SIG Speaks Blog

Change Through Business Value Creation and the Global UN Sustainable Development Goals

“It’s not enough to have lived, we should be determined to live for something” – Leo F. Buscaglia

The pursuit of greater meaning sits at the pinnacle of human nature. It reflects within all that we do, in our lives, and in our professions. As procurement or sourcing professionals, we strive every day to make a difference in the business, to solve problems while creating business value. The words “sustainability”, “sustainable”, and “impact” are commonplace these days in the procurement and sourcing world as the industry pushes towards a new future in sustainable business – but what can we really do to drive true change?

We believe Procurement has the expertise to drive sustainability while delivering the highest standard of work and championing continuous improvement in business by integrating our processes with the United Nations Sustainable Development Goals (UN SDGs).

Amidst all the various measures in the world today, the UN SDGs provides a solid benchmark for sustainable procurement and sourcing for the following reasons:

Jane Zhang, Co-Founder of ETCH Sourcing

SIG Speaks Weekly Briefing - April 15 - Spring Global Executive Summit

Here's your weekly update on the latest thought leadership, networking events and training with SIG. 

The Global Executive Summit begins today!

We are in warm and sunny Amelia Island, Florida waiting for you to join us for the SIG Global Executive Summit taking place this Monday-Wednesday.

Can’t make it this spring? Join us in Carlsbad!

Registration is now open for the Fall Global Executive Summit in Carlsbad, CA from October 14th-16th. Secure your spot for this one of a kind event!

The SIGInnova Product Forum

The SIGInnova Product Forum is today at 3 pm. Buy-side attendees will interact with the latest sourcing technologies and see how they can drive strategic impact, improve profits and mitigate risk. Participants will be exposed to innovative and disruptive products that can help shape the future of Procurement.
 

2019 Summit Sessions

Sneak a peek at the sessions online. Our agenda is packed with content AND networking opportunities! Don't miss out!

Hailey Corr, Content Manger

Artificial Intelligence Spawns the Next Largest Divide

Artificial Intelligence (AI) is creating the next largest divide not only between people, but also between organizations. Taking full advantage of AI requires a two-pronged approach by any enterprise. First is to identify the business processes that can gain most from the introduction of AI. Second is to treat AI as a key component in any reengineering effort with quality data as one of the highest priorities.  

Since one key beneficial attribute of AI is that it can replace tedious, low-value human tasks, it is important to target processes that enable staff to focus on other higher-value areas. The perspective of pragmatically tackling routine processes first is echoed in research presented by Harvard Business Review, which provides a useful construct by defining three types of AI: one applied for automation, another for delivering insight, and a third for customer engagement.  

Data Science: the Key to Successful AI 

Greg Council, Vice President of Product Management, Parascript

SIG Speaks to Patrick Gahagan, Director of Contract Compliance Audit Services at SC&H Group

As a Director in SC&H Group’s Contract Compliance Audit Services practice, Patrick has a few key professional motivations with all of his clients: increasing third-party transparency, optimizing supplier relationships, and improving governance. He works with Fortune 100 companies to evaluate contract compliance in categories such as marketing and advertising, contingent staffing, facilities management, construction, computer hardware/software, MRO, security, events, and office supplies. Projects under Patrick’s leadership have resulted in client savings of over $150 million in addition to practical control developments, valuable process improvements, enhanced earnings, and proven cost-savings initiatives. He is very passionate about helping to influence the operations and cultures of global enterprises, and one of his greatest professional achievements was being able to hand over a $1 million recovery check to his client. 

Patrick will share his expertise with attendees at the Western Regional SIGnature Event in Bellevue, WA on May 16th. 

Heather Schleicher, Senior Marketing Director

SIG Speaks Weekly Briefing - April 8

Here's your weekly update on the latest thought leadership, networking events and training with SIG. 

2019 Procurement Outlook Report

The 2019 GEP Outlook for Procurement and Supply Chain Management is now available. This indispensable report reflects views of the industry’s best thought leaders and category experts — equipping you with procurement strategies and other essential tools to prepare you for a successful year ahead. Download your copy today!

The Strategic Sourcing Lifecycle

Regardless of the specific definition that is chosen, strategic sourcing is a process that is designed, and employed, to maximize the value of each purchase made by the company. It is an evolving process that matures and adapts as the needs of the organization change.

SIG University Open Enrollment

It's not too late to enroll in SIG University’s spring certification programs to learn the core concepts and best practices in strategic sourcing, supply management and risk management. 
 
Don't delay. Classes start on April 15th!
 

How Prepared is Your Company for a Recession?

Suplari invites finance and procurement leaders to take their Recession Survey. Share your thoughts and receive indispensable analysis and strategies to recession-proof your organization.

Hailey Corr, Content Manger

How to Reduce Value Leakage in Complex Contracts

According to reports authored by the International Association of Contract and Commercial Management, the Aberdeen Group, and the International Association of Outsourcing Professionals, the average contract loses approximately 17% to 40% of its value from the time of execution through to close-out. Value leakage can range from things like low adoption rates, non-value-added change orders, lack of innovation, poor governance, etc. This blog post will help contract professionals understand how customer-supplier relationships lose value and three best practices to preserve value.

Move Beyond Deal Points

Typically, negotiators think in terms of “getting the best deal”, meaning, financial and legal Terms that are favorable to the negotiator’s organization. Here is the problem: if businesspeople accept this premise, they are negotiating short-term “deals” in a complex, long-term business environment.

Focusing on the “deal” often leads to losing focus on the larger business goal(s) that a customer-supplier relationship seeks to address. For example, an overemphasis on “getting the best deal” often results in failing to fully document costly aspects of the work in the Statement of Work, failing to include adequate inspection, testing and cure processes, and failing to document and control common risk events.

Furthermore, focusing on the “deal” also precludes the inclusion of innovation in the delivery of goods and services. Buying emerging technologies like artificial intelligence, robotic process automation, cloud computing, or cognitive automation is the new norm, yet only 21% of respondents in Deloitte’s 2016 Global Outsourcing Survey reported that innovation was a key part of their contracts.

Jeanette Nyden and Lawrence Kane

This Month at SIG - April 2019

“April prepares her green traffic light and the world thinks GO.” – Christopher Morley

April is the start of a new quarter and many teams are seeking ways to make maximum impact on their goals and ultimately their company’s bottom line. To help you put the pedal to the metal this month, SIG has opportunities for training, industry networking and a chance to get recognized for all of the hard work you’ve put in.

SPRING GLOBAL EXECUTIVE SUMMIT

The Spring Global Executive Summit takes place April 15-17 at the Omni Amelia Island Plantation Resort in Amelia Island, FL. This Summit will connect you with other executives and industry experts, so come with an open mind, plenty of business cards and a sincere interest in becoming more strategic and influential.

At this Summit, all of the keynote sessions will bring remarkable stories and insights that will leave you feeling refreshed and inspired, with lots of great ideas to bring back to your team. Here's a look at two of our featured keynotes:

Clint Bruce -- Pursuing Elite: The Five Gifts of Elite Achievers

In any endeavor you can only have one of five outcomes: bad, average, good, excellent, and elite. If the endeavor is your passion or profession, the only acceptable result is somewhere between excellent and elite. Clint uses powerful stories and lessons learned as a highly decorated athlete and member of the elite SEAL Teams to share with the audience techniques to become an elite achiever in all aspects of life.

Sunil Gupta, Avinash Pemmaiah, Brad Killinger -- How do you Innovate to Buy Smart? Ask the Experts!

Heather Schleicher, Senior Marketing Director

Do You Really Know Who is Doing Your Work?

We all know the story of Bob, the Verizon employee who outsourced his programming work to China. After a couple of years, he got caught when security questioned why he was Virtual Proess Networking from China. Bob shipped his token to a programmer in China and paid him less than one-third of his salary. Meanwhile, Bob was relaxing in a cubicle, getting great reviews and regular raises for his programming prowess.  
 
I have now met three people who told me they outsource their work. So, do you really know whose finger prints are actually on the keyboard? About six years ago when crowdsourcing was in its early days, I wanted to see what it was like from the employee side of crowdsourcing, so I signed up to be a crowd sourced person. No one questioned me about my application, about why a CEO wanted to make an extra $20 an hour in her spare time. After a few hours of doing task work, I handed my computer to my 13-year old son and asked him to try it. Of course, he caught on in no time and was able to produce work tasks. No one questioned that my work style had changed slightly. The company who hired me is one of the largest corporations in the world, and they never knew that this task was being performed by child labor. Being the ethical person that I am, I didn’t let this charade last long. I resigned in under two weeks… although my son begged me not to. I did it to test the system for my own curiosity and to understand the crowd sourcing model better.  
 
Dawn Tiura, President and CEO

SIG Speaks to Jeanette Nyden, Commercial Contracts Expert and Author

Jeanette Nyden is an internationally recognized contract negotiation expert. She’s written and co-authored three books to date. Jeanette provides tactical, customized contract drafting, negotiation and management training, coaching and mentoring programs to both sales and purchasing teams.

Jeanette has taught at major corporations, Seattle University and the University of Tennessee’s Center for Executive Education. While no longer practicing law in a traditional manner, she is a lawyer and holds a license to practice law in Washington.

Jeanette will share her expertise with attendees at the Western Regional SIGnature Event in Bellevue, WA on May 16th.

Your presentation at the Western Regional SIGnature Event is about reducing value leakage in complex contracts--why is this such an important topic?

Industry studies demonstrate contract value leakage is from 17% to as high as 40%. Typically, value leakage comes from things like low adoption rates, non-value-added change orders, lack of innovation, etc. Performance- and outcome-based contracting best practices can dramatically reduce value leakage.

Additionally, businesses are seeking greater returns from their customer-supplier relationships at the same time many younger professionals are entering the field. This is a perfect time in the market to emphasize ways to implement performance- and outcome-based principles to reduce value leakage.

Heather Schleicher, Senior Marketing Director

Governance and Implementing Transformation – The Importance of Executive Sponsorship

SIG University Certified Supply Management Professional (CSMP) student, Justin Kline, works at Canon. In this blog, he shares his learnings about the pivotal role of executive sponsorship in governance transformation and how his team plans to implement some of the best practices within his job function and organization.

In this program, SIG University students will comprehend the significance of governance, risk and compliance. They’ll understand the various levels of supplier management governance, including corporate, business unit and contract level activities. They are also able to select the appropriate governance program, and key components, for each relationship model. They gain an effective understanding of how to capture and activate innovative ideas through the governance structure, in addition to describing the critical tools to use in implementing a governance program.


 

At Canon, I am responsible for scoping and delivering outsourced services to our customers. Today, our customers are looking to Canon not only to take over a business process but also to assist or lead the transformation of the process simultaneously. These types of projects require more time, resources and investment by both sides to achieve targeted results. This level of investment and risk makes these projects higher profile.

Since transformative change is disruptive and typically requires a paradigm shift within the organization, it necessitates the right types of governance to manage successfully. One of the critical elements of ensuring a transition plan is effectively met is having the right level of executive sponsorship and involvement.

Justin Kline

Pages