Supply Chain thought leader and Transformation Expert James Heidrich spoke at Bristlecone Pulse 2017 about self-aware supply chains of the future, the procurement and supplier relationships they need for success and optimizing the end-user experience - which is essential. #SCCPulse2017

1. The Future Of
Procurement In
The Digital Era
By James Heidrich

2. “
It is bad procurement
policy to unilaterally
lock itself into one set of
technologies.
-Tom Schatz
2

3. 3
The Future is
Self-Aware Supply
Chain

4. Self-Aware Supply Chain – A Truly
Automated System
4
Artificial
intelligence
Machine learning Robotics
Automation
Focus of end user
experience

5. Procurement and
Supplier
Relationship
Leverage supplier
relationships for innovation to
better manage and impact
overall procurement value
proposition.
“

6. Procurement and Supplier Relationships
Cost
Reduction
Logistics Inventory Quality
Supply chain
management

7. Digital
Strategies
“Strengthening alignment and
collaboration between finance
and procurement functions.

8. 8
i. Catalogues and contracts to be
purchased against
ii.Eliminate rouge spending
iii.Proper approvals via mobile
devices
iv.Integration of budgets into these
systems
Fully- integrated
P2P systems

9. 9
i. Innovative contracting of services
ii.People, objects, and systems
connected through data
communications
iii.Transforming value chains into
larger “value networks”
Full Digital Category
and Service
Procurement

10. Procurement
Technologies
“A new wave of digital
procurement
technologies are
coming.

11. 1111
Artificial
intelligence
Machine learning Robotics
Automation
Focus of end user
experience

12. 12
Procurement Powered by
Artificial Intelligence
“Unearthing new process
optimization and cost
reduction opportunities with
an AI integrated procurement
system.

13. 13
About 50% of manufacturing supply chains
will be controlled robotically and digitally in
the next 5 years.
How?
→Real-time visibility and access to huge amounts of
spend data.
→Analyzing patterns in procurement data for
accurate sales forecasts.
→Lesser time to market and product/service
excellence – a product of enhanced supply chain

14. 14
Optimizing the End-User
Experience
“Integrating procurement
technology to streamline
end-user experience.

15. 15
Use of Cognitive Procurement Advisors (CPAs)
and Virtual Personal Assistants (VPAs) with Natural-
Language Processing (NLP)and natural-language
generation capabilities.
Utilizing capabilities of innovative Messaging, Chat, and
Collaboration (MMC) and Smart Systems.

16. 16
“
Capitalizing on the Blockchain
Technology
Sharpen up security and
enhance operational
efficiency of procurement
processes with blockchain
integration.

17. 17
Blockchain technology would be an excellent
alternative to optimize the procurement
process.
It is …..
Accurate.
Precise.
Secure.
It can reduce errors, delays and additional costs and
save a lot of valuable time.

18. Digital Supply Chain and
Supplier Management
Higher level of
accountability and
multi-stage
integration across
the entire supply
chain.
“

19. 19
Companies are now being held
accountable for actions from all
tiers of supply chains.
A few good examples:
1. UK Modern Slavery Act
2. Conflict Minerals
The digital age will enable
companies to monitor their entire
supply chains like never before.

20. Integration of all data from customers, distributers,
production, and suppliers can really optimize supply
chain performance.
Agile specialized providers such as Kinaxis will play a
big role in enabling this technology.
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21. Developing
Organizational
Capabilities
Organization and
capabilities need to
change to capitalize on
the digital revolution.
21
“

22. The Floor is
Open for
Questions and
Comments!
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