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2019 ipsm conference_01_richard beaumont

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Richard Beaumon presentation for IPSM First International Conference in Procurement and Supply Chain
June 5-6, Kyiv, Ukraine

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2019 ipsm conference_01_richard beaumont

  1. 1. 1
  2. 2. Enabling Transformation: Getting the right help Richard Beaumont 5 June 2019
  3. 3. www.ip-sm.com Your vision is to transform through embracing change… Busy buying with lots of process Change Transform to strategic sourcing 3
  4. 4. www.ip-sm.com We are told we can just go buy tools, use them and deliver… 4
  5. 5. www.ip-sm.com You invest time, resources, money and what do you get…? Cost Time Labour Systems 5
  6. 6. www.ip-sm.com Change is not about adopting tools… …it’s about transforming capabilities Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 6
  7. 7. www.ip-sm.com Do we really do “Category Management”? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 7
  8. 8. www.ip-sm.com Let’s remind ourselves what “Category Management” is “Category Management is a strategic approach which organises procurement resources to focus on specific areas of spends. This enables category managers to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation” • Category strategy is a systematic approach to guarantee initial significant improvements and a long term sustainable guideline on how to create value within the category • A category strategy should include a holistic cross-functional analysis on how a category can increase value and reduce waste. • A successful category strategy should be aligned to the company's priorities CIPS McKinsey 8
  9. 9. www.ip-sm.com What should we be thinking about? Establish –Spend Analysis, Requirements, Suppliers, Market Evolve – Strategy, Ideas, Options, Innovation, Risks Elect – Decide on chosen Initiatives Execute – Negotiate, Contract, Implement, get Results Review – Manage KPIs, SRM, Risk Management, Initiatives Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 9
  10. 10. www.ip-sm.com Why does Category Management matter? 10 100% Idea/ Concept 20% 80% 40% 0% 60% Cost impact Function definition Specification defintion Supplier pre- selection Sourcing? Contract & Ordering Cost Reduction Opportunities Here you win! Here you try not to lose!
  11. 11. www.ip-sm.com Have we developed our team’s capability? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 11
  12. 12. www.ip-sm.com What should we be thinking about? Organisation – Are there clear roles and responsibilities? Skills Gap Analysis – Strengths and areas for improvement? Procurement Knowledge – Do the team have the hard skills? Wider Skills – Do we have the soft skills? Communication, Influencing, Negotiation? Support & Mentoring – How are we supporting our team? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 12
  13. 13. www.ip-sm.com • How will you prepare your team for the future? • What is the current skill level of your team? Building capability relies on assessment and development Assessment Development 13
  14. 14. www.ip-sm.com Have we really thought about our Suppliers? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 14
  15. 15. www.ip-sm.com What should we be thinking about? Supplier Categorisation – Which suppliers are critical? Approach – What systems/process do we use? Communication – What methods, timing and technology? Performance Management – Is robust and effective? Innovation – Are we working with suppliers to improve our business? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 15
  16. 16. www.ip-sm.com Have we assessed and managed our risks? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 16
  17. 17. www.ip-sm.com What should we be thinking about? Risk Assessment – Do we understand our risks? How do they map to our categories? Risk Process – How do we manage risks? Risk Ownership – Do we have clear risk owners? Risk Mitigation – How are we actively mitigating risks? Continuous Improvement – Can we demonstrate good outcomes? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 17
  18. 18. www.ip-sm.com Do we really manage our Contracts? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 18
  19. 19. www.ip-sm.com What should we be thinking about? Contract review – What contract do we have? Contract Storage – How do we manage contracts? Key commercial terms – Do we understand them? Review & Renewal – Do we have a structured approach? Best Practice contracting – Are we building in data protection, innovation, risk? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 19
  20. 20. www.ip-sm.com …and after all this; how could digitisation help us? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcureme nt/Digitisatio n 20
  21. 21. www.ip-sm.com What should we be thinking about? Source to Contract Knowledge Management e.g. Commodities Supplier Relationship Management Contract Management Procure to Pay (P2P)) Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement /Digitisation 21
  22. 22. www.ip-sm.com Getting things done is a challenge Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 22
  23. 23. www.ip-sm.com With support you can transform successfully… Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 23
  24. 24. Questions? Richard Beaumont www.linkedin.com/in/richardbeaumont

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