Change Management Content

Digital Transformation Disrupts the CPO Role — Adding Pressure and Opportunity

The role of the chief procurement officer as a strategic business partner has taken on a new shape in recent years as organizations aim to better focus on changing business landscapes and keeping up on tech developments. A recent ProcureCon study, “Examining the Role of the CPO as a Catalyst for Digital Transformation in a Time of Disruption,” suggests that the role of the CPO must now assist its organization by navigating the global business environment’s opportunities and changes.

McDonald’s Supply Chain May Set Bar on Sourcing Antibiotic-Free Beef, Expert Says

cows

In December, McDonald’s Corp. said it aims to rid its global beef supply of antibiotics, putting a new fast-food trend on the radar, and in an interview, a professor details what it takes to implement the supply chain shifts that McDonald’s is seeking and how that might affect the fast-food industry. On its website, McDonald’s says that although the company does not raise its own animals, its supply chain includes beef and dairy cattle, pigs and chickens. “We understand and acknowledge the significant responsibility we have to help ensure these animals experience good welfare throughout their lives. Good welfare is also necessary to guarantee high-quality products,” the company states.

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Ensuring a Positive Return on Technology Investment

Global Risk Management Solutions (GRMS)

A recent Efficio survey of 225 procurement leaders found that technology is driving significant activity in their organizations. Indeed, 63% of survey respondents admitted to completely rethinking their procurement approach as a result of new technologies, while 78% believe digital transformation should be a boardroom priority. Transforming processes with technology was also the single most popular procurement objective in 2018, indicating the level of focus currently on digitalization.

The same survey revealed that 82% of organizations prefer to make better use of existing technologies before investing in new ones. This implies that the benefits of technology investments made to date are yet to be fully realized and that, so far, technology is failing to meet expectations. In our view, companies can take a number of steps to ensure they get the best return from their technology investments.

Streamlining Supplier Management to Scale Globally: A Case Study of Geosyntec Consultants and AdaptOne

MRO as a service

Geosyntec Consultants, an engineering and consulting firm, needed to upgrade its supplier management system so it could streamline and improve its business. The Florida company works with public and private sector clients across the U.S., Canada, Malaysia and the U.K. It employs more than 1,200 consultants (engineers, scientists, technical personnel) and manages more than 8,300 suppliers, many of which require stringent safety certifications and compliance requirements that come from their clients.

As Geosyntec expanded its practice, it looked for a supplier management solution that could streamline its manual and disjointed processes, all while maintaining needed organizational accountability. Find out what it learned in the process and how it made its choice: AdaptOne.

How to Succeed with Systems Integrators and Procurement Technology Implementation: Lessons From Spend Matters UK/Europe and Determine [PRO]

e-procurement

In too many cases, system integration (SI) and consultancy partnering decisions take a back seat to technology selection and related business process considerations when in fact all three areas are important to consider in equal measures as parts of source-to-pay and procure-to-pay deployments. This misstep is often one of the root causes of procurement organization dissatisfaction with technology decisions and adoption.

In this PRO brief, Jenny Draper, Spend Matters’ managing director for UK/Europe, shares her experience and best practices on the topic from serving as a procurement consultant over two decades before recently joining Spend Matters.

This best practice essay includes Jenny’s lessons learned on the importance of systems integration partners and how to set them up for success (and get the most out of a relationship). It covers such topics as when (and why) superior technologies fail, change management missteps, the role of the modern SI and finding the right fit partner. She then explores specific lessons learned from Determine’s boutique partner ecosystem in Europe.

Throughout, the brief also includes key takeaways and summary recommendations for procurement organizations going through procurement technology selections and deployments.

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For Hospitals Only (Part 2): How an Internal Marketplace Drives Hospital Standards

healthcare

More often than not, procurement projects that finally make the docket address problems that staff have been complaining about for a long time. Therefore, having a detailed understanding of the problem is essential. To get there, cross-functional input must be solicited from staff representatives of all affected organizational layers throughout the system design and implementation phases.

One thing that successful change management efforts have in common is that they are typically driven by a combination of front-line workers and back-line executives. When this happens, success if virtually assured. When it doesn’t, well, the odds aren’t great, but sometimes we get lucky (according to statistics, about 46% of the time).

In Part 1 of our series on Prodigo Solutions, we talked about the company’s dedication to the needs of hospital procurement organizations and how it has allowed Prodigo to achieve dominant status in its market. From a change management perspective, Prodigo provides a shining example of how desired results can be achieved when we focus ourselves on doing certain things particularly well. As we know, when we don’t, pushback is a certainty.

Procurement’s New Reality: A Business Case Blueprint for Innovation

Procurement is a critical function, yet it has challenges being seen as a strategic and transformative player, despite its enormous potential to drive enterprise cost savings and growth. However, forward-thinking procurement professionals are radically transforming business as usual and sitting alongside other key changemakers within the enterprise. Many of these forward-thinking procurement leaders have taken note of the huge digital transformation effected by sales over the last 20 years and have applied many of these operational tactics to sourcing. By emulating the sales framework and approach, procurement executives can usher in a new era where they can better establish priorities, allocate resources, engage stakeholders and react to changing directives. In the process, procurement will also deliver maximum business impact, with a new respect there for the taking.

‘I Have Plenty of Stories’ — Roy Anderson Details Procurement’s Digital Roots and Its Future

Procurement veteran Roy Anderson understands the current digital revolution that holds so much promise, and some pain, for businesses because he’s been a leader of it for over 30 years. From Raytheon in the 1980s to building procurement software from scratch to today’s AI buzz, he has a story for every step of the way:

“Moving to a printed requisition was what [stakeholders] thought was automation.”

“Simplify the process. ... Eliminate the excess and then automate the mundane. … It’s still valid today, on how to do business.”

“As I did strategic sourcing, I found problems. I have plenty of stories around problems you find. ... Your current suppliers know bad things have occurred, but they always want to stay quiet.”

Anderson, now with Tradeshift, sat down with another procurement veteran, Pierre Mitchell of Spend Matters, to share some laughs and lessons about how the industry adapted to digital changes over the last 40 years. The following is the first of three-part series of their conversation, which has been edited for clarity. Part 2 will run Wednesday, and Part 3 on Friday.

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Driving Adoption Through More Effective E-Procurement Change Management

Accenture

Change management, as a business discipline, dates back to the 1960s. Despite steady growth, dozens of “breakthrough” discoveries and countless books on the topic, the practice of change management hasn’t been very successful. According to McKinsey & Company, only about 30% of change management initiatives are successful in achieving their intended business outcomes. How should finance and procurement leaders who seek to drive adoption for e-procurement platforms regard change management? As John Hu, Shelby’s vice president of client services, is fond of saying, “change management isn't a project workstream, it’s the entire project.” There are numerous theoretical frameworks for enterprise change management. These can be helpful references for understanding the challenges and principles for managing change in today’s business environment. However, trying to apply any of these models to the practice of rolling out your procurement transformation initiative won’t get you very far. The need for a purpose-built approach: Conventional enterprise change management approaches are too generalized to address e-procurement adoption challenges. Our latest e-book, E-Procurement Change Management Strategy, offers a six-step, purpose-built framework for e-procurement change management that can be adapted to fit the needs of organizations with different requirements, cultures and business objectives.

Supplier Relationship Management Needs a Jolt of Technology, State of Flux’s SRM Summit Finds

Procurement has made significant strides in supporting supplier relationship management initiatives, but poor investment in technology could limit the potential benefits those programs can deliver in the years to come, according to State of Flux, a consulting firm that specializes in SRM and which held its annual SRM summit in Chicago on Oct. 23. Over the decade that State of Flux has monitored SRM maturity, procurement organizations have made considerable improvements in several areas — but not in adopting and using technology dedicated to SRM.

6 Ways To Really Mess Up Your AP Automation Project

Spend Matters welcomes this guest post from Melissa Hendrick, VP of marketing at Yooz North America.

Today, automation technology is one of the inevitable trends for companies wanting to improve their efficiency and agility in a complex economic environment. The reasons are clear: cost reduction, process optimization, data security, regulatory compliance and many more.

If you are considering automating your invoice payment processing workflows in accounts payables, or are already investigating solution providers, your success will be based on following some basic guidelines and avoiding some common pitfalls.

With that in mind, here are some insights to help you identify the pitfalls on your journey to AP automation, combining practical information with a little tongue-in-cheek humor.

Give Your Company a Personality Test Before Contracting for Services

Spend Matters welcomes this guest post from Gary Weiss, Flash Global's vice president of pricing, procurement and inventory management.

If your company were a human who could sit down and take a personality test, how would it score? Every company is like a person, with an individual temperament, strengths, weaknesses and quirks. Instead of "personality," though, we call it "corporate culture." Company culture affects every aspect of business operations, including employee recruitment, retention, development, business practices and vendor relationships. These five questions will help you define your corporate culture and find a service vendor who is a good fit.