Are you ready for 2019?
In today's podcast - the last of 2018 - I reflect on what has changed for procurement this year, and what hasn't!
I then share a couple of predictions for 2019, including my recommendations for areas of technology investment next year.
Finally, I leave 2018 with three questions to consider over the holiday break that will help you kick-start your change journey in 2019.
Out of the 232 podcasts to date, today is the first time that we dig into GPO’s - or Group Purchasing Organizations.
And as I planned out this topic, I invited today’s guest, Jay Black, to join me.
Jay is Vice President at Insight Sourcing Group and has significant experience in the GPO space, selling and operating services under a number of different GPO delivery models.
I’ll be honest and say that, prior to today’s discussion, I have always felt that a GPO fit a very specific market niche of small companies. However, our conversation opened my eyes, especially to the use of GPO’s in larger organizations as part of a multi-dimensional approach.
Jay and I explore the nuts and bolts of GPO’s - when and how to use them, what to look for, and how to continue to benefit once any initial one-time savings have been exhausted.
Today on the show I am joined by Mike Morsch. Mike is the Vice President of Global Procurement and Supply Chain at CDK Global.
Mike shares more about CDK in our interview, but to give you some context, CDK Global is a $2B+ revenue company that provides technology and digital marketing solutions to the automotive dealership industry. They were formally the Dealer Services division of ADP before being spun off into an independent company back in 2014.
In today’s conversation, we discuss Mike, and CDK’s journey to transform procurement within CDK after the spin-off.
As is often the case after a spin-off like this, the new company - in this case CDK Global - has to rebuild a large part of its organization from the ground up. Either the infrastructure that comes over from the former parent company is not suited for a smaller company that the spun-off entity now is, or there is no infrastructure that comes across at all!
I question Mike about the three phases of transformation that typically occur in a situation like this: steadying the ship post the spin-out, rebuilding capabilities and more fundamental technical infrastructure, and then looking forward to bringing in new technology to evolve the procurement value proposition.
As you will hear, Mike has deep IT experience outside of procurement, and so I wanted to tap into this to understand how he looks at technology and developing a business case for investments in technology.