Reimagining Procurement Andrew McLean & Drew Preddy
22 April 1913
Some of the rationale ….
We are able to look back at early procurement policy …
So what is different …. • We are a recognised profession • Non-procurers know about procurement • We wear suits • We are attracting some really bright talent ….
A bright future ?
A bright future ?
Why we might lose momentum • People • The changing workforce • The technological revolution
People • Reduced our investment in raising capability • Lack of high calibre candidates to fill procurement roles (both permanent and contract) • Competition from other professions for graduate talent • Reduced quality of procurement outcomes
Changing workforce • 20% of the global workforce would be contingent labour by 2020 – Harvard Business Review (HBR) (2012) • HBR 2016: • contingent or contract-based external talent already makes up about one- third of the average large corporation’s total workforce • Deloitte 2016 Global Human Capital Trends study: • 51% of organisations plan to increase or significantly increase the use of contingent workers in the next three to five years (16% plan to decrease)
A Fad? HBR March 2016: Businesses are turning to independent workers: • To increase business flexibility and agility • To access highly skilled independent workers due to difficulties in attracting and retaining employees with hard-to-find specialized talents • Additionally , many skilled professionals want independence and are going into contingent work to gain greater work/life flexibility, autonomy, and control over their careers. • 83% of contingent workers say they have a lot of choice or some choice over who they work with. Only 17% report having little or no choice over who they work with. • The Workforce of the Future Report published by IDC in July 2017, noted the contingent workforce is anticipated to reach 50% of all organizations, both private and public, in the USA by 2025.
Technological revolution “the world of work is changing fast, with the single most important driver of this change being the new technological revolution” Report of the Future of Work Commission, 2017 The purpose of the UK independent Commission is to understand emerging trends and address new policy challenges arising from the growth and fusion of technologies at work (‘the new technological revolution’).
Automation the technique of making an apparatus, a process, or a system operate automatically.” We define automation as "the creation and application of technology to monitor and control the production and delivery of products and services International Society of Automation
Digital Procurement Channel
Roadmap to a Reimagined Procurement
Roadmap to a Reimagined Procurement Step 1 • Improve our effectiveness and efficiency and reduce transactional, process related and non value adding activities • Adopt e-sourcing tools and contract management systems, use P2P and S2C solutions
Roadmap to a Reimagined Procurement Step 2 • review and update your operating model to lock in the benefits provided through your procurement technology • Revise your procurement structure, your roles and responsibilities and your processes to align with your chosen technology solution
Roadmap to a Reimagined Procurement Step 3 • Invest in a structured and objective assessment of the procurement capability required within your organisation. • Assess the capability you already have in place through Skills Gap Assessments • Implement a programme to develop your talent to the required level
Roadmap to a Reimagined Procurement Step 4 • Integrate a contingent labour resourcing model into your capability and capacity planning • Seek to engage contingent labour and outsourced providers who bring more than a skilled pair of hands • Look for partners and contingent labour providers who are able to use or bring technology, such as e-sourcing solutions, data analytics and supplier development tools • Consider bureau style sourcing and contract management-as-a-service solutions (SCMaaS)
Roadmap to a Reimagined Procurement • Step 1 - improve our effectiveness and efficiency and reduce transactional, process related and non value adding activities • Step 2 – review and update your operating model to lock in the benefits provided through your procurement technology • Step 3 - invest in a structured and objective assessment of the procurement capability required within your organisation. • Step 4 – Integrate a contingent labour resourcing model into your capability and capacity planning
“Imagine archaeologists picking over the bones of a long dead culture, frantically trying to interpret and understand the language, behaviours and customs of its people. As they carefully harvest critical pieces of evidence it becomes clear that its people, in fits of bureaucratic bewilderment, destroyed their own shrines of worship, the tombstone once known as Procurement!” Procurement, The Path To Oblivion Trevor Cameron, February 2018 Thank you
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