Reimagining Procurement Andrew McLean & Drew Preddy 22 April - - PowerPoint PPT Presentation

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.

“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’).

Technological revolution

Automation

the technique of making an apparatus, a process, or a system

• perate 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
• perating 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

• rganisation.
• 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
• utsourced 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
• perating model to lock in the

benefits provided through your procurement technology

• Step 3 - invest in a structured and
• bjective assessment of the

procurement capability required within your organisation.

• Step 4 – Integrate a contingent labour

resourcing model into your capability and capacity planning

Thank you

“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