digital procurement strategy
DESCRIPTION
TRANSCRIPT
DIGITALReshaping your procurement landscape?
What is digital?
Mobile Social
Cloud Big Data
IS DIGITAL PART OF YOUR PROCUREMENT STRATEGY?
WHAT WOULD A DIGITAL PROCUREMENT STRATEGY LOOK LIKE?
DOES DIGITAL REPRESENT A THREAT OR OPPORTUNITY TO PROCUREMENT?
Procurement objectives
Cost reduction
Delivery improvement
Innovation
Quality improvement
Risk mitigation
CSR
Digital procurement objectives
Cost reduction
Delivery improvement
Innovation
Quality improvement
Risk mitigation
CSR
Mobile Social
Cloud Big Data
Cloud technology
Reduces investment
cost and risk in technology
Accelerates access to
eProcurement solutions
Positively changes the
eProcurement business case
Facilitates access to
procurement intelligence
…
Mobile
Liberates from the desk top
Brings access to information ‘on the go’
Brings access to information to your device of choice
Improves productivity
Cloud Mobile Enable Social
THINK ‘SOCIAL’ AS CONVERSATIONSConversations with us
Conversations about us
WHICH CONVERSATIONS WOULD PROCUREMENT WANT TO FACILITATE FOR ADVANTAGE?
TO BEUsing the template identify your likely position in 3 years
Constructive conversationsInternal consultation on specs to clarify problem to be solved
Business case dev & critique
Specification co-production
Soft mkt testing
Issue procurement challenges
Consulting on evaluation approach
Reverse mkgt
Identifying opps for piggy-back contracts
Risk identification, assessment & mgt
Supplier references& appraisals
Posting RFPs
Contract Mgt & user feedback
Whistleblowing
Internal & externalCustomer insights
Dynamic forward Procurement plans
X-functionalBid evaluations
Supplier feedbackOn buyer performance
Ext consultation on outcomes to be achieved
Widening scope of potential options
Int collaborationon cat mgt
Publishing award criteria & weighting
Supply mktresearch
KPI consultation& reporting
Expert Dephipanels
‘Closed sites’ for suppliers
Forward procurement plans
Cost reductionsuggestions
………………. ……………. ……………. ……………. …………….
AS ISUsing the template identify your current position
Constructive conversationsInternal consultation on specs to clarify problem to be solved
Business case dev & critique
Specification co-production
Soft mkt testing
Issue procurement challenges
Consulting on evaluation approach
Reverse mkgt
Identifying opps for piggy-back contracts
Risk identification, assessment & mgt
Supplier references& appraisals
Posting RFPs
Contract Mgt & user feedback
Whistleblowing
Internal & externalCustomer insights
Dynamic forward Procurement plans
X-functionalBid evaluations
Supplier feedbackOn buyer performance
Ext consultation on outcomes to be achieved
Widening scope of potential options
Int collaborationon cat mgt
Publishing award criteria & weighting
Supply mktresearch
KPI consultation& reporting
Expert Dephipanels
‘Closed sites’ for suppliers
Forward procurement plans
Cost reductionsuggestions
………………. ……………. ……………. ……………. …………….
DIGITAL PROCUREMENT STRATEGY The bridge to achievement
WHICH CONVERSATIONS COULD THREATEN PROCUREMENT?
BIG DATA
DIGITAL PROCUREMENT STRATEGY Shaping the procurement environment NOT
Shaped by the procurement environment
MOVING BEYOND SPEND ANALYSISCapture, mine and uncover patterns in procurement data
HOW COULD PROCUREMENT HARNESS BIG DATA?
INFORMATION OVERLOAD TO PROCUREMENT INTELLIGENCEBIG DATA
IF YOU COULD CAPTURE, MINE, LINK & LOOK FOR PATTERNS IN PROCUREMENT DATA …What strategic information would you want?
Strategic procurement advantage• Predict the demand/level of consumption of a good/service and help
profile demand; • Predict the optimum supplier capability and capacity required to
deliver a required outcome in a given situation, and therefore reduce paying for over-capacity;
• Identify the costs which could be removed to deliver a given solution;• Predict supplier behaviour and their likely negotiating responses;• Predict the optimum form of contract pricing, for example, fixed price,
rise and fall, index linked;• Predict the optimum contract term;• Predict the most advantageous time to 'go to market';• Predict the optimum period required to solicit the best bid;• Predict the optimum budget and whole life costs;• Identify the key areas to focus on in contract management;• Predict procurement risk profiles and optimum mitigation strategies; • ...
DIGITAL PROCUREMENT STRATEGY Procurement intelligence for advantage
WHAT WOULD YOU RECOMMEND TO A CPO AS THE 3 PRIORITIES IN RESPECT OF DIGITAL AND PROCUREMENT?
Recommendations for embracing digital procurement strategy1. Ensure your social media policy reflects procurement needs;
2. Review you eProcurement investment plans and challenge the business case on the availability of SaaS platforms;
3. Review your Applications Portfolio, ‘As is’ and ‘To be’ to make optimal use of integration potential;
4. Review your Applications Portfolio for business needs – if a business need exists but a solution is not presently available, issue a challenge to the market design an App;
5. Review your use of mobile technology to determine investment plans, establish opportunities for cost reduction and have a clear policy on BOYD;
6. Review you approach to flexible working to gain maximum advantage of digital technology;
7. Review the potential positive and negative impacts of social media on procurement, develop a proactive plan to use conversations to achieve strategic objectives and mitigate the risk of profile damage;
8. Understand what the business needs are for procurement intelligence and develop an integrated approach to Big Data analytics;
9. Complete a training needs analysis and reflect in a learning and development plan;
10.Develop a Digital Procurement Strategy and performance manage.
DIGITAL PROCUREMENT STRATEGYHarnessing the procurement opportunity