Procurement Strategy

What can SPEED do to improve your negotiations?

By Lucy Patchett

A negotiation model has been developed encompassing steps to ensure that procurement professionals think "more broadly and deeply" about the process.

Colin_Linton_100.jpgColin Linton, Director at business training and consultancy firm Gidea Solutions, spoke to CIPS in the podcast SPEED Negotiation Process about the model that he has developed through his research into contract management.

Linton identifies a negotiation model he has called SPEED, based on the stages Strategy, Planning, Execution, Evaluation and Delivery.

He notes: "It's easy to assume that negotiating the contract falls broadly into three distinctions: before, during and after the negotiation is concluded. However, the risk of only looking at these three separate stages is that you may miss out on key steps that could help with preparation and enhance chances of reaching a better conclusion".

How can Procurement best align with Finance right now? A CFO perspective

AlignProcurementAndFinance_150.jpgRight now, as the COVID-19 pandemic takes its toll on jobs, consumer spending and the global economy, many businesses are scrambling to adjust to a new financial reality. They are also coming to terms with the fact that the path to recovery remains long and mostly uncertain. Experts, including Deloitte, predict that the United States (US) economy will not bounce back until mid-2021. The Bank of England is anticipating slower recovery, as late as the end of 2021, for the United Kingdom (UK).

Within organisations, the Chief Financial Officer's (CFO) voice is one of the most critical during a crisis. But contributing directly to a firm's financial resilience is the Chief Procurement Officer (CPO), who has a strategic role in leading a firm through the tough times ahead.

Spend Matters spoke with a CFO who has many years of experience across corporate finance and public accounting, and is currently the CFO of spend management firm Jaggaer. Spend Matters asked Jeff Laborde how he sees Procurement and Finance best working together to drive benefits across a business, given their natural overlap in priorities and responsibilities.

Procurement in a pandemic: top tips for tricky issues

AmyRyburn_LisetteHood_200.pngBy Amy Ryburn and Lisette Hood, from commercial and public law firm Buddle Findlay

Procuring organisations (buyers) are currently grappling with a number of tricky issues arising from the COVID-19 pandemic, including issues relating to both live and planned procurement processes.

Buyers who are facing significant uncertainty, or who are without the resources to effectively staff procurement processes at this time, are faced with difficult decisions, such as whether to continue with live procurement processes or whether to commence new ones; what to do if procurement processes are cancelled or delayed; and whether and how to address the influence of COVID-19 on tender documentation (in relation to the tender process itself and the contract that is released - in particular any proposed force majeure clauses).

How can maverick spend hurt your company?

MaverickSpend_150.jpgRogue purchasing can cost you plenty. PurchaseControl unpacks the implications of maverick spend and how you can tackle it.

Making headway in tail-spend management

TailSpend_200.jpgSupply management organisations have tended to ignore tail spend, considering it non-strategic. But as they realise the cost savings that can be derived, organisations are becoming more aware of their tail-spend management problems and are looking into solutions.

The Sustainable Procurement Pledge

#SSP_100.jpgImagine a world, where all people thrive on our planet. A world, where the immediate threat of climate disaster has been avoided and where global businesses have evolved their business models to support a responsible and low-carbon economy.

"Whilst it seems a bit far-fetched looking at today's realities, this world vision is possible and the millions of procurement professionals distributed across the planet are mission-critical in making this come true", says the movement behind the Sustainable Procurement Pledge, or #SPP, on social media.

Living in interesting times: procurement 2020

PartProcure_100.jpegBy Nicolette Emmino

We were not even at the end of Quarter 1 of 2020 when tariff wars seemed to be the least of our problems. Even before the coronavirus started to disrupt supply chains, procurement analysts had identified several things to watch out for and necessary transformations that needed to happen within the procurement world.

Here are a few things procurement professionals should be focussing on within their organisations this year:

Reinventing procurement: the case for new operating models

MatthiasGutsmann_New_86.jpegIn late July, Digital Procurement World (DPW) brought together some of the world's most progressive chief procurement officers (CPOs) for a virtual roundtable discussion on how the ever-changing digital environment can help procurement challenge the status quo and design operating models that deliver both innovation and value.

Matthias Gutzmann, Founder of DPW, gives us the key takeaways from this discussion:

The sources of future supply chain restlessness

Disruption_120.jpgSupply chain disruptions have continued to grow significantly in recent years, even before the coronavirus (COVID-19) pandemic struck and caused a major impact on the availability of components, goods and services as well as logistics, shipping and sourcing. Research by the Institute for Supply Management shows that (1) common disruptors have direct business impact across all industries and (2) other disruptors are evolving and relevant to a smaller group of industries. Half of chief procurement officers (CPOs) interviewed anticipate these dynamics to intensify in the future.

The self-disruptive CPO: why we need a new kind of procurement leader

BernhardRaschke_100.jpegWhat kind of future-ready procurement leader is needed to survive a rapidly-changing business world? Only a few months ago, the stock market was looking strong and the ongoing trade war between China and the United States indicated future pressure on global supply chains. No one could have predicted that schools and universities would close, companies would tell their employees to work from home and people would be stockpiling toilet paper, of all things.

'CPO' stands to become the Chief Purpose Officer through digital transformation

ChiefPurposeOfficer_300.jpgBy Dr Marcell Vollmer, Chief Digital Officer, SAP Ariba

How does a Chief Procurement Officer measure success?
In the past, executives responsible for sourcing, contracting, purchasing and payment gauged success chiefly on their ability to wring savings out of the value chain. Without question, reducing costs remains as crucial today as ever. But, with the advent of digital networks, Chief Procurement Officers find that they now have an exponentially greater opportunity to create value. By linking together buyers and suppliers in real time, digital networks allow procurement leaders to foster collaboration, spur innovation and drive much of the strategic value that fuels growth.

These activities, of course, can benefit the balance sheet. But there are others, equally important, that a spreadsheet cannot easily capture.

How procurement can change the world

ChangingTheWorld_150.jpegBy Rod Robinson, Founder and CEO, ConnXus

When I graduated from Wharton in 1995 and decided to pursue a career in management consulting at AT Kearney, I had grand visions of being assigned to an engagement helping one of our multinational clients grow revenue through a high-profile M&A transaction or other topline growth strategy. Instead, I was assigned to a global strategic sourcing engagement for one of the most recognisable corporate brands in the world. I didn't know what strategic sourcing was, but quickly learnt that it was an approach to supply chain management that enabled an organisation to leverage its consolidated purchasing power to optimise the value it received from suppliers. This is when I realised that procurement was an often overlooked area of hidden corporate value.

How the coronavirus will influence your supply chain and what to do about it

Coronavirus_150.jpgWhat key steps can you take to limit the potential effects of the coronavirus on your organisation?

On 9 February, the world received news from China that it didn't want to hear.

The number of confirmed deaths from the coronavirus had overtaken that of the 2003 Severe Acute Respiratory Syndrome (SARS), with more than 1 000 casualties.

In addition to that, the virus is spreading at an alarming rate. There are now more than 40 000 confirmed cases. And this number is increasing with as much as 20% every day.

While the virus is terrifying from a public health perspective, it is also alarming in terms of supply chain. Wuhan, China, the epicentre of the virus and now a city in total lockdown and complete disarray, is one of the world's largest industrial hubs.

Procurious Founder, Tania Seary, takes a look at how the coronavirus is affecting global supply chains - and what you can do about it.

Why procurement can and should be the epicentre of business innovation

SueBarrett_100.jpegBy Sue Barrett, Founder, Barrett Consulting Group

Procurement, whether they are aware of it or not, is the epicentre of innovation and leadership of complex systems management within organisations and across supply chains. Or at least they should be...

Public procurement needs strategic foresight

StephenBauld_100.jpgBy Stephen Bauld

The reason why a shift towards a more strategic procurement approach is necessary at municipal level and, indeed, across the public sector in general, is clear. As I have noted in several of my columns over the years, governments tend to pay more than private-sector firms for comparable type, quality and quantity of supply.

Procurement Gold: Unleashing the real power of your supply chain

TaniaSeary_100.jpgThe human element will make or break your supply chain career. Procurious Founder Tania Seary reveals the human strengths that artificial intelligence (AI) will never replace and how to leverage this competitive advantage.

Data: You can't fake it 'til you make it

AngelaMazzaTeufer_100.jpgBy Angela Mazza Teufer, Senior Vice President, Oracle ERPM WE, ERPM North Install Base

When it comes to crucial procurement data, there is no way to 'fake it 'til you make it'. Accurate information is the bread and butter of a successful organisation but our research reveals that companies are still not investing in the tools or skills to manage their data effectively. This lack of confidence in the accuracy, safety and management of information has a ripple effect across every department, influencing their ability to deliver on strategic objectives.

According to Oracle research, only 34% of finance professionals believe that their data is completely manageable. This should be a sobering statistic for any business leader, particularly as data plays an ever-growing role in how companies operate. According to Accenture, 77% of Chief Financial Officers (CFOs) say that it is their responsibility to drive company-wide transformation, and a similar percentage expect that they will play a growing role in driving their organisation's digital initiatives. But how can they deliver on this expectation when less than half feel confident in their ability to manage data?

10 Best practices for procurement managers in 2020

LindaAshok_100.jpgBy Linda Ashok
A content, communications and branding professional

So many things are slated to change in 2020, the milestone year! But what matters most is your career; how is it going to prepare you as a procurement manager? Okay, let me clarify that there isn't any significant difference between a Purchasing or Procurement Manager. Of course, you know it because you are in the procurement arena already.

Typically, a procurement manager's job description entails the following:
• Partner with the category teams and leaders in developing and implementing strategies to drive significant value from the supplier base
• Conduct in-depth research on existing and emerging trends, identifying new technology/solutions, screening potential new suppliers, and performing complex analytical studies
• Manage relationships with key suppliers, developing negotiation strategies, and conducting negotiatio
• Lead critical process improvement projects and drive higher value for the operating companies.
• Consult internal functional areas such as marketing, R&D, operations, logistics, legal, and corporate functions

With such expectations in mind, an aspiring procurement manager must possess modern skillsets that organizations will seek in 2020. In this article, we cover both the elementary and advanced expectations from the role of a procurement manager.


 

 

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