L1 Content

Procurement Free Agents: Are You Ready?

consultant

Spend Matters welcomes this guest post from Naseem Malik, managing partner at MRA Global Sourcing.

Call them on-demand workers, contractors, free agents or mercenaries — just don’t call them inconsequential. Procurement is no longer immune to to the increase of contingent workers other functions have experienced in recent years. And the shift from employing permanent workers to temporary ones is gaining ground.

A Primer on Supply Risk Management and Compliance

risk

While the area of supply risk management is attracting growing interest and investment from procurement organizations, organizations typically deal with risk on a piece-part basis. That is exactly the wrong strategy, argue Spend Matters analysts Jason Busch, Pierre Mitchell and Michael Lamoureux in their latest report, Spend Matters Landscape Definition and Overview: Supply Risk Management and Compliance. One of their core aims in publishing this analysis, they write, is “to change this perspective and help organizations integrate these supply risk management initiatives more effectively.”

Digital Strategy and Talent Gaps: Insights from Deloitte’s 2017 CPO Survey

digital business transformation

Preparing for disruptive technologies and closing the talent gap are on many CPOs’ minds, as findings from Deloitte’s 2017 CPO Survey show. Among procurement executives, 75% of respondents in this year’s CPO Survey said that procurement’s role in delivering digital strategy will increase in the future. Talent shortages are also a big concern, with 60% of respondents saying that they do not think their teams have the skills necessary for their procurement strategy.

Consumer Buying Power: A New Meaning in the Age of Trump?

retail

A report by Trade Extensions titled “Consumers’ Attitudes Toward Manufacturers, Retailers and Suppliers” has implications for many facets of the CSR trend — from brand reputation, to ethical sourcing, to the classic “what does it mean for the bottom line?” One finding from the report indicates that the retailer is the most important entity (above manufacturers and suppliers) that U.S. and U.K. consumers think about when buying something — which is perhaps related to why the recent Nordstrom firestorm was more about Nordstrom, not who makes Ivanka Trump's clothing line or how it sells. But the survey’s more interesting findings touch on fair treatment of suppliers.

Breaking Down Global Silos (Part 2): Lessons Learned from Conflict

conflict

Editor’s note: This is Part 2 of Jonas’ story about an ominously last-minute meeting with the Rio de Janeiro headquarters of his oil and gas company, right before an ERP launch. Missed Part 1? Read it here.

The year 2016 showed us how political events, market movements and social trends could be more easily mapped to emotional triggers than axioms of behavioral economics or underlying transactional data. In 2017, we are likely to see more of the same.

Human Capital Innovation (Part 1): Technology, Talent and a New Playbook for Organizations

C-level executives, hiring managers, HR professionals, procurement directors and contingent workforce management practitioners at top-performing companies are recognizing that the way of engaging and leveraging talent is changing. They realize that ongoing high performance and competitive advantage require an entirely new approach to meeting their organization's needs for specialized, knowledge (i.e., business) talent — one that supersedes traditional work arrangements (e.g., “permanent” employment, stalwart consulting firms, staffing agencies) and organizational models.

In Part 1 of this three-part series, we address organizations’ changing requirements for how work is delivered, executed and managed in an increasingly digitized and networked business environment.

Supplier Diversity Success Story: How an MBE Partnership Won a $100M+ Contract

As a procurement professional, I’m primarily tasked with identifying the best ways to utilize our spend and influence to as to create the maximum advantage for my organization. Obviously, this is extremely valuable for the company but can sometimes leave me feeling a bit uninspired. As a purchases manager at a global consumer products company, I was known to say to my closest colleagues, “It’s just soap and toilet paper. We are not changing the world.”

However, several years ago I was presented with a rare chance to make a difference in a way that was highly meaningful for me. I may not have realized it at the time, but I was fortunate to work in an organization that called out supplier diversity as a critical factor in its business strategy. A category plan couldn’t be written that didn’t include a supplier diversity component, and an RFP or business award couldn’t be made without addressing how we will reach our diversity targets.

The State of Sustainable Procurement: Latest EcoVadis/HEC Barometer is Released

EcoVadis released its seventh and latest Sustainable Procurement Barometer on Tuesday, a joint study with HEC on supply chain sustainability that was first carried out over a decade ago. These studies measured sustainable procurement practices in global procurement organizations and aimed to provide a landscape view, including “sector and geographical differences, industry strengths, improvement areas [and] new frontiers for innovation.” In short, companies worldwide are now investing in sustainability practices across the supply chain, and sustainable procurement has become vital for revenue and costs, risk mitigation, brand reputation, and innovation and growth.

ERP or Best-of-Breed? (Part 5): Agile IT Architectures to Enable Agile Procurement

The discussion of ERP vs. best-of-breed (BoB) and apps vs. suites is important, but it’s still narrow.

What I mean is that the choice of sourcing model for software used by procurement is heavily driven by the broader “service delivery model” of how procurement delivers its supply management services.

Procurement organizations are increasingly needing to be more agile in their service delivery to stay in step with internal service partners (IT, Finance, HR, etc.) and business units — and therefore need to draw creatively from external service providers of all forms.

AllWork Launches Innovative On-Demand Work Platform for Retail and Brands

Officially launched this week, AllWork is a work platform that enables consumer brands to place brand/product freelancer specialists into assignments at stores of any number of different retail businesses. From our perspective, AllWork is a truly instructive example of how digital work platforms can and will enable completely new ways of arranging work.

Accenture’s “Workforce Marketplace” Trend Report: The Time To Act Is Now

future

Accenture recently joined McKinsey (“A Labor Market that Works: Connecting Talent with Opportunity,” 2015) and Deloitte (“Global Human Capital Trends 2016 ­­— The new organization: Different by design”) with its own report that directly addresses online work platforms (which go by a number of names). The Accenture report, “Workforce Marketplace: Invent your own future,” is trend No. 3 of 5 in the company’s more comprehensive “2017 Vision Trends: Technology for People.”

Businesses’ Political Stances Have “Very Real Consequences,” Both Good and Bad

After President Donald Trump signed an executive order last Friday afternoon banning entry visas to citizens of the predominantly Muslim countries of Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen, the response was immediate and loud. Many praised Trump for keeping his campaign promises, and many others criticized the ban as xenophobic and illegal. And for businesses, the fallout has created some unintended consequences, both good and bad.