy should be integrated into the overarching sourcing strategy and supplier engagement approach. Delivery against the strategy should be built into performance targets and incentives. Regular reviews of impacts, targets and KPIs should be conducted at board level. Making use of the latest technological developments, including assessing their risk for social/environmental concerns and measuring and tracking performance. This will help companies stay ahead and be prepared in their processes. 

An evolving regulatory landscape calls for preparedness 

Another important point to keep in mind is the legislative landscape. This is especially pertinent in the EU, as the rules will make previous voluntary standards now mandatory and will impact large companies. This includes those in their supply chain, including in the UK. 

Companies should therefore look to base their strategies on the authoritative voluntary frameworks on conducting human rights and environmental due diligence. Primarily the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. This will set them up for meeting legislative requirements down the line. For example, Mazars and Shift co-wrote the UNGP Reporting Framework, which provides a framework for companies to adopt responsible practices, and manage human rights risks. 

The future of supply chain is now 

Ultimately, companies and suppliers should work together to ensure collaboration and a robust strategy which takes all parties into consideration. Listening to feedback and promoting good communication between stakeholders will ensure smooth sailing during the business-as-usual times. And the more tumultuous periods. 

Implementing long-lasting strategies and creating resilience to risks will increase business’ market access and promote their financial value. Thus ensuring that they deliver quality goods and gain loyalty among suppliers. 

Read the full issue of SCS here!

Author

Andrew Woods

Published

Estimated Read time

4Mins

Recent research conducted by InterSystems highlights a critical challenge within supply chain organisations in the UK and Ireland

Recent research conducted by InterSystems highlights a critical challenge within supply chain organisations in the UK and Ireland: nearly half (47%) cite their dependency on manual processes for data collection and analysis as their primary technological hurdle. This reliance not only leads to inaccuracies and delays in accessing data but is also a significant barrier to the adoption of artificial intelligence (AI) and machine learning (ML), which almost one in five (19%) anticipate will be the trend that most impacts their supply chain. 

Mark Holmes, Senior Advisor for Supply Chain, InterSystems 

For AI and ML adoption to be successful, models must be fed healthy, unified data. This requires supply chain organisations to move away from manual data collection and analysis and adopt a robust data strategy to underpin their efforts. This data strategy will sit at the heart of AI and ML initiatives but will also play a bigger role in the business’ overall operational strategy. 

Developing a smart data strategy 

A smart data strategy should encapsulate three things: data collection, analysis, and integration into organisational operations. This is where technology like the smart data fabric comes in, helping supply chain businesses to do all three things and bring their data strategy to life. 

Built on modern data platform technology, the smart data fabric creates a connective tissue by accessing, transforming, and harmonising data from multiple sources, on demand. In particular, smart data fabric technology allows supply chain businesses to leverage usable, trustworthy data to make faster, more accurate decisions. 

With a wide range of analytics capabilities, including data exploration, business intelligence, and machine learning embedded directly into the platform, supply chain businesses will also gain new insights and power intelligent predictive and prescriptive services and applications faster and easier. 

Once these solid data foundations are in place, supply chain organisations can begin to unlock the real potential of AI and ML to augment human decision-making. 

Applying AI and ML across the supply chain 

The use of AI and ML can deliver operational change across supply chain organisations, from improved demand sensing and forecasting, to optimised fulfilment. For instance, SPAR, the world’s largest food retailer consortium, has turned to ML to solve some of the difficulties it was experiencing in streamlining and optimising end-to-end fulfilment processes in stores across Austria. 

Operating in the extremely fast moving food and beverage sector, and with more than 600 merchants in Austria, SPAR Austria required a better way to help managers of local stores control their inventory. It consequently deployed ML for real-time sensing of demand shifts to optimise replenishment and strengthen its supply chain network. This has significantly improved on shelf availability (OSA), demand forecasting, productivity, and time to decision. In turn, it also helped SPAR increase revenue and efficiencies. 

ML can also be used for production planning optimisation, using different constraints including transportation cost, or component inventory allocation to improve fill rate and optimise product shelf-life, productivity, cost, and revenues. Additionally, with access to AI and ML-driven prescriptive and predictive insights, organisations will be able to reroute or resupply at the drop of a hat, helping to maintain operations, achieve on-time in-full (OTIF) metrics, and ensuring customer satisfaction. 

The automation and optimisation of these different processes also has a material impact on those working in supply chain operations. It transforms their work from reactive to proactive efforts. With less time spent on processing, more time is freed up for strategic thinking to improve fill rates and lower transportation costs, for example, making their role more rewarding and value-adding. 

A strategic approach to AI-driven transformation 

The transformative potential of AI and ML in supply chain management hinges on a smart data strategy that moves beyond manual processes to a seamless integration of robust data collection, analysis, and usage. By adopting smart data fabric technology, supply chain organisations can resolve their primary technological hurdles, transitioning from reliance on inaccurate and delayed data to leveraging real-time, actionable insights that fuel AI and ML initiatives. This strategic shift not only enhances operational efficiency and decision-making but also paves the way for predictive and prescriptive capabilities that dramatically improve demand forecasting, inventory management, and overall supply chain responsiveness. 

The success stories of companies like SPAR Austria demonstrate the profound impact of integrating AI and ML into supply chain operations. These technologies both optimise operational tasks and empower employees by shifting their roles from mundane, reactive tasks to strategic, proactive engagements that add significant value to their organisations. By adopting a smart data strategy and embracing these advanced technologies, supply chain businesses will realise benefits that extend beyond operational efficiencies to include improved customer satisfaction, increased revenue, and a stronger competitive edge. 

Read the full issue of SCS here!

Author

Andrew Woods

Published

Estimated Read time

3Mins

Soqui Calderon, Regional Director of Sustainability for Grupo Modelo and the Middle Americas Zone, reveals how the beverage giant is tackling sustainability from a procurement and supply chain perspective

Our exclusive cover story this month is with Soqui Calderon, Regional Director of Sustainability for Grupo Modelo and the Middle Americas Zone. She reveals how the beverage giant is tackling sustainability from a procurement and supply chain perspective. 

Grupo Modelo is a giant and a leader in the production, distribution and sale of beer in Mexico. Grupo Modelo is part of the Middle America Region (of the AB InBev Group) and boasts 17 national brands. Corona Extra is the most valuable brand in Latin America. Its other brands include: Modelo Especial, Victoria, Pacífico and Negra Modelo. The company also exports eight brands and has a presence in more than 180 countries while operating 11 brewing plants in Mexico. 

Through more than nine decades, Grupo Modelo has invested and grown within – and with – Mexico. It has also generated more than 30,000 direct jobs in its breweries and vertical operations throughout the country. 

Grupo Modelo, like many forward-thinking companies, is currently focused on a drive towards establishing a truly sustainable business. This endeavour is best exemplified in the Middle Americas Zone (MAZ), where sustainability efforts have been led by for the past five years by Soqui Calderon Aranibar, Regional Sustainability and ESG Director. Ambitious targets have been established for the region, but some remarkable achievements have already been made. As Calderon says: “For our team, sustainability is not just part of our business, it IS our business.” 

Sustainability in the MAZ 

The Middle Americas Zone is made up of several countries: Mexico, Colombia, Perú, Ecuador, Honduras, El Salvador, Dominican Republic, Panama, Guatemala + other Caribbean islands. Each territory is home to its own brands that are household names in their respective countries. However, Grupo Modelo’s Corona beer, manufactured in Mexico, is one of the top five best-selling beers globally.

Calderon’s regional role means she travels extensively throughout the territories, engaging with all their businesses and collaborating closely with their partners and suppliers. Her job? To effectively outline their sustainability goals…

Read the full story here!

Elsewhere we have some incredible names imparting expert insights from companies such as Amazon Business, Source Day, DHL and Marriott International and lots, lots more! 

Read the full issue here!

Enjoy! 

Author

Sean Galea-Pace

Published

8 May 2024

Estimated Read time

7Mins

Satya Mishra, Director, Product Management at Amazon Business, discusses how CPOs have become an important voice at the table to drive digital transformation and efficient collaboration.

Harnessing efficiency is at the heart of any digital transformation journey.

Digitalisation should revolve around driving efficiency and achieving cost savings. Otherwise, why do it?

Amazon is no stranger to simplifying shopping for its customers. It is why Amazon has become a global leader in e-commerce. But, business-to-business customers can have different needs than traditional consumers, which is what led to the birth of Amazon Business in 2015. Amazon Business simplifies procurement processes, and one of the key ways it does this is by integrating with third-party systems to drive efficiencies and quickly discover insights. 

Satya Mishra, Director, Product Management at Amazon Business, tells us all about how the organisation is helping procurement leaders to integrate their systems to lead to time and money savings.

Satya Mishra: “More than six million customers around the world tap Amazon Business to access business-only pricing and selection, purchasing system integrations, a curated site experience, Business Prime, single or multi-user business accounts, and dedicated customer support, among other benefits.

“I lead Amazon Business’ integrations tech team, which builds integrations with third-party e-procurement, expense management, e-sourcing and idP systems. We also build APIs for our customers that either they or the third-party system integrators can use to create solutions that meet customers’ procurement needs. Integrations can allow business buyers to create connected buying journeys, which we call smart business buying journeys. 

“If a customer does not have existing procurement systems they’d like to integrate, they can take advantage of other native tools, like a Business Analytics dashboard, in the Amazon Business store, so they can monitor their business spend. They can also discover and use some third-party integrated apps in the new Amazon Business App Center.”

Why would a customer choose to integrate their systems? Are CPOs leading the way?

Satya Mishra: “By integrating systems, customers can save time and money, drive compliance, spend visibility, and gain clearer insights. I talk to CPOs frequently to learn about their pain points. I often hear from these leaders that it can be tough for procurement teams to manage or create purchasing policies. This is especially if they have a high volume of purchases coming in from employees across their whole organisation, with a small group of employees, or even one employee, manually reviewing and reconciling. Integrations can automate these processes and help create a more intuitive buying experience across systems.

“Procurement is a strategic business function. It’s data-driven and measurable. CPOs manage the business buying, and the business buying can directly impact an organisation’s bottom line. If procurement tools don’t automatically connect to a source of supply, business buying decisions can become more complex. Properly integrated technology systems can help solve these issues for procurement leaders.”

Satya Mishra, Director, Product Management at Amazon Business

Beyond process complexity, what other challenges are procurement leaders facing?

Satya Mishra: “In the Amazon Business 2024 State of Procurement Report, other top challenges respondents reported were having access to a wide range of sellers and products that meet their needs, and ensuring compliance with spend policies. 

“The report also found that 52% of procurement decision-makers are responsible for making purchases for multiple locations. Of that group, 57% make purchases for multiple countries.

“During my conversations with CPOs, I hear them say that having access to millions of products across many categories through Amazon Business has allowed them to streamline their supplier quantity and reduced time spent going to physical stores or trying to find products they’re looking for from a range of online websites. They’ve also shared that the ability to ship purchases from Amazon Business to multiple addresses has been very helpful in reducing complexity for both spot-buy and planned or recurring purchases. Organisations may need to buy specific products, like copy paper or snacks, in a recurring way. They may need to buy something else, like desks, only once, and in bulk, at that. Amazon Business’ ordering capabilities are agile and can lessen the purchasing complexity.”

How should procurement leaders choose which integrations will help them the most? 

Satya Mishra: “At Amazon Business, we work backwards from customer problems to find solutions. I recommend CPOs think about what existing systems their employees may already use, the organisation’s buying needs, and their buyers’ typical purchasing behaviors. The buying experience should be intuitive and delightful. 

“Amazon Business integrates with more than 300 systems, like Coupa, SAP Ariba, Okta, Fairmarkit, and Intuit Quickbooks, to name just a handful. With e-procurement integrations like Punchout and Integrated Search, customers start their buying journey in their e-procurement system. With Punch-in, they start on the Amazon Business website, then punch into their e-procurement system. With SSO, customers can use their existing employee credentials. Our collection of APIs can help customers customise their procure-to-pay and source-to-settle operations. This includes automating receipts in expense management systems and track progress toward spending goals. 

“My team recently launched an App Center where customers can discover third-party apps spanning Accounting Management, Rewards & Recognition, Expense Management, Integrated Shopping and Inventory Management categories. We’ll continue to add more apps over time to help simplify the integrated app discovery process for customers.

“Some customers choose to stack their integrations, while others stick with one integration that serves their needs. There are many possibilities, and you don’t just have to choose one integration. You can start with Punchout and e-invoicing, for example, and then also integrate with Integrated Search, so your buyers can search the Amazon Business catalog within the e-procurement system your organisation uses.”

Are integrations tech projects?

Satya Mishra: “No, integrations should not be viewed as tech projects to be decided by only an IT team. Integrations open doors to greater data connectivity and business efficiencies across organisations. Instead of having disjointed data streams, you can connect those systems and centralise data, increasing spend visibility. You may be able to spot patterns and identify cost savings that may have gotten lost otherwise. 

“It’s not uncommon for me to hear that CPOs, CFOs and CIOs are collaborating on business decisions that will save them all time and meet shared goals, and integrations are in their mix of recommendations. 

“One of my team’s key goals has been to simplify integrations and bring in more self-service solutions. In terms of set-up, some integrations like SSO can be self-serviced by the customer. Amazon Business can help customers with the set-up process for integrations as well.”

How has procurement transformed in recent years?

Satya Mishra: “Procurement is no longer viewed as a back-office function. CPOs more commonly have a seat at the table for strategic cross-functional decisions with CFOs and CIOs.

“95% of Amazon Business 2024 State of Procurement Report respondents say the purchases they make mostly fall into managed spend. Managed spending is often planned for months or years ahead of time. This can create a great opportunity to recruit other stakeholders across departments versus outsourcing purchasing responsibilities. Equipping domain experts to support routine purchasing activities allows procurement to uplevel its focus and take on higher priorities across the organisation, while still maintaining oversight of overarching buying patterns. It’s also worth noting that by connecting to e-procurement and expense management systems, integrations provide easy and secure access to products on Amazon Business and help facilitate managed spend.”

What does the future of procurement look like?

Satya Mishra: “Bright! By embracing digital transformation and artificial intelligence to form more agile and strategic operations, CPOs can influence the ways their organisations innovate and adapt to change.”

Read the latest CPOstrategy here!

Author

Sean Galea-Pace

Published

Estimated Read time

8Mins

Anthony Payne, Chief Marketing Officer of HICX, tells us how working collaboratively with suppliers on sustainable procurement practices could act as an organisation’s competitive advantage.

Sustainability isn’t just a ‘nice to have’ anymore – businesses don’t have much of a choice in the world of 2024.

With ESG regulations now locked in place, organisations must comply or risk significant penalties. In order to achieve sustainability objectives more effectively and efficiently, collaborating with suppliers represents a real opportunity to get there faster.

When businesses work with suppliers to reach sustainability goals, they need access to the most accurate supplier data possible. However, obtaining this data isn’t necessarily straightforward. Ultimately, suppliers own it and need to provide it.

This means it is in a business’s interest to form and maintain a great working relationship with suppliers.

Anthony Payne, Chief Marketing Officer of HICX, the supplier experience platform, discusses the benefits of being supplier-centric and how giving brands a better experience adds value to organisations.

Anthony Payne: “There is a direct link. A good supplier experience makes it easier to communicate with suppliers because it allows for collaboration, whereas the opposite can harm communication efforts. For example, when businesses need ESG information, many will survey a broad group of suppliers even though the questions don’t apply to everyone. This is easier for the business. But it means every supplier who receives the survey must investigate whether it applies to them. The experience is more likely to frustrate suppliers than to help them offer the best information.

“Rather, we can help suppliers to help us by communicating better. The way forward is to segment suppliers into groups and send them only relevant requests. This creates a more positive experience in which suppliers are better able to provide helpful information.”

What about their motivation to help sustainability efforts – does this also rely on supplier experience?

Anthony Payne: “Yes, because if the culture of the business-supplier relationship is one in which each party looks out for themselves, then suppliers won’t be terribly motivated to offer the most helpful ESG information. It’s just human nature. Whereas if a business creates an environment in which suppliers can collaborate with them, then they’re more likely to become a customer-of-choice. This is a status worth having. A recent HICX survey showed that while 49% of suppliers would go the extra mile for their biggest customer, as many as 73% would make the effort if this was a customer-of-choice.

“Ultimately, if businesses give their suppliers a good experience, then more suppliers should be willing to provide helpful ESG information – even if it means spending a bit more effort.”

Anthony Payne, Chief Marketing Officer of HICX

What are some of your most effective strategies and best practices to building a future-proof ESG framework?

Anthony Payne: “Businesses can futureproof their ESG frameworks by viewing suppliers as value-adding partners. This principle suggests three ways to engage suppliers…

“First, have a corporate mindset in which every employee views every supplier as a valued partner. If COVID-19 taught us anything it’s how much we rely on suppliers. When the pandemic hit, non-strategic suppliers such as providers of IT equipment and protective personal equipment suddenly became as central to operations as those who supplied the main ingredients. If we take the view that ‘all suppliers matter’, then it becomes easier to treat them all as partners in the same eco-system and we can work together towards common goals.

“Then, through this lens, we can market to suppliers. In customer marketing, a business would require a certain action from customers – such as getting them to buy a product, read a newsletter or attend an event – and so would motivate this behaviour. Similarly, in procurement, we can appeal to suppliers in a way that encourages them to participate in ESG activities, for instance, by providing helpful carbon emission information. 

“One way to encourage the desired behaviour with suppliers is to segment them into the appropriate categories and send them only necessary messages. This is what a marketer would do with customers. By viewing suppliers as partners and introducing supplier marketing and segmentation, you can improve suppliers’ experience and get the most from them.”

What are the biggest barriers that organisations face to delivering more sustainable practices within their organisations?

Anthony Payne: “Once supplier data has been captured, however, the challenge continues because it must be maintained as a golden source of truth. Not having accurate supplier data is a major barrier to delivering sustainable practices because it means that businesses cannot see who all their suppliers are and what they’re doing. 

“Thankfully, with robust onboarding and data management in place, businesses can keep their supplier data up-to-date and accurate so that it can inform good sustainability decisions.”

What is the best way for procurement teams to assess and prioritise the suppliers they work with? How do you juggle environmental impact vs value to company?

Anthony Payne: “The best way to assess and prioritise suppliers is to have visibility. Businesses need to know who all their suppliers are and what they’re doing, at any given time. Only once leaders are informed, can they make the best environmental decisions.

“It’s imperative to manage environmental impact with suppliers, regardless of how much value they bring a company. Apart from the moral obligation to protect the environment, businesses also have their reputations to consider. An environmental infringement that gets exposed – no matter how deep in the supply chain it might occur – is very likely to cause reputational damage, which can have a knock-on effect on sales and share price. 

“In addition to brand reputation, businesses can also face expensive fines, if their suppliers are found to fall short of environmental regulations.”

Anthony Payne, Chief Marketing Officer of HICX

What are the challenges and opportunities when it comes to supplier diversity?

Anthony Payne: “The challenge is to source the right suppliers in the first instance and then be able to report on their activity. We know that finding diverse suppliers in the UK can be difficult. While the US market is more mature, supplier diversity is growing here. Considering this, many suppliers that could qualify as “diverse” are not yet certified. Additionally, when diverse suppliers are indeed certified, there is no guarantee that their skillsets will match your needs. 

“Thankfully there are ways in which businesses can proactively grow their networks of diverse suppliers. For starters, leaders can equip people within the organisation who work with suppliers, to find diverse suppliers by educating them and putting policies in place. Further, there are practical steps one can follow – such as defining the criteria for what qualifies a supplier as diverse in various territories and then finding the right businesses by searching online directories, desktop research and asking for recommendations.

“Once suppliers that are considered to be diverse are indeed found, they bring much value. Apart from being able to make a positive sustainability impact, the expectations of regulators, shareholders and consumers can be met. The by-product of this is a positive reputation which has economic benefits. 

“The opposite logic also applies, and failing to capture supplier diversity value becomes a missed opportunity. For instance, when third-party expectations to support supplier diversity are missed, this can damage brand reputation which hurts sales figures and share price. Also, the unique offerings that diverse suppliers can offer will be missed, and with it the chance to make an impact. Therefore, it’s sensible to make the most of the diverse suppliers that you worked so hard to find.”

Do you have any tips for readers who want to make the most of the diverse suppliers they have sourced?

Anthony Payne: “Yes, you can start by knowing that it’s possible to make the most of the diverse suppliers you find. You can do this by following a stepped approach. 

“Start by onboarding new suppliers who are considered ‘diverse’ with processes that reliably capture their information. This way, your diversity programmes can be well-informed. It’s hugely valuable to be able to tell, at the touch of a button, where a particular supplier might be based. Also, what qualifies them as ‘diverse’? And while they might hold diversity status today, how can we be sure it still applies tomorrow? 

“With all the right information collected at the start of each relationship, then it’s a good idea to instill processes that drive everyone who works with suppliers to spend more with those who are considered as diverse. As more diverse suppliers join the organisation, then you need to keep their data accurate. Do this by digitally transforming the procurement landscape to make master data a priority. With robust processes, it’s possible to maximise your relationships with all suppliers.”

How optimistic are you about the future of ESG within procurement?

Anthony Payne: “I am very optimistic about the future of ESG within procurement, because, we’re seeing the supplier experience movement grow in the UK and the US. For instance, we’re seeing new job roles come out in this area as the principle is popularised. And we know that having good Supplier Experience Management programmes in place sets up business to procure in the most ESG-friendly way possible. 

“And so, with Supplier Experience Management becoming increasingly popular, we believe that the future for sustainability is bright.”

Read the latest CPOstrategy here!

Author

Andrew Woods

Published

Estimated Read time

3Mins

DHL Group’s Erik-Jan Ossewaarde discusses the power of partnerships in the transition towards a green supply base, and how proactively fostering supplier relationships contributes to a more sustainable ecosystem…

It’s hard to believe we’ve reached the 50-issue landmark. It’s been such an incredible journey and thank you to every single person who has helped us along the way! And our 50th issue has a suitably fitting cover story with which to mark this moment.  

Read the latest issue here!

DHL: The power of sustainable partnerships 

DHL Group’s Erik-Jan Ossewaarde discusses the power of partnerships in the transition towards a green supply base. And how proactively fostering supplier relationships contributes to a more sustainable ecosystem 

Procurement has an important role to play in applying supplier sustainability initiatives in most organisations. We all know that. But, if you want to understand what that looks like in practice and how you transform the function to deliver on that promise, you could do a lot worse than spending time with Erik-Jan Ossewaarde and his strategy, sourcing, and procurement colleagues in his global cluster, as we were lucky enough to. Their job is to play a crucial role in delivering on the near-unmatched sustainability commitments set out by world-leading logistics company DHL Group to reach its goal of net-zero carbon emissions by 2050.  

DHL: how proactively fostering supplier relationships contributes to a more sustainable ecosystem 

Read the full story here!

Aquila Group: Purposeful procurement in mind 

We speak to Özer Ergül, Group Head of Procurement at Aquila Group, about the way the business is leveraging its position to influence suppliers and improve ESG across the board 

Investment and asset development company, Aquila Group, is one that takes sustainability seriously. It invests in and develops clean energy and sustainable infrastructure assets, meaning a focus on ESG is baked into the business with more than 15 years’ experience focused on climate change. And for Özer Ergül, Group Head of Procurement at Aquila Group, it’s the perfect canvas for his passions and expertise to come together. 

Ergül’s background is a mixture of aerospace, automotive, and for the last two decades, energy. He started off his career as an Air Force officer and moved into the automotive world in the 1990s, just as the sector was undergoing huge and exciting changes. “Those early roles shaped my way of working, my way of thinking,” Ergül explains. “They showed me how to solve problems collaboratively, and I still use those tools and that knowledge to this day.” 

Read the full story here!

Plus, we have fascinating exclusives with procurement leaders at Amazon Business Services, HICX and many, many more. Plus, all the latest news and events affecting procurement and its practitioners. 

Here’s to the next 50 issues! 

Author

Andrew Woods

Published

7 March 2024

Estimated Read time

2Mins

CPOstrategy cover star this month is Kristina Andric, Supplier Manager IT at Tetra Pak and recent CIPS Young Talent winner, who discusses the procurement landscape from her perspective and how Tetra Pak is nurturing young procurement leaders like her… 

This month’s cover star is Kristina Andric, Supplier Manager IT at Tetra Pak and recent CIPS Young Talent winner, who discusses the procurement landscape from her perspective and how Tetra Pak is nurturing young procurement leaders like her… 

As a household name in food processing and packaging, Tetra Pak stands by having a customer-centric, strong, and competent procurement function.

As a result, it’s always working hard to evolve, which includes seeking out new procurement talent wherever possible. This is how Kristina Andric, Supplier Manager IT, became part of the team and kick-started an exciting career. 

Read the latest issue here!

Andric started working at Tetra Pak in 2018 via a trainee programme called Future Talent. The programme lasted two years and gave trainees the opportunity to understand Tetra Pak from multiple perspectives. Andric was rotated throughout different parts of the organisation and across different geographies, the idea being to give young people a holistic view of the company before taking on a permanent role.  

“Embracing change marked my career since the beginning,” she reflects. “My curious nature thrives on the opportunity to engage in diverse experiences and continuous learning. Challenges motivate me and develop my potential, so every change has been to my benefit. I’ve enjoyed it all.” 

Elsewhere, we also have fascinating insights into procurement hot topics such as optimising tail spend with Simfoni and Kearney, amplifying procurement’s influence with Arkestro, while Box looks at The Art Of Procurement As A Change Agent. Plus, we detail 5 ways of tackling procurement’s talent shortage and discuss being prepared for future pandemics…

Enjoy! 

Author

Andrew Woods

Published

31 January 2024

Estimated Read time

7Mins

Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation

We have a bumper issue of fascinating exclusives this month!

Corden Pharma: Powering Change

Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation 

Change is here, get busy. Indeed, some organisations are further along a transformation journey than others.
For CordenPharma, a Contract Development and Manufacturing Organisation (CDMO) partner, they are right on track. 

CordenPharma supports biotech and pharma innovators of complex modalities in the advancement of their drug development lifecycle. Harnessing the collective expertise of the teams across its globally integrated facility network, CordenPharma provides bespoke outsourcing services spanning the complete supply chain, from early clinical-phase development to commercialisation. Recognised as a key partner to the pharma industry, CordenPharma provides state-of-the-art know-how, an integrated product offering end-to-end capabilities from early-stage development to commercial large-scale manufacturing. 

A closer look 

Timothy Woodcock has been the Director of Procurement at CordenPharma since October 2022 and is based in Basel, Switzerland. He explains that since joining over a year ago, while it was a “good start”, he admits to discovering some surprises after closer inspection. “There was a lot of information to get to grips with at the start and it was spread wide and thin,” he tells us. “But the team is certainly key and they have helped me pull it together through solid collaboration and engagement. Of course, there were a few surprises in the process realm, but that’s what makes this challenge so interesting to me.”

Read the full story here

carbmee: Carbon management for complex supply chains

Prof. Dr. Christian Heinrich, Co-Founder at carbmee, discusses his organisation’s journey to being the trusted solution provider for carbon management.

​​carbmee means carbon excellence for complex supply chains. It is the carbon management solution for automotive, manufacturing, chemical, pharmaceuticals, medtech, hi-tech, logistics, and FMCG industries. Whether to assess emissions holistically throughout the entire company, product or suppliers, carbmee EIS™ platform can create the transparency required for uncovering optimal emissions reduction potential and at the same time, stay compliant with upcoming regulations like CBAM.

carbmee’s journey

Christian Heinrich has been the Co-Founder at the organisation since January 2021. While some executives end up in procurement and supply chain by mistake, for Heinrich he affirms it was “always” the industry for him. As far as he’s concerned, collaboration is a big piece of the puzzle and Heinrich points to his diverse experience in a range of different industries and sectors which have helped him along the way to forming carbmee. 

“This was actually one of the reasons my co-founder Robin Spickers asked me to leverage my supply chain knowledge,” he says. “Robin had expertise in sustainability areas like Product LifeCycle Assessments and I had that in procurement and supply chain. We connected together and created carbmee to have scope 1, 2 and 3 solutions for carbon accounting and carbon reduction, which also combines the lifecycle analysis.”

Read the full story here!

Hemofarm: Strength through glocal procurement

 Zorana Subasic, Director SEERU & PSCoE Cluster Procurement at Hemofarm A.D. reveals how a glocal approach is transforming procurement at the pharmaceutical… 

Zorana Subasic is all about people. She heads up procurement for Hemofarm, the largest Serbian exporter of medicinal products, with a share of more than 70% of the total pharmaceutical. It sells pharmaceutical products on four continents in 34 states and, since 2006, has been part of the multi-national pharmaceutical giant STADA Group. 

Meeting the challenges

Zorana explains that her priority is focusing on people, both within her team and in the wider company, a priority that has been even more important during the last few challenging years and has impacted her leadership style.  ”These are areas that were new for me – managing people in ‘business as usual’ times is completely different to what we’ve been through in the last two or three years. It has affected people, and how it was for me to manage people in difficult times – understanding the challenges around us and making sure that people also understand the challenges.”

Read the full story here!

Elon: Procurement as a strategic partner

Onur Dogay, CPO at Elon Group, reflects on a year of procurement evolution and making the function an indispensable partner to the organisation…

A lot can happen in a year. Just ask Onur Dogay. In late summer 2022 he arrived in Sweden from his native Turkey to take the helm of a complex and evolving procurement environment at Elon Group AB, the Nordic region’s leading voluntary trade chain for home and electronic products. That he joined just a month after a significant merger that cemented the company’s market-leading position was no coincidence. Rather, Dogay was brought on board with a specific mission: use his industry experience and passion for transforming procurement to sustain the company’s market status while spearheading growth in new areas of retail and electronics. 

And he hasn’t slowed down since. In little over 12 months, Dogay has overseen a procurement evolution that includes setting a new data strategy that’s aligned with the broader company vision, shifting procurement’s role to be less transactional and more of a strategic business partner, improving communication and partnerships both internally and externally with suppliers, and overseeing the greater use of data and technology to enhance forecasting and planning capabilities. 

A seasoned procurement professional

A glance at Dogay’s CV to date leaves little surprise at his success. He is a seasoned procurement professional, with more than 20 years’ experience in procurement leadership positions working across internationally dispersed teams in Europe. “My background is particularly strong in retail, consumer electronics, telecom, and IT business units,” he explains, “including at Arcelik, one of the world’s largest manufacturing companies, and also for one of the biggest retailers in Europe, MediaMarkt. At the time of the merger in 2022 here at Elon Group, this experience, as well as the good relationships I had with many of the suppliers and brands we work with now, was the perfect match for the company.” 

Read the full story here!

Microsoft: A sustainable supply chain transformation

In the past four years, Microsoft has gained more than 80,000 productivity hours and avoided hundreds of millions in costs. Did you miss that? That’s probably because these massive improvements took place behind the scenes as the technology giant moved to turn SC management into a major force driving efficiencies, enabling growth, and bringing the company closer to its sustainability goals. 

An exciting time

Expect changes and outcomes to continue as Dhaval Desai continues to apply the learnings from the Devices Supply Chain transformation – think Xbox, Surface, VR and PC accessories and cross-industry experiences and another to the fast-growing Cloud supply chain where demand for Azure is surging. As the Principal Group Software Engineering Manager, Desai is part of the Supply Chain Engineering organisation, the global team of architects, managers, and engineers in the US, Europe, and India tasked with developing a platform and capabilities to power supply chains across Microsoft. It’s an exciting time. Desai’s staff has already quadrupled since he joined Microsoft in 2021, and it’s still growing. Within the company, he’s on the cutting edge of technology innovation testing generative AI solutions. “We are actively learning how to improve it and move forward,” he tells us. 

Read the full story here!

Click here to read the entire magazine!

Author

Andrew Woods

Published

17 October 2023

Estimated Read time

4Mins

This month’s cover story features Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement…

It’s a bumper issue this month. Click here to access the latest issue!

And below are just some of this month’s exclusives…

ProcurementIQ: Smart sourcing through people power 

We speak to Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement… 

The industry leader in emboldening procurement practitioners in making intelligent purchases is ProcurementIQ. ProcurementIQ provides its clients with pricing data, supplier intelligence and contract strategies right at their fingertips. Its users are working smarter and more swiftly with trustworthy market intelligence on more than 1,000 categories globally.  

Fiona Adams joined ProcurementIQ in August this year as its Director of Client Value Realization. Out of all the companies vying for her attention, it was ProcurementIQ’s focus on ‘people power’ that attracted her, coupled with her positive experience utilising the platform during her time as a consultant.

Although ProcurementIQ remains on the cutting edge of technology, it is a platform driven by the expertise and passion of its people and this appealed greatly to Adams. “I want to expand my own reach and I’m excited to be problem-solving for corporate America across industries, clients and procurement organizations and teams (internal & external). I know ProcurementIQ can make a difference combined with my approach and experience. Because that passion and that drive, powered by knowledge, is where the real magic happens,” she tells us.  

To read more click here!

ASM Global: Putting people first in change management   

Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, discusses her mission for driving a people-centric approach to change management in procurement…

Ripping up the carpet and starting again when entering a new organisation isn’t a sure-fire way for success. 

Effective change management takes time and careful planning. It requires evaluating current processes and questioning why things are done in a certain way. Indeed, not everything needs to be changed, especially not for the sake of it, and employees used to operating in a familiar workflow or silo will naturally be fearful of disruptions to their methods. However, if done in the correct way and with a people-centric mindset, delivering change that drives significant value could hold the key to unleashing transformation. 

Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, aligns herself with that mantra. Her mentality of being agile and responsive to change has proven to be an advantage during a turbulent past few years. For Erbynn, she thrives on leading transformations and leveraging new tools to deliver even better results. “I love change because it allows you to think outside the box,” she discusses. “I have a son and before COVID I used to hear him say, ‘I don’t want to go to school.’ He stayed home for a year and now he begs to go to school, so we adapt and it makes us stronger. COVID was a unique situation but there’s always been adversity and disruptions within supply chain and procurement, so I try and see the silver lining in things.”

To read more click here!

SpendHQ: Realising the possible in spend management software 

Pierre Laprée, Chief Product Officer at SpendHQ, discusses how customers can benefit from leveraging spend management technology to bring tangible value in procurement today…

Turning vision and strategy into highly effective action. This mantra is behind everything SpendHQ does to empower procurement teams.  

The organisation is a leading best-in-class provider of enterprise Spend Intelligence (SI) and Procurement Performance Management (PPM) solutions. These products fill an important gap that has left strategic procurement out of the solution landscape. Through these solutions, customers get actionable spend insights that drive new initiatives, goals, and clear measurements of procurement’s overall value. SpendHQ exists to ultimately help procurement generate and demonstrate better financial and non-financial outcomes. 

Spearheading this strategic vision is Pierre Laprée, long-time procurement veteran and SpendHQ’s Chief Product Officer since July 2022. However, despite his deep understanding of procurement teams’ needs, he wasn’t always a procurement professional. Like many in the space, his path into the industry was a complete surprise.  

To read more click here!

But that’s not all… Earlier this month, we travelled to the Netherlands to cover the first HICX Supplier Experience Live, as well as DPW Amsterdam 2023. Featured inside is our exclusive overview from each event, alongside this edition’s big question – does procurement need a rebrand? Plus, we feature a fascinating interview with Georg Rosch, Vice President Direct Procurement Strategy at JAGGAER, who discusses his organisation’s approach amid significant transformation and evolution.

Enjoy!

Author

Andrew Woods

Published

12 September 2023

Estimated Read time

4Mins

Read in brochure format

Welcome to issue 43 of CPOstrategy!

Our exclusive cover story this month features a fascinating discussion with UK Procurement Director, CBRE Global Workplace Solutions (GWS), Catriona Calder to find out how procurement is helping the leader in worldwide real estate achieve its ambitious goals within ESG.

As a worldwide leader in commercial real estate, it’s clear why CBRE GWS has a strong focus on continuous improvement in its procurement department. A business which prides itself on its ability to create bespoke solutions for clients of any size and sector has to be flexible. Delivering the superior client outcomes CBRE GWS has become known for requires an extremely well-oiled supply chain, and Catriona Calder, its UK Procurement Director, is leading the charge. 

Procurement at CBRE had already seen some great successes before Calder came on board in 2022. She joined a team of passionate and capable procurement professionals, with a number of award-winning supply chain initiatives already in place.

With a sturdy foundation already embedded, when Calder stepped in, her personal aim focused on implementing a long-term procurement strategy and supporting the global team on its journey to world class procurement…

Read the full story here!

Adam Brown: The new wave of digital procurement 

We grab some time with Adam Brown who leads the Technology Platform for Procurement at A.P. Moller-Maersk, the global logistics giant. And when he joined, a little over a year ago, he was instantly struck by a dramatic change in culture… 

Read the full story here!

Government of Jersey: A procurement transformation journey 

 Maria Huggon, Former Group Director of Commercial Services at the Government of Jersey, discusses how her organisation’s procurement function has transformed with the aim of achieving a ‘flourishing’ status by 2025…

Read the full article here!

Government of Jersey

Corio: A new force in offshore wind 

The procurement team at Corio on bringing the wind of change to the offshore energy space. Founded less than two years ago, Corio Generation already packs quite the punch. Corio has built one of the world’s largest offshore wind development pipelines with projects in a diverse line-up of locations including the UK, South Korea and Brazil among others.  

The company is a specialist offshore wind developer dedicated to harnessing renewable energy and helps countries transform their economies with clean, green and reliable offshore wind energy. Corio works in established and emerging markets, with innovative floating and fixed-bottom technologies. Its projects support local economies while meeting the energy needs of communities and customers sustainably, reliably, safely and responsibly.  

Read the full article here!

Becker Stahl: Green steel for Europe 

Felix Schmitz, Head of Investor Relations & Head of Strategic Sustainability at Klöckner & Co SE explores how German company Becker Stahl-Service is leading the way towards a more sustainable steel industry with Nexigen® by Klöckner & Co. 

Read the full article here!

And there’s so much more!

Enjoy!

Author

Sean Galea-Pace

Published

1 August 2023

Estimated Read time

2Mins

Read in brochure format

Welcome to issue 42 of CPOstrategy!

This month’s cover story sees us speak with Brad Veech, Head of Technology Procurement at Discover Financial Services.

CPOstrategy - Procurement Magazine

Having been a leader in procurement for more than 25 years, he has been responsible for over $2 billion in spend every year, negotiating software deals ranging from $75 to over $1.5 billion on a single deal. Don’t miss his exclusive insights where he tells us all about the vital importance of expertly procuring software and highlights the hidden pitfalls associated.

“A lot of companies don’t have the resources to have technology procurement experts on staff,” Brad tells us. “I think as time goes on people and companies will realise that the technology portfolio and the spend in that portfolio is increasing so rapidly they have to find a way to manage it. Find a project that doesn’t have software in it. Everything has software embedded within it, so you’re going to have to have procurement experts that understand the unique contracts and negotiation tactics of technology.” 

There are also features which include insights from the likes of Jake Kiernan, Manager at KPMG, Ashifa Jumani, Director of Procurement at TELUS and Shaz Khan, CEO and Co-Founder at Vroozi. 

Enjoy the issue! 

Author

Andrew Woods

Published

23 June 2023

Estimated Read time

2Mins

Read in brochure format

Welcome to issue 41 of CPOstrategy!

This month’s exclusive cover story features a fascinating insight into the procurement function at lighting giant, Signify.

A forward-thinking enterprise constantly reevaluating and adapting its operations against an ever-changing landscape, Signify has recently transformed its procurement function. And so we join Luc Broussaud, Global Head of Procurement/CPO and Arnold Chatelain, Transformation Program Director for Signify’s Procurement Organization to see why, and how, they have evolved procurement at the company.

Signify is a global organisation spread over all continents and Luc heads up the procurement function. According to Luc, he and his team no longer engage in traditional transactional procurement, but instead leverage digitalisation to deliver competitive prices as well as what they call ‘concept saving’, “Which is how we redesign or improve our product; leveraging the knowledge of our suppliers to make it cheaper, more efficient, easier to manufacture and install, and more sustainable for the planet.”

CPOstrategy - Issue 41

Luc joined Signify in 2018, after being the CPO of Nokia (based in Shanghai) and has always been working within procurement. He joined Signify with a broad skillset and a wealth of experience. “I joined because the people I talked to, from the COO to the CEO and CFO were all incredibly knowledgeable and passionate about procurement,” he reveals. Read the full story here!

Not only that, but we also have some incredible insights from procurement leaders at Heijmans, Datadog, HICX, DPW, ProcureCon Asia and SourcingHaus Research! Plus, the very best procurement events of 2023.

Enjoy the issue!

Author

Andrew Woods

Published

3 May 2023

Estimated Read time

2Mins

STADA graces the cover of CPOstrategy this month!

Our exclusive cover story this month features Alan Rankin, Chief Procurement Officer at STADA, who discusses his company’s journey to offering a best-in-class procurement function.

Few industries can say that statement with certainty. But for the pharmaceutical industry during the COVID-19 pandemic, finding a solution quickly was non-negotiable.  

Indeed, Alan Rankin, Chief Procurement Officer at STADA, acknowledges the role his sector played in helping to combat one of the biggest health crises of all time. He says the COVID-19 period made him “extremely proud” to be part of the industry. “The pharmaceutical industry worked hard to come up with a solution during a time when governments struggled to cope with what happened,” he recalls. “The industry had a real impact on the world being able to handle the situation and not going into financial meltdown. That alone makes me so proud to be in this space.” 

Read the latest issue here!

Today, STADA stands as a renowned manufacturer of high-quality pharmaceuticals. The firm operates with a three-pillar strategy consisting of consumer healthcare products, generics and specialty pharmaceuticals. Its consumer healthcare brands such as Hedrin, Nizoral, Grippostad and Zoflora are among the top sellers in their respective product categories…

Not only that but we also have fascinating discussions involving all the hot topics around the procurement function at the moment, with George Schutter, Former Chief Procurement Officer at the District of Columbia, Noemie Chetty, Director of Procurement of the Seychelles’ Public Utilities Corporation (PUC) and Trevor Tasker, CEO at EMCS Industries. Plus, Bob Booth Senior Partner, Finance & Supply Chain Transformation at IBM Consulting details how AI could affect the procurement function. “We are now witnessing a tipping point in the application of AI at real scale, and CPOs are wondering how this impacts them and their colleagues. This article aims to equip CPOs and their teams with some ideas to consider and some pointers on applying AI in a professional capacity to their company,” he reveals.

All this and lots, lots more!

Enjoy!

Author

Sean Galea-Pace

Published

14 April 2023

Estimated Read time

6Mins

Jolyon Bennett, CEO of Juice, discusses how sustainability has moved to the forefront of his organisation’s operations

A green approach is quickly transitioning away something that is ‘nice to have’ to an essential component of a company’s strategy.

To Jolyon Bennett, who heads up UK tech accessories manufacturer Juice, being environmentally friendly is non-negotiable. Bennett has transformed the mobile phone accessories sector, having consistently introduced a series of quality, vibrant and consumer-focused products to market, ranging from portable power banks through to super-fast chargers.

He takes us under the bonnet of his firm’s sustainability drive.

You have recently removed all single-use plastic from your entire product range – why?

Jolyon Bennett (JB): “Why wouldn’t you? Single-use plastic is one of the biggest polluters in manufacturing – it uses 3% of the entire planet’s oil consumption. This year, it’s forecast that there will be 50kg of plastic waste for every single one of the eight billion human beings on planet earth – that’s a lot! Consumers, manufacturers and brand owners like myself all need to get on board with the fact that we’re going to need to use and re-use plastic packaging to make different things.

“Why have we done it? Because it’s totally the right thing to do. We need to stop making so much plastic and we need start reusing what we’ve already got. We need to stop cutting down trees in order to make paper and cardboard – let the trees grow and re-use what we’ve got. It just makes sense on a planetary level to stop consuming quite so much and start being just a bit more content with what we’ve got. Why do we need to make ‘new new new’ all the time?”

What have you used instead of virgin plastic?

JB: “We’re reusing, reusing, reusing. Did you know that recycled plastic – depending on its quality and density – can be recycled and re-used between seven and 200 times. Isn’t that unbelievable? It’s such an amazing material. Plastic is a vibe, and we should be re-using it. Juice is using post-consumer waste such as Evian bottles to make speakers, old milk cartons to make power banks and so much more!”

Why do you love plastic?

JB: “I just think we’ve got a lot of it so why not reuse it? I admire the material because it’s so durable – it’s an incredible scientific breakthrough to be able to make something that’s not only waterproof and heatproof but lasts for up to 3,000 years. There are so many different elements that make plastic a great material. I would prefer it if we didn’t have any, but that’s not going to solve the current (and ever-growing) problem of plastic waste finding its way into our oceans, and burying it isn’t the answer either. The problem is with us humans is that we just shy away from the truth – l don’t want to shy away, I want to face these problems head on and meet the challenge.”

Has Juice taken a financial hit to make this happen?

JB: “As an example, we sell around three million cables a year (based on last year’s figures) and each piece of packaging that we are making using post-consumer waste costs us between $0.15 and $0.25 more, so as a minimum, our increased cost for doing this is almost half a million dollars. But I still think it’s the right thing to do. Money is made up – the world could end and money would no longer matter, so let’s stop making decisions based purely on money and let’s start making decisions based on the right thing to do.”

How do you rate the overall quality of the ‘Eco’ products compared to the ones they have superseded?

JB: “There is absolutely no difference whatsoever, so I rate them just as highly.”

Do customers really want these eco products or is this more for your own conscience?

JB: “I don’t suffer from guilt so in that respect I don’t feel driven by my conscience to do this – doing the right thing has its own gravity and its own way of whisking you forward. Generally, I believe that people and businesses that do the right things will prosper. I’m a firm believer in the philosophy of ‘do the right thing and good things will happen’ so it’s a strategic choice to do something that has a positive impact because positive things attract positive things. While not every consumer or every retailer is especially interested in our sustainability drive, I do think this is shifting slightly. Maybe I do have a conscience, but the reality is that it’s the right thing to do, and the right thing gets rewarded in the end.”

Are retailers keen to stock them?

JB: “We haven’t given them a choice! We changed all of our products because we wanted to and we are adamant that even though the materials we are using are different, our products still perform just as well, if not better.”

Should other tech brands follow suit?

JB: “Of course they should, and we would happily help them do so. We’re willing to introduce other tech brands to our suppliers and guide them through the same process we’ve taken, sharing our knowledge – including the hurdles we’ve overcome – because it’s the right thing to do. I don’t understand why any brand would want to continue producing virgin plastic when they don’t have to, it just doesn’t make any sense to me.”

What advice would you give to other brands wanting to embark on this process of removing single-use plastic from their products?

JB: “Do it. Stop messing about – get on with it and do it. Although it may cost you a bit more in the short term, we’ve proven that consumers do generally buy more of your products if you are making the right decisions towards the environment, so you will reap this extra cost back whilst also doing the right thing.”

What is next for Juice?

JB: “I want Juice to be a brand that limits its impact. We’re currently doing this with our manufacturing and through our supply chain and the way that we conduct ourselves in general. I want to start releasing products that have a positive impact on humans as well as the planet – I’m a firm believer that everyone can win. There will always be a demand for technology, so I don’t believe that we should be fighting against it, however, I would very much like to see people taking their technology off grid.

“My dream is to be able to take every mobile phone on planet earth off grid and start generating our own personal electricity. I want to create products that link to your activity – imagine if you could run 5k and the kinetic activity could generate enough energy to a charge a device such as a phone or a laptop while you do it? I’m interested in organic solutions to current chemical problems such as organic battery cells using salt water and algae as a storage method of electricity – so much so that we’re currently in discussions with a photosynthesis harvesting electronics brand about using photosynthesis as a charging capability!

“I want to get more connected with nature and I think you can have it all – I think we can still enjoy modern technology as well as the beautiful world around us. If we can utilise our intelligence in the right way, we can all live in a perfectly harmonious symbiotic relationship with amazing technology products and a sustainable environment for all wildlife.”

Author

Sean Galea-Pace

Published

5 April 2023

Estimated Read time

7Mins

Paul Farrow, Vice President of Hilton Hotels’ Supply Management, sits down with us to discuss how his organisation’s procurement function has evolved amid disruption on a global scale

The hospitality industry has endured a rough ride over the past few years.

Following the COVID-19 pandemic which stopped the world in its tracks and now with millions facing a cost-of-living crisis, it’s been a period of unprecedented disruption for those involved in the space and beyond.

But it’s a challenge met head-on by Paul Farrow, Vice President of Supply Management at Hilton Hotels, and his team who have been forced to respond as the world continues to shift before their eyes.

Farrow gives us a closer look into the inner workings of his firm’s procurement function and how he has led the charge during his time with Hilton Hotels.

Could we start with you introducing yourself and talking a little about your role at Hilton Hotels? 

Paul Farrow (PF): “I’m the Vice President of Hilton’s Supply Management, or HSM as we call it. I’ve been with Hilton Hotels for 12 and a half years, and my role is to head the supply chain function for our hotels across Europe, the Middle East and Africa.

“Over the past few years, Hilton has grown rapidly and has now got 7,000 hotels in over 125 countries globally. What is really exciting is Hilton Supply Management doesn’t just supply Hilton Hotels and the Hilton Engine because we also now supply our franchisees and competitive flags. While we have 7,000 hotels globally, Hilton Supply Management actually supplies close to 13,000 hotels. That’s an interesting business development for us, and a profit earner too.”

You’re greatly experienced, I bet you’ve seen supply chain management and procurement change a lot in recent years? 

PF: “The past two to three years have been tremendously challenging on so many industries but I’d argue that hospitality got hit more than most as a result of the Covid pandemic. Here at Hilton, supply management was really important just to keep the business operational throughout that tough time, but I’m delighted to say we’re fully recovered now.

“Looking back, it was undoubtedly difficult, and you only have to look at the media to see that we’re now going through a period of truly unprecedented inflation. On top of the normal day job, it’s certainly been a very busy time.”

Hospitality must have been under an awful lot of pressure during the pandemic… 

PF: “Most of our teams as a business and all functions have worked together far more collaboratively than ever before through the use of technology and things like Microsoft Teams and Zoom. Trying to work remotely as effectively as possible changed the way we all had to think and the way we had to do. Now we’re back in the workplace and in our offices, we’re actually looking to take advantage of that new approach.”

Inflation, rising costs, energy shortages, as well as drives towards a circular economy means it’s quite a challenging time for CSCOs and CPOs right now, isn’t it?

PF: “Those headwinds have caused and created challenges of the like that we’ve not seen before. The war in Ukraine and Russia has meant significant supply chain disruption and supply shortages of some key ingredients and raw materials. China is a significant source of materials and they’re still having real challenges to get their production to keep up with demand.

“All the local and short-term challenges are around energy and fuel pricing, so throughout the supply chain that’s been a major factor to what we’ve had to deal with. On top of that is the labour shortages. We rely heavily throughout the supply chain and within our business to utilise labour from around the world. In my region, particularly from say Eastern Europe as well as other businesses all fighting for a smaller labour pool than we had before. We are fighting with the likes of the supermarkets, Amazon’s, not just other hotel companies to capture the labour pool we need both in our properties but also within our supply chain supplies themselves.

Hilton operates a rather unique procurement function, doesn’t it?  

PF: “We trade off the Hilton name because our brand strength is something that we are able to utilise and we’re very proud of, but we’ve also got additional leverage by having that group procurement model.

“We’ve got essentially two clients. We’ve got our managed estate which is when an owner chooses to partner with Hilton, they’re signing a management agreement because they want the benefit and value of the Hilton engine. That could be revenue management, how we manage onboarding clients and customers through advertising, as well as the other support we give in terms of finance, HR, marketing and sales as well as procurement.”

HSM is a profit centre and revenue driver through its group procurement model but how does this work?

PF: “Our secret sauce is our culture. It’s our people and that filters across all of our team members and indeed all of our functions. The key strategic pillars are the same for health and supply management around culture, maximising performance and so on as they are across the overall global business.

“Across our 7,000 plus hotels, the majority are actually franchised hotels because that’s the legacy of what still is the model in the US. When I joined Hilton 12 and a half years ago, the reverse is true where nearly all of our hotels in Europe, Middle East and Africa, and indeed in Asia Pacific, were and are managed. In the Europe, Middle East and Africa regions right now we’re building up close to a 50/50 split between managed, leased and franchised.”

What has pleased you most about the roll-out of the HSM?

PF: “It’s certainly not been easy because we’ve got 70 countries that sit within our region here in EMEA and Hilton’s penetration in those individual countries is very different. We may have 100 hotels in one of those markets and only one or two in specific countries. Our scale and our ability to get logistics solutions is different by market.

“Getting everyone on board to what we want to achieve to our guests and to our owners means we have to pull different levers. We have very effective brand standards. If you’re signing up to Hilton, you’re signing up to delivering against those brand standards that we believe are right for our organisation.”

What kind of feedback have you had from your clients? 

PF: “Integrity is in our DNA, and we work very closely with our suppliers who we value as partners. These are long-term relationships, and we work hand in hand because we have to see that they’re successful so that we can be successful – it’s really important to what we do and we constantly look for feedback.

“With our internal and our external customers, we’ll have quarterly business reviews and so we’ll get that feedback through surveys where we are asking them to tell us what we do well and what we could do better. Our partners are now asking what additional value can you do to bring support to our organisation through ESG? So that’s what’s on the table now when it wasn’t before. But it’s not just that – it’s about the security of supply competitiveness, competitiveness of pricing, and a whole bunch of other very important things as well.”

Looking to the future, what’s on the agenda for the next few years?

PF: “We’re out there meeting and greeting people in person and there’s always new opportunities that make things exciting in what we do and how we work. Innovation’s very high on our agenda and we’re very proud of what we do in food and beverage. In non-food categories, it’s about how we support our owners and our hotel general managers to find that competitive edge and do the next big thing ahead of our competitors.”

Anything else important to know?

PF: “One thing we’ve been able to take full advantage of is how we’ve been able to grow our business by bolting on new customers. I think it’s fantastic that our competitors choose to use Hilton Supply Management because they benchmarked what our capabilities are and how competitive we are.

“Another key part of the agenda is environmental, social and governance (ESG) sustainability. Responsible sourcing and everything that sits within that is front and centre of what we do. Within that you’ve got human rights, animal welfare, single use plastics as well as general responsible sourcing like managing food waste. The list is very long, but they’re all very important.”

Check out the latest issue of CPOstrategy Magazine here.

Author

Andrew Woods

Published

Estimated Read time

2Mins

CPOstrategy catches up with Sam de Frates, who has been leading procurement transformation at Mars, Incorporated, to discover how one of the world’s largest enterprises has put people at the heart of its plans…

Our exclusive cover story this month, sees us catching up with Sam de Frates, Vice President, Commercial – Europe, CIS & Turkey at Mars, Incorporated, and the leader of procurement transformation at the company, to discover how one of the world’s largest enterprises has put people at the heart of its plans…

Read the latest issue here!

CPOstrategy Magazine cover - Issue 39

Talk of technological change and digital transformations often excludes the most vital tools in delivering meaningful value within an enterprise: the people. Because new tools, processes and capabilities only truly maximise their value if they are shaped by the very people that require their services. The adoption of technology without the human touch can be an expensive opportunity missed.

An experienced procurement leader who has worked at some of the largest companies on earth, de Frates joins us for a chat from his London office to discuss how digital procurement at Mars has evolved under his guidance, whilst the company undergoes cross functional changes at scale – a hugely significant transformation with Mars Associates and its suppliers at its heart…

Elsewhere, we also we discuss the hottest topics within the procurement function, with Paul Howard, Chief Commercial Officer at New Zealand Defence Force and Manuele Burdese, Sr Director, Head of Business Insights & Analytics Strategic Sourcing & Procurement, Bristol Myers Squibb. Plus, we have some incredible insights from Efficio, Ivalua and Hilton Supply Management.

Enjoy the issue!

Andrew Woods

Author

Sean Galea-Pace

Published

29 March 2023

Estimated Read time

6Mins

Here are 10 of the most important leadership skills that CEOs need to demonstrate in 2023.

In today’s world, a CEO needs to be lots of things to different people. The importance of having the leadership skill to being able to lead through unprecedented disruption was highlighted by the COVID-19 pandemic and helped to define what makes a good CEO.

Here are 10 of the most important leadership skills that CEOs need to demonstrate in 2023.

1. Clear communication

Communicating effectively with employees is one of the most vital skills any leader can have. By adopting a transparent mindset, it leaves little room for miscommunication or misunderstandings. But rather than just being eloquent, CEOs should deliver meaningful content too. A CEO needs to be able to communicate the essence of the business strategy and the methodology for achieving it.

2. Strong talent management strategy

People are the most important component of all businesses. CEOs who are able to recruit and retain key employees have a greater chance of increasing productivity and efficiency. After recruiting good people, the key to retaining them is by harnessing a positive work environment that empowers employees to succeed.

3. Decision-making

As a leader, thinking strategically to make effective decisions is vital to the success of an organisation. Making decisions is a key part of leadership as well as having the conviction to stand by decisions or agility to adapt when those decisions don’t have the required outcome. While all decisions might not be favourable, making unpopular but necessary calls are important characteristics of a good leader.

4. Negotiation

Negotiation is a fundamental part of being a CEO. In a top leadership position, almost every business conversation will be a negotiation. Good negotiations are important to an organisation because they will ultimately result in better relationships, both with staff inside the company and externally. An effective leader will also help find the best long-term solution by finding the right balance and offering value where both parties feel like they ‘win’.

5. Creativity and innovation

Being quick-thinking and ready to explore new options are great skills of a CEO. Creative leadership can lead to finding innovative solutions in the face of challenging and changing situations. It means in the midst of disruption, of which it has been increasingly prevalent, leaders can still find answers for their teams. Creative CEOs are those who take risks and empower employees to drop outdated and overused practices to innovate and try new things that could lead to greater efficiency.

6. Agility

Without agility over the past few years, businesses would have failed. CEOs were forced to embrace remote working following the advent of the COVID-19 pandemic whether they liked it or not. Now, faced against a potential recession, these macroeconomic events are unavoidable and have to be managed carefully. Effective leaders will have their fingers on the pulse and ready to respond to changes.

7. Strategic forecasting

Creating a clear path forward is essential to achieving uninterrupted success. The ability to look into the future and identify trends and issues to then react to is vital. Good CEOs are able to plan strategically and make informed decisions to set goals and plan for the future easily.

8. Delegation

CEOs can’t do everything. A leader tends to be pulled in a number of different ways every day and it is impossible to be on top of everything. This means the importance of bringing in a team of people who are trusted and skilled in their respective areas of expertise. Successful CEOs are expert delegators because they recognise the value of teamwork and elevating those around them.

9. Approachability

An approachable CEO who welcomes conversation and is an active listener will help employees feel at ease raising issues or concerns. This approach will help build strong relationships with staff and customers and encourage a healthy culture which is beneficial to employee retention. Leaders with strong, trusting and authentic relationships with their teams know that investing time in building these bonds which makes them more effective as a leader and creates a foundation for success.

10. Growth mindset

If a CEO arms themselves with a growth mindset it allows them to meet challenges head-on and evolve. This shines a light on improving through effort, learning and persistence. As others may back down in the face of adversity and upheaval, successful CEOs will strive to move forward with confidence. Those with a growth mindset are unlikely to be swayed as they have the tools needed to reframe challenges as opportunities to grow.

Author

Andrew Woods

Published

26 January 2023

Estimated Read time

7Mins

Sara Malconian, Chief Procurement Officer at Harvard University & Jim Bureau, CEO of JAGGAER explain how ESG & the Circular Economy is changing the evolution of procurement.

We speak to Sara Malconian, Chief Procurement Officer at Harvard University and Jim Bureau, CEO of JAGGAER to see how ESG and the Circular Economy is changing the evolution of procurement…

Sara, how have you seen your role evolve as a procurement leader over the years as ESG and supplier diversity come into focus? 

Procurement leaders have gone from ‘cost cutters’ to ‘problem solvers’ within their organisations. Our core mandates used to be to drive cost savings and efficiency. We were hyper-focused on getting the most out of the organisation’s spend and supplier relationships. Those priorities haven’t gone away, especially in today’s inflationary environment, but the expectations of the procurement function are significantly higher and broader today. 

Procurement functions saved their companies during COVID and the confluence of disruptions that followed. We showed we are a strategic linchpin. We are now looked upon to drive value and impact and strategically guide our organisations to achieve broader goals, including diversity and environmental, social, governance (ESG). Internal stakeholders realised the benefits of procurement and sought help with advancing their department’s agendas or solving their challenges. We listen to their needs, allocate the right resources, and ultimately enable them and the overall organisation to be successful.  

I’ve been in procurement for over 20 years, and I can honestly say you’d be hard-pressed to find a more rewarding and exciting career. Procurement professionals have a real opportunity to make a tangible difference within their organisations, communities, and the world through the way we source products and services. 

What is Harvard doing to have a positive impact on society? Can you share some examples, Sara?

Across the Harvard community, students, alumni, faculty, and staff are advancing scholarship and teaching on the world’s most significant challenges, and everyone wants to do their part to address inequities. Supplier diversity and inclusion have been a priority for Harvard for years, but we wanted to make even more of an impact and really invest in the growth and development of diverse businesses, especially as the pandemic highlighted inequities and disparities within our communities.

In 2021, we formed the Office for Economic Inclusion & Diversity (OEID), which is dedicated to reaching out to diverse suppliers, giving them opportunities, and providing them with tools, training, and resources to be successful. The office also encourages the use of underrepresented business enterprises (UBEs) in the purchasing of all goods, services, and construction at Harvard and standardises procurement practices with these businesses across the university. 

We’re proud of the work this office is doing. We’re actively training suppliers on Harvard’s policies and how they can work with us. We’re creating a central location for them to access bid and RFP opportunities. UBEs can also apply to be mentored by Harvard Business School students.

We’ve created a dashboard to track and analyse spend with diverse suppliers across all of Harvard’s schools and measure progress over time. Everything we’re doing is aimed at increasing spend with our existing diverse suppliers, as well as the number of diverse suppliers that work with Harvard, and helping these suppliers grow their businesses.

Jim, why is prioritizing ESG and supplier diversity important and what steps can companies take today to progress in their journey? 

Beyond being the right thing to do, investors, boards, regulators, customers, and employees now expect organisations to prioritise ESG and diversity initiatives and walk the talk. There’s also a clear business impact. Supplier diversity drives competitive bidding processes that lead to cost savings. Working with partners who are sustainable and have different ideas and perspectives fuels innovation and creates a competitive advantage. Sourcing from a sustainable and diverse supplier pool also reduces risk by broadening organisations’ access to multiple resources for various materials, products, and services. 

One of the most critical steps companies can take to progress on their ESG journey is to make it clear to suppliers that environmentalism is a priority for their organisation. They will attract suppliers with higher levels of ESG maturity and provide suppliers who are earlier on in their ESG journey with sustainability toolkits and training to help educate them on eco-friendly best practices and sustainability innovations.

This step avoids having to overhaul their supply chain to account for ESG. Strategically managing suppliers by leveraging third-party data, scorecards, and supplier audits are crucial for understanding the ESG risks that suppliers pose and minimizing disruptions by working with them to correct these issues. 

Successful supplier diversity programs start with a top-down culture shift. If a company’s culture isn’t diverse, inclusive, and supportive for all its stakeholders, they won’t be able to drive supplier diversity in a meaningful way. Supplier diversity strategy should map back to company goals and include an executive-level champion to sponsor the program internally and help bring in the resources they need.

Outside of leveraging technology to identify diverse suppliers and build a program, businesses can talk with people who have been in their shoes. They can collaborate with like-minded companies at industry events, engage in relevant LinkedIn groups, and connect with organisations such as the National Minority Supplier Development Council.

Once diverse suppliers are on board, organisations can create a supplier diversity policy that clearly outlines how many diverse suppliers need to be invited to bid for each event to ensure teams are executing on the strategy. Leading supplier diversity programs go beyond simply spending with diverse suppliers to providing mentorship and training them on how to respond to RFPs correctly, as well as creating environments where it’s easier for them to engage. 

Jim, what role does technology play in helping organisations achieve ESG and supplier diversity goals?

Technology is a key enabler of ESG and supplier diversity initiatives. One of the biggest obstacles to supplier diversity and ESG is a lack of reliable supplier data. Suppliers don’t always keep their information up to date in self-service portals. The data procurement teams have isn’t always enriched to the level they need, with insights on diversity status, certifications, and proof of ESG compliance.

Researching and assessing suppliers is tedious and time-consuming, which leads many organisations to skip the verification step. Without this information, organisations don’t have a true picture of the inclusivity and sustainability of their supplier network, which makes it impossible to identify the right partners to source from to meet their ESG and supplier diversity goals and make an impact.

Technology addresses this challenge by automatically collecting, enriching, validating, and integrating the supplier data needed to obtain this level of supply base visibility and make decisions that drive ESG and diversity. AI-powered tools are available to match buyers with specific diverse suppliers who also have the capabilities to help drive ESG objectives and meet broader procurement criteria.

Software that segments the supply base and helps visualise spending with small and diverse suppliers across a variety of classifications is critical for setting benchmarks and measuring progress and ROI. 

Jim and Sara, how do you expect the ESG and diversity conversation to shift and where should procurement leaders focus for the future?

Sara: I expect we’ll see the conversation shift to emphasise measurement. It’s not enough anymore to say you’re committed to ESG – you need to prove it and show demonstrable progress and ROI. Maintaining the momentum on ESG initiatives is hard. Technology is key for setting benchmarks and goals, ensuring accountability for hitting key milestones, and measuring progress and return in a credible way. 

Jim: In a declining economic environment, choices inevitably need to be made. I expect the conversation around ESG will center around where companies can focus to maintain progress on ESG initiatives as financial and economic pressures come to the forefront. While some companies may need to scale back in some areas to preserve cash and resources to navigate a downturn, I’d advise them to be careful about slowing ESG down too much as it will be much harder to catch up to current levels after the economy bounces back.

I’d argue that when ESG is done right it can be a strategic lever for navigating a down economy, saving organizations money and resources, driving innovation, and helping them achieve broader business objectives and resilience. 

Author

Andrew Woods

Published

25 January 2023

Estimated Read time

2Mins

Our exclusive cover story this month features Sangram Bhosale, CPO at Xcel Energy.

Our exclusive cover story this month features Sangram Bhosale, Vice President and Chief Supply Chain Officer at Xcel Energy. Sangram Bhosale is a highly experienced CPO with an impressive track record of delivering procurement excellence within the energy sector for some of its biggest names.

When the former TransAlta and Husky Energy CPO joined Xcel Energy as Vice President and Chief Supply Chain Officer (CSCO) in 2020, he wasted no time devising a procurement transformation plan to advance the function to the top quartile. One that would capacitate the rest of the organization to meet and overcome the many technical and tactical challenges to meet current and future needs.

Read the latest issue now!

What attracted Bhosale to Xcel Energy was its visionary leadership team and an opportunity to catalyze the profound shift in how energy is generated and consumed.

“One of the things that I love, and a big part of why I joined Xcel Energy, is that we are a purpose-driven organization with a bold vision of being an industry leader in clean energy. The fast-evolving and innovation-driven utility industry also attracted me,” he tells us from his Denver office.

“Today, utilities are no longer the stodgy beast of yesteryears where not much had changed for decades. New technology is being explored and adopted, with billions invested in grid expansion and strengthening to meet reliable, cleaner, and increased energy demand. To be at the forefront of and lead that clean energy transition aligns closely with my values and beliefs and makes my role at Xcel Energy very exciting.”

Elsewhere, we also feature exclusive interviews with Vice President of Procurement, Anna Barej, and Director, Procurement Center of Excellence, Shawn Calabrase from Best Buy, Alessandro Gaiati, CPO at Fedrigoni, Norian Wasch, Director Procurement at EuroFiber, David Latten, Head of Global Indirect Procurement at Logitech, as well as Heath Nunnemacher, VP Global Electronics Sourcing, TTI and Mark Brady, Global Supply Chain Director at McPherson’s. It’s a bumper issue!

Enjoy!

Author

Andrew Woods

Published

20 January 2023

Estimated Read time

2Mins

The second issue of SupplyChain Strategy is live! Features exclusive articles on TTI and McPherson’s

SupplyChain Strategy Issue 2 cover

Our exclusive cover story this month sees us speaking to Heath Nunnemacher, VP of Global Electronics Sourcing at TTI, who details the streamlining of its procurement function into a more efficient and effective value-unlocking enabler of business.

Read the issue here!

Techtronic Industries (TTI) is among the world’s largest manufacturers of mostly cordless power tools, outdoor power equipment, and floorcare products for both professional users and do-it-yourself (DIY) consumers.

TTI’s growth has been extraordinary – 13 years of consecutive double-digit gross margin improvement, in fact. In 2021 the company set a new revenue growth record just shy of 35%, more than twice that of its closest global competitor.

A significant driver of that growth is a strategic focus on disrupting industries through leadership in cordless technology. To do so, it requires advanced electronics and collaboration with the most innovative and biggest players in the industry. But with the chip shortage crisis looming on the horizon in late 2020, the organisation found itself challenged by a severe lack of visibility in the electronics procurement function. Enter Heath Nunnemacher, the man charged with transforming electronics procurement for the overall betterment of the business. 

Not only that, but we also have a fascinating discussion with McPherson’s Supply Chain Director Mark Brady. The health, wellness, and beauty giant McPherson’s has a rich history of agile procurement through resilience and collaboration and Brady reveals its secret sauce. 

Plus, we detail the important supply chain trends to look out for in 2023 as well as five top supply chain events coming up!

Enjoy!

Andrew Woods

Editorial Director

Author

Andrew Woods

Published

16 December 2022

Estimated Read time

2Mins

The latest issue of CPOstrategy is LIVE!

This month’s cover story is an exclusive and compelling insight into the procurement strategy at Vodafone New Zealand.

This month’s cover story is an exclusive and compelling insight into the procurement strategy at Vodafone New Zealand.

“For me, the future of procurement is two things: digital and sustainability,” says Rajat Sarna, Chief Procurement Officer and these two themes are the thread that runs through everything he’s put into place since he took over the reins of the procurement function at Vodafone New Zealand in October 2020.

The role was a huge one to take on, too – the telco employs 2,000 people, serves 2.4m customers and is a $2bn revenue company. The scale of its operations is huge with customers consuming over 3 billion minutes, 4,500 terabytes of mobile data and 55,000 terabytes of fixed line data every month.  A key part of his mandate was to transform procurement into a market-leading operating partner to the business that would “ultimately improve the value that we deliver to our customers”.

Read the latest issue here!

Sarna went back to basics initially, thinking about what the future capability of Vodafone New Zealand would look like, and what its procurement operation needed to be to support this. He says: “It was very critical for me to have a purpose and it cannot just be better savings or improved cost position. That’s not purpose; purpose is: what are we doing in terms of how we align with the future of procurement?”

Elsewhere, we have exclusive interviews with procurement strategists Lawrence Kane, a SIG Sourcing Supernova Hall of Fame member and Nirav Patel, CEO of Bristlecone. Plus, a ProcureTech exclusive and a guide to the best procurement events over the next 12 months and much, much more.

Enjoy!

Author

Andrew Woods

Published

11 November 2022

Estimated Read time

2Mins

CPOstrategy speaks exclusively to Kathy Golding, Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited, to see how a range of transformative initiatives have evolved the functions at the Big Four organization.

CPOstrategy speaks exclusively to Kathy Golding, Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited.

This month’s cover story sees us speaking exclusively to Kathy Golding, Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited, to see how a range of transformative initiatives have evolved the functions at the Big Four organisation, in a bid to benefit its operational excellence, its people experience, and the wider global community.

Read the latest issue here!

The global EY organization has over 350,000 employees across many countries, providing consultancy, assurance, tax and transactional services that “help solve EY clients’ toughest challenges and build a better working world for all.”

Kathy Golding is the Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited and has been with the company for over 10 years, having spent her entire EY career in Supply Chain Services. Working under the guidance and leadership of Larry Phelan, Chief Supply Chain Officer at EY Global Services Limited and recognized by Procurement Magazine at no. 7 in the Top 100 Leaders in Procurement 2022, Golding helps manage the procurement and supplier relationship management of the Talent, Technology, and Brand, Marketing & Communications (BMC) categories across EY Global, with approximately US$5 billion annual spend. Golding is a highly experienced force at EY, and we were delighted to meet her at the company’s Canary Wharf office to discuss how procurement is evolving at one of the biggest enterprises on earth.

Kathy Golding, Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited
Kathy Golding, Procurement & Supplier Ecosystem Services Leader at EY Global Services Limited

Not only that, but we also catch up with Vodafone NZ’s Rajat Sarna to see how procurement is being transformed at the telco through a start-up mentality.

And… there’s lots, lots more…

Author

Andrew Woods

Published

21 October 2022

Estimated Read time

1Min

How can businesses cope with persistent, global supply chain issues and what are the concerns looming on the horizon?

The Digital Insight speaks to Nirav Patel, CEO of Bristlecone (a supply chain company of the $19bn Mahindra group), who discusses how businesses can cope with persistent, global supply chain issues – and outlines the concerns looming on the horizon.

Author

Andrew Woods

Published

14 October 2022

Estimated Read time

2Mins

The latest edition of CPOstrategy is live, featuring exclusive articles on Coupa, Just Eat Takeaways, Friesland Campina, DPW and ProcureTech

This month’s exclusive cover story centres around the Coupa App Marketplace, the digital ecosystem transforming procurement functions the world over.

We speak to Nigel Pegg, Vice President and General Manager of the Coupa App Marketplace and CoupaLink to find out more about the roll-out one year on.

Read the latest issue now!

The evolution of procurement into a true strategic business enabler is fuelled by technological advances. The ability to dig deep into data with true visibility into an enterprise’s entire spend and supplier network has been provided through ever-evolving platforms, such as Coupa’s highly successful Business Spend Management (BSM) platform. In BSM, Coupa has created a digital ecosystem that brings suppliers, vendors, and partners together in the same room with a single ‘source of truth’. 

 
Elsewhere, we discuss how strategic procurement is the way forward at a rapidly growing enterprise, with John Butcher, Group Procurement Director Just Eat Takeaway.com. Plus, we grill Maximillian Tan, Director Business Procurement Asia at FrieslandCampina, one of the largest dairy companies in the world with a cooperative tradition going back 150 years, on how he is unlocking value at the enterprise.

We also have features on DPW and its NEXT100, the CIPS Awards 2022 and revisit the winners of ProcureTech100 2021.

Enjoy the issue!

Andrew Woods

Editorial Director

Author

Andrew Woods

Published

12 September 2022

Estimated Read time

2Mins

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CPOstrategy’s cover star this month is procurement transformation expert, and CEO and Co-Founder of Tropic, David Campbell…

Right now, procurement excellence is blooming. Experts determined to create change are coming to the fore and aligning procurement with SaaS to bring an end to the do-it-yourself way of working that decimates technology budgets. Tropic is one such game-changer, providing the tools to navigate software procurement’s complexities for competitive advantage.

Read the latest issue here!

The CEO and Co-Founder of Tropic is David Campbell, a born entrepreneur. He grew up on a cattle ranch in California and has always had at least one side-hustle on the go. Even as a child, he was running some form of money-making venture at any one time – but he didn’t necessarily consider that entrepreneurial pursuits were his calling until later.

CEO and Co-Founder of Tropic, David Campbell
CEO and Co-Founder of Tropic, David Campbell

Campbell studied English at UC Berkeley, and on graduating assumed he’d go into the arts. He’s a lifelong musician and writer, and he moved to a cabin in the woods to write the ‘next great American novel’. This venture, while it didn’t have the exact results he had hoped for, planted the seed in his mind that perhaps entrepreneurialism was for him because he loved setting his own hours and vision, creating a strategy, and executing that…

Elsewhere, we have exclusive interviews with supply chain and procurement leaders at the City of Edmonton and QSC, as well as the results of our first Sustainable Procurement Champions Index. We also have some exciting news from DPW too, ahead of its conference later this month.

Enjoy the issue!

Author

Dan Brightmore

Published

16 August 2022

Estimated Read time

3Mins

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Our cover story this month reveals how Sarita Singh, Regional Head & Managing Director for Stripe in Southeast Asia, and her team are driving financial inclusion across the region and supporting SMEs with end-to-end services putting users first

This month’s cover story reveals how Stripe’s payments platform is driving financial inclusion across Asia.

Welcome to the latest issue of Interface magazine!

Opportunities for innovation and growth via the adoption of new technologies are everywhere. However, organisations are faced with a bewildering array of choices to help them transform and choosing the best option to drive positive disruption is a tough call. We take a look at some of these fascinating journeys…

Read the latest issue here!

Stripe: increasing the GDP of the internet

Sarita Singh, Regional Head & Managing Director for Southeast Asia, Stripe
Sarita Singh, Regional Head & Managing Director for Southeast Asia, Stripe

This month’s cover story explores the genesis of fast-growing payments platform Stripe. Sarita Singh, Regional Head & Managing Director for Southeast Asia, leads a team driving financial inclusion across the region, supporting SMEs with end-to-end services putting users first.

“We’re building products and the financial infrastructure to help our users go cross-border, beyond their domestic boundaries, to widen their markets and drive efficiencies within their financial services infrastructure. With Stripe under the hood, businesses  are able to focus on what they do best without wasting time researching, purchasing, integrating, and maintaining dozens of payment technology point solutions because Stripe is a platform that offers all of them, and is already integrated.”

IAG: tech procurement linked to purpose

We speak with IAG’s CPO & VMO Claire Ledder, who reveals the transformative approach to technology procurement being deployed by an Australian market leader home to several leading insurance brands. “We’re now able to tackle sourcing and contracting with an end-to-end approach capable of measuring the value delivered.”

IAG’s CPO & VMO Claire Ledder
Portrait Photography

U.S. Department of State: facilitating diplomacy with tech

Todd Cheng Director of IT Customer Service at the U.S. Department of State, talks about the ever-evolving relationship between technology and diplomacy. “We’ve been through the process of updating the IT model at State to a new, more customer centric version of the Information Technology Infrastructure Library (ITIL).” By his calculations, these changes have benefited the organisation by reducing network disruption by some 400,000 hours of diplomacy every month.

Afni

Afni’s CISO Brent Deterding explains how breaking down the traditional and perceived barriers between security and the boardroom can transparently position cyber effectiveness as a critical enabler of improved business outcomes.

Afni’s CISO Brent Deterding
Afni’s CISO Brent Deterding

Also in this issue, we hear from Zoom on the future of work and report again from London Tech Week where an expert panel gave advice for businesses on anticipating and preparing for cyber risk against a backdrop of geopolitical uncertainty.

Enjoy the issue!

Dan Brightmore, Editor

Author

Andrew Woods

Published

29 June 2022

Estimated Read time

2Mins

There is an urgent need for the digitalisation of the procurement function, according to a new report from leading smart sourcing solutions organisation Globality

There is an urgent need for the digitalisation of the procurement function, according to a new report from ProcureTech and leading smart sourcing solutions organisation Globality.

The report, which can be read in full here, states that 9/10 of global procurement leaders are committed to the urgent transformation of their operations and processes to become more resilient, agile and future-proofed in these uncertain and volatile times.

The report, which surveyed 170 global procurement leaders, claims that innovative and emerging technologies are being harnessed in order to better arm CPOs as they face global inflation, COVID-19 and geo-political crises such as the war in Ukraine.

Those surveyed also cited the growing need to fully digitalise operating processes in order to improve efficiency and boost cost reduction, while enhancing agility, resilience and value. 90% expected operational transformations within the next three years.

The report covers:

  • Digitalisation drivers
  • Future procurement operating models
  • Digital work in the future
  • Procurement process digitalisation
  • Digital supplier management
  • Challenges to progress
  • Value of digital adoption
  • Change manifesto

“Everyone recognises this shift, 99% of companies plan to make changes to their operating model over the next three years,” says the Globality report. “In 2020 and 2021, change has been thrust upon us all. In 2022 and beyond companies are owning the shift. In our research, we have seen the procurement leaders outperform their peers through a focus on resilience and cost in the short term. However, to maintain this competitive advantage in the long term, they need to adopt a new digital-led operating model.”

That said, 81% cited a lack of organisational support with regards to digitalisation, indicating a need for further engagement at some enterprises. 68% say that digitalisation will continue to increase business self-service, while 50% of organisations aim to move to a business procurement-centric organisation, acting as advisors and business partners versus executing transactional processes.

Content Credits: Globality & ProcureTech

Designed By: CPOstrategy

Author

Andrew Woods

Published

23 June 2022

Estimated Read time

1Min

EyeCare Partners works in partnership with clinicians and healthcare leaders to achieve the best patient and business outcomes and this…

EyeCare Partners works in partnership with clinicians and healthcare leaders to achieve the best patient and business outcomes and this has had dramatic results, such as a 1,500% revenue growth since 2015.

EyeCare Partners is growing through acquisitions, by providing strategic capital and operational support to its network of partner practices in 680 locations across 18 states. In February 2020, this growth was boosted when Swiss private equity firm Partners Group acquired a controlling stake in EyeCare Partners. “They’re a very interesting group,” he says. “They’re very heavy on investment, plus they have a very, very impenetrable and robust sustainability platform too, which is very near and dear to my heart through my time at Unilever,” This level of growth is fuelled significantly by increasing demand for eye care over the longer term, driven by an ageing US population and an increased incidence rate of eye diseases. But this level of growth requires an agile and resilient operational enterprise.

Author

Andrew Woods

Published

11 April 2022

Estimated Read time

2Mins

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Our cover story reveals a massive procurement transformation programme at Zendesk

Procurement transformation is the hot topic this month as we speak to Rendi Miller, VP of Strategic Sourcing and Procurement at Zendesk. Miller is a procurement evangelist and transformational leader who is clearly energised as she delivers meaningful change to the function at Zendesk.

“What I’ve always enjoyed about procurement is the visibility into what the entire company is buying, from Marketing creative services to IT and Engineering technology to office furniture and everything in between.”

“Procurement has insight to trends before they become mainstream that gives us the ability to research new partners, technologies and solutions to start addressing the needs of the business early on. Being in procurement offers an awareness to nearly every aspect of the company.”

Read the latest issue here!

According to Miller, trust is absolutely critical to success because without that, “there is no reliability, there’s no confidence and there’s no relationship”, says Miller. “That’s something I emphasise with my team. Trust must be earned, but trust is also given. I empower them to be the leaders that I’ve hired them to be…”

Elsewhere, we sit down with Procurement Excellence Lead at Antofagasta Minerals, Christophe Le Flech, to discuss the state of procurement in the South America mining industry, and the work he’s doing to make a difference. We also talk to Convex Insurance’s Head of Procurement & Tactical Change, Vivek Pai… and discuss diversity in the workplace with Silvia Simon, LATAM Procurement Senior Manager at Mercedes-Benz Brazil. Plus, we look at 10 ways to optimise your digital procurement scouting approach with ProcureTech.

Enjoy the issue!

Andrew Woods

Author

Andrew Woods

Published

21 February 2022

Estimated Read time

1Min

Bringing a wealth of experience to the table, Kuvesh Ayer, CPO for the New York Metropolitan Transportation Authority discusses procurement transformation and being prepared for anything…

Bringing a wealth of experience to the table, Kuvesh Ayer, CPO for the New York Metropolitan Transportation Authority discusses procurement transformation and being prepared for anything…

Tell us about yourself and your current role…
I’m currently the chief procurement officer for the New York Metropolitan Transportation Authority (MTA). The MTA embarked on a huge transformation effort across all its operating divisions to transform the organization into a more efficient, effective one.

I got a call one day asking if I’d be interested in this position and I decided, “Okay, it sounds interesting and very challenging,” and decided to throw my hat in a ring. Lo and behold, it’s two years down the line – it’s gone like a flash. Overall, my responsibilities include managing the MTAs procurement and sourcing operations, which also include the logistics, warehousing, and distribution aspects...”

Author

Nell Walker

Published

8 February 2022

Estimated Read time

6Mins

What is excellence in procurement – and how we can encourage it? We chat to Olivia Brown, a Managing Consultant…

Olivia Brown, a Managing Consultant with Rowe Advisory UK.

What is excellence in procurement – and how we can encourage it? We chat to Olivia Brown, a Managing Consultant with Rowe Advisory UK…

Tell us a bit about yourself.

I spent the first 16 years of my career as an employee with oil and gas operators, both here in the UK and internationally, so I have a solid foundation in working in contracts and procurements. Later in my career, I became focused more on general management roles. Those roles combined led me to understand what good business looks like, and the things to avoid – not just within the function, but more broadly within the wider business context. I started working as a consultant with Rowe Advisory in 2017, initially working in support of clients in overseas, in Australia.

Give us some background on Rowe Advisory.

Rowe Advisory was established in 2013 by a very inspirational lady called Jody Rowe. I started to get involved with some of the Australian clients in 2017, working remotely from here in the UK to support them in redefining, updating, reviewing their procedures and their processes.

Typically, what we find is that a client will have a particular requirement for an area of concern, so we will go in and start to address that and help support them. From there, we often get involved in other areas for improvement as a consequence. 

In 2020, Rowe Advisory set up a branch here in the UK. It was difficult timing because we were launching it during lockdown. We had the challenge of the pandemic which was also compounded by the oil price crash. However, it was a real opportunity for us to reestablish some individuals within our network and reconnect with previous colleagues to tell them who we are and what we do, and make them aware of how we can help as in when the need arises.

What does ‘procurement excellence’ mean to you?

For us, it’s about aligning the strategy and the delivery of third-party spend with the needs of the business. It’s really connecting the department’s activity with the business priorities. To best achieve that, we see a focus on the overall procurement operating model. As previously mentioned, often there are areas of concern already which CPOs recognise can improve.

Generally, when we get involved with a new client, we will review the whole operating model to be more holistic in the review and understand how joined-up the department can be in providing that functional excellence back to the business. It’s really about the department adding value back to the business and establishing credibility through delivery of value to the business. 

We’ll look at the people, the process, the systems, and the tools to really focus on how the department can manage risk, provide clear strategic planning, align with the business objectives, be innovative, be creative, and also collaborative internally and externally. 

We’re working to elevate the role of the procurement department. It has the potential to provide significant benefits to the business, and they extend far beyond the P&L impact. The events of the last 18 months have really proven the importance of procurement departments and non-financial performance incentives; those non-financial performance metrics have become more integral to the priorities for procurement. That being said, we recognise the need to get the basics right first so it’s about having clarity on rules and responsibilities, both within the department and the business. 

What have you seen by way of sector differences or trends?

The most interesting thing for me, having come from a strong background in oil and gas, is that a lot of the areas of focus that I’ve talked about – specifically identifying areas of improvement and what functional excellence can look like – are very much sector agnostic. The tactical interventions do vary depending on each client, so the areas of focus will always vary – but that’s true within any sector. We’ve seen that transcend into others. The fundamentals of what good looks like in procurement are, we’ve observed, sector agnostic. 

That’s been very interesting. It’s allowed us to provide diversity of thought into new sectors. If you think about demand planning and category management, we’ve seen with some clients where it works very well, and we’ve been able to translate that knowledge and experience in working with them in embedding that, sustaining it, and building on it. We’ve been able to translate that into other sectors that are less familiar with the concepts of category management and category planning, and the importance of that in the upfront strategic planning where real value can be set for procurement.

One thing we do find in some sectors more than others is that the procurement department is seen as a transactional function, and there is absolutely a strong requirement for there to be good transacting within any procurement team. But in the context of functional excellence, what we try to do is to explain the value that can be delivered through moving beyond that phase of the department into the strategic, and doing that in an appropriately segmented way so that it is differentiated based on value and risk – and other relevant factors – but ensures that both the department and the business are focused on those contracts that are key to the delivery of the business.

How do you support your clients by driving change within their procurement departments?

We work on ensuring that the focus is in the right place to deliver value, getting the transacting right and then also, of course, post-award. The contract is then executed, and it’s not about necessarily just putting it on the shelf and leaving the business to manage it. Certainly, for a number of contracts, it’s about managing those contracts for delivery and being clear on the role that the procurement department plays in that process. A further development on that is, again, how many of those need to be strategically managed? How do you strategically manage the relationship with key suppliers to, again, further leverage the value through innovation, being creative, and working together to further enhance the value that can be achieved?

The case for change is important because people’s response will be, “What’s in it for me? We’ve done it like this for years and it’s been fine, so help me understand.” And you need to kind of take people on that journey of change. Clarity on single-point decision making, understanding that when a decision is taken, that’s not the start of a conversation on the matter – it clarifies the need to move on. 

Tell us about your sister company, Promitheia Procurement.

Promitheia Procurement was established 2020. It is an online platform for procurement templates and also advisory services. It’s a web-based system so anyone can go on and buy, and download the whole series of procurement templates across the whole life cycle. It ranges from demand planning, strategy setting to people and competencies, and skills matrices, development planning, and performance management, through the procurement life cycle itself, through the transacting, into post-award, and supplier relationship management. So, they’re documents which can become available to companies at the click of a button, which is fantastic. It allows us to diversify further into new sectors who may otherwise not be able to come to us for the full suite of consultancy services. 

What do you enjoy most about your work? 

We have that real passion for procurement and want to really be ambassadors for what good can look like – and we want the clients to feel that as well. It can never really be implemented and sustained based on a consultant coming in and telling you how to do it. It’s very much about working alongside the client in their particular environment to understand how best to do that.

Author

Andrew Woods

Published

7 February 2022

Estimated Read time

2Mins

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Procurement transformation is at the heart of our chat with Tod Cooper, Director Procurement at the Department of Corrections in New Zealand

This month’s exclusive cover story features Tod Cooper, Director Procurement at the Department of Corrections in New Zealand, who reveals all regarding the strategic restructure of the procurement function.

Read the latest issue here!

Procurement transformation is at the heart of our chat with Tod Cooper, Director Procurement at the Department of Corrections in New Zealand
Procurement transformation is at the heart of our chat with Tod Cooper, Director Procurement at the Department of Corrections in New Zealand

Most of us like to think that if we were presented with the chance to do something positive and societally significant for our country and its indigenous people, in particular, we would.

And that’s exactly the opportunity Tod Cooper, Director Procurement at the Department of Corrections in New Zealand, has grasped with both hands, with the department’s dedication to supporting Māori. 

Business transformation through leadership has been a major part of Cooper’s working life, preparing him for the challenges he’s faced at the Department of Corrections.

“It’s a big personal passion for me,” he says. “I’m not a guy who likes to sit still. Continuous improvement is a big thing. I’m always asking myself how we can make things better, looking at new ways of re-engineering, and getting good people around me who can enact my vision of things.

I’m a typical extrovert who’s easily distracted by the next thing, so it’s really important to have a good leadership team around me that understands the vision and can pull me back in.”

Elsewhere, we also speak with Dean Bennett, VP of Procurement, and Mike Cowling, VP of Global IT at BeiGene, about the benefits of a strong collaboration between procurement and technology, and what makes the company so special. Plus, we have an exclusive ‘provenance in the supply chain piece’ from IBM’s Blockchain Leader, Winston Yong.

Enjoy the issue!

Andrew Woods, Editorial Director

Author

Andrew Woods

Published

11 January 2022

Estimated Read time

2Mins

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Welcome to the first CPOstrategy of 2022! We decided to kick off the new year in style with our best…

Welcome to the first CPOstrategy of 2022!

We decided to kick off the new year in style with our best issue yet!

Our exclusive cover story features a fascinating discussion with Sean Park, CPO of software organisation Splunk, talks us through transforming the procurement function from one that was deliberately immature, to the powerhouse of efficiency it’s now becoming.

Read the latest issue here!

When Splunk brought Park in to join the team, he knew it was time to make a change and get serious about the bottom line. The decision was made to put in place a more centralised procurement and sourcing function; Splunk was rapidly growing, and it didn’t want friction, but rather controls and guardrails in place to scale the company. It was very much a natural evolution for the business – a pattern Park has watched occur before. This put him in an ideal position to push the new vision forward.

“The first step was to undertake an assessment of the function,” he says. “What are our strategic objectives? How does that fit in with the corporate objectives, or those of the finance team? What are our processes and policies? How are we resourcing the organisational structure? How do we source? Do we want a category management structure or a business unit focus?”

Elsewhere, we have an incredible rollcall of equally fascinating articles on Atotech, Beeline, Delivery Hero, plus an engrossing selection of Procurement Leaders’ procurement transformation success stories. Plus, much, much more.

Enjoy the issue!

Andrew Woods, Editorial Director

Author

Andrew Woods

Published

30 September 2021

Estimated Read time

2Mins

A major recent step for Philips has been casting aside traditional indirect procurement and implementing a new-and-exciting approach under the umbrella of Spend Management. We take an exclusive look behind the scenes…

Our exclusive cover story this month takes an in-depth look inside the procurement function at Philips; the leading Netherlands-based health technology company, which is improving people’s health and well-being through meaningful innovation.

Read the latest issue here!

To achieve the company’s aim to improve 2.5 billion lives per year by 2030, Philips has been through a major transformation in the past decade. Besides overhauling the business, the functions – including indirect procurement – also needed to adapt.

A major recent step for Philips has been casting aside traditional indirect procurement and implementing a new-and-exciting approach under the umbrella of Spend Management. Alexander Visser is the Leader of Spend Management, and the architect of this change and he takes us through this incredible transformation…

Plus, we speak exclusively to CPO of Ooredoo Algeria, Saber Chrigui, who describes how he took the branch from struggling to a shining example for the entire group, through managing waste and costs, and dramatically repositioning procurement. We also catch up with Gudrun Gunnarsdottir, Procurement Manager at Vodafone Iceland, about how being based on a tiny island is no barrier to procurement excellence and keeping a finger on the pulse of technological advancement…

And another great exclusive this month, focuses on RHI Magnesita (RHIM); the global leader in refractories – its refractory products are used in all the world’s high-temperature industrial processes. The creation of RHI Magnesita (following the merger of RHI and Magnesita in 2017) saw the continuing transformation of procurement from a cost-saving function into a strategic business partner gather pace. We speak to RHI’s Michael Leitner, VP Procurement Europe & CIS & Turkey…

Enjoy the issue!

Andrew Woods

Author

Andrew Woods

Published

28 July 2021

Estimated Read time

5Mins

The Digital Insight team decided to find out more about procurement’s relationship with data, intelligence and its maturity…

Modern procurement has undergone so much change in recent years, it is finally achieving recognition as a true strategic business enabler. Empowered by data-driven insights and digitised systems and tools, procurement occupies a unique position at the heart of an enterprise’s operations, supply chains and growth.  How are leading companies creating sustainable digital capabilities and how do companies do this at scale?

The Digital Insight team decided to take a deeper dive into this fascinating area and assembled an incredible panel of digital procurement CEOs to find out more and share procurement’s relationship with data, intelligence (and its maturity), as well as the opportunities emerging from these insights and the technology that captures them too. You can watch the full video discussion here…

The panel covered…

Data in procurement

  • With more access to data in procurement than ever before, how does this differ from 5-10 years ago?
  • Where is this data coming from?
  • What does this mean for the role of procurement?

Evaluating and dealing with risk

  • Is there more risk in the supply chain now than ever before?
  • How has evaluating risk changed for better or for worse?
  • Are the risks becoming increasingly dynamic and changing?

Opportunities in procurement

  • With the capturing and understanding of data, is this now a unique opportunity for procurement, to act as an “intelligence hub” across multiple domains from risk to sustainability and cost to innovation?
  • How do we capitalise on this opportunity?
  • What role will ProcureTech vendors/players have in this?
  • How important is it for business to adopt a continuous approach with respect to the data that they gather on their vendors and how do they feed this data into their digital procurement platforms?

Joining The Digital Insight were…

Ilya Levtov (CEO Craft)

Craft serves large companies (Fortune 100, FTSE 100) and government entities with comprehensive insight and intelligence on their supply chains.

Success doesn’t happen overnight

“…the challenge and struggle that a lot of enterprises are finding themselves in is how to filter down and get to the right answers. The only thing we’ve seen reliably successful is to take a spirit of experimentation and curiosity and not to be hell bent on getting the answer or a positive ROI for the CPO next month, but to say, it’s going to take some back and forth. That’s the way we personally love to work with clients. We say: there’s a ton of stuff you know, there’s a ton of stuff we know, but we’ve got to work together and iterate with different data sets, different models, different risk models, in order to come to the right answers. It’s going to take some time, but we will make progress if you take a medium to long-term view. That’s when you’re going to get those answers and those models working… not overnight.” Ilya Levtov (CEO Craft)

Aleksandr Yampolskiy (CEO Security Scorecard)

Security Scorecard pioneered the way in which it collects all kinds of data points from all over the world and how it uses those data points to reduce them to a score representing the likelihood of a company to suffer a data breach. Security Scorecard is utilised by over 1,500 plus top enterprises all over the world to hold their suppliers and third-party vendors accountable, and to make insurance underwriting decisions.

Now is the time for procurement!

“Now is actually a great time to be in procurement. Procurement is being disrupted through the proliferation of new types of information and data that enable us to make better decisions. For the first time, it makes it possible for procurement to move from being a support function, to being a business enabler and a value creator at the forefront of the innovation. It’s a very exciting time to be in the procurement space today.” Aleksandr Yampolskiy (CEO Security Scorecard)

Cynthia Figge (CEO CSRHub)

CSRHub is a big data platform and one of the largest aggregators of structured ESG data, covering companies worldwide.

Risk in the supply chain

“…risk has gone up dramatically in the supply chain, at least from an ESG or sustainability perspective. Some of the data has been backward looking, in other words, if there is some great disruption or something bad happens, then there are news ripples and that is important. But now where I’m seeing companies shifting is they really want to know about a company’s performance across all these dimensions of environment, social and governance, so that there can be some sense of predictability and an ability to screen across actual performance issues in advance of some kind of a bad event. We’re seeing a demand for that data and that understanding of the suppliers in the value stream: are they really measuring up? Are there some risks there in terms of what we can see around performance and benchmarking?” Cynthia Figge (CEO CSRHub)

Lance Younger CEO of ProcureTech

ProcureTech are building the digital future of procurement. Solving the most pressing social, environmental and economic challenges requires new thinking and a new platform for procurement leaders, entrepreneurs and the digital procurement ecosystem.

ProcureTech is home to the ProcureTech100 – the definitive global 100 pioneering digital procurement solutions.

Together with ProcureTechSOURCE and ProcureTechEXPERTS, they will accelerate, smarter solution selection and digital procurement ecosystems that will empower procurement transformation.

The tipping point of procurement

“…We’re at a tipping point for procurement in terms of a transformation, which began at the start of this decade. Most procurement functions, if you were to assess them from a digitalisation or data perspective, will score three to four, maybe five (out of ten). You have one or two that are leading lights, but I think that procurement overall is struggling to keep up with the changes in data access and data proliferation and not because of the technology, but because of the people. We don’t have enough people with the right skills to be able to help procurement transform at the pace at which we need it to change.”

Author

Nell Walker

Published

16 July 2021

Estimated Read time

1Min

According to The News, Pakistan’s largest oil refinery – Byco – has signed an agreement to implement SAP Ariba DSN…

According to The News, Pakistan’s largest oil refinery – Byco – has signed an agreement to implement SAP Ariba DSN (Digital Supplier Network) and Sourcing Suite – the first in its nation.

Byco stated: “The initiative will automate the procurement process enabling a paperless process, significantly eliminating errors and unnecessary delays, as encountered in traditional procurement to the payment process.”

Fayaz Ahmad Khan, Vice President Commercial Byco Petroleum, added: “Byco has always been at the forefront of innovation and implementation of processes that are in line with global best practices.

“The deployment of SAP ARIBA DSN and Sourcing Suite will be another first by Byco as an industry leader in Pakistan.”

Fayaz Ahmad Khan, Vice President Commercial Byco Petroleum

He stated that, not only will this move improve efficiency in procurement, but also create better transparency and visibility across the business for all stakeholders.

Author

Dale Benton

Published

5 July 2021

Estimated Read time

2Mins

Welcome to another bumper issue of CPOstrategy magazine…

Our cover star this issue, Willem Mutsaerts, is both the CPO and CSO of Givaudan, a global industry leader creating game-changing innovation in food and beverages, and inspiring creations in the world of scent and beauty. The duality of his role is quite unique and makes for a fascinating discussion as to how procurement makes all the difference for Givaudan’s sustainable ambition. It’s a revealing insight…

Read the latest issue here!

Will also dive deep into Procurement Leaders’ latest report Procurement as a Growth Engine (partnered by Ivalua), which explores how procurement can bring new opportunities for growth, as forward-thinking business leaders become increasingly aware of the huge potential that exists in the upstream supply base.

Elsewhere, we move away from what procurement can do in the private sector to what it can do for the local communities of the world, specifically, procurement in West Mercia Police. We peek behind the curtain of a major procurement transformation that will see the local UK police force empower its officers to protect and serve their local communities.

There are also fascinating insights from Lance Younger, Dr Elouise Epstein and many many more..

Enjoy the issue!

Dale Benton

Author

Mark Perera

Published

5 March 2021

Estimated Read time

4Mins

With 2025 deadlines looming for ambitious corporate public pledges around sustainability, this should be top of the business agenda for enterprises in 2021. However, are organisations acting fast enough?

Worryingly, every five weeks that passes represents 1% of our decade. Aspirations of operating more sustainably at some point in the future are now becoming a much closer reality, which means organisations have targets that they need to meet over a relatively short time frame. This is especially true when it comes to ‘net zero’ emissions pledges – perhaps the most pressing climate concern the planet is facing. For example, by 2030, Unilever has committed to halving the greenhouse gas emissions of their products across the lifecycle, while Heineken has set an 80% target reduction. BP is facing an even bigger challenge as an energy company, leaning away from fossil fuels and committing to net zero carbon from their operations by 2050. Written by Mark Perera, CEO, Vizibl 

Therefore, with only a few years remaining until some of those deadlines, clearly now is the time for enterprises to take decisive action. 

Many organisations still don’t know how they’re going to achieve these targets. However, given the urgency of the issues, they’ve launched their efforts regardless, anticipating the discovery of further solutions along the way. 

Sustainability delivers more than just the environmental benefits 

Alongside the need to protect our planet, hitting these targets is actually key for the survival of some of these businesses. Strong sustainability performance pays dividends in opportunities for growth, increased returns on capital, and in managing threats to the business, with McKinsey finding that the value at stake from sustainability risks can be as high as 70% of EBITDA. 

Given that 50% of the Standard & Poor’s 500 will likely be replaced within the decade, companies must look beyond business as usual towards the strategies that will shore up their own survival – especially in our post-COVID environment where many will face stiff competition. With record private equity, a robust M&A market and the growth of many startups with billion-dollar valuations, not to mention the impact of the pandemic and an economic decline, there will be plenty of turbulence in the road ahead. 

We recently hosted a webinar around sustainability, which featured speakers from Unilever, Heineken and BP, where we discussed all of these issues and more. Interestingly, all three organisations were in agreement that consumer relevance will be key to organisational longevity and the ability to attract talent will also be central to business success. Consumers are very much driving the sustainability agenda, therefore setting and meeting sustainability targets will be key driver for business continuity. 

Enterprises are driving towards stakeholder capitalism 

This focus on doing right by consumer and employee values corresponds to a wider movement towards stakeholder capitalism. This drive advocates shifting away from a sole focus on maximising shareholder value towards a company strategy which creates value for all its stakeholders – from customers and employees, to suppliers, communities, and the environment. 

Along with making themselves accountable to a broader set of stakeholders, organisations should also be drawing from these stakeholders to meet sustainability targets. Likewise, leveraging from a wider ecosystem will also help to meet these goals; partnering for value to increase the bottom line will be a key procurement trend in 2021. 

Seeing as 80% of company emissions and up to 90% of their impact on biodiversity and natural resources originates in the supply chain, it is not surprising that companies are looking past internal operations when pursuing ambitious sustainability targets. Given also that 50-70% of company innovations originate externally, it makes sense to look beyond the boundaries of the organisation and to the broader ecosystems of suppliers to source new solutions. 

Working with a broader ecosystem of suppliers to foster innovation 

One great example of this kind of partnership is an initiative that BP is spearheading. As the company works towards net zero for its tech and IT estate, BP is moving away from high-power data infrastructure in favour of forging deep partnerships with cloud providers. The cloud providers also have net zero commitments of their own, which they can support using renewable energy sourced from BP. This partnership presents a win-win situation where both companies can hit their targets in tandem. 

What we are also seeing is that this is changing the role of procurement. Instead of being viewed as a function that ‘protects’ the company from its suppliers by continuously driving down costs, procurement is now looking to  collaboration and partnerships to find the innovation that will help the organisation continue to grow. 

And as procurement moves away from a single-minded focus on cost-cutting, it will facilitate relationships which in turn deliver on key business strategies like sustainability and growth. 

How procurement can drive initiatives to meet sustainability goals 

To this point, procurement has a great role to play in helping an organisation meet its sustainability targets, given that the function has historically been curious and hyper-diligent when it comes to costs. Moving forward, enterprises need to apply that same rigour when it comes to sustainability by asking searching questions about energy and water usage, emissions impact, and how we are affecting our communities both locally and on a global scale if we bring that level of curiosity and collaborative problem-solving into supply chains, we’ll have a big impact on business longevity and help to meet those lofty sustainability goals that are closer than we all feel comfortable with right now. 

Author

Tracey Harris

Published

23 February 2021

Estimated Read time

4Mins

New research found that 43% of UK businesses say that the rate of digitalisation within procurement is low, which is impacting agility and preventing businesses from minimising risk…

If we’ve learned anything from 2020, it is that we cannot predict the future. The COVID-19 pandemic significantly disrupted many supply chains, as businesses became dependent on procurement teams to help mitigate the impact by identifying and onboarding new suppliers in different regions. 

However, a significant number of organisations have been hindered by a lack of procurement process digitalisation. New research found that 43% of UK businesses say that the rate of digitalisation within procurement is low, which is impacting agility and preventing businesses from minimising risk. 

The importance of process digitalisation goes beyond navigating the immediate effects of COVID-19. Businesses that are reliant on manual processes are not only wasting an average of £1.94m per year in staffing costs, they are also preventing procurement teams from focusing on high value tasks. Savvy businesses have digitised procurement processes as a springboard to create a competitive advantage for themselves, as they can better identify new revenue opportunities, unlock innovation and improve profitability. Over the coming years, UK businesses need to move quickly to digitally transform procurement and ensure they are not left behind.

Procurement process digitalisation remains in the slow lane

As things stand, organisations still have a long way to go, with many failing to digitalise procurement processes. Just over half (55%) of UK businesses have digitalised invoice processing, while less than half have digitalised purchasing (42%) and budget management (33%). Businesses are even further behind in digitalising strategic processes such as spend analysis (32%) and risk management (26%). Clearly, there is significant room for improvement for organisations looking to make informed decisions, identify opportunities to create revenue, or collaborate with suppliers.

Worryingly, most businesses have not digitalised supplier onboarding or sourcing processes. Identifying and bringing on new suppliers is critical for businesses searching for new opportunities to collaborate and innovate or react to a potential disruption, so digitalising the process should be a top priority. This is particularly true in times of crisis, as one of the biggest challenges UK businesses faced in reducing the impact of COVID-19 was identifying alternate suppliers.

Procurement teams are prevented from adding value

This lack of procurement process digitalisation is creating frustration for UK businesses, and holding them back from adding value. Eight-in-ten (81%) UK businesses say a lack of digitalisation is preventing them from collaborating with suppliers and internal stakeholders, while a further 83% believe it is preventing them from innovating and executing on new revenue streams and opportunities. Without the ability to collaborate or execute on opportunities to drive new revenue streams, businesses stand little chance of getting ahead of the pack.

However, when it comes to digitalisation, UK businesses face a number of challenges. The most common obstacles to digital transformation for UK businesses were their suppliers, technology, and processes. Clearly, collaborating with suppliers is still tough. But, as supplier visibility continues to be vital to innovation and identifying revenue opportunities, it is not a problem that businesses can leave unsolved.

A smarter approach to eliminate manual processes

Most businesses understand and recognise that digitalising procurement will help them gain a competitive advantage. Furthermore, UK businesses recognise the importance of digitalisation beyond this, with one of the biggest benefits being reducing their environmental impact. Sustainability continues to become a key differentiator, allowing for greater efficiency and waste reduction, while turning being ‘green’ into a competitive advantage for eco-friendly businesses. 

But to reap these benefits, it is clear a new approach is needed. Organisations need to adopt a smarter approach to procurement that can enable effective digital transformation, helping them to move away from managing processes over email, phone, or paper, to instead capturing everything digitally. This can free capacity for more strategic projects, improve access to insights for better decision-making and foster better collaboration by connecting internal stakeholders and suppliers. As a result, businesses are better able to identify opportunities to innovate, collaborate and grow revenues, giving them the chance to build better products and service offerings that will differentiate them from the competition. 

Digitalising procurement to combat uncertain times

n today’s uncertain and evolving landscape, procurement has become a much more strategic part of every business, but a lack of digitalisation is holding teams back. To create a competitive advantage, businesses need to digitalise manual and strategic procurement processes to provide teams with the tools they need, and give them back time to focus on creating value for the business.

Making procurement smarter can create an all-encompassing digital view of procurement and supplier management. This is increasingly important for businesses looking to restore growth post-COVID and ensure resilience for the next crisis.

Author

Robin Agarwal

Published

18 January 2021

Estimated Read time

3Mins

Three key areas where procurement and supply chain should look to invest in 2021 and has a good business case to do so…

The Brexit debate is over with the UK and EU finally agreeing on the trade and cooperation terms after Brexit. A lot has been mentioned about the negative impact of Brexit on the UK and EU business supply chains. However, I think it is an opportunity for businesses to review their supply chains and turn this change into a competitive advantage. In my opinion, the following are 3 key areas where procurement and supply chain should look to invest in 2021 and has a good business case to do so.

1. Sourcing capabilities

Most of the organisations I have worked with over the last several years go back to the same set of shortlisted suppliers and look to conduct negotiations and auctions to achieve short term goals. This could be working with the same pool of suppliers either in the UK or EU suppliers or in a particular global location, i.e. China. However, there have been significant changes over the last few years whether it’s in currency, new emerging supply markets, existing supply sources losing advantage, or even the overall cost of managing offshore supply chains vs. local changing dramatically. Brexit and Covid have further accelerated or exacerbated some of these changes. Having some dedicated resources now to understand market options and a full evaluation will really help understand organisations options they have and plan their future supply chains accordingly.

2. Strategic partnerships

With the unprecedented disruption in demand and supply over the last year, organisations have never more realised the need to have a different relationship with their suppliers. As the long-term changes from Brexit and Covid come into effect, organisations having close strategic partnerships with their suppliers will be the ones who will mitigate issues better or benefit from the opportunities. Strategic partnerships don’t have to be just long-term commitments but communication, transparency, and both parties working towards shared goals. Also, the key is to look at the criteria for selecting partners. While on a short-term basis, working with a supplier who can fulfil your immediate needs at the best price makes sense, unless you look at long term fit, you will never have true partnerships in place.

3. Supplier assurance and development

With Brexit, there will be significant regulatory and standard changes over the years and suppliers will need support to transition to new standards and procedures. Also, to allow the sourcing team to find new sources and locations, they need appropriate support to be able to assure and develop new suppliers. Too many businesses, see the role of supplier assurance team as limited to assurance only and have an auditor mindset, however, the key is that they are working more as a development team and helping develop suppliers to contribute to the business.

The deal agreed is described as a narrow deal as it allows the UK to gradually move away from the EU sphere of influence if that’s really what the UK wants to pursue. While the current relationship with the EU is the starting position, full changes from this deal will only be visible over the next couple of years. Businesses who will be making the right investments in their supply chain and procurement capabilities will not only mitigate issues as the changes come into immediate effect but also find themselves in a better place vs their competitors.

Author

Andrew Woods

Published

21 November 2020

Estimated Read time

3Mins

Lack of digitalisation preventing UK businesses from identifying new sources of revenue and opportunities to collaborate and innovate

Research from Ivalua, a leading provider of global spend management cloud solutions, has found that almost half (46%) of UK businesses are frustrated by a lack of procurement process digitalisation. According to the study, 43% of respondents believe that the rate of digitalisation within procurement is low, while a third (33%) claim that procurement digitalisation is stagnant and hasn’t progressed in the last 12 months.

The research, conducted by Vanson Bourne on behalf of Ivalua, surveyed 200 UK-based procurement, supply chain and finance professionals to examine digitalisation in procurement. Eight-in-ten (81%) UK businesses say a lack of digitalisation is preventing them from collaborating with suppliers and internal stakeholders, while 83% believe it is preventing them from innovating and executing on new revenue streams and opportunities. Additionally, two-thirds (67%) of UK businesses say a lack of digitalisation reduces their ability to gain insights into spend and suppliers.

“As organizations look to restore growth post Covid-19 and ensure resilience for the next crisis, procurement can play a major role, helping identify opportunities to innovate and new sources of revenue. Procurement digitalisation is essential to enable unique business processes and improve collaboration with suppliers and internal stakeholder,” commented Alex Saric, smart procurement expert at Ivalua. “However, the current state of transformation in procurement is underwhelming. The risk in the future is that many businesses will be outstripped by more digitally-savvy rivals and find themselves at a significant competitive disadvantage. Over the coming years, UK businesses need to move quickly to digitally transform procurement and ensure they are not left behind.”

Digitalising processes still has a long way to go

While businesses recognise the need to digitally transform, the report found that on average, UK businesses have digitalised less than half (43%) of their procurement processes. The most digitalised tasks were transactional processes such as invoicing (55%), purchasing (42%) and budget management (33%). 

UK businesses have also failed to digitalise strategic processes such as spend analysis (32%) and risk management (26%). Identifying and bringing on new suppliers is also critical for businesses looking to identify new opportunities to collaborate and innovate, but worryingly, most businesses have not digitalised supplier onboarding (89%) or sourcing (84%) processes. When it comes to digitalising procurement and these processes, UK businesses face a number of challenges, with the most common obstacles to digital transformation being their suppliers (29%), their technology (20%) and their processes (18%). 

“Procurement has become a much more strategic part of every business, but a lack of digitalisation is preventing many teams from realising the potential value of their spend and suppliers. UK businesses need to take a smarter approach to procurement and move away from managing processes over email, phone, or paper, to instead capture everything digitally. This will help businesses identify opportunities to innovate, collaborate and grow revenues, giving them the chance to build better products and services that will differentiate them from the competition. Digitalising procurement creates an all-encompassing view for businesses, helping to create a competitive advantage that will see them soar past digital laggard competitors,” concludes Saric.

To download the full report, “Gaining the advantage in challenging times – why businesses need to digitally transform procurement now more than ever”, please visit: https://info.ivalua.com/uk/report-competitive-advantage

Author

Andrew Woods

Published

5 November 2020

Estimated Read time

1Min

“…when you think about supplier diversity initiatives, small business procurement initiatives, it’s really about driving economic impact. And it’s really the small businesses that drive economic growth in any economy”.

Rod Robinson is Vice President of Supplier Inclusion and Sustainability at Coupa, and the focus of that role, is to really drive inclusive procurement across the Coupa ecosystem, helping Coupa customers achieve, and even exceed, their supplier inclusion goals…
“…when you think about supplier diversity initiatives, small business procurement initiatives, it’s really about driving economic impact. And it’s really the small businesses that drive economic growth in any economy”.

Author

Kevin Davies

Published

20 October 2020

Estimated Read time

5Mins

A survey by researchers at WMG, University of Warwick saw 249 mid to large manufacturers from food and beverage to automotive, and pharmaceuticals to electronic equipment and more industries respond to the survey about their supply chain resilience in the current state and future potential…

The COVID-19 pandemic has affected many people across the world, one particular way includes supply chains, some people found they couldn’t buy pasta or loo roll, and it was the same for manufacturers, who suddenly had to change their strategies to ensure their supply chain during the pandemic.

There have been many challenges in the past for the manufacturing supply chain, such as the 2001 recession, SARS, 2011 Tohoku earthquake, 2016 oil crisis, and Brexit. Although there have been other pandemics such as swine flu and Ebola, the COVID-19 pandemic was nothing the modern world had ever seen before.

A survey by researchers at WMG, University of Warwick saw 249 mid to large manufacturers from food and beverage to automotive, and pharmaceuticals to electronical equipment and more industries respond to the survey about their supply chain resilience in the current state and future potential.

They found several impacts from the COVID-19 pandemic, including:

· 58% of firms ae still experiences a decrease in demand 3 months post lockdown

· 66-73% of firms have been effective to responding to increases and decreases in demand

· Buffer management, multi-sourcing and visibility were favoured over agile production networks

· Cash management and securing supply were critical initial responses to the covid-19 crisis

· 84% of firms found their planning systems were effective, but still required human intervention

· The most apparent bottlenecks to their supply chain was people issues, such as warehouse staff being in quarantine at home

The researchers then assessed manufacturers supply chain resilience in three different times, business as normal, during COVID-19 and preparation for Brexit. For each time period they identified how 6 supply chain resilience practices that could be used proactively (pre-disruption), reactively (during and post disruption) or both. These included:

1. Supply chain planning – demand forecasting and contingency planning (Proactive)

2. Visibility – Having access to real time data (Proactive)

3. Collaboration – Working with SC partners to deliver customer value (Proactive & reactive)

4. Buffer management – Utilising inventory and production capacity to enable material flow (Proactive and reactive)

5. Flexibility – Establishing multiple sourcing options (Proactive and reactive)

6. Adaptability – Transforming the SC in responding to dynamic business environment (Reactive

In normal operation firms found their practices to generally be effective. However, there was opportunity for improvements in visibility and collaboration to support improved supply chain planning. Firms also said they have been effective in managing buffers in normal operation.

During the Covid-19 pandemic firms utilised supply chain planning as a response to the pandemic with effective planning systems reported by 84% of manufacturers. However, this still required a high degree of human intervention. Buffer management and flexibility were found to be less effective than in normal operations. The survey found that 55% of manufacturers used inventory as their primary buffer against disruption, with only 32% utilising flexibility within the agile production systems of suppliers. Inventory buffers whilst effective if the disruption creates an upturn in demand, can be catastrophic to cash flow if demand drops.

Similarly to COVID-19 when it comes to Brexit they’ve found that an increase in collaboration has led to improved supply chain visibility and planning. However, the uncertainty of Brexit is a cause for concern in terms of supply base flexibility with firms unsure of what type of response will be required.

Professor Jan Godsell from WMG, University of Warwick comments:
“It’s interesting to see that the lessons manufactures’ have learnt in developing supply chain resilience practices in response to COVID-19 pandemic are helping manufacturers to prepare for Brexit. However, the uncertainty of Brexit, particularly in terms of the impact of flow of material is challenging for developing supply base flexibility. Whilst manufacturers can proactively prepare for Brexit, a high degree of adaptability will be required to buffer against the unknown.

“All manufacturers should consider assessing their current level of supply chain resilience to identify the areas in which their current supply chain resilience practices could be developed. Working collaboratively with supply chain partners to improve supply chain visibility and planning are the key building blocks. More effective use of inventory and capacity buffers, and flexibility within the supply base can further improve resilience. Some disruptions cannot be predicted, and supply chains need to the capability to adapt.”

Author

Kevin Davies

Published

24 September 2020

Estimated Read time

3Mins

A shortage of digitally savvy talent, and a lack of training for technical and soft skills, hinder digital procurement initiatives

Research from Ivalua, a leading provider of global spend management cloud solutions, has shown that a majority of UK businesses (86%) face significant barriers developing digital skills in procurement. The findings reveal that a shortage of digitally savvy talent (31%), a lack of training for technical and soft skills (28%) and a lack of understanding of the skills required (13%), are some of the main barriers preventing UK business from developing the digital skills they need. Additionally, over half (55%) of UK businesses say that digital skills in procurement are less advanced compared to other departments

The research, conducted by Vanson Bourne on behalf of Ivalua, surveyed 200 UK-based procurement, supply chain and finance professionals about the true nature of digital skills within procurement, and the challenges businesses looking to digitally transform will face. More than eight-in-ten (84%) UK businesses believe that the skill set required of procurement professionals has shifted from procurement-first to digital-first. The study also highlighted that most respondents believe that greater digitalisation (84%) and better digital skills (83%) in procurement would have enabled UK businesses to mitigate the impact of the COVID-19 outbreak more effectively.

“Over the last decade, the role of procurement has transformed from one of cost-cutter to a vital ally that can help inform and enable a business’s strategy. The global COVID-19 pandemic accelerated this trend even further, reinforcing the importance of procurement as businesses adapt to the new normal,” commented Alex Saric, smart procurement expert at Ivalua. “However, for too long, procurement has been seen as a digital laggard, with technology adoption trailing behind other departments. In order to keep its seat at the table in strategic discussions, procurement must ensure it has people with the right skills in-house, as well as easy to use technologies, or risk being unable to offer significant strategic value.” 

Challenges in hiring digital skills in procurement

As part of ongoing digital transformation efforts in procurement, the report found that UK businesses have started to introduce new technologies such as data analytics (55%), cloud-based platforms (53%), automation (35%) and AI/machine learning (30%) in the last 12 months. 

But when it comes to deploying these technologies, UK businesses are finding it difficult to complement them with the digital skills required. The study found that 88% find it challenging to hire the right digital skills to work with technologies such as AI, cloud-based platforms or data analytics, while 76% say they are concerned that existing procurement teams will struggle to work with new technologies. Developing digital skills is vital for businesses, as 91% of respondents say that improving digital skills can make procurement more strategic, while 94% say it will help them gain a competitive advantage.

“In a rapidly evolving business environment, digital skills are essential for procurement teams to analyse and mitigate risk, identify new opportunities and collaborate with suppliers. However, procurement teams are struggling to both attract digital talent and upskill existing teams, which puts them at risk of falling behind competitors, losing market share, and struggling to identify risk and opportunities ahead of time,” comments Saric.

“To address the digital skills gap in procurement, UK businesses need to ensure they are focusing on adopting tools that are easy to use and improve access to actionable insights. By making procurement smarter, businesses are giving teams the tools and skills needed to thrive in the new normal, allowing the business to react and proactively address the shifting sands of a post-COVID world.”

To download the full report, “Bridging the gap – how smart procurement technology can help companies overcome the digital skills shortage”, please visit: https://info.ivalua.com/uk/report-digital-skills

Author

Mark Ellis

Published

23 June 2020

Estimated Read time

5Mins

Mark Ellis, Managing Partner at 4C Associates, award-winning European procurement consultancy, on procurement’s role in transforming the way to post-Covid recovery.

Over the past few months, how many times have you heard “we are living in unprecedented times” or “living in a different normality”? We are experiencing global factory labour shortages, supply chain disruptions due to travel and transport lockdowns, Force Majeure disagreements, suppliers running out of cash, realisation of our dependencies on global supply chains that we cannot control, disruption to ways of working due to lockdowns and the uncertainty over the length of current restrictions making effective forward planning extremely difficult.

Fortunately, for many, technology has enabled people to work from home and continue working and provide some normality to their day to day lives through the Covid-19 epidemic. However, even though many organisations have digitalised their customer front end services, sadly back office services have been woefully underinvested in (hardware, software and technology products) and many organisations have primarily spent time, effort and money to ensure that staff can continue to work during these difficult Covid-19 times by providing the tools and infrastructure to support home working.  

Supporting the global challenge

Over the last few months, procurement as a function has stepped up to support this global challenge. Not quite like the NHS, social care staff and the millions of health workers across the world, however they have listened to the ‘call to arms’ and mobilised their teams and their supply chains. On the other hand, unfortunately, many supply chains have failed, and business continuity plans have not delivered, as the procurement function has simply not been able to cope. This is after those organisations’ procurement functions invested heavily in sophisticated systems for tracking and managing their supply chain.

When Covid-19 hit, many UK based Utility organisations found out that their business continuity plans were not resilient against the unprecedented challenges it faced e.g. accommodation changes, systems switch over and consumer interface. Furthermore, many offshore BPO organisations struggled with home working due to bandwidth challenges of everyone on the internet and fitting for connection.  Whereas some ‘Challenger’ banks had invested in understanding and mapping their supply chains, and were able to instigate a quick and comprehensive review with their suppliers concerning financial viability, delivery capabilities and capacity during these challenging times.    

Did the technology fail or was it the ability of individuals and teams to take the data and make valuable insights to ensure they could deliver for their organisations? As a procurement professional, I am constantly reminded that data for data sake is not enough, you need to be able to use that valuable information to move the conversation forward, to support your organisation to innovate and, in the current crisis, to save lives.

As a function, we know that technology and understanding of the organisation’s needs is powerful and that we should utilise it to drive strong bonds with the individuals that work within our organisations and how this can deliver through our supply chains. Procurement technology combined with human knowledge is the mandatory combination to an effective classification and segmentation process and ensures businesses can quickly collate, visualise and action insights from existing data sources.

Connecting procurement technology and people

Connecting people and information guided by intelligent procurement systems can fundamentally change how companies buy and sell and can open broad visibility into the interconnected operations of buyers and suppliers. This also means reduced operational uncertainty as businesses can prevent bottlenecks in the supply chain before they arise. In the long term, it also enables procurement professionals to increasingly focus on strategic priorities as automated procurement solutions can take over their day-to-day tactical activities.

What these times are showing us is that we must do more to work on building better understanding of our own organisations’ demands, build sustainable relationships and appreciate new and innovative product and service development. It will make organisations stronger and ensure continuous service and reliability within the supply chain.

Now is the launch pad for great things for the procurement and supply chain function. We need to take the technology, data and insights to build strong and long-lasting relationships that can survive through the good and bad times.  We need to stress test our internal and external relationships and drive value and not cost, deliver new products and be the vanguard for change.

Ultimately, what Covid-19 is highlighting is the good that can be done, and we shine a light on the poor performances, poor process and inability to work collaboratively with people.  I sincerely hope that Covid-19 can make us stronger and build on some of the great and good that has been done over the past few months – as this proves we are all human.

Author

Pete Kinder

Published

23 February 2020

Estimated Read time

3Mins

Trying to keep pace with new technologies is one of the biggest challenges that most businesses are currently facing. Trends…

Trying to keep pace with new technologies is one of the biggest challenges that most businesses are currently facing. Trends in digital transformation such as AI, the Internet of Things (IoT), 5G networks and the proliferation of chatbots are impacting businesses of all shapes and sizes. Even procurement, a department traditionally found knee deep in paper-based spread sheets and contracts is embracing these innovations and are using them to automate manual, laborious processes improve supplier relationships and improve transparency over organisational wide spend.  

So, as procurement takes advantage of the digital era, what’s likely to come next for the business function focused on delivering value and saving their organisations money? Will procurement finally get the business recognition it deserves? Here are my predictions on what’s to come for procurement:

  1. Quality data

Businesses are already making key decisions based on data analytics; however, data quality remains an ongoing challenge. In the future expect to see machine learning automatically cleanse data, ensuring that any errors or anomalies are corrected. For example, it will monitor and maintain supplier master data from contracts and the data used in pay runs.

  • Procurement to drive competitive business advantage

Thanks to new technologies providing greater business insights, procurement will have more influence than ever before on overall business strategy, growth and competitive advantage. Procurement teams will be required to move their focus from spend and cost control and focus more heavily on facilitating innovation, business agility and continuity of supply.

  • A move towards more agile procurement

Are we likely to see more departmental purchasing and procurement become a more centralised business function? I think so, and as a result we are likely to see better collaboration take place across the entire business. We could even see category managers become procurement specialists in their business units and build a network of gig workers to help satisfy their operational needs.

  • IoT, data and stock tracking

More and more businesses are likely to take advantage of IoT to enable ‘touchless’ procurement where stock levels can be monitored automatically. It can help businesses track items in their supply chain in real time and enable asset-intensive industries to link data across the business to their suppliers. Businesses will benefit from an enhanced data platform as it informs decision-making around spend and purchasing patterns, catalogue content, supplier portfolios and contract fulfilment.

  • RPA to go mainstream

Taking full advantage of Robotic Process Automation (RPA) procurement will be able to completely eradicate many of its day-to-day manual, high volume repetitive tasks. The procurement team can also say goodbye to hours spent compiling manual reports and instead use their valuable time more effectively and deliver real value to the business.

  • Improved insights into the potential for supplier risk

Procurement teams will have better insights than ever before into their suppliers thanks to a clearer understanding of data. Internal data compiled by procurement, supplier information, market and analyst data on supplier performance will be aggregated and analysed to deliver a true 360° view of supplier performance.

  • Procurement best practice to include Blockchain

We’ve seen Blockchain, the technology behind digital currencies starting to find its way into the procurement space over the past few years. I think in the future we’ll see it used selectively by procurement teams as it is expensive to develop and deploy. However, I think increasingly we’ll see it used in scenarios where there’s a need to track and trace to stop counterfeiting or a need for operational integrity.

Author

Kevin Davies

Published

7 February 2020

Estimated Read time

5Mins

Standard Chartered, a leading international banking group, and Infor, a global leader in business cloud software specialised by industry, today…

Standard Chartered, a leading international banking group, and Infor, a global leader in business cloud software specialised by industry, today announced a strategic agreement to introduce the Infor Nexus network to the Bank’s clients. By digitizing the financial supply chain, businesses can minimize supply chain delays and friction, while suppliers can benefit from improved access to capital.

The Infor Nexus network transforms the traditionally manual process of data matching across multiple commercial documents including purchase orders, invoices and transport documents. This helps to speed up trade financing cycles, allowing suppliers to access capital faster and at more critical points in the transaction cycle, and as a result ensure on-time delivery of goods.

“Invoice approvals in a traditional non-automated environment often take weeks to complete, putting a squeeze on suppliers and bringing contention to the buyer-supplier relationship,” said Rod Johnson, General Manager and Head of Americas at Infor. “Slow invoice matching delays the trade financing cycle, preventing suppliers from obtaining capital they need to deliver quality and compliant goods on time.”

“While large corporates have achieved some level of automation through sophisticated enterprise resource planning systems, around 80 percent of data used in matching are sourced from documents residing with external parties,” said Michael Sugirin, Global Head of Open Account Trade Product Management, Standard Chartered. “This manual matching process is time-consuming, often resulting in a delay of the trade financing cycle which impacts the supplier’s ability to meet their working capital needs, most of whom tend to be small and medium-sized businesses. This strategic partnership addresses this gap and reduces capital related costs and risk from the supply chain.”

Through the strategic agreement, Standard Chartered will refer clients to Infor and its Infor Nexus network, based on specific needs, enabling them to benefit from automated matching and digitized documentation and processes delivered on Infor’s network of 65,000 businesses around the world. In addition to delivering broader financial services to clients, the Infor Nexus network provides global on-boarding and ongoing service and support to suppliers without requiring the involvement of the anchor buyer. The agreement also enables Standard Chartered to expand client relationships through digital transformation solutions that address sourcing and payables inefficiencies while enabling innovation and growth. 

Michael Sugirin added: “As our client’s trusted banking partner, our goal is to support them in their digitalisation journey through expediting their payables acceptance and facilitating export proceeds, and as a result improve their working capital cycles. We are excited to have this introduction agreement in place with Infor, whose platform offering not only fits well with our emerging markets footprint which generates significant trade documents flows, but also shares a similar commitment in supporting the development of sustainable, intelligent supply chains.”

Author

Daniel Ball

Published

20 January 2020

Estimated Read time

5Mins

By Daniel Ball, business development director, Wax Digital As a new year gets in full swing, there’s no better time…

By Daniel Ball, business development director, Wax Digital

As a new year gets in full swing, there’s no better time for businesses to refine processes in need of improvement, and procurement shouldn’t underestimate the power of bolstering its own processes. Any attempts to make buying operations smoother, more efficient, and cost-effective are likely to play a part in wider business success.

When it comes to achieving personal goals, the key is to break it down into more manageable steps, and the same is true in business. Here are some targets procurement should set itself to get 2020 off to a blinder:

  • Get your contracts in order: The average organisation has 20,000-40,000 contracts, but what happens when the agreement needs to be reviewed or renewed quickly? How easy is it to obtain files regarding these arrangements as and when you need them? What’s more, businesses that are unaware of renewal dates or don’t have full visibility of supplier T&Cs risk putting themselves at serious financial and legal risk. Procurement teams should make a business case to introduce contract management software so that they have a single, secure portal that they can use to quickly access information such as expiry dates and service level agreements (SLAs). Not only that, the software will alert the procurement team when contracts are due for renewal, enabling the business to check if prices will go up and whether alternative suppliers should be found. The software is also crucial for verifying that contractors have the necessary certifications in place to ensure the business remains compliant.
  • Stop late payments: UK SMEs with late paying customers now have to wait on average 23 days to receive funds, doubling from early last year, according to finance company MarketFinance. The government is cracking down on late payments to SMEs, for example by empowering trade bodies to highlight organisations that are good or bad at paying promptly. To ensure invoices are paid on time, businesses should introduce a system, for example purchase-to-pay software; which automates the procurement process from ordering products or services through to making the payment.
  • Build better relationships with suppliers: Every procurement professional knows that supply chains can be complex and risky due to the uncertain economic landscape we currently operate in, particularly due to Brexit. That’s why it’s crucial to form close relationships with suppliers to mitigate the impact of unpredictable scenarios such as financial crises, weather disasters or political unrest. Using supplier relationship management software, the business will have a clearer view of the supply chain and is more likely to spot potential issues before they escalate into something catastrophic.
  • Bolster digital transformation programmes: Businesses will only reap the benefits of new procurement software if it’s underpinned by a clear digital transformation strategy. We surveyed 200 senior figures across many businesses and found that 72% of procurement professionals feel that the training they received after new technologies have been implemented was insufficient. Procurement should consult with senior managers and the IT department when new technology is introduced. They should work together to embrace the technology and ensure all users receive the training and guidance they need to use it effectively.

There is a lot of scope in procurement to take advantage of technologies that digitise laborious processes and increase visibility on costs and operations. With some clear goals that aim to improve different aspects of buying activities, businesses can make 2020 the year they free themselves from the shackles of paper-based spreadsheets and supplier contracts and use their time to add greater value to the business.

Author

Kevin Davies

Published

18 January 2020

Estimated Read time

2Mins

Eight out of ten procurement professionals claim that in the past decade, their role has changed because of new digital…

Eight out of ten procurement professionals claim that in the past decade, their role has changed because of new digital transformation technologies implemented within their businesses.

Research from eProcurement specialists, Wax Digital, shows that 60% of respondents claim that technologies to automate slow and labour intensive processes has enabled them to be more productive in their job role. While less than a quarter (22%) said that it had made little difference to their overall efficiency.

Over half of procurement professionals (54%) claim that digital transformation has made improvements to their businesses by eradicating or streamlining traditionally manual processes. Just under a third (30%) of those surveyed are yet to experience any benefits or consequences from the implementation of digital technologies.

Nine out of ten respondents believe that there’s room for improvement when it comes to digital transformation projects within their industries. 40% suggested a need for digital experts to help their organisations deliver training, 26% would have preferred a longer roll out time for the technology and 18% thought better communication should have taken place while the technology was being introduced.

Daniel Ball, business development director at Wax Digital said: “Procurement professionals have seen significant changes in their job role over the past ten years due to the impact of digital transformative technologies. For example, many organisations, paper-based contracts, supplier records or even invoices have been digitised, saving businesses time and man-power resource and enabling all this information to be available at their fingertips.”

“In addition, supplier auctions and tenders are now also more automated than ever before – RFPs are sent out automatically while eAuctions allow procurement professionals to extract more savings within an automated auction setting to drive savings.

“With eProcurement tools generating more data than ever before, those working in the procurement industry have seen their roles become more strategic rather than just solely operational. These professionals are now required to have strong analytical skills, negotiation abilities and excellent stakeholder management”.

The full findings of the research can be found at: https://www.waxdigital.com/resources/digital-transformation-report

Author

Kevin Davies

Published

26 December 2019

Estimated Read time

2Mins

Heineken, the world’s most global brewer, has been working with JDA Software, Inc., for more than five years on its…

Heineken, the world’s most global brewer, has been working with JDA Software, Inc., for more than five years on its large-scale cloud-based digital planning transformation. HEINEKEN has recently committed to extending its JDA footprint in specific geographies, which is already live in five operating countries (Italy, Netherlands, Spain, Poland and France). With a strategy to shift from a sales & operations planning (S&OP) model to an Integrated Business Planning (IBP) model, HEINEKEN is fundamentally upgrading the way it plans its business with JDA.

HEINEKEN is the world’s most international brewer, and the number one brewer in Europe, with operations in more than 70 markets globally. It is the leading developer and marketer of premium beer and cider brands. Led by the HEINEKEN® brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. They are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through “Brewing a Better World”, sustainability is embedded in the business and delivers value for all stakeholders.

“We have some of the most complex and volatile markets in the world and have been working with JDA to make faster, more well-informed decisions, which directly impact everyone in the value chain” said Joost Luijbregts, senior Director Global Customer Service / Logistics / Planning, HEINEKEN. “With JDA, we have taken big steps forward – fundamentally changing the way we plan our business in terms of S&OP and scenario planning. As our partnership with JDA continues to strengthen, I am looking forward to work with JDA on our journey towards IBP.”

HEINEKEN embarked on its strategy to shift from an S&OP approach to an IBP approach, uniting sales, marketing, finance, supply chain and procurement together to make well-informed decisions, and plan and forecast for the future. New scenario planning capabilities have allowed the business to make trade-offs on costs, margins and capacity. Since deploying this strategy across Europe, HEINEKEN has seen an increase in forecast accuracy, reduction in stock-outs and improved inventory turns and productivity.

Moving forward, HEINEKEN will bring the integrated JDA solution to most of its larger global locations, signifying the largest cloud-based solution at HEINEKEN. Going forward, HEINEKEN has its sights set up harnessing the power of artificial intelligence (AI) and machine learning (ML) with JDA, as it begins a pilot project using JDA Luminate Demand Edge.

“We’ve formed a strategic relationship with HEINEKEN with a foundation built on trust and openness, which is highly critical as we develop the next phase in their IBP roadmap,” said Johan Reventberg, president, EMEA, JDA. “With a clear roadmap for the future, HEINEKEN is well-positioned to continue driving a leadership position in the market, while delivering superior customer levels across all its 70+ markets.”

Author

Kevin Davies

Published

10 December 2019

Estimated Read time

5Mins

Almost three quarters (74%) of procurement professionals admit that their transition to eProcurement technologies could have been smoother if they’d…

Almost three quarters (74%) of procurement professionals admit that their transition to eProcurement technologies could have been smoother if they’d had more support from a dedicated expert according to exclusive research from Wax Digital. 

The eProcurement specialists, surveyed over 200 senior professionals in IT, HR, Finance and Procurement and nearly half of the buying professionals quizzed believe that more training would have boosted their business’ digital transformation experience. And just over a quarter think it would have been better to introduce these new technologies over a longer period of time.

72% of procurement professionals have received either partial training or no training in new technologies after the digitisation of manual processes within their businesses. Yet, 28% said they have received enough training, with one in ten claiming that the process could not have been improved.

The study results also suggest that procurement’s roles and responsibilities have changed now they’re increasingly taking advantage of digital technologies. Eight out of ten procurement professionals claimed that new technology has changed their job role over the past decade. However, 60% believe that the adoption of digital technologies has increased their overall productivity.

88% of procurement professionals said that their company benchmarks either as average or below the industry standard for digital implementation. This viewpoint differs considerably from the responses from IT and finance as the research shows that they believe their businesses are meeting or exceeding standards.

Daniel Ball, business development director at Wax Digital, said: “It’s great to the see productivity gains being achieved by procurement through the adoption of digital technologies. Streamlining slow, laborious manual processes will simplify tasks such as invoicing, supplier sourcing and contract management; freeing up time for the team to work on other projects across the business.

“Any organisation going through the digital transformation process needs a dedicated expert on board to help champion all things digital in the business. Their role would be to support other employees as they get to grips with new technologies and help them to embrace the digital transformation process by offering first-hand experience and expertise, as well as coaching them on best practice. This approach can help organisations make the most of their new digital technologies and help ensure the transition is a success, improving productivity and efficiency across the organisation”.

Author

Kevin Davies

Published

15 November 2019

Estimated Read time

5Mins

Ivalua, a global leader in spend management, today announced the release of an enhanced third-party risk module, called Risk Center,…

Ivalua, a global leader in spend management, today announced the release of an enhanced third-party risk module, called Risk Center, available as part of its latest product release. The latest innovations extend the existing strength of Ivalua’s Supplier Management solution, which had already been recognised as a Leader by Forrester Research Inc. in the most recent The Forrester Wave™: Supplier Risk And Performance Management (SRPM) Platforms, Q1 2018.

Ivalua’s Risk Center offers customers a holistic solution to actively monitor and mitigate third-party risk and compliance. Customers are able to consolidate real-time information spanning supplier performance evaluations, transactional data, spend data, contractual information and external risk information from major third-party data providers.  This combined picture is visible in actionable dashboards to provide a comprehensive and timely picture of risk and the potential impact on the business.

“Organisations are increasingly dependent on their suppliers, who can be sources of tremendous value but also increased risk,” said Pascal Bensoussan, Ivalua Chief Product Officer at Ivalua. “Ivalua’s Risk Center brings actionable data and insights from across the supplier lifecycle together with complimentary external data so our customers can effectively manage supplier risk. When combined with the extensive supplier collaboration capabilities embedded in Ivalua’s platform, our customers can unlock the full potential of their supply chains.”

Risk Center’s ability to integrate with third party data providers in real time allows it to meet the unique needs associated with various regulatory environments, industries, and customer compliance models, in an automated fashion. For example, Risk Center can aggregate data on supplier financial health, sustainability, adverse media, sanctions lists, supply chain disruptions and more. Ivalua maintains an open and rapidly expanding ecosystem, including new and updated out of the box integrations with leading providers such as:  EcoVadis – A long-time partner of Ivalua and leading provider of sustainability risk and performance ratings for global supply chains. Backed by a powerful technology platform, the industry’s most-trusted methodology and a global team of domain experts, EcoVadis sustainability scorecards provide insight and engagement tools to mitigate risk, drive improvements and create value across 198 purchasing categories globally.

EcoVadis – A long-time partner of Ivalua and leading provider of sustainability risk and performance ratings for global supply chains. Backed by a powerful technology platform, the industry’s most-trusted methodology and a global team of domain experts, EcoVadis sustainability scorecards provide insight and engagement tools to mitigate risk, drive improvements and create value across 198 purchasing categories globally.

“The global supply chain is a breeding ground for hidden sustainability and CSR risks. Our  partnership with Ivalua enables procurement to see where they are exposed and the steps they need to take to reduce their risk,” said Pierre-Francois Thaler, Co-CEO of EcoVadis. “The integration of EcoVadis Sustainability Ratings with Ivalua Risk Center brings our mutual customers a powerful combination of insights to optimise procurement decisions, improve supply chain performance and create value.”

  • riskmethods – A leader in supply chain risk management, riskmethods empowers businesses to identify, assess and mitigate supply chain risk. By using artificial intelligence, riskmethods helps customers automate and accelerate threat detection, enabling them to gain competitive advantage with a well-managed approach to meeting customer demands, protecting reputation and reducing total cost of risk.

“The integration of holistic supplier risk information within the Ivalua platform is a great opportunity for Ivalua customers,” says Heiko Schwarz, founder and managing director of riskmethods. “With riskmethods available via the Ivalua Risk Center, customers will be able to get a complete view of all types of risk, giving them the tools, they need to avoid the cost of disruptions and respond faster to risk events than their competition.”

  • Global Risk Management Solutions (GRMS) – In an upcoming release, GRMS, a recognised leader providing innovative supplier risk management solutions, will also be available. GRMS combines highly configurable software, premium data streams, and continuous human interventions to reduce exposure to global risk and liability.  GRMS delivers risk-management-as-an-integrated-service on fully private networks and serves clientele covering suppliers across more than 120 countries. 

Author

Joonus Jantunen

Published

29 October 2019

Estimated Read time

5Mins

By Joonas Jantunen, CEO Cloudia Middle East & Africa, Cloudia. Former Hewlett-Packard CEO, Lew Platt, once famously said: “If HP knew…

By Joonas Jantunen, CEO Cloudia Middle East & Africa, Cloudia.

Former Hewlett-Packard CEO, Lew Platt, once famously said: “If HP knew what HP knows, we’d be three times more productive.”

Managing knowledge, or knowing what you know, and being able to apply it to core decision-making is key to business success now and in the future. In procurement, knowledge management already has the potential to drive productivity gains across the business. And emerging technologies like AI and RPA look set to play an outsized role.

What do we mean by knowledge management?

Every day, every moment, organisations and their operating environments are creating, using and sharing, huge amounts of information, or knowledge. Knowledge management, most simply put, refers to the process of collecting, maintaining and managing everything that a company ‘knows,’ in all its forms. But knowledge management is also about using that knowledge to help leaders make more informed decisions. In this article, we are considering knowledge management in this wider sense.

In any organisation, knowledge is power but only when it is well managed and usefully applied. In procurement, knowledge becomes power when it’s effectively managed for the purpose of driving decision-making. That means, identifying what information is critical to operations, analysing it, then sharing the findings with key decision-makers across the company.

What does this mean in practice for procurement?

In procurement today, knowledge management typically begins with process automation, aimed at reducing routine administrative work and freeing up procurement people to focus on innovation and productivity. Automation also equips organisations with the capacity to adapt and take advantage of new technologies as they develop. 

The vast majority of data management applications currently available focus on storing and presenting historical data – telling us ‘what happened’. Naturally, it’s important to know about past events to aid future management strategy, but all too often the data analysis and interpretation itself is left entirely to humans, with our limited capacity for processing large amounts of information. Also, it’s not possible to effectively exploit even the most basic historical data in practice unless the organisation’s procurement systems and processes have been digitised, and an adequate amount of historical data accumulated.

Emerging technologies assist knowledge management in multiple ways

When artificial intelligence (AI) is mentioned, often the first thing that comes to mind is robots making decisions on our behalf or undertaking roles previously performed by humans. Indeed, it has been predicted that robots are likely to replace many service-sector jobs, among other things. However, it’s worth remembering that predictions are based on assumptions of what might happen in terms of advances in AI and it’s challenging to predict the pace at which these advances would take place.  

In the short term, the situation looks less exciting. At the moment, the most significant strength of AI is its ability to handle huge amounts of data from various sources and to establish links among different factors. Another remarkable aspect of AI is the speed at which it is able to identify and produce text, sound and image. As it stands, AI is best suited for optimising existing processes and behavioural models on which an organisation already has plenty of high-quality data.  

AI helps manage, cultivate and discover procurement knowledge

AI and its various applications, especially robotic process automation (RPA), can significantly speed up data collection and assembly. In addition to the information that’s entered into the system and generated during the daily procurement activities, RPA is also able to cultivate new information. Useful information can be gathered about various relevant factors, such as the market, operating environments, pricing, currency fluctuations, any changes to contracts or suppliers, as well as other operators or events within the same business sector.

With the help of automation, the data can be assembled, categorised according to context, and merged and stored without human interference.  As a result, the process of data discovery will be significantly quicker and more straightforward. Technology can also be harnessed to keep different levels of management up-to-date with the latest information regarding, for example, various organisational units, or changes to contracts or consignments. As a result, management will always have access to real-time knowledge of any breaches of contract or disruptions in the supply chain. 

Diagnostic analytics explains why something happened

The next level of knowledge management is reached when technology is exploited to help understand the causes of events and certain behaviours. Diagnostic analytics examines data or content to answer the question ‘Why did this happen?’. When there is a better understanding of what happened, information can be used to find and detect a variety of recurring formulas and patterns, which help control and redirect operations more accurately.

For example, if the same suppliers always succeed or fail to fulfil the terms and conditions of specific product categories, the valuable information provided by diagnostic analytics can help target investment toward the most reliable suppliers. Similarly, understanding the changes in supply and demand, under certain conditions in different product categories, will help schedule the procurement process more efficiently. Diverse procurement procedures and market fluctuations have an impact on the price level of bids, but by analysing trends and past events, it is possible to get both the procedure and the timing right.

Predictive analytics explains what’s going to happen

Any organisation wishing to succeed needs to have foresight. Predictive analytics is a level up from analysing the past, as the focus is on developing and automating forecasts and probabilities based on current events. Those in charge of procurement can use the knowledge to predict and prepare for various outcomes and direct their actions accordingly. 

Once the analytics has discovered why something happened, it will be able to draw conclusions and predictions about what is going to happen next. As an example, it’s possible to predict that when certain changes occur on the market, certain suppliers will perform better (or worse) in relation to certain contractual terms, or if the price or availability of a certain product category is projected to reduce.

Prescriptive analytics explains what should be happening

A high level of procurement knowledge management is achieved when technology can be employed to tell what should be done next. AI and its various applications can efficiently simulate human behaviour and learn to make draft measures and proposals based on predictions. Even the decision-making process can be fully automated with the help of various approval stages.

Based on facts and probability-weighted projections, the system can give recommendations to management about different areas of procurement. For example, it might be advised to avoid certain suppliers at certain times of the year due to projected shortages in supply, or to order extra goods in advance to prevent stock from being exhausted.

Choose an experienced and competent partner

AI is a very useful tool for optimising performance and streamlining processes where the cost of human error can be high. In order to make the best use of technology in procurement knowledge management, it’s essential to be able to identify and collect the type of data that matters most to your organisation. Since the projections and recommendations are based on existing data, the sooner the process of data collection and storage in your organisation commences, the better.

Author

Dale Benton

Published

18 October 2019

Estimated Read time

3Mins

With constant innovation and marketplaces changing faster than ever before, procurement is undergoing its own transformation. Increasingly, companies are looking…

With constant innovation and marketplaces changing faster than ever before, procurement is undergoing its own transformation. Increasingly, companies are looking to support faster, decentralised procurement functions that will in turn allow for decentralised decision making. Here we look at 5 key shifts in procurement for 2020, as detailed by Gartner.

Value Drivers: From risk mitigation to leveraging knowledge

Businesses have been investing in new technologies in order to better understand their operations. Data capture and analytics have allowed companies to make informed business decisions, based on insights from data analysis. In recent years, the focus of this analysis has been on risk mitigation and cost reduction. Over the next year, business will begin to leverage the knowledge it has gained on spend, suppliers and markets in order to better identify new sources of value and eliminate inefficiencies.

 The role of procurement: transactional to strategic

The very perspective of procurement has changed radically over the last decade. Companies have almost begun ‘waking up’ to the notion that procurement is no longer a simple cost centre and in recent years, more and more of them have placed procurement at the heart of their operations. Over the next year, procurement will continue this evolutionary journey as businesses will shift it further, taking on more high-value work and focusing more and more on ‘top-tier’ buys. This will see experienced category managers spending more time developing category managers throughout the business, with the skillsets changing to include process expertise and coaching others.

 Business role: business partners enter the game

With the role of procurement becoming increasingly strategic, the lines between traditional procurement professionals and separate business units are blurring. More and more business units are aligning to the procurement function, taking on more responsibility and combining their specific expertise with that of the procurement role. As a result of this, procurement will enhance its training and coaching capabilities to help ease business partners into a position where they can source on their own. New tools and processes will be defined in order for business partners to execute sourcing events independently and mechanisms will be put in place for evaluating sourcing discipline executed by the business.

Delivery model: a centre of excellence

The very model of procurement will change, shifting towards a model defined by a CPO, Category Manager and Procurement process experts. What this ultimately means is that experienced procurement managers will conduct the most important purchases/buys and the procurement process experts will provide guidance to the business units. Overall, procurement will develop a better understanding of the varying levels of business partner sourcing discipline, meaning that the overall team will focus on process excellence and less on specific category knowledge.

Resources:  investing in people and technology

Investing in people, skillsets and talent is nothing new, but the way in which procurement will invest in its people and its technology will change. Reallocating budgets from outsourcing and corporate overhead will see procurement look towards professional and analytics skillsets. Technology investment on the other hand will shift to include robotic process automation software and customer experience technology. This will see greater use of customer experience experts and an increase in professional advisory skill sets.

Author

Dale Benton

Published

15 October 2019

Estimated Read time

1Min

Listen to the podcast here! In the latest episode of The Digital Insight, George Booth, Chief Procurement Officer at Lloyds…

Listen to the podcast here!

In the latest episode of The Digital Insight, George Booth, Chief Procurement Officer at Lloyds Banking Group explores risk assurance and whether it’s become a top priority for the CPO of today. 

George also talks about how big data, AI, and blockchain are redefining the sourcing function and in turn, redefining the role of the procurement professional. We also discuss how, in the digital age, balancing the need to identify and onboard new fintechs with a need to protect the business from inherent risks cause significant challenges, but also opportunity.

Author

Andrew Woods

Published

11 October 2019

Estimated Read time

5Mins

Read the latest issue here! This month’s exclusive cover story features an interview with Joseph Lee, Vice President of Procurement…

Read the latest issue here!

This month’s exclusive cover story features an interview with Joseph Lee, Vice President of Procurement and Subcontracts at AECOM Management Services, who tells us how the company optimises its procurement to become a strategic sourcing organisation.

Lee leads all procurement and subcontracting for AECOM’s Management Services Group — an organisation with more than US$4 billion in annual revenue and operations in more than 25 countries. Joining the business in early 2017, Lee was tasked with creating a plan to transform the procurement organisation and to assess it in its existing format. Here, he found that procurement was still viewed as something of a cost centre.

“They received requirements and executed them. That was it,” he explains. “There was little value-add; no metric, performance or accountability to the team. After assessing, I recommended we stand up a strategic organisation; one more forward-leaning that could negotiate long-term agreements in order to create efficiencies in our transactions…”

We also feature an incredible article with Maytham Al-Khairulla, VP of Business Support at OSN, while negotiation techniques in procurement are discussed by Eman Abouzeid, Global Procurement and Supply Chain Professional.

Enjoy the issue!

Author

Dale Benton

Published

1 October 2019

Estimated Read time

5Mins

With constant innovation and marketplaces changing faster than ever before, procurement is undergoing its own transformation. Increasingly, companies are looking…

With constant innovation and marketplaces changing faster than ever before, procurement is undergoing its own transformation. Increasingly, companies are looking to support faster, decentralised procurement functions that will in turn allow for decentralised decision making. Here we look at 5 key shifts in procurement for 2020, as detailed by Gartner

Value Drivers: From risk mitigation to leveraging knowledge

Businesses have been investing in new technologies in order to better understand their operations. Data capture and analytics have allowed companies to make informed business decisions, based on insights from data analysis. In recent years, the focus of this analysis has been on risk mitigation and cost reduction. Over the next year, business will begin to leverage the knowledge it has gained on spend, suppliers and markets in order to better identify new sources of value and eliminate inefficiencies.

 The role of procurement: transactional to strategic

The very perspective of procurement has changed radically over the last decade. Companies have almost begun ‘waking up’ to the notion that procurement is no longer a simple cost centre and in recent years, more and more of them have placed procurement at the heart of their operations. Over the next year, procurement will continue this evolutionary journey as businesses will shift it further, taking on more high-value work and focusing more and more on ‘top-tier’ buys. This will see experienced category managers spending more time developing category managers throughout the business, with the skillsets changing to include process expertise and coaching others.

 Business role: business partners enter the game

With the role of procurement becoming increasingly strategic, the lines between traditional procurement professionals and separate business units are blurring. More and more business units are aligning to the procurement function, taking on more responsibility and combining their specific expertise with that of the procurement role. As a result of this, procurement will enhance its training and coaching capabilities to help ease business partners into a position where they can source on their own. New tools and processes will be defined in order for business partners to execute sourcing events independently and mechanisms will be put in place for evaluating sourcing discipline executed by the business.

Delivery model: a centre of excellence

The very model of procurement will change, shifting towards a model defined by a CPO, Category Manager and Procurement process experts. What this ultimately means is that experienced procurement managers will conduct the most important purchases/buys and the procurement process experts will provide guidance to the business units. Overall, procurement will develop a better understanding of the varying levels of business partner sourcing discipline, meaning that the overall team will focus on process excellence and less on specific category knowledge.

Resources:  investing in people and technology

Investing in people, skillsets and talent is nothing new, but the way in which procurement will invest in its people and its technology will change. Reallocating budgets from outsourcing and corporate overhead will see procurement look towards professional and analytics skillsets. Technology investment on the other hand will shift to include robotic process automation software and customer experience technology. This will see greater use of customer experience experts and an increase in professional advisory skill sets.

Author

Dale Benton

Published

20 September 2019

Estimated Read time

5Mins

By Dale Benton In a world awash with digital transformation stories that see companies restructuring or even dispensing with old…

By Dale Benton

In a world awash with digital transformation stories that see companies restructuring or even dispensing with old business models to usher in the new era of digitalisation, the notion of understanding and sifting through noise in the marketplace, in order to head down the right path, requires a level of expertise that even some of the world’s leading organisations do not possess. This is why they turn to consultancies such as Roland Berger. With more than 2,400 employees working across 35 countries around the world, Roland Berger is a consulting partner of choice because it boasts a deep understanding of diverse cultures and markets.

One such industry space known for its ever-changing complexity amid a radical transformation the world over, is procurement. Michael Pleuger, Senior Partner at Roland Berger is an experienced procurement professional, focusing on large scale procurement and supply chain transformation programs. Having spent his entire professional life working in the business transformation space, he has seen first-hand the shifting nature of procurement and more importantly, the shifting perspective of organisations. Getting his start in the industry as Head of Procurement in a German M-DAX listed rail technology company, Pleuger soon found himself working on a major supply chain transformation program. Here, he worked closely with a number of different consultants, looking at technology implementation and change management. His consultants convinced him to move to the other side and to advise other clients as a management consultant himself. In this new consulting role, Pleuger delivered global procurement transformation programs for large European Blue Chips.

Later Pleuger joined Vodafone to bring in his experience to help integrate their global procurement activities and to establish a corporate procurement in the telco’s HQ in Newbury, UK and subsequently in the Vodafone Procurement Company in Luxemburg. After an almost four year stint in Vodafone, Pleuger returned to Berlin and to the consulting industry. He continued to serve globally-leading companies to transform their procurement and supply chain functions into a competitive differentiator. In this role he returned to Vodafone as a consultant and it was this time with the company that opened his eyes to a new wave of digital transformation in procurement.

“I was asked to look at digitalisation within the procurement company and it was, in my humble opinion, that the company was already fully digital because they were already working with new technologies in sourcing, P2P, invoicing,  contract management, supplier collaboration and supplier performance management,” he says. “With this large existing digital footprint in place, we looked at it differently together with our client and saw that through RPA for example, a lot of P2P suites and e-sourcing suites would be potentially fully automated and therefore eliminated.” Pleuger identified that procurement needed to take on a new role in the future; a move determined by the unique positioning of procurement. As the function with the most interfaces, both internally and externally with the supply base, procurement is the ‘spider in the web’. All the data coming from all the nodes within the network, pass through procurement, presenting a unique opportunity for procurement to become the primary provider for business insight and foresight. It requires procurement to being able to make meaningful information out of this avalanche of data.

“This is a completely new currency of procurement, from savings to business to business intelligence,” explains Pleuger. “Today, as a senior partner with Roland Berger, my role is working with leading procurement organisations to help them prepare for the future of procurement.” To achieve this, Roland Berger uses a framework,  they have branded “the procurement endgame”. The procurement endgame describes how certain mega trends, one of the biggest being digital innovation and  industry specific disruptors, are turning companies and procurement upside down. Pleuger cites the emergence of 5G technology and how it’s enabling industry 4.0 and the Internet of Things a disruptor in the telco industry. In the automotive space, the emergence of autonomous driving is clearly a disruptor.

“What we see is that our clients respond to these external challenges by defining a new corporate strategy and business model,” he says. “Procurement aligns with these new business models and is key to operationalising these by providing business insight and foresight. Procurement is buying different content, such as digital content but also needs to buy differently, e.g. in collaboration with start-ups or emerging eco-systems.”

As the spider in the web, procurement has a responsibility like no other business unit. It has to be able to break down the complexity of its function and communicate it to the wider organisation in a language that makes sense. For some, the perspective remains that procurement is simply writing purchase orders and signing off invoices, but this is shifting and new business models are now opening the doorway to new capabilities. “In order to fulfill its role, procurement has to have connectivity to all the nodes in the network. Behind the digital glue, however, is collaboration,” he says. “That digital glue is an intuitive collaborative workflow, one that brings everybody into this flow of analysing the internal demands, the external market and then developing a strategic response in the shape of a better procurement strategy or category strategy.”

As an example, Pleuger looks at artificial intelligence and its role within procurement. “If all the IOT devices and the industry 4.0 devices and the consumers online around the world are connected and capturing data and feeding it into the procurement sweet spot, that’s going to overwhelm the category managers,” he explains. “So, we look to feed AI into managing that data as it comes their way. Then, they can use this AI to prioritise, digest and summarise all of the sources available and provide an executive summary and predictions that can be used to stay ahead of the game. This is but one example of the capabilities that the category managers require in order to succeed in procurement today.”

The key component in the middle of transformation is the procurement professional and the category managers that are shifting their way of working in this new era of procurement. In order for organisations to embrace innovation, implement new digital tools and unlock greater value, the people controlling and accessing this digital glue need training to join these journeys. Roland Berger has recently released a white paper on 21st century skills in procurement, which breaks this down into two dimensions; the need for collaboration and the complexity of the task at hand.

“If the complexity and collaboration is low, then this is a task that can be automated and it requires a basic understanding of what the digital tools can do,” explains Pleuger. “If the complexity is high, but the collaboration is low, something like AI can be used to analyse that complexity and solve the problem. However, if the complexity is high and the collaboration is high, this is where we look at human intelligence and our best people. Very often I hear up-skilling is a shift from lower value tasks to higher value ones and this is correct. But I think that, unfortunately, due to it being a hard discussion, we will lose people along the way. Automation for example could reduce the overall demand for procurement professionals. It’s too hard a discussion to simply say up-skilling organisations need to break down exactly what these digital tools will bring and takeaway.”

The challenge Pleuger sees here is one that stems from something he experienced himself; what does digitalisation mean to people? This is a question that Pleuger loves to work with organisations to try and answer. Pleuger, through his career, has learned that digitalisation is different from implementing standard IT software packages, for it opens the door to innovation. “If digitalisation means what we always associate it with, being agile and disruptive, then this in itself determines that it cannot be a standard software bought from the shelf,” he says. “If you want to be super disruptive, you have to invent something completely new. You have to be bold and adopt a failing forward attitude.” He points to a quote that states that all experts are experts in what was, no one is an expert in what will be. “If you want to be an expert in these innovative technologies and digitalisation then there are three things that must replace experience: vision, leadership and collaboration,” he says. In order to achieve this, an entrepreneurial, agile and creative environment is key.

Roland Berger’s Spielfeld, located in Berlin, is such an environment. over recent years, the former mail sorting office in the central Berlin neighbourhood of Kreuzberg has been transformed into ‘Spielfeld Digital Hub’. The three-storey hub comprises 2,500 square metres of workspaces, meeting rooms, technology areas and kitchens. It is a breeding ground for collaboration, brainstorming and innovation between people from companies of all shapes and sizes, from start-ups to corporates. Spielfeld Digital Hub was founded by consultancy firm Roland Berger in conjunction with Visa. “It’s a place where tech firms, start-ups and venture capitalists come together,” explains Pleuger. “They form an ecosystem in which teams of people from different disciplines and different organisations can innovate together and where their innovations have the chance to mature. “This is the new way of working,” says Pleuger. “In an environment like our Spielfeld we can find out together with our eco-system partners what it means to collaborate in the very spirit of vision, leadership and collaboration. It will ultimately lead to innovation, as it did when Pleuger and his team have spearheaded the digitalisation of category management and thus addressed a white space in the landscape of digital procurement systems and tools. A ground-breaking innovation.

Trying to determine what digitalisation means to each and every one of us links back to Roland Berger’s concept of procurement endgame, a series of frameworks that prepare organisations for the future, whatever it might look like. The Endgame is built around an organisation’s strategic response to industry trends and industry specific disruptors and how that in turn defines new requirements for procurement. The challenge is, and ultimately always will be, navigating this future in a way that will achieve success. Pleuger points back to the idea of failing forward, being bold and collaborating. “I look at the quote again around no experts in what will be. This means that we don’t need to look at people who have done this for 10 or 20 years. We can look at young, fresh and driven individuals,” he says. “Develop these young and hungry individuals and they can bring a massive impact and change into the way procurement works. This can help create a culture that will truly enable digital transformation for any organisation.”

Author

Daniel Ball

Published

18 September 2019

Estimated Read time

5Mins

By Daniel Ball, business development director at waxdigital.com Ever heard the joke that the only way to be popular in…

By Daniel Ball, business development director at waxdigital.com

Ever heard the joke that the only way to be popular in procurement is to buy a dog and take it in to work? Well, times are changing, and procurement’s popularity is on the ascent as it is recognised for its positive contribution to both the environment and society. Many of today’s savvy procurement professionals realise the advantages of adopting new approaches to how they buy goods and services.

Once perceived as the team that simply saves the business’ money, procurement’s role is changing, as both sustainable and ethical purchasing practices increasingly become business priorities.

Legislation such at the UK Climate Change Bill is forcing procurement to address environmental issues such as plastic reduction and biodiversity. And, more and more customers are now making their buying decisions based on their suppliers’ sustainability credentials.

While sustainable procurement can make a big contribution to an organisation’s Corporate Social Responsibility (CSR) efforts, some businesses are making change of a different kind through their purchasing.

Ethical sourcing is a way for organisations to make positive societal change by choosing to buy from social enterprises which support those most marginalised from the workforce. According to Social Enterprise UK there are over 100,000 social enterprises in the UK. They employ two million people, contribute £60 billion to our economy and offer their services across most sectors. Just like traditional businesses, social enterprises work to make a profit but use it to help create positive social change for those most in need of support.

As well as contributing to good causes, engaging with social enterprises can also have a positive impact on the external and internal perception of a company. According to an Ipsos Mori poll, 84% of consumers believe that companies should do more for society. And, working with social enterprises can have a positive impact on staff morale too with 75% of millennials claiming they would agree to a pay cut to work for a more socially responsible company.

From bathroom soap to recruitment services, the UK’s social enterprises are well-equipped to support numerous business needs. Here are a few examples of social enterprises supplying to businesses throughout the UK:

Soap Co. is an ethical brand that creates cruelty-free body care products, including soap for office washrooms. It provides training and work opportunities for people who are visually impaired, or with other disabilities.

Graduate Planet, is a recruitment business which reinvests it profits into local environmental initiatives. 

Auticon is a national IT consultancy exclusively employing autistic adults as IT consultants.

Recycling Lives is recycling and waste management company that supports charity programmes for ex-offenders.

Working with social enterprises can sometimes be as easy as changing office supplies provider. Another business dedicated to changing lives, is WildHearts Group, a leading UK B2B social enterprise. It encourages businesses to make a positive social impact simply by coming to them for office supplies. Providing 35,000 everyday products that businesses need to buy anyway at competitive prices, its profits help funds the work of the WildHearts Foundation who support struggling female entrepreneurs in Africa and young people affected by social immobility in the UK. 

One CPO who works with the WildHearts Group, told us about the impact this approach to procurement is having on the organisation: “Social enterprises have revolutionised the scale of conversations procurement now has with key stakeholders in the business.

“We’ve found an effective way of making people feel good about procurement. We now have case studies demonstrating how we are contributing – for example, we’ve helped a Ugandan mother set up her own business. Borrowing just £40 enabled her to set up her own fruit and vegetable stall.  It’s no longer a conversation about a ream of paper but one about helping someone educate their kids. What’s not to like about that?”

As well as helping facilitate social mobility, there are many more benefits this ethical approach to procurement can bring to the business. Working with social enterprises doesn’t have to mean compromising on cost or quality, with many suppliers credited for their excellent customer service, competitive pricing, and innovative products and services. 

Crucially, it’s also becoming increasingly common for customers to only want to work with businesses who support social enterprises. WildHearts Group say  they often see organisations highlight their association with them in tenders to help them win the business.

Both sustainable and ethical procurement practices not only deliver both environmental and societal benefits but contribute to the success and motivation of the wider business too. But don’t underestimate the impact these approaches to purchasing can have on the procurement team too.

Another CPO told us that he’d met more senior managers at his business through working with social enterprises than he ever would have done so previously. Perhaps now CPOs can raise their profiles without having to buy a dog after all.

Author

Andrew Woods

Published

12 August 2019

Estimated Read time

5Mins

Our exclusive cover story this month features a procurement transformation at Aldar Properties, one of Abu Dhabi’s leading property developers….