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?
“Fake it ‘til you make it.” This unattributed idiom (with a nod to Aristotle) is oft-used advice to people early in their careers. But how wise is it to follow? How many people have résumés that truly portray their strengths vs. a laundry list of what they want you to believe about their abilities? How confident would any shareholder be if they believed the CEO got to the top by faking their skills rather than building them? But more importantly, is it a person’s skills that give you confidence in their leadership abilities?
If you think about the last person who truly inspired you, was it their title…or the last three companies where they worked that piqued your interest? Was it their ability to run a shareholders’ meeting, analyze volumes of data and manage their exceedingly crowded schedule that excited you? Doubt it. When you think of someone who is truly motivational, you are usually moved by the things that don’t make it on to the résumé: their heart, integrity, authenticity and ability to enroll others in their beliefs and passions. It’s not because of their title.
It’s About Mindset
Too often, CEOs have the mindset that what has gotten them here will get them there. If they have successfully led profitable companies, why would they have any reason to believe they need to evolve? When things aren’t working, it doesn’t take much convincing that something has to change. But when they are…CEOs often don’t understand the need. They have the pedigree and the track record – and past accomplishments are a good indicator of future success – so why fix what isn’t broken?
When she’s not challenging the status quo and meeting her budget targets at the bank, Debbie helps to make her community a better place as the leader of the Huntington Women's Network Business Resource Group and as a volunteer with various Columbus charity organizations. A big believer in the power of personal connections, Debbie talks about her role at the bank, the importance of utilizing technology and her tips for building professional relationships that can pay off down the line. Debbie is well-known in the SIG community as a member of the SIG Thought Leadership Council, the SIG University Advisory Board and she leads the Steering Committee of the Risk Management Association’s Third Party Management Round Table.
Your keynote presentation at the Columbus CPO Meet and Eat was about tail spend management--why is this such a hot topic?
Huntington’s sourcing team, like many other companies, is lean. Identifying ways to direct low-dollar, high-transaction volume spend to a consistent, repeatable process through catalogs, spot-buys amongst preferred providers or non-catalog PO’s helps focus the team on more strategic projects while maintaining cost discipline in the tail.
SIG’s Career Network helps job seekers, recruiters and companies find and recruit high-quality talent within sourcing and procurement. SIG member companies can post job listings on our Career Network or post available internships within their organizations. If you’re looking for your next career opportunity, check out our Job Listings page, which is populated with listings from some of the world’s leading companies.
Here are the latest job postings in the Career Network. To see all available opportunities, visit our website.
The Strategic Sourcing Analyst will support strategic sourcing and contract administration processes for all categories, in addition to supporting team reporting, category spend analysis and technology support. This is an individual contributor role regularly interacting with AXIS’s Chief Procurement Officer, as well as other senior strategic sourcing staff. The role has broad exposure to all aspects of the AXIS’s operations with the intent is to allow a successful individual to rapidly advance into a mid-level role responsible for day-to-day sourcing activity.
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.
November: the last month of autumn, but the beginning of a new adventure; time to take risks and do the unexpected.
Can you believe it? November is here! And with it comes the start of the holiday season and all the festivities that come with it. Whether this month is one you love or dread, it is a time for new adventures, and those can take shape in many different forms. Create an adventure at work this month by attending a networking event, listening to success stories of industry innovators and learning the latest trends in an online webinar. Here are highlights of the adventures that await you this month from SIG.
Regional Networking Events
This month, we have regional networking events in four different cities: Toronto, Denver, Columbus and New York. Take a day for yourself and/or your team to collaborate in person with industry peers and learn best practices. Discussion topics vary for each event so be sure to look on our website for the most up to date agendas.
I’m proud to say the feedback from delegates on the Fall Global Executive Summit is some of the best I’ve received for any Summit yet. The beautiful Omni Rancho Las Palmas Resort & Spa was the perfect destination to engage with our cutting-edge keynote panelists, along with hands-on learning in how-to labs, breakout sessions and outdoor networking with a breathtaking view of the mountains. But what excited me the most at this Summit was the inaugural Future of Sourcing Awards, where we recognized individuals and teams who are making a transformative impact on the industry.
Future of Sourcing Awards
The energy at the Future of Sourcing Awards was electric! It was inspiring to be in the presence of both the titans who have helped shape the industry, the leaders who are taking sourcing and procurement to the next level, along with the up-and-coming talent that is our future.
It was my extreme pleasure to present SIG’s original founder, Barry Wiegler, with the Lifetime Achievement Award. Barry gave a moving speech and was even surprised by his daughter and grandson who flew in for the special occasion. There was barely a dry eye in the room.
Contracting is one of the most important parts of the sourcing process – this is one of the final steps in the process before (or in parallel with) implementation and it documents all terms and conditions agreed to by both parties throughout the sourcing engagement. While it is one of the most important steps in a sourcing engagement, it can also be one of the most painful with numerous rounds of revisions and reviewing legalese that can extend out a project timeline substantially at times. As a Sourcing professional, I’ve reviewed my share of contracts ranging from one page agreements to lengthy contracts with multiple attachments and exhibits. Each contracting experience is different, some have gone smoothly and are wrapped up in a few days’ time, while others took months to come to agreement on the final language. I will highlight a few recent experiences with contracting and some of the lessons learned that can be applied to others in similar situations.
Don’t skip the contract just because of a low spend figure.
On a recent project, my team was brought in to negotiate with a local hardware store that was used regularly for as needed supplies at a local manufacturing plant. Upon further investigation, we learned that the client had already negotiated a discount structure with this supplier earlier in the year, but there was no formal documentation because the annual spend with the supplier was below the threshold when contracts are required.
A category management program can put your organization on a path to achieve better outcomes, experience greater savings and result in an increased focus on collaboration and innovation. But launching a category management program is not just as simple as flipping a switch.
Before we jump head first into creating our category management program, there are some important considerations to take into account. The Hackett Group (Hackett) and GEP recommend addressing the following four critical needs for an effective program, which are summarized below.