Save Your Job from Extinction - How to Make Procurement Relevant in Today's Times
Transcript of Save Your Job from Extinction - How to Make Procurement Relevant in Today's Times
Mammuthus primigenius
Saving your Job from Extinction
How to Make Procurement Relevant in
Today’s Times
Philip IdesonArt of Procurement
Zycus Horizon 2016
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
PHILIP IDESON
artofprocurement.com7
15-year career as a procurement practitioner & service provider
Experience across entire procurement value chain including Head of Procurement
Now Independent Procurement Consultant & Founder / Host of Art of Procurement
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com2
Is the Procurement profession (and therefore your job) really at risk of extinction?
artofprocurement.com3
the “intermediary” (that’s us)
has a product or service that meets the need
has a problem or a need
WHAT IS PROCUREMENT?
artofprocurement.com4
HISTORY HAS NOT BEEN KIND TO “INTERMEDIARIES” THAT DO NOT EVOLVE
https://www.flickr.com/photos/mortendk/439403397/
artofprocurement.com5
https://www.flickr.com/photos/thomashawk/5015948531
artofprocurement.com6
https://www.flickr.com/photos/fsse-info/3145552974/
artofprocurement.com7
WHAT WERE THEY THINKING – 5 YEARS PRE LIQUIDATION
“We are firmly committed to our global expansion plan”
“Borders has one of the most aggressive share repurchase programs I have ever seen” – Bill Ackman
“We are happy to announce that 2006 is off to a strong start. We will continue to focus on improved store profitability”
“Operating improvements and an ongoing investment in our core businesses, including store refurbishments are the key tenets of our plans for future growth”
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com8
FORTUNE FAVORS THE BRAVEZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com9
WHERE WILL PROCUREMENT BE IN X YEARS?
(insert number of years)
artofprocurement.com10
THREE STEPS TO “SAVE” PROCUREMENT
1. Redefine our value proposition (or the perception of it)
2. Embrace the coming disruption
3. Develop the capabilities to execute
artofprocurement.com11
1. REDEFINE OUR VALUE PROPOSITION
“all procurement cares about is cost savings”- everyone outside procurement
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com12
1. REDEFINE OUR VALUE PROPOSITION
“every $1 saved equals $X in revenue- how we justify ourselves
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com13
1. REDEFINE OUR VALUE PROPOSITION
Let’s think differently:
margin expansionbrand value
revenue generationorganizational agility
governance & compliance
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com14
1. REDEFINE OUR VALUE PROPOSITION
“make an impact that matters”- Lance Younger, Deloitte (Former CPO, Goldman Sachs)
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com15
1. REDEFINE OUR VALUE PROPOSITION
“solve business problems”- Mark Perera, Founder Old St Labs & Procurement Leaders
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com16
1. REDEFINE OUR VALUE PROPOSITION
Cost Savings
Value Contribution
Time
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com17
2. EMBRACE THE COMING DISRUPTIONSZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com18
2. EMBRACE THE COMING DISRUPTIONS
“business models are not meant to be static”
“one of my fears is being this big, slow bureaucratic company that is happy with its success. that will wind up being your death in the end”
- Mark Parker, CEO, Nike
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com19
Redesign the procurement delivery model
2. EMBRACE THE COMING DISRUPTIONS
self sourcinghybrid delivery modelsvariable cost structure
focus on value
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com20
2. EMBRACE THE COMING DISRUPTIONS
…and be there for our business partners as they explore what
these disruptions mean for them
artofprocurement.com21
3. DEVELOP THE CAPABILITIES TO EXECUTE
Roster:
1. Visionary & Captain2. Architect3. Facilitator4. Delivery Manager5. Subject Matter Expert
• Category• Risk• Sustainability• Intelligence• Data Scientist
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com22
TAKEAWAYS
Is disruptive change coming to procurement?
Do we risk the future of our profession if we stand still?
Find out the model that will work for your company?company objectives & culture are key
Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times
artofprocurement.com23
THREE STEPS TO “SAVE” PROCUREMENT
1. Redefine our value proposition (or the perception of it)
2. Embrace the coming disruption
3. Develop the capabilities to execute