Procurement Leaders Blog

Lessons from a very public resignation

Mon, 28 May 2012 16:10:00 +0000

Most everyone has heard of Goldman Sachs, the global banking and securities firm. And by now, most have probably heard of Greg Smith, former executive director and former head of the firm’s US equity derivatives business in Europe, the Middle East, and Africa.

SAP deepens it dominance: is this procurement’s fault?

Mon, 28 May 2012 12:35:00 +0000

The Procurement Intelligence Unit is in the midst of its research into Requisition-to-Pay processes, and the the findings show weaknesses of current providers.

Friday Digest: Buyers, sellers, winners all

Fri, 25 May 2012 16:58:00 +0000

In a week where many were expecting some of the biggest news to come from Europe – particularly regarding Greece, there have been one or two surprises elsewhere that serve to remind how frequently procurement’s agenda impacts on global business.

Sustainable Sourcing: GreenPalm responds on palm oil concerns

Thu, 24 May 2012 14:10:00 +0000

GreenPalm has recently come under fire in light of Unilever’s change to its palm oil pledge, extending its target to buy all its palm oil from traceable sources by 2015 to 2020. The news resulted in criticism towards GreenPalm certificates with some sources questioning its influence in the move towards sustainable sourcing of palm oil.

SAP jumps on Ariba - but will Oracle spoil the party?

Wed, 23 May 2012 15:37:00 +0000

Several years ago, when I was writing for an audience of CFOs, the financial software industry went through a wave of particularly active consolidation when first Oracle paid $3.3bn for Hyperion, then SAP shelled out $6.8bn for Business Objects and IBM joined the party by acquiring Cognos for $4.9bn. All were big-ticket acquisitions, as the enterprise software industry finally nailed down the business intelligence and performance management space.

Transformation towards a competitive procurement function - part 1

Wed, 23 May 2012 10:43:00 +0000

This first installation in Hugo Eckseler’s series on procurement transformation takes a look at the mandate for functions to take the next step in their evolution.

Procurement Leaders London Forum: The risk to value

Tue, 22 May 2012 11:38:00 +0000

The panel discussion at this year’s Procurement Leaders Forum focussed on the impact procurement can have on shareholders return and was made up of an eclectic mix of CPOs and chaired by Jean-Francois Baril, former SVP sourcing and procurement at Nokia.

Procurement Leaders London Forum: How can you measure value?

Tue, 22 May 2012 11:29:00 +0000

Value creation is the next stage in procurement’s journey. The function has matured from its previous preoccupations with price and cost, and it’s now looking to make a bigger impact in business.

Congratulations: CFOs applaud your value. Time to work harder

Tue, 22 May 2012 10:15:00 +0000

Well, it’s about time! Recent reports show a growing realisation on the part of finance officers of the value of procurement. Consultancy 4C cites finance’s view that procurement is a driver of growth. And there’s more: A recent study by Ariba and the research arm of CFO magazine reveals that finance executives agree that procurement is making a valuable contribution to companies and is, indeed, a strategic function. One respondent said that procurement has evolved into an

Procurement Leaders London Forum: Deutsche Telekom SVP procurement on the imperative for change

Tue, 22 May 2012 09:44:00 +0000

"How can procurement make a difference?" That was the question Eva Wimmers, Deutsche Telekom’s CPO and SVP DT procurement, put to a room full of global procurement chiefs. The answer, she said, wasn’t as simple as it once was – functions need to change.

Friday digest: All set for the PLN awards 2012

Fri, 18 May 2012 15:49:00 +0000

It’s been all go at PLN this week as we gear up for the biggest event in the procurement calendar, which will see procurement chiefs flying into London from around the world to attend the Procurement Leaders Awards and Forum.

What to look out for at Procurement Leaders Forum London

Thu, 17 May 2012 09:28:00 +0000

Procurement has come a long way. Ok, so sure there are those (myself included) who from time to time argue for the profession to be pushing for greater things and to be more honest about its failings, but it’s credit to the work of some outstanding individuals that today we can legitimately come together and discuss how best to impact shareholder value.

Why the Procurement Leaders Awards are important

Wed, 16 May 2012 10:54:00 +0000

Every year debate rages about how much recognition procurement gets as a function. Some say that it grew in the aftermath of the banking crisis when procurement was called up and asked to do what it does best – create value and cut costs. But where are we today?

Is partnering with suppliers overhyped?

Tue, 15 May 2012 17:05:00 +0000

Partnerships and integrated relationships have long been touted in the academic and business communities as best practice procurement to drive long-term strategic advantage for particular categories. Yet, while the rhetoric sees no sign of abating, these relational approaches don’t always live up to the hype.

Attracting the next generation - is procurement doomed to be stuck with mediocre talent?

Mon, 14 May 2012 14:25:00 +0000

As more procurement organisations join the fray to fight for a handful of individuals with the capabilities to take their functions forward, the message they’re selling them isn’t always one that can compete with other areas of the business.

R2P: Whose budget line is it anyway?

Mon, 14 May 2012 11:20:00 +0000

The PIU has recently closed a survey focused on the Requisition-to-Pay (R2P) process. The most interesting aspect is not what is said by respondents, but what is not said.

Charges that sustainability costs too much are bunk

Mon, 14 May 2012 08:55:00 +0000

The state of California is a trend setter in many ways, not the least of which is in its approach to environmental regulations. It’s aggressive in setting pollution-abatement standards that, because of the state’s size, sometimes become de facto national standards.

Sustainable Sourcing: Apple and Foxconn share the bill on improving labour conditions

Fri, 11 May 2012 17:25:00 +0000

The Apple-Foxconn saga continues.

Friday Digest: No escaping the value equation

Fri, 11 May 2012 14:31:00 +0000

Where would companies be without good procurement? It’s worth asking - perhaps procurement doesn’t always grab the headlines for the right reasons, but that’s not to say that some of the most important facets of any business don’t rely on effective purchasing and supply chain.

Sourcing for value, rather than price

Thu, 10 May 2012 09:41:00 +0000

At Vodafone, sourcing for value is something that my team and I strive for on a daily basis. But what does value actually mean in a modern supply chain environment and how do we achieve it?

The Wright Brothers' right approach - desirable outcomes in outsourcing

Tue, 08 May 2012 11:35:00 +0000

Outcome-based outsourcing is getting popular. The challenge is clearly defining and understanding how to measure outcomes. Our work at the University of Tennessee has studied some of the world’s most successful outcome based agreements and we’ve learned the secret sauce from the best of the best.

The Bribery Act and procurement – are we taking it seriously?

Tue, 08 May 2012 09:50:00 +0000

It’s coming to the first anniversary of the UK Bribery Act’s introduction. The Act caused a frison of fear throughout the business industry when it was introduced.

The surreal versus the real in diversity

Tue, 08 May 2012 09:16:00 +0000

Procurement executives, who lead the charge to diversify their staff and supply chains in the US, might be amused at a current controversy surrounding an upcoming election in Massachusetts. Or they might be saddened that such an important topic could become so trivialized and a political football. Here is the background: Democrat and Harvard Law Professor Elizabeth Warren plans to run against incumbent Republican US Senator Scott Brown when his term expires later this year, but she has stumbled

The Friday Digest: Fuelling panic, Laboured thinking and slowing payments...

Fri, 04 May 2012 16:45:00 +0000

A round-up of the top stories in this week’s procurement and supply chain news, analysis and views...

Procurement Intentions - CPOs looking to extend payment terms

Fri, 04 May 2012 14:37:00 +0000

The May edition of the Procurement Leaders Intention survey gave us the first opportunity to compare results and uncovered some interesting trends - particularly around the issue of cash flow.

How to improve procurement? Let's ask finance

Fri, 04 May 2012 09:42:00 +0000

Last year I wrote about the tremendous opportunity procurement has to become a more strategic asset by collaborating more closely with finance. This has been a common theme in discussions with many CPOs regarding the future of procurement.

Sustainable Sourcing: Has Unilever changed its sustainable palm oil game plan?

Thu, 03 May 2012 16:12:00 +0000

It was back in 2010 when I had the pleasure of interviewing Marc Engel, CPO of Anglo-Dutch consumer goods giant Unilever, on the subject of its Sustainable Living Plan.

How to solve the food waste and losses along the food supply chain?

Thu, 03 May 2012 10:16:00 +0000

Worldwide around 1.3 billion tons of food is either lost or wasted every year - accounting for approximately one third of the annual human food production of the world.

Commodity prices in 2012 will make or break procurement teams

Wed, 02 May 2012 11:34:00 +0000

Let there be no mistake – commodity volatility is a huge opportunity for today’s crop of procurement chiefs. Yet, even some of the most sophisticated purchasing organisations are looking nervous in the face of margin-eroding raw materials costs. So what do they do?

For one week only, the most valuable commodity in global procurement is free

Tue, 01 May 2012 12:14:00 +0000

It’s been a busy few months behind the scenes at Procurement Leaders Network (PLN) and the Procurement Intelligence Unit (PIU).