Mammuthus primigenius

Saving your Job from Extinction

How to Make Procurement Relevant in

Today’s Times

Philip IdesonArt of Procurement

Zycus Horizon 2016

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

PHILIP IDESON

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15-year career as a procurement practitioner & service provider

Experience across entire procurement value chain including Head of Procurement

Now Independent Procurement Consultant & Founder / Host of Art of Procurement

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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Is the Procurement profession (and therefore your job) really at risk of extinction?

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the “intermediary” (that’s us)

has a product or service that meets the need

has a problem or a need

WHAT IS PROCUREMENT?

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HISTORY HAS NOT BEEN KIND TO “INTERMEDIARIES” THAT DO NOT EVOLVE

https://www.flickr.com/photos/mortendk/439403397/

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https://www.flickr.com/photos/thomashawk/5015948531

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https://www.flickr.com/photos/fsse-info/3145552974/

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WHAT WERE THEY THINKING – 5 YEARS PRE LIQUIDATION

“We are firmly committed to our global expansion plan”

“Borders has one of the most aggressive share repurchase programs I have ever seen” – Bill Ackman

“We are happy to announce that 2006 is off to a strong start. We will continue to focus on improved store profitability”

“Operating improvements and an ongoing investment in our core businesses, including store refurbishments are the key tenets of our plans for future growth”

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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FORTUNE FAVORS THE BRAVEZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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WHERE WILL PROCUREMENT BE IN X YEARS?

(insert number of years)

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THREE STEPS TO “SAVE” PROCUREMENT

1. Redefine our value proposition (or the perception of it)

2. Embrace the coming disruption

3. Develop the capabilities to execute

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1. REDEFINE OUR VALUE PROPOSITION

“all procurement cares about is cost savings”- everyone outside procurement

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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1. REDEFINE OUR VALUE PROPOSITION

“every $1 saved equals $X in revenue- how we justify ourselves

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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1. REDEFINE OUR VALUE PROPOSITION

Let’s think differently:

margin expansionbrand value

revenue generationorganizational agility

governance & compliance

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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1. REDEFINE OUR VALUE PROPOSITION

“make an impact that matters”- Lance Younger, Deloitte (Former CPO, Goldman Sachs)

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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1. REDEFINE OUR VALUE PROPOSITION

“solve business problems”- Mark Perera, Founder Old St Labs & Procurement Leaders

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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1. REDEFINE OUR VALUE PROPOSITION

Cost Savings

Value Contribution

Time

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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2. EMBRACE THE COMING DISRUPTIONSZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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2. EMBRACE THE COMING DISRUPTIONS

“business models are not meant to be static”

“one of my fears is being this big, slow bureaucratic company that is happy with its success. that will wind up being your death in the end”

- Mark Parker, CEO, Nike

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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Redesign the procurement delivery model

2. EMBRACE THE COMING DISRUPTIONS

self sourcinghybrid delivery modelsvariable cost structure

focus on value

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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2. EMBRACE THE COMING DISRUPTIONS

…and be there for our business partners as they explore what

these disruptions mean for them

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3. DEVELOP THE CAPABILITIES TO EXECUTE

Roster:

1. Visionary & Captain2. Architect3. Facilitator4. Delivery Manager5. Subject Matter Expert

• Category• Risk• Sustainability• Intelligence• Data Scientist

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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TAKEAWAYS

Is disruptive change coming to procurement?

Do we risk the future of our profession if we stand still?

Find out the model that will work for your company?company objectives & culture are key

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

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THREE STEPS TO “SAVE” PROCUREMENT

1. Redefine our value proposition (or the perception of it)

2. Embrace the coming disruption

3. Develop the capabilities to execute

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Start today!

Philip Idesonpideson@procurechange.com