Kristen Jordeth is the Director of Procurement Product Strategy at SAP. At SIG's Fall Global Executive Summit, Kristen will highlight how the ability to survive future disruptions will be dependent on a companies ability to manage and respond to real-time risk information about third parties transacting with the business.
What is your role and what are your day-to-day responsibilities?
I am the Director of Procurement Product Strategy focusing on future innovations within Supplier Management and the SAP Business Network. My day-to-day responsibilities are to ensure our solutions are addressing the future needs of our customers.
What does Procurement 3.0 mean to you?
Procurement 3.0 means to make the day-to-day procurement process more efficient, transparent and streamlined. Removing tactical procurement that is traditionally done in a spreadsheet or via lots of paperwork and replacing it with technology.
How have you and your team innovated through Procurement’s new “seat at the table”?
Procurement’s new “seat at the table” has validated the need for intelligent enterprise solutions. With Procurement now involved in executive planning, it is important for the procurement processes to connect to all other business processes. At Sapphire this year we announced the SAP Business Network which brings together our SAP Ariba Network, SAP Logistics Network and SAP Asset Network together to expand transparency and enable stronger collaboration.
In your opinion, what are 3 skills that sourcing and procurement professionals of tomorrow must have?
- Resilience – With the pandemic hitting in 2020 and the supply chain issues in 2021 it is important for sourcing and procurement professionals of tomorrow to stay calm under pressure, adapt to new norms and seek for opportunity in the midst of disruption.
- Business Acumen – It is one thing to be able to run a strong negotiation, but it is another to understand the impact different purchasing decisions can have on the business. This type of thinking isn’t something you can learn in a textbook or procurement 101 manual, it is more about hands-on experience, willingness to take risks and also a bit of street smarts.
- Emotional Intelligence – Many businesses are struggling today, especially small businesses. How you treat your customers, employees and suppliers during this time is important. If you know a supplier is struggling to make payments or adapt to new health protocols, paying them immediately will be a huge help. Suppliers will remember how you treated them during rough times, which will set the tone for your relationship into the future.
What trends do you see evolving for 2022 and beyond?
- Growth in local purchasing – Shipping concerns and the push towards social/diverse enterprise spending I see procurement buying more from local suppliers. This also could lead to push towards circular economy initiatives as well. Less touch/touchless procurement – now that many procurement departments have adopted a more digital process more controls will be built within the system negating the need from human interference.
- This will optimize operations, improve transparency and allow for stronger data and analytics. Environmental, Social and Governance (ESG) Goals being the driver for business decisions – with the new German supply chain act and other global regulations being put into place to address human rights issues, I am seeing the need for better visibility into the supply chain along with new data types to help validate that a supplier is an ethical business and does not go against your business values.
What are the most critical changes that Procurement must make to face the future effectively?
Attracting new talent – fewer and fewer people are choosing a career in procurement. Historically procurement has not been seen as a sexy profession, but recently procurement professionals are front and center in driving sustainable and social change. Being able to provide a solid career path for young professionals will help attract qualified talent. Switching from a more cost savings focus to a risk-averse one.
Gone are the days where procurement was tracked based on how much they save a company. These days we are seeing procurement playing a major part in protecting the reputation of a company. Spending more time on vetting a supplier vs getting the best price is a new shift and one that will benefit a company greatly.
To be a great leader you need to know great leaders. We invite you to learn from Kristen at SIG's Fall Global Executive Summit. Her featured session, "The Risk Framework to Survive Industry 4.0," will be held on Tuesday, October 12. Join the conversation, check out the agenda and register on our website.
Desmond Williams is the digital marketing Manager for SIG. He holds a Bachelor of Science degree in Entrepreneurship and a minor in Sociology from The Florida State University in Tallahassee, Florida. With a background in Marketing and Sales, relationships are at the core of his values.