In 2019, global supply chains are focused on technology and innovation. Today’s global supply chains are often complex, with many moving parts. However, procurement professionals are facing increasing pressure to manage them with efficiency and transparency. Creating a successful supply chain requires building a sustainable foundation. Though technology mobilizes supply chains to compete faster and better in today’s global economy, having a strategy to optimize your talent is just as important. Technology that gives business users more autonomy and security are reflected in a positive impact on your organization’s bottom line.
Based on my experience, many businesses have separate initiatives that fragment their supply chains and could benefit from pooling resources and aligning different stakeholders to the same common goals with the use of technology. For example, many businesses have separate supplier diversity processes. They have supplier diversity experts who don’t collaborate with their larger procurement teams. Sourcing and procurement professionals are often incentivized differently and often don’t communicate nor see eye to eye on the same overall strategy. With collaboration, your organization can streamline its supply chain and build a stronger foundation for process-driven results.
In today’s market, you can no longer ignore the rapidly changing landscape of digital transformation. Companies that are reluctant to embrace the technologies that bring better visibility and security to supply chains risk being left behind. To avoid that fate, here’s what companies can do in 2019 to improve supplier diversity and overall supplier relationship management process.
Daryl Hammett, CSMP, CSP, General Manager/Chief Operating Officer at ConnXus
Shopping, buyers, shopping carts, savings, back office, JUST STOP DUMBING US DOWN!
As many of you know, my passion is to help elevate the sourcing industry to receive the attention, seat, respect (and yes, pay) that it deserves. So why do sourcing professionals keep self-sabotaging by using the term BUYER to describe ourselves? The only time this is a sexy title is perhaps if you are the buyer of fashion who attends runway shows and hobnobs with designers. Buying is what I do when I “shop,” like for groceries. We as sourcing professionals are NOT shopping.
So onto my next pet peeve, why do we have cute little icons that look like grocery carts to check out within our tools? Yes, it makes it seem like an easy process when pushing it out to our internal customers, but it connotes “shopping,” which, as we have just discussed, we are not doing. We are selecting items from a carefully sourced category after a lot of thoughtful processes have taken place. Why can’t we use an icon that better showcases the importance of this role?
The SIG Peer2Peer (P2P) program allows members to access benchmarking insights and best practices on topics specific to their needs. Using the Peer2Peer resource, members can leverage the experience of other industry professionals by posing questions to the greater SIG community on issues they are facing within their organization. Members use the forum to locate resources, source providers, seek advice on hot topics and share their lessons learned.
Below are the latest Peer2Peer inquiries. You or someone on your team may know the answer to one of the questions below. If you do, please take a moment to help a SIG member from the buy-side. You may need their help one day, too! To submit your own Peer2Peer inquiry, get in touch and we’ll pose your question to the SIG Community.
This buy-side member is re-writing their procurement policy and revamping their process for the requested addition/approval of a new supplier. They are seeking best practices for procurement policies, specifically covering the following topics:
What spend does/does not require a PO?
What are the consequences for procurement policy violations? For example: Committing company funds without a PO or contract.
How are violations to the procurement policy enforced?
What is the process for requesting a new supplier add? Who reviews/approves/denies this request?
Bruce is a distinguished thought leader and global innovator, with over three decades’ experience within the human capital and workforce management industry. In his current role, Bruce is involved in new services and product idea generation, sales presentations, internal and external evangelism, digital and social media strategies, and lead generation. He gives us an inside look into his role, how he acts as a key partner to the business and his outlook on the future of work.
Your CPO keynote presentation at the Denver CPO Meet and Eat is about leveraging spend management within services categories--why is this an important topic?
There is a lot of talk about spend analytics, data and how that is the future of success. Our position is that spend analytics is a wonderful tool and capability but we’ve yet to see the capability evolve beyond goods-level detail. As procurement teams are continuing to try to find ways to better address services spend and deliver value to their organizations, we feel that there is tremendous opportunity by thinking differently about this space.
With the rapid acceleration of cloud software, Internet of Things (IoT) and advancements in FinTech, the financial and technology industries saw significant increases in cyberattacks over the past year. Attackers find vulnerabilities in supply chains and software, capitalize on lax security updates and use social engineering to manipulate end-users.
As hackers become more creative in their subversive techniques, businesses need to become more proactive in educating their workforce and stepping up their cyber incident response plans. Businesses should consult with their vendors, third-party suppliers and stakeholders in every business unit to ensure continuity, mitigate risk and verify that security measures are being employed and regularly updated.
Below are summarized findings from the recent NTT Security Global Threat Intelligence Report that focus specifically on the finance and technology sectors in the Americas, which account for the most highly targeted attack sectors in this region. Recommendations from the National Institute of Standards and Technology Framework are included here as well. Organizations can also look to the Department of Homeland Security’s National Cyber Incident Response Plan for guidance on dealing with and addressing cyber incidents.
Finance and Technology Top the List of Targets
Attacks to the finance sector nearly tripled, accounting for 43 percent of attacks compared with 15 percent the previous year. Attacks targeted at the technology industry sector increased to 27 percent of attacks, up from 11 percent in the previous year. For comparison, manufacturing was the most attacked sector in 2016, with 23 percent of attacks, but has since fallen to five percent of attacks in 2017.
Given the intensity with which companies today are focusing on innovation and profitable growth, it is imperative that procurement teams drive strategies that support enterprise-level business goals. Beyond traditional sourcing approaches, strategic category management delivers a collaborative way of developing solutions that support both business and category objectives. Category management maximizes category value to the organization, delivering on critical parameters such as total cost of ownership, risk and performance, to name a few.
While procurement organizations around the world realize the significance of building an advanced category management program, getting there isn’t simple. In a number of organizations today, category management is still at a nascent stage, perhaps indicating that though there is an organizational structure for category management, it is not quite aligned with the business strategy. For many though, exhausted sourcing strategies turn out to be their biggest hindrance.
To address this issue, GEP and SIG have teamed up for a webinar with Biju Mohan, vice president of GEP Consulting, to discuss the latest trends influencing strategic category management program design and implementation by global, market-leading procurement organizations.
Key topics include:
Edie Sachs, Senior Marketing and Content Manager, GEP
Procurement has evolved to become more strategic and collaborative and has moved from an isolated, back-office function to a boardroom partner. While the procurement function must continue to drive hard savings, manage suppliers and mitigate risk, it must also pivot to look for opportunities to deliver future savings and innovation.
“Procurement is at an inflection point,” said Dr. Marcell Vollmer in an interview with SIG CEO Dawn Tiura. “Procurement needs to transform into a value-added function focusing on strategic tasks.” How can procurement teams do this?
For all the great advancements that technology brings, it requires people to manage the technology. Oxford Economics’ survey among procurement executives and practitioners found that the top three investment priorities include new talent recruitment, training/upskilling programs and procurement/supply-chain technology.
Ryan A. Murray is the First Deputy Director in the Mayor's Office of Contract Services for the City of New York. He manages an oversight and service agency that was responsible for $21 billion in procurement in FY17. New York City operates a federated model with an estimated 2,000 staff and evolving technology landscape. Mr. Murray leads the people and change practice, serves as the chief strategy officer and guides the legislative/policy agenda for the Mayor's Office of Contract Services.
What kind of transformation did you help the Mayor’s Office achieve and how was success measured?
Doing business with the City should be easy and internal city procurement operations should be efficient. Disparate practices across industries, a federated model, rigid bureaucratic rules and heavy reliance on paper processes impede the realization of quality experience by vendors and agencies. That’s why we are implementing a multi-year project to overhaul operations. In 2017 we reached the first critical milestone by launching the Procurement and Sourcing Solutions Portal (PASSPort). Together with our technology and implementation partners, we introduced centralized supplier management, moving a cumbersome vendor disclosures process online, establishing a shared platform for data sharing across agencies and allowing vendors to access contract performance data in the same portal. This success enables us to develop and launch requisitioning, sourcing and payment modules in the next two years.