Jimmy Anklesaria is one of the most prominent thought leaders in procurement today.  Jimmy is considered by many as the go-to expert when it comes to the strategic management of cost. He literally wrote the book (well, two books), and regularly travels the globe helping organizations reduce their third party costs.  Importantly, he does this not through the leveraging of power but by using data as the foundation of fact based sourcing and continuous improvement. 

Jimmy had so much information to share that we recorded two separate shows!  These cover the strategic management of cost from initial sourcing to end of contract. 

Today, we focus on the initial sourcing and negotiation process. Jimmy shares a number of insights, including:

• Why as a young company Director he did not understand the importance of procurement, and what his light bulb moment was.
• The most important part of the negotiation process
• Why business deals have to be win-win to be sustainable over the long term
• What a procurement professional can do to better understand the cost of a product or service before they begin a negotiation
• How you can use publicly available information to develop should-cost models based on understanding key cost drivers
• Whether you need to pay for data or not.
• Why, while you can acquire data from third parties or a central COE, a procurement professional must not abdicate responsibility for understanding the costs and cost drivers of a product or service.

This conversation was an eye-opener for me, particularly as we consider how to apply cost management techniques that are prevalent in the procurement of Direct materials to Indirect services.

For more information, visit http://artofprocurement.com/costmanagement 

I was thrilled to be a part of the Zycus event as the media partner for the conference. As part of the partnership, I was able to moderate a main stage panel event and present a separate session in the leadership tract. In today's episode, I provide an overview of the two sessions that I was involved in.

I also share my key takeaways from the activities that I was able to attend - with topics such as the Internet of Things, Relevancy of Procurement, Procurement Innovation and the role of technology in procurement as a competitive advantage (the answer may surprise you).

For more information, and to download a copy of my slides from session that I led, visit http://artofprocurement.com/horizontakeaways 

Unless you are new to the show, you will have heard me talk all about The Procurement Revolution event that I co-organized with Kelly Barner of Buyers Meeting Point. 

We were thrilled with how the event panned out. We had 40 revolutionaries, over 50 pieces of content and five live Q&A interviews throughout the week. 

We learned a ton from the things that went well, and the things that didn’t.  One of my regrets was that I wasn’t able to dedicate as much time as I would have liked to pull together all the disparate submissions into some key call’s to action. 

So, what I thought I would do today is to share four different takeaways that I took from all the great submissions that we received. 

For more information, visit: http://artofprocurement.com/TPRtakeaways

Carlson Rezidor - one of the largest hotel groups in the world with brands such as Radisson and Park Place – embarked on a path to identify, build and deploy a global source to pay platform in mid-2015.

I am joined on the Art of Procurement today by Scott Deibert, the SVP of Procurement, and Bart Baetens, Director of E-Procurement for Carlson Residor.

In today’s show, we chronicle their journey. I ask Scott and Bart to share the key decision points and lessons learned, as the sought to transform their global procurement technology stack. 

Topics that we discussed include:

• Why did Carlson Rezidor decide to pivot from their existing technology stack to a new solution.
• Why did they decide to source an end to end suite rather than a series of point solutions.
• What was their key criteria for selecting the platform that they ultimately chose?
• What were some of their key challenges as they deployed and rolled out the platform?
• What would they do differently?
• What is the once area that they still continue to struggle with.
• How are they planning to continue to leverage procurement tech post roll-out – what is the #1 technology capability that is on the horizon that they want to take advantage of.

If you are interested in the practical side of procurement technology – and the realities of embarking on a S2P transformation, you will not want to miss today’s show!

For more information, visit: http://artofprocurement.com/techtransformation

Today’s episode is the second in a two-part series considering Category Management: what we can do not only to implement Category Management, but also do so in a way that is sustainable over the long term.

The reason why I think this is important is that often I have seen Category Management implemented for the right reasons, but after the initial burst of energy and picking the low hanging fruit, it becomes difficult to keep the momentum going and provide value in other ways.

Today’s guests on the show are Lynn Rideout, Senior Manager of Category Management, and Chris Eyerman, Senior Director of Program Management, both at Denali Sourcing Services.  In part two of this two-part series, we discuss three key imperatives for a Category Manager that are required to become a trusted advisor:

1. Know Your Stakeholders

2. Understand Your Categories

3. Deliver Results 

For more information, visit http://artofprocurement.com/categorymanagement

Today’s episode is the first in a two-part series considering Category Management: what we can do not only to implement Category Management, but also do so in a way that is sustainable over the long term.

The reason why I think this is important is that often I have seen Category Management implemented for the right reasons, but after the initial burst of energy and picking the low hanging fruit, it becomes difficult to keep the momentum going and provide value in other ways.

Today’s guests on the show are Lynn Rideout, Senior Manager of Category Management, and Chris Eyerman, Senior Director of Program Management, both at Denali Sourcing Services.  In part one of this two-part series, we discuss the building blocks that are required to build a strategic and sustainable Category Management capability.

Specifically, we will discuss:

• Why Lynn and Chris believe that Category Management is a fundamental shift in the way an organization approaches procurement rather than an extension of the sourcing process.

• The journey to building a sustainable category management program and the failure modes that impact an organizations ability to launch, sustain and scale.

• A deep dive into the building blocks of strategic category management, covering vision process, governance and capabilities. 

If you are interested in hearing how you can use Category Management to make a difference to your stakeholders, today’s show is for you.

For more information, visit http://artofprocurement.com/CMpart1

Back in early September, the Art of Procurement left the recording studio and went live for the first time with a webinar that I hosted with a friend of the show, RFP365. 

The theme of the webinar was Weighted Scoring.  Specifically, how you can use weighted scoring as part of your sourcing process, to help make decisions based on facts, rather than feelings.

The webinar was broadly split into a couple of different parts – I was asking the questions of RFP365 in terms of technology – how can you set up your RFP’s to enable weighted scoring – and then my co-presenters turned the tables and asked a number of questions of my in terms of the practicalities.

Today I am sharing the part of the webinar where I was asked the questions. 

You will hear Anna Spady and Dave Hulsen – both Art of Procurement alumni – asking me a number of questions such as my thoughts on how to avoid biased questions, scoring mistakes, when is weighted scoring not appropriate and what to do when the top scoring supplier is not selected.

For more information, visit: http://artofprocurement.com/RFPscoring

Corporate Social Responsibility – or CSR – is a key value lever that procurement can pull to differentiate ourselves from the perceptions of the past, and that can enable us to play a role in revenue generation, not just cost reduction.  Indeed, how companies approach their CSR commitments will play an ever increasing role in the way that they are perceived by their target customers, impacting brand value and ultimately pricing power.

In today’s Art of Procurement, I am joined by Jason Pearson, the President & CEO of the Sustainable Purchasing Leadership Council (SPLC).

From my experience, influencing and managing supply chain sustainability – covering both Direct and Indirect spend categories - is something that as a procurement community we have not yet tackled head on.  Examples of success are limited to a few leading edge procurement teams.

So in today’s episode, I wanted to explore what we – as procurement professionals and leaders – could do to integrate sustainable thinking into the way that our organizations buy.

In my conversation with Jason, we discuss:

• Why is supply chain sustainability so important?
• What can procurement leaders do to make sustainability a prioritization for their organizations (Jason recommends a number of case studies for further reading).
• How can we initiate cross-sector collaboration to address sustainability issues that impact all the players in our industry but that require an industry wide response?
• How can procurement leaders prioritize sustainability initiatives – for example, by supplier or by category?
• The eight Direct and Indirect spend categories that lend themselves to sustainability initiatives, particularly when you are looking to start a program and are seeking early wins.
• The impact that legislation is having – and will continue to have – on how we building sustainability into our scoping and sourcing activities.

For more information, visit http://artofprocurement.com/SPLC

Today is the last day that content will be published in support of The Procurement Revolution event. We have had 40 revolutionaries share their perspective on such as wide variety of topics – tactical, strategic and a little bit of crystal ball gazing too!

There was a particular submission from the event that I think embodies my thoughts on what the role of procurement really is - and why change must come from within. 

It was recorded by Pierre Lapree, the Founder of a procurement performance management SaaS business called Per Angusta. When I received Pierre’s submission I could not help but be inspired.  Listen in, and I hope you are inspired too!

For more information, visit: http://artofprocurement.com/EP93

Back in 2012, Sylvain Mansotte received the call from the newly appointed CPO of a large Australian based construction company to assist in the building a new procurement function.  He jumped at the chance, and one of his first priorities was to understand his new employers’ third party spend profile.

Within 2 months, Sylvain had uncovered a $20M fraud that spanned 12 years and led to the perpetrator – a finance executive with 30 years of experience in the company – admitting to the crime, and ultimately being sentenced to 15 years in prison.

Today’s Art of Procurement is Sylvain’s story.  Sylvain discusses how he uncovered the fraud, and the decisions he had to make in blowing the whistle.

We then talk more specifically about procurement fraud.  Sylvain shares a number of fraud red flags, and provides tips on how you can ensure you have an environment where a whistleblower feels safe in coming forward if they have information to share.

The experience inspired Sylvain to found Whispli, a two-way platform that enables the anonymous communication of sensitive information.  Originally designed as a tool to help whistleblowers report potential frauds without fear of recriminations, the platform is now being used across many industries, including helping students anonymously report bullying or harassment at school.

Sylvain’s story is absorbing, and also a wakeup call to realize that procurement fraud is real, and that any one of us in the profession may find ourselves in the same position as Sylvain at any time, given the nature of our roles. 

For more information, visit: http://artofprocurement.com/fraud 

It has been all hands on deck this week preparing for The Procurement Revolution. In the course of recording content, there was a piece that I just couldn’t wait for next week to publish.  So, I thought I would hand over the reins of the Art of Procurement Friday Show today to Kate Vitasek.  

Kate is a faculty member in the University of Tennessee’s Graduate and Executive Education programs, and founder and lead researcher for the Vested business methodology.

I asked Kate to provide her perspective on an area that she believes we need to think differently about to help us to continue to mature as a profession.  Listen in to hear Kate explain the concept of sourcing business models, and why different sourcing approaches are needed based on the nature of the relationship you are trying to build with the selected supplier.

For more information, visit http://theprocurementrevolution.com

The Procurement Revolution is less than two weeks away!  I am busily recording content from thought leaders around the world who have inspiring perspectives to share on how we need to challenge the status quo to survive and thrive in the new era of procurement.

Listen in to today's episode to learn more about the event, the content that will be shared, and the channels we are using to get the word out.

To register to join The Procurement Revolution, visit http://theprocurementrevolution.com 

Much has been written about the fact that the Millennial Generation will make up 50% of the workforce by 2020.  How to attract and retain Millennial professionals is becoming an increasingly important challenge for procurement leaders as large numbers of baby boomers retire by the day.

In the first part of today's episode, I connect with M.L. Peck (of the Institute for Supply Management - ISM) and Donna Cicale (of THOMASNET.com).  We talk about the challenge of attracting Millennials into the supply chain and procurement profession, and the 30 Under 30 program that ISM and THOMASNET.com developed to showcase talented and emerging leaders.

In the second part of the interview, I sit down with Amy Georgi, a Program Manager responsible for Procurement M&A at Fluke Electronics.  Amy is the current Megawatt Winner of the 30 Under 30 Program.  Firstly, Amy and I talk about procurement's role in facilitating M&A in a manufacturing environment. We then transition into a key pillar of motivation and job satisfaction for Millennial professionals - the ability to have flexibility in their work locations.  From personal experience, this is something the solicits passionate perspectives that vary wildly!  In our conversation, Amy shares tips for procurement leaders faced with employees who want and value location independence, and for professionals on how to stay in touch with the home office when working remotely.

For more information, visit: http://artofprocurement.com/30under30 

How can professionals best position themselves for success in the new era of procurement?  That is the question that I explore in the second of a two part series on the factors that look to change the shape of our profession.

In this episode, I explain the notion of a two-tier procurement profession, and the six different role types that I believe will be fundamental in ensuring that procurement remains relevant in times of significant change.

For more information, visit http://artofprocurement.com/nextgen2

What will the future of procurement look like, and how as procurement professionals can we prepare for disruption that is heading our way?  

In the first of a two part series, I explore the likelihood that procurement as a function will even exist in 10 years time - in response to a number of projections that I have recently heard about the future of our profession.  

I then share my perspective on how I believe procurement will evolve, based on both my personal experiences and learnings to date from interviewing thought leaders on the Art of Procurement.

For more information, visit http://artofprocurement.com/nextgen1 

On today's Art of Procurement, I welcome Coupa President and CEO Rob Bernshteyn to the show. In our discussion, Rob and I focus on the concept of value as a service, and the benefits of focusing on delivering outcomes rather than tasks.

I then question Rob on what procurement leaders can apply from the concept of value of a service as they look to build a more stakeholder orientated procurement delivery model and the capabilities that underpin it.

For more information, visit http://artofprocurement.com/valueasaservice 

As a Buyer, a key factor in my sourcing decisions was the size of the supplier.  While it is arguably the greatest piece of marketing of all time, the fact that “nobody ever got fired for buying IBM” was often at the forefront of my mind. 

I had a number of reasons for taking this approach – some real, some perceived.  In today’s Art of Procurement, I explore the reality of working with small and medium sized businesses with Tom Greco and Ed Edwards of THOMASNET.com. 

First, Tom and Ed explain which of my fears were based on fact, and which were in my mind only. They then provide guidance on how I could have mitigated the risks that are present to take advantage of the benefits that working with small and medium sized businesses provides.

We then move to the other side of the table.  How do small and medium sized businesses feel about working with larger procurement functions. 

The answers surprised me.  In essence, smaller companies fear working with larger organizations as much as I did with them. 

So how can we break the cycle?  In the final part of the discussion, Tom and Ed provide their insights into how we as procurement professionals can more effectively facilitate the use of smaller companies to benefit from the innovations – and often lower costs – that they can often provide.

For more information, visit: http://artofprocurement.com/smb 

On Wednesday of this week, I joined host Jamie Liddell (Editor in Chief at Outsource Magazine) and fellow panelists Kate Vitasek (Vested) and Don Ryan (KPMG) on this month’s Outsource Talks Q&A webinar.

During the webinar, I answered questions from Jamie related to the current challenges that CPO’s are facing, and the evolution (and future) of procurement outsourcing.  My favorite was a question on how I would structure the sourcing organization if a Fortune 50 company with a huge budget came knocking at my door!

When Jamie approached me to be a panelist on Outsourcing Talks, I thought it would be fun if we continued the discussion on the Art of Procurement.  So in today’s show, I turn the tables on Jamie and put him in the hot seat! 

In the webinar, it was suggested that technological change will lead to a revolution in the way organizations access business services.  I ask Jamie if this is hype, or reality.  We also discuss the ongoing implications of Brexit, and I ask Jamie if his perspective has changed since he wrote passionately against Brexit the morning after the vote.

For more information, visit: http://artofprocurement.com/outsourcetalks 

As the Co-Founder, Chairman and CEO of Tradeshift, Christian Lanng is on the front lines of the technology evolution, and he gets to see first-hand the impact that innovative technology is having – and will have - on the enterprise.

In today’s Art of Procurement podcast, I sit down with Christian to understand what this will mean for procurement. If Christian’s vision materializes, it will mean a seismic shift is in store for our profession over the next 10 years.

In this episode, you will learn:

• Why the measure of procurement’s success will become the cost to change suppliers, not the cost savings achieved from your existing suppliers.
• Why we will stop buying products and services, and start buying outcomes.
• How we will need to think more like a data scientist, analyzing new and expanding sources of information to determine the projects and transactions that matter, and that require human interaction.
• How organizations will transition from current delivery models to accessing procurement talent on-demand, using talent marketplaces.
• Why Christian believes that procurement leaders can turn their retained staff into a profit center by selling that expertize to non-competitors.
• The benefits of a platform & applications approach when building your procurement technology infrastructure.
• Why we are already in the "summer" of bots, and why AI will be the technology that has the biggest impact on procurement.
• Why the procurement professional of the future will need to be "problem solvers" and "opportunists".

For more information, visit: http://artofprocurement.com/tradeshift 

Procurement plays a pivotal role in the delivery and execution of the Olympic Games.  However, it was not always like that.  The organizing committee of the 2012 London Olympic games took the decision to invest in strategic procurement like never before.  The result: the success of team created a legacy whereby the IOC has recognized that procurement must play a pivotal role in the delivery of all subsequent Games.

I am joined today by Gerry Walsh, the CPO of the London 2012 games.  We discuss his and his team's Olympic journey, including the key challenges his team faced, how they overcame them, and the extraordinary lengths that they went to, to ensure that the Organizing Committee fulfilled their CSR commitments.

For more information, visit http://artofprocurement.com/olympics 

As procurement professionals, we often see our peers across the negotiating table as adversaries. However, there is a lot that we can learn and apply from the art of Sales, particularly when it comes to influencing others.

This week’s guest on the Art of Procurement is Stan Garber, President of Scout RFP. Stan is a proven sales and business development leader, and I wanted to tap into that experience to focus on two specific use cases where procurement can lever Sales techniques to increase their sphere of influence.  First, we explore ways of selling the procurement value proposition internally, and then shift focus and consider how you can convince larger suppliers to provide “customer-of-choice” status when your level of spend alone may not merit such treatment.

For more information, visit: http://artofprocurement.com/scout