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Carolyn Ridsdale 2011SOCIAL MEDIA FOR PROCUREMENT PROFESSIONALSDrs. Ruud Olthoff MBA, CPO Rabobank

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Ruud Olthoff196214 years RabobankCPO Rabobank Group PurchasingDirector Sales Rabo MobileManager Virtual RabobankManager Marketing & Sales Retail 2

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Experiences of a digital migrant• Digital migrant: pré-internet, pré-mobile• No innovator, but early adapter• No web-nerd, or digi-evangelist• Relatively new in procurement• Hope to: arouse curiosity and trigger trial behaviour• My truth, should not necessarily be yours• If I can do it, so can you!

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Research Project “Social Media for Procurement & Supply Chain Management Professionals”Presented at Annual IPSERA conference Naples, Italy 1-4 April 2012 Frank Rozemeijer Nadine Kiratli Ruud Olthoff

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http://www.nevi.nl/sites/default/files/starterskit_social_media/starterskit_2.html http://www.nevi.nl/sites/default/fil

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Social media revolution• 2.4 billion social network accounts worldwide• 1.5 billion people using social network sites• High awareness: Facebook 100%, Twitter 80%• Facebook biggest: 800+ users end 2011• In 2012 the social media landscape has become rather stable• The world is not waiting for the next social network: no need for something new, no intention to quit• Mobile is the accelerator for social media usage: 51% internet users have a smartphone Insites Consulting Social Media Around the World 2012

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Social media is more than just Facebook!!!

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Main criticism, why not?• It takes too much time• It’s risky (‘Elephant’s memory’)• My clients/environment/colleagues don’t use it• Unclear rules: what (NOT) to do?• Personal/professional life gets blurred• Cannot access social media sites at work (still 55% of the world!)

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Social media in business?

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Social media in business is B2CProcurement is not on top of the social media list Accenture 2011 US companies N= 200

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Most companies do not fully leverage the potential of social media

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Social networking by procurement profsSocial media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

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Popular networks amongst buyersSocial media usage in business for buyers = LinkedInSocial media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

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IT buyers are active on social media IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

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77% buyers believe their social media usage will growSocial media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

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… and influences the entire process IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

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Why do buyers participate? Information gathering!Social media use by purchasing professionals, Frank Rozemeijer et. al., Maastricht University, December 2011

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… and learn from trusted peers!IT Purchasing goes social, Forrester & Research Now for LinkedIn, 400 US IT purchasers, August 2012

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Reasons for use?

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Need for speedNeed for innovation SocialComplex organisations MediaIncreased collaborationNeed for information

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Three ways to leverage Social Media1. Market Intelligence  Transparancy • Exchanging key information & best practices • Scanning supply markets for new suppliers • Tracking career of key supplier contactpersons2. Peer engagement  Connect & join communities • Share information from trusted colleagues about suppliers and products3. Supplier collaboration  Interact & Collaborate • Use SM as a channel for negotiation, relationship building as well as continous improvement with suppliers

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How can you, as a buyer, use social media?

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Market intelligence

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How did I use to do it?• Member of the professional association• Read the professional magazine• Went to a congress• Followed a course, or a seminar• Talked to colleaguesProfessional development

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What do I do now?And much more….

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What are the top-10 procurement sites and blogs (in English)?Name your favorite top-3!Here are some good examples:

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1. www.supplymanagement.comUK daily purchasing and supply news and jobs at the logistics and supplychain news site by CIPS, the Chartered Institute of Purchasing & Supply:the biggest! > 24k viewers pm

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2. blog.procurementleaders.comUS membership-led community for international procurement,sourcing and supply chain management executives, see also:www.procurementleaders.com #2nd 12k viewers

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3. www.supplychaintoday.comU.S. Supply chain & business portal. An informational basedwebsite integrated with social media (@SupplyChainBlog). Big ontwitter, now on Facebook. Many films and tutorials.

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4. www.CPOagenda.comUK based, international business review designed specifically forchief procurement officers and senior purchasing and supply chainexecutives in larger organisations.

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5. www.capgemini.com/procurement-blog/One year old, worldwide procurement blog by Cap Gemini (sponsored)

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6. www.procurement-iu.com/blog/Membership-led knowledge resource dedicated to corporateprocurement professionals, at both the executive and operationallevels

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7. www.scdigest.comU.S. web site for supply chain management and logistics practioners,news, case studies, weekly newsletter, video’s.

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8. www.supplychainquarterly.comU.S. web site and free app of the CSCMP, Council of Supply ChainManagement Professionals quarterly magazine.Mirrors the paper magazine.

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9: CPOrising.comSponsored media site (by Ardent) for CPO’s and other supplymanagement executives, focused on procurement and supplymanagement.

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10: purchasinginsight.comSponsored blog on e-procurement, P2P and electronic invoicing(software)

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Other interesting sites and blogs• www.inkopers-cafe.nl• www.nevi.nl• www.supplychainmagazine.nl• inkooppracht.blogspot.nl• www.strategicsourceror.com• www.spendmatters.com• www.ifpmm.org• www.napmbuffalo.com• www.escouringforum.com• www.cebviews.com/category/taxonomy/procurement-strategies- planning• procureinsights.wordpress.com• davidcoethica.wordpress.com/• innovationdrivenprocurement.blogspot.com/• www.npiconnection.org

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Getting your newsRSS-reader: reading all digital magazines, blogs and sites of yourchoice in your own, real-time collected newspaper

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RSS-readers as AppVia RSS-reader-app on your iPod/iPhone/iPad:Google, Reeder, Feedly, Pulse, Currents

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RSS-feeds in Outlook, even at work

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Storing, retrieving and sharing sources Tagging • In Windows: favorites • Tagging software: Delicious (or Evernote, etc)

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Finding and sharing presentations

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E-learning tools for procurementApps E-books•SCM Terms •CRICS contractmgmnt•Einkaufslexikon •DEAL! (app end nov 2012)•SCM Supplier Strategies•Buying business travel Video learning •Procurement AcademyTraining•Procurement managementWiki’s•TenderNed•esourcingwiki

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Peer engagement

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Cooperation within

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Intra company social networking• Social tools collaborative workflow: – Yammer – Sharepoint – Social-Go – Etc.• Aim:Integratingthe effort http://www.enterpriseirregulars.com/40987/putting-social-business-to-work/

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My Sites

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Peer networking

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Finding colleagues and promoting careerProfessional social media:• LinkedIn-profile• LinkedIn search• Purchasing Groups on LinkedIn: – CPO-Club – Procurement professionals• Promoting yourself• React and interact• Finding jobs / colleagues• Starting a group• PS your supplier might also do this!

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Networking collaboration with peersCollaboration platform:• Free website for business networking in procurement mysourcingteam.com (USA)

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Networking collaboration with peers

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www.pianoo.nlDutch community and centre of expertise for publicprocurement: information, advice, instruments and practices:3.000 active users

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www.sepp.nuDutch independant platform of Self Employed PurchasingProfessionals (SEPP)

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Twitter: does it allTwitter is a microblog system, enables you to follow peopleand companies (and vice versa) and interact with themProfessional twitter usage: – Search #procurement #purchasing – Follow sites and blogs – Publish yourself: “if you’re twittering it, you are not doing it” – React and interact – Btw your supplier might also follow youIt’s all free!!

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Active NL-social media buyers on twitter in 2011

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Supplier collaboration

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Source for better dealsSocial media are already an important buying decisions source for US SME buyers SMB Grouop Study Technology Buyers 2010 N=474

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Following companies & suppliers (1)What do you do before meeting a new contact?  Name-GoogleBut there is more supplier information available: google trends and alerts

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Following companies & suppliers (2)

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… or real-time social media search

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Following companies & suppliers (3) Free apps to check chamber of commerce status (NL)

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Following companies & suppliers (4) On-line supplier rating by procurement profs

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Social media public tenderingAanbestedingskalender: Dutch Public tendering website that brings parties together.

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On-line outsourcing market places• Elance Online professionals• Freelancer Small business• eDesk Verified work• Guru Freelancers• Vworker Pay for deliverables• Scriptlance Programmers

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Outsourcing networks

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Outsourcing networks

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New business modelscrowdSPRING: marketplace for logo & web design

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On-line supplier networks• Ariba – #1 web based trading communityMoving towards social media business networks• Aravo Assure• TradeShift• Emporis (nu: IBM)• Crossgate (nu: SAP)

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Does your procurement department already have an ‘App’ ?• UN Procurement Division: The first procurement department with their own app! With RFP’s and public tendering information

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Collective buying?• EC Purchasing: An Apple and Android App for buying commodities at a discount. A kind of Groupon for buyers

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Want to start?

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How should you behave? Be curious

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How should you behave? Be helpful: share Communicate: talk knowledge, give advice, to the people in yourintroduce people that might network, make them help important Be accessible: be an active contributor …and social: make contacts with many people and get truly involved Invest: give without expecting something in return, never take more than you might give

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Interested?• Just do it• Before you know it, it might be of helpTIP 1:Start simple, give yourself the opportunity to learn:Start listening, before participating. Start inspiringothers, before inviting dialogue to your suppliers TIP 2: Don’t stumble into all networks, be selective: Choose the most valuable network for your company/yourself, and put energy into it. This implies some investment upfront, but it will pay off.