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CPO Trends – What’s Coming
and How to be Ready
Webinar
4/16/2020
Panelists:
Dr. Madhav Durbha, Group VP of Industry Strategy, LLamasoft
Paul Bohr, MLSSBB, SCOR-P, CSCTA , President of SSPG
Mark Berlin, VP of Sourcing & Supply Chain, Elite Airline Services,
Formerly Leadership Partner, Supply Chain at Gartner
David Millington, SPSM3™, CPOE®, ASMEC®, MSc.QSM, NPDP, CL6σBB
Director of Education and Product Development for NLPA - dmillington@nextlevelpurchasing.com
Facilitated by
Ron Crabtree, CPIM, CIRM, CSCP, MLSSBB, SCOR-P, CSCTA
Executive / Organizational Transformation Coach
1Copyright by Next Level Purchasing Association, 2020
Topical Content
Polling Question – What Do You See As Trending?
Gain insights from four world-class experts about CPO Trends
and What To Do – Three Probing Questions
Polling Question – Trends to Learn More About
Prioritize your future learning; Polling Question
Q & A
2Copyright by Next Level Purchasing Association, 2020
3Copyright by Next Level Purchasing Association, 2020
Meet
Your
Panelists
Polling Question 1
Below is a list of Trends that are emerging. Using the polling tool, select which ones you think are most
pressing – select as many as you like
1. Innovation in Supply Strategies driven by Contagions and other Supply Disruption Events
2. Focus on ‘total cost of ownership’ strategies; leading to more ‘near shoring’ or ‘re-shoring’ of
sourcing.
3. Political and Socio-Economic driven changes to sourcing.
4. Industry-specific Technology Disrupters impacting supply decisions.
5. Industry-agnostic Technology Disrupters impacting supply decisions.
6. Human capital – attraction and development of the supply team of the future.
7. Supply Planning Innovation – new and different.
8. Shifting value generation strategies.
9. Supply Process Execution Innovation.
Use the Question Tool to add any suggestions you’d like to offer
4Copyright by Next Level Purchasing Association, 2020
Polling Question 1 – Panelist Consensus
1. Innovation in Supply Strategies driven by Contagions and other Supply
Disruption Events (3)
2. Focus on ‘total cost of ownership’ strategies; leading to more ‘near shoring’
or ‘re-shoring’ of sourcing. (1)
3. Political and Socio-Economic driven changes to sourcing. (2)
4. Industry-specific Technology Disrupters impacting supply decisions. (1)
5. Industry-agnostic Technology Disrupters impacting supply decisions.
6. Human capital – attraction and development of the supply team of the
future. (4)
7. Supply Planning Innovation – new and different.
8. Shifting value generation strategies.
9. Supply Process Execution Innovation. (1)
5Copyright by Next Level Purchasing Association, 2020
Panelist Question # 1
• What do you see as the Top Three emerging trends that
will impact the CPO and Procurement Professionals?
• For each, explain why it’s important for CPOs to be
aware of and prepared to deal with them;
• Which are the C-Suite most likely concerned about?
6Copyright by Next Level Purchasing Association, 2020
7
Copyright by Next Level Purchasing Association, 2020Copyright by Next Level Purchasing Association, 2020
Copyright by Next Level Purchasing Association, 2020 8
Supply Chain Leadership Talent Gap
How Well-Equipped Are Executives In Your Organization?
30
Conclusion: Talent is the Ultimate Differentiator
Source: “Developing Supply Chain Capability”, SCM World
95%Cross-Functional Collaboration
Collaboration With Suppliers
and Customers
Data-Driven Decision Making
Communication and
Influencing Skills
Managing Organizational Change
54%
94%
57%
93%
55%
93%
44%
91%
41`%
Important
Well-Equipped
ExecQtion™© ExecQtion 2019 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
9Copyright by Next Level Purchasing Association, 2020
Mark
Berlin:
David Millington – Q#1
1. The leverage of Procurement as a Profit and Value
Creating Function
2. Strong Focus on Sustainability of Supply Mechanisms
and Risk Management
3. The buzz: Going forward there will be a strong focus
on Relationship Management shifting from Supplier
Relationship Management
10Copyright by Next Level Purchasing Association, 2020
Panelist Question # 2
• Please elaborate on the top three benefits the CPO and
companies can realize if they act to prepare for and take
actions to deal with those trends you mentioned in the
first question
11Copyright by Next Level Purchasing Association, 2020
Copyright by Next Level Purchasing Association, 2020 12
Governance Team
Performance Improvement Plan
Governance of Performance
Integrated Action Plan
Discipline
& Culture
Project
Portfolio
Risk Mitigation
& Management
ExecQtion™© ExecQtion 2019 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
Mark Berlin Q# 2
1. IT Eco System
• Improved Revenue, WC, and CF
• Speed to Market
• Improved Capital Equipment Uptime
• Automated Procurement
2. Organization
• Leaders need to Articulate a Strategy
(One Page) Mark to send over slide later
today
• Right skill sets
3. Political, Business, Socio-Economic
• Speed to market
• Revenue and earnings
Copyright by Next Level Purchasing Association, 2020 13
David Millington – Q# 2
1. The leverage of Procurement as a Profit and Value
Creating Function
2. Strong Focus on Sustainability of Supply Mechanisms
and Risk Management
3. The buzz: Going forward there will be a strong focus
on Relationship Management shifting from Supplier
Relationship Management
14Copyright by Next Level Purchasing Association, 2020
Copyright by Next Level Purchasing Association, 2020 15
Panelist Question # 3
• For each of the three trends you mentioned in
question 1, please elaborate about strategies and
tactics the CPO and Procurement Professionals can
take now to ‘get ahead’ of the curve to gain
competitive advantage
16Copyright by Next Level Purchasing Association, 2020
Mark Berlin Q#3
Copyright by Next Level Purchasing Association, 2020 17
Mark
Berlin
– Q# 3
David Millington Q#3
Supply Disruption
Management Model
• Response
• Analysis
• Impact
• Failure Mode
• Supply Disruption
Copyright by Next Level Purchasing Association, 2020 18
Copyright by Next Level Purchasing Association, 2020 19
Copyright by Next Level Purchasing Association, 2020 20
Attribute Priority
(Force Ranked, 1-6
Current Gap
(Small, Medium, Large)
Customer
Reliability
Responsiveness
Agility
Internal
Cost
Asset Efficiency
Sustainability
Safety/Security
Balanced Scorecard Priorities
ExecQtion™© ExecQtion 2020 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
Polling Question 2
21Copyright by Next Level Purchasing Association, 2020
As discussed by the panelists, which of these Trends are you most interested in
learning more about? Pick as many as you like
1. Increased emphasis on risk mitigation & resiliency (Madhav); Supply Process Execution to
mitigate risk & uncertainty (Paul); Strong Focus on Sustainability of Supply Mechanisms and Risk
Management (David) Political, Business, and Socio-Economic driven changes to sourcing (Mark)
2. Cost focus will continue to be the case; increasingly so (Madhav)
3. IT Eco System (Mark); The need for digitalization via advanced analytics will accelerate (Madhav)
4. Innovation in supply strategies – Merging acquisition and sourcing strategies (Paul)
5. Human capital – the talent gap (Paul) Organization (Mark)
6. Procurement as a Profit and Value Creating Function (David)
7. Strong focus on Relationship Management shifting from Supplier Relationship Management
(David)
Final Polling Question 3
With respect to the Seven Procurement Leadership Competencies
Defined by NLPA, Which of these are the most interesting and you
want to learn more about?
Please pick as many as you like:
1. Leading the Corporate Strategic Planning Process
2. Lead Product Strategy and Design for Strategic Procurement
3. Design Procurement Function Strategy to Realize Corporate Strategy
4. Executing a Procurement Function Strategy with SCOR
5. Transforming the Procurement Function’s Effectiveness
6. Ability to Sustain Procurement Function Transformation
7. Big Picture View, Tying it Together
22Copyright by Next Level Purchasing Association, 2020
Copyright by Next Level Purchasing Association, 2020
23
For immediate support – virtual
guided learning, contact:
dmillington@nextlevelpurchasing.com
(860) 944-8193
Copyright by Next Level Purchasing Association, 2020
23
What we covered today
Polling Question – What Do You See As Trending?
Gain insights from four world-class experts about CPO Trends
and What To Do – Three Probing Questions
Polling Question – Trends to Learn More About
Prioritize your future learning; Polling Question
24Copyright by Next Level Purchasing Association, 2020
Q & A
Purposefully Blank Slide
Copyright by Next Level Purchasing Association, 2020 26
27
Copyright by Next Level Purchasing Association, 2020
Polling Question 1
Below is a list of Trends that are emerging. Using the polling tool, select as
many as you like…
1. Innovation driven by Pandemics and other Supply Disruption Events
2. More ‘near shoring’ or ‘re-shoring’ of sourcing
3. Political and Socio-Economic driven changes
4. Industry-specific Technology Disrupters
5. Industry-agnostic Technology Disrupters
6. Human capital – attraction and development
7. Supply Planning Innovation
8. Shifting value generation strategies
9. Supply Process Execution Innovation
28Copyright by Next Level Purchasing Association, 2020
Polling Question 2
29Copyright by Next Level Purchasing Association, 2020
Which Trends are you most interested in learning more about?
1. Increased emphasis on risk mitigation, uncertainty and sustainability
2. Cost focus
3. IT Eco System; The need for digitalization via advanced analytics
4. Innovation; Merging acquisition and sourcing strategies
5. Human capital – Talent Gap & Organization
6. Procurement as a Profit and Value Creating Function
7. Strong focus on Relationship Management with Suppliers
Final Polling Question 3
Please pick those most important to you:
• Leading the Corporate Strategic planning process
• Lead Product Strategy and Design for Strategic Procurement
• Design Procurement Function Strategy to Realize Corporate Strategy
• Executing a Procurement Function Strategy with SCOR
• Transforming the Procurement Function’s Effectiveness
• Ability to Sustain Procurement Function Transformation
• Big Picture View, Tying it Together
30Copyright by Next Level Purchasing Association, 2020
David Millington Q#3
31Copyright by Next Level Purchasing Association, 2020

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CPO Trends: What's Coming and How to be Ready

  • 1. CPO Trends – What’s Coming and How to be Ready Webinar 4/16/2020 Panelists: Dr. Madhav Durbha, Group VP of Industry Strategy, LLamasoft Paul Bohr, MLSSBB, SCOR-P, CSCTA , President of SSPG Mark Berlin, VP of Sourcing & Supply Chain, Elite Airline Services, Formerly Leadership Partner, Supply Chain at Gartner David Millington, SPSM3™, CPOE®, ASMEC®, MSc.QSM, NPDP, CL6σBB Director of Education and Product Development for NLPA - dmillington@nextlevelpurchasing.com Facilitated by Ron Crabtree, CPIM, CIRM, CSCP, MLSSBB, SCOR-P, CSCTA Executive / Organizational Transformation Coach 1Copyright by Next Level Purchasing Association, 2020
  • 2. Topical Content Polling Question – What Do You See As Trending? Gain insights from four world-class experts about CPO Trends and What To Do – Three Probing Questions Polling Question – Trends to Learn More About Prioritize your future learning; Polling Question Q & A 2Copyright by Next Level Purchasing Association, 2020
  • 3. 3Copyright by Next Level Purchasing Association, 2020 Meet Your Panelists
  • 4. Polling Question 1 Below is a list of Trends that are emerging. Using the polling tool, select which ones you think are most pressing – select as many as you like 1. Innovation in Supply Strategies driven by Contagions and other Supply Disruption Events 2. Focus on ‘total cost of ownership’ strategies; leading to more ‘near shoring’ or ‘re-shoring’ of sourcing. 3. Political and Socio-Economic driven changes to sourcing. 4. Industry-specific Technology Disrupters impacting supply decisions. 5. Industry-agnostic Technology Disrupters impacting supply decisions. 6. Human capital – attraction and development of the supply team of the future. 7. Supply Planning Innovation – new and different. 8. Shifting value generation strategies. 9. Supply Process Execution Innovation. Use the Question Tool to add any suggestions you’d like to offer 4Copyright by Next Level Purchasing Association, 2020
  • 5. Polling Question 1 – Panelist Consensus 1. Innovation in Supply Strategies driven by Contagions and other Supply Disruption Events (3) 2. Focus on ‘total cost of ownership’ strategies; leading to more ‘near shoring’ or ‘re-shoring’ of sourcing. (1) 3. Political and Socio-Economic driven changes to sourcing. (2) 4. Industry-specific Technology Disrupters impacting supply decisions. (1) 5. Industry-agnostic Technology Disrupters impacting supply decisions. 6. Human capital – attraction and development of the supply team of the future. (4) 7. Supply Planning Innovation – new and different. 8. Shifting value generation strategies. 9. Supply Process Execution Innovation. (1) 5Copyright by Next Level Purchasing Association, 2020
  • 6. Panelist Question # 1 • What do you see as the Top Three emerging trends that will impact the CPO and Procurement Professionals? • For each, explain why it’s important for CPOs to be aware of and prepared to deal with them; • Which are the C-Suite most likely concerned about? 6Copyright by Next Level Purchasing Association, 2020
  • 7. 7 Copyright by Next Level Purchasing Association, 2020Copyright by Next Level Purchasing Association, 2020
  • 8. Copyright by Next Level Purchasing Association, 2020 8 Supply Chain Leadership Talent Gap How Well-Equipped Are Executives In Your Organization? 30 Conclusion: Talent is the Ultimate Differentiator Source: “Developing Supply Chain Capability”, SCM World 95%Cross-Functional Collaboration Collaboration With Suppliers and Customers Data-Driven Decision Making Communication and Influencing Skills Managing Organizational Change 54% 94% 57% 93% 55% 93% 44% 91% 41`% Important Well-Equipped ExecQtion™© ExecQtion 2019 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
  • 9. 9Copyright by Next Level Purchasing Association, 2020 Mark Berlin:
  • 10. David Millington – Q#1 1. The leverage of Procurement as a Profit and Value Creating Function 2. Strong Focus on Sustainability of Supply Mechanisms and Risk Management 3. The buzz: Going forward there will be a strong focus on Relationship Management shifting from Supplier Relationship Management 10Copyright by Next Level Purchasing Association, 2020
  • 11. Panelist Question # 2 • Please elaborate on the top three benefits the CPO and companies can realize if they act to prepare for and take actions to deal with those trends you mentioned in the first question 11Copyright by Next Level Purchasing Association, 2020
  • 12. Copyright by Next Level Purchasing Association, 2020 12 Governance Team Performance Improvement Plan Governance of Performance Integrated Action Plan Discipline & Culture Project Portfolio Risk Mitigation & Management ExecQtion™© ExecQtion 2019 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
  • 13. Mark Berlin Q# 2 1. IT Eco System • Improved Revenue, WC, and CF • Speed to Market • Improved Capital Equipment Uptime • Automated Procurement 2. Organization • Leaders need to Articulate a Strategy (One Page) Mark to send over slide later today • Right skill sets 3. Political, Business, Socio-Economic • Speed to market • Revenue and earnings Copyright by Next Level Purchasing Association, 2020 13
  • 14. David Millington – Q# 2 1. The leverage of Procurement as a Profit and Value Creating Function 2. Strong Focus on Sustainability of Supply Mechanisms and Risk Management 3. The buzz: Going forward there will be a strong focus on Relationship Management shifting from Supplier Relationship Management 14Copyright by Next Level Purchasing Association, 2020
  • 15. Copyright by Next Level Purchasing Association, 2020 15
  • 16. Panelist Question # 3 • For each of the three trends you mentioned in question 1, please elaborate about strategies and tactics the CPO and Procurement Professionals can take now to ‘get ahead’ of the curve to gain competitive advantage 16Copyright by Next Level Purchasing Association, 2020
  • 17. Mark Berlin Q#3 Copyright by Next Level Purchasing Association, 2020 17 Mark Berlin – Q# 3
  • 18. David Millington Q#3 Supply Disruption Management Model • Response • Analysis • Impact • Failure Mode • Supply Disruption Copyright by Next Level Purchasing Association, 2020 18
  • 19. Copyright by Next Level Purchasing Association, 2020 19
  • 20. Copyright by Next Level Purchasing Association, 2020 20 Attribute Priority (Force Ranked, 1-6 Current Gap (Small, Medium, Large) Customer Reliability Responsiveness Agility Internal Cost Asset Efficiency Sustainability Safety/Security Balanced Scorecard Priorities ExecQtion™© ExecQtion 2020 ExecQtion, SCTL, CSCTA area Trademarks of SSPG, Inc. Proprietary Document
  • 21. Polling Question 2 21Copyright by Next Level Purchasing Association, 2020 As discussed by the panelists, which of these Trends are you most interested in learning more about? Pick as many as you like 1. Increased emphasis on risk mitigation & resiliency (Madhav); Supply Process Execution to mitigate risk & uncertainty (Paul); Strong Focus on Sustainability of Supply Mechanisms and Risk Management (David) Political, Business, and Socio-Economic driven changes to sourcing (Mark) 2. Cost focus will continue to be the case; increasingly so (Madhav) 3. IT Eco System (Mark); The need for digitalization via advanced analytics will accelerate (Madhav) 4. Innovation in supply strategies – Merging acquisition and sourcing strategies (Paul) 5. Human capital – the talent gap (Paul) Organization (Mark) 6. Procurement as a Profit and Value Creating Function (David) 7. Strong focus on Relationship Management shifting from Supplier Relationship Management (David)
  • 22. Final Polling Question 3 With respect to the Seven Procurement Leadership Competencies Defined by NLPA, Which of these are the most interesting and you want to learn more about? Please pick as many as you like: 1. Leading the Corporate Strategic Planning Process 2. Lead Product Strategy and Design for Strategic Procurement 3. Design Procurement Function Strategy to Realize Corporate Strategy 4. Executing a Procurement Function Strategy with SCOR 5. Transforming the Procurement Function’s Effectiveness 6. Ability to Sustain Procurement Function Transformation 7. Big Picture View, Tying it Together 22Copyright by Next Level Purchasing Association, 2020
  • 23. Copyright by Next Level Purchasing Association, 2020 23 For immediate support – virtual guided learning, contact: dmillington@nextlevelpurchasing.com (860) 944-8193 Copyright by Next Level Purchasing Association, 2020 23
  • 24. What we covered today Polling Question – What Do You See As Trending? Gain insights from four world-class experts about CPO Trends and What To Do – Three Probing Questions Polling Question – Trends to Learn More About Prioritize your future learning; Polling Question 24Copyright by Next Level Purchasing Association, 2020
  • 25. Q & A
  • 26. Purposefully Blank Slide Copyright by Next Level Purchasing Association, 2020 26
  • 27. 27 Copyright by Next Level Purchasing Association, 2020
  • 28. Polling Question 1 Below is a list of Trends that are emerging. Using the polling tool, select as many as you like… 1. Innovation driven by Pandemics and other Supply Disruption Events 2. More ‘near shoring’ or ‘re-shoring’ of sourcing 3. Political and Socio-Economic driven changes 4. Industry-specific Technology Disrupters 5. Industry-agnostic Technology Disrupters 6. Human capital – attraction and development 7. Supply Planning Innovation 8. Shifting value generation strategies 9. Supply Process Execution Innovation 28Copyright by Next Level Purchasing Association, 2020
  • 29. Polling Question 2 29Copyright by Next Level Purchasing Association, 2020 Which Trends are you most interested in learning more about? 1. Increased emphasis on risk mitigation, uncertainty and sustainability 2. Cost focus 3. IT Eco System; The need for digitalization via advanced analytics 4. Innovation; Merging acquisition and sourcing strategies 5. Human capital – Talent Gap & Organization 6. Procurement as a Profit and Value Creating Function 7. Strong focus on Relationship Management with Suppliers
  • 30. Final Polling Question 3 Please pick those most important to you: • Leading the Corporate Strategic planning process • Lead Product Strategy and Design for Strategic Procurement • Design Procurement Function Strategy to Realize Corporate Strategy • Executing a Procurement Function Strategy with SCOR • Transforming the Procurement Function’s Effectiveness • Ability to Sustain Procurement Function Transformation • Big Picture View, Tying it Together 30Copyright by Next Level Purchasing Association, 2020
  • 31. David Millington Q#3 31Copyright by Next Level Purchasing Association, 2020

Editor's Notes

  1. Meet Organization Goals by Leveraging Expert Procurement Capabilities
  2. Meet Organization Goals by Leveraging Expert Procurement Capabilities
  3. please rate each of the following in its level of CRITICALTY for Procurement Professionals to consider going forward. Scale of 1 to 5 for each. 1= not very important, 2 = somewhat important, 3 = important, 4 = very important, 5 = Enterprise Mission Critical in 2020 and beyond. We will compare your views with the audience view, for fun! Procurement process challenges – the ability of the firm’s people, processes and internal systems to deliver competitive advantage in 2020. Supply Risk and Sustainability challenges in the face of ever-changing political and environmental stewardship responsibilities being legislated around the world, scarcity of certain materials. Increasing difficult logistical challenges; tariffs, import/export customs, outsourced logistics, shortages of truck drivers, relentless pressure on logistic costs, logistical disruptions of supply. Understanding IT / Technology Change Procurement Pros need to know about in 2020 and beyond. Includes impact of Industry 4.0 on procurement, advanced planning and network optimization technologies.
  4. please rate each of the following in its level of CRITICALTY for Procurement Professionals to consider going forward. Scale of 1 to 5 for each. 1= not very important, 2 = somewhat important, 3 = important, 4 = very important, 5 = Enterprise Mission Critical in 2020 and beyond. We will compare your views with the audience view, for fun! Procurement process challenges – the ability of the firm’s people, processes and internal systems to deliver competitive advantage in 2020. Supply Risk and Sustainability challenges in the face of ever-changing political and environmental stewardship responsibilities being legislated around the world, scarcity of certain materials. Increasing difficult logistical challenges; tariffs, import/export customs, outsourced logistics, shortages of truck drivers, relentless pressure on logistic costs, logistical disruptions of supply. Understanding IT / Technology Change Procurement Pros need to know about in 2020 and beyond. Includes impact of Industry 4.0 on procurement, advanced planning and network optimization technologies.
  5. Meet Organization Goals by Leveraging Expert Procurement Capabilities
  6. Context – Procurement needs direction from the enterprise to understand the degree of appetite for taking on risk the bank has. The degree of appetite for risk will vary for each type of risk and the nature of the impact on elements such as: regulatory compliance risk, cost, reputation, legal liability, loss of revenue, etc.
  7. please rate each of the following in its level of CRITICALTY for Procurement Professionals to consider going forward. Scale of 1 to 5 for each. 1= not very important, 2 = somewhat important, 3 = important, 4 = very important, 5 = Enterprise Mission Critical in 2020 and beyond. We will compare your views with the audience view, for fun! Procurement process challenges – the ability of the firm’s people, processes and internal systems to deliver competitive advantage in 2020. Supply Risk and Sustainability challenges in the face of ever-changing political and environmental stewardship responsibilities being legislated around the world, scarcity of certain materials. Increasing difficult logistical challenges; tariffs, import/export customs, outsourced logistics, shortages of truck drivers, relentless pressure on logistic costs, logistical disruptions of supply. Understanding IT / Technology Change Procurement Pros need to know about in 2020 and beyond. Includes impact of Industry 4.0 on procurement, advanced planning and network optimization technologies.