The second half of 2022 is here but constant supply chain problems are diverting procurement’s attention from other business-critical areas. We have a host of resources, insights and events to get you prepared!
June CPO & Executive Virtual Series
SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On June 8, Keith Learn, Vice President of Procurement & Supplier Development at Mary Kay Inc., will deliver a thought leadership presentation that will leave you with many new tools and strategies! Nick Heinzmann, Vice President of Research at Spend Matters will also be presenting his latest learnings. Nick will discuss ESG, regulatory forces, and inflation.
Join us for this collaborative and very personal conversation!
In this fourth and final installment in this Keynote Series, we talk about the "judicious deployment" of emerging technology without losing sight of the human side of digital transformation.
To achieve this "balance," Mattress Firm's VP of Indirect Procurement, Quave Burton, discusses the importance of motivation through employee recognition while challenging her team to "stretch themselves" to learn new and better ways to achieve strategic objectives.
For Quave, the journey of transforming procurement at Mattress Firm started at ground zero.
When I say ground zero, there wasn't a procurement department when she started working with the company. As she explains it, she was immediately on a transformation journey, starting with getting the right people to do the right things.
Fortunately, and with the full support of senior leadership, the organization was ready and willing to make changes.
At this point, I think it is essential to stop and stress the benefits of having to build the foundation for procurement transformation, starting with people before introducing technology. As anyone who has been in our industry for some time will tell you, in the past traditional ERP-based procurement initiatives have generally failed to achieve the expected results. Many studies estimate that the failure rate is between 50% and 75% - some even put that number higher.
The three main reasons for this less than stellar performance are poor User Experience, data inaccuracy, and analytics.
Despite introducing more advanced and intuitive "by-the-drink" technology solutions, CPO's dissatisfaction with digital initiatives remains high.
Coming in at 130 pages, you might immediately think that this isn't a paper or a report; it's a book.
I know that was my first thought when I began reading the GEP Spend Category Outlook Report For 2022. Just as an aside, did you know that between 2011 and 2017, the average length of a bestselling book fell by 42%? Since then, and with the demand on our time becoming greater, I am sure that the length reduction has continued its downward trend.
By the way, a 2022 report indicates that the same downward trend applied to white papers, which, on average, are now 6 to 8 pages.
So, why am I with this latest paper talking about the number of pages versus the actual content – which is amazing?
My reason is that reviewing this report shouldn’t be a “read once and done” exercise.
The Ultimate Nightstand Guide
In today's Zettabyte digital reality, we are bombarded with content so much so that if you read a book or a paper, you are likely to gather what you can and then move on to the next resource – which is fair.
However, sometimes the information you receive is so on the mark that it is worth setting aside to a special place so that you can easily access its insights any day, every day. What I am talking about is a guidebook. And this latest GEP release is just that – it is a handy guidebook that you will want to keep at your fingertips to understand better the challenges you have or are facing today and the ones you will be facing tomorrow.
Having read it in its entirety, I can confidently say that it will help you get ahead of the curve of future challenging events before they unfold. Through the agility of its timely insights and the practical adaptability of its direction, you will quickly move from a reactive to a proactive position. It is the epitome of turning information into actionable knowledge.
Mary Zampino, Vice President – Content, Research & Analytics
SIG University Certified Sourcing Professional (CSP) program graduate Patrick Fifer shares how important it is to manage your direct stakeholder relationships in the sourcing world.
Throughout the Certified Sourcing Professional program, stakeholder management was a critical aspect interwoven throughout the lessons. It is the area that I would like to focus on for my blog submission. As a sourcing professional, it is of the utmost importance to manage each of your stakeholder relationships equally to ensure that your categories' sourcing process is maintained appropriately. A consistent approach to managing each of your stakeholder relationships will help to avoid the exclusion of the sourcing professional due to the stakeholder:
Patrick Fifer, Category Procurement Manager, CoStar Group, Inc.
At the heart of that urgency is assessing and then mobilizing your procurement team’s digital capabilities throughout the extended organization.
How do you mobilize your procurement team’s digital capabilities?
With this third article from the 2022 SIG Procurement Technology Summit Keynote Series, I will share with you the "key insights" from Chris Kee (VP, Sourcing and Procurement at Northwestern Mutual) and Colin Frazier (VP – Solutions at ZIP) keynote on creating the right digital experience.
To better understand what creating the right digital experience around your team's procurement process involves, you must first understand your organization’s procurement workflow.
What Is The “Procurement Workflow?”
When asked, "what does the term procurement workflow really mean to you,” Northwestern’s Kee indicated that it does more than encompass the process for supplier onboarding. Kee believes the workflow process involves all critical end-to-end touchpoints, including reviews and signoffs. It also provides total stakeholder transparency to address company risk and privacy, legal, and data security requirements.
Furthermore, procurement professionals can't only be involved in the transactional process, which has traditionally been the case. Beyond managing the process from start to finish, procurement professionals also need to be capturing stakeholder engagement feedback to best manage the supplier relationship post-contract.
In the last article, we heard from Senior Vice President & Global Chief Procurement Officer at Cigna Express Scripts, Tony Abate, regarding his steps for dealing with inflation.
In this article, we hear takeaways from a recent CPO Roundtable discussion from Michael Koontz, VP, Strategic Sourcing & Business Leader for American Tire Distributors (ATD) Sourcing Solutions. I think you will find his approach to battling inflation innovative and unique.
Before we get to Michael’s fight-inflation strategy, let’s first provide some background information on his company. ATD operates more than 130 distribution centers, including 24 in Canada, serving close to 80,000 customers across North America. Employing 4,000 associates in the U.S. and 600 north of the 49th, ATD offers an “unsurpassed breadth and depth of inventory, frequent delivery and value-added services to tire and automotive service customers.”
Their selection as one of Forbes’ 2021 America's Best Mid-Sized Employers and the reception of a Gold Stevie® Award in the Transportation Company of the Year category of the American Business Awards® provides testimony to their high level of service and success as a company.
An Innovative Model
According to Michael, inflation is “five times more difficult for small businesses.
As the first half of 2022 comes to a close, procurement faces the reality of inflation and what that means for their supply chains. We have a host of resources, insights and events to get you prepared.
May CPO & Executive Virtual Series
SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On May 4 Brian Roche, CPO from Westfield Insurance, will deliver an exciting keynote session on the potential for AI in procurement at the May CPO & Executive Virtual Series. He will be followed by Karen Coker, Director of Third Party Risk & Vendor Management at LendingPoint for A Day in the Life presentation.
Join us for this executive-level conversation with actionable takeaways!
On May 18, Canda Rozier CIAP, Sourcing Executive & former CPO, will share her digitization journey as a CPO. That session will be followed by Daryl Hammett, Global Head of Demand and Operations at Amazon Web Services (AWS), who will lead an exciting deep-dive discussion on the importance of professional development in sourcing.
Join your sourcing, procurement, and risk management colleagues in this two-hour interactive virtual environment to be challenged with topics related to our industries!
In this second article from the 2022 SIG Procurement Technology Summit Keynote Series, we will tap into the expertise of an esteemed panel of industry leaders who will share their experiences with mobilizing their respective organizations' ESG initiatives to achieve progressive outcomes. Make particular note of the words progressive outcomes because implementing and maintaining an ESG strategy is not a destination but an ongoing journey that requires commitment and the agility to respond to ever-changing marketplace realities.
Rather than just a generalized or conceptual discussion on ESG, these individuals delivered personal and detailed accounts regarding the successful transformation of their supply chains to align with social imperatives and financial objectives. In other words, during the discussion, they effectively "blazed" a trail of understanding that can serve as a helpful roadmap for the successful implementation of your organization's ESG strategy.
No Longer An Option
In the recent Oliver Wyman article, Powering Your Sustainability Strategy Through Procurement, it is clear that the proactive implementation of a successful ESG strategy is not an option for organizations – not that it ever was.
The authors specifically talk about how "For many years, calls have been getting louder for business leaders to pay more attention to their organization's environmental, societal, and governance (ESG) strategy."
Fueled by "intensifying pressure" from all directions, including customers, employees, investors, and governments, good intentions must now materialize into tangible outcomes sooner rather than later.