CPOstrategy – October 2019

I s sue 7 • October 2019 • www.cpostrateg y.com

DIGITAL DISRUPTION IN BROADCAST MEDIA

EXC LUSIVE

Negotiation techniques in procurement

DEVELOPING AND OPTIMISING PROCUREMENT

Joseph Lee, Vice President of Procurement and Subcontracts, explores how AECOM optimises its procurement to become a strategic sourcing organisation

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Welcome to the October issue of CPOstrategy!

This month’s exclusive cover story features an interview with Joseph Lee, Vice President of Procurement and Subcontracts at AECOM Management Services, who tells us how the company optimises its procurement to become a strategic sourcing organisation.

Lee leads all procurement and subcontracting for AECOM’s Management Services Group — an organisation with more than US$4 billion in annual revenue and operations in more than 25 countries. Joining the business in early 2017, Lee was tasked with creating a plan to transform the procurement organisation and to assess it in its existing format. Here, he found that procurement was still viewed as something of a cost centre.

“They received requirements and executed them.

That was it,” he explains. “There was little value-add; no metric, performance or accountability to the team.

After assessing, I recommended we stand up a strategic organisation; one more forward-leaning that could negotiate long-term agreements in order to create efficiencies in our transactions…”

We also feature an incredible article with Maytham Al-Khairulla, VP of Business Support at OSN, while negotiation techniques in procurement are discussed

by Eman Abouzeid, Global Procurement and Supply Chain Professional.

I hope you enjoy the issue!

E DI TOR I N CH I E F Andrew Woods

SO CIAL M E DIA MANAG E R Callum Rivett

CON T R I B U T I NG E DI TORS Dale Benton Kevin Davies

CR E AT IVE L E AD Mitchell Park

VP T E CH NOLO G Y Andy Lloyd

VP P RO C U R E M E N T Heykel Ouni

P R E SI DE N T & CE O Kiron Chavda

ndrew Woods, Editor in chief A content@b2e-media.com

PUBLISHED BY

3

Contents

08 AECOM

6

24

NEGOTIATION TECHNIQUES IN PROCUREMENT

34 OS N

46 5 THINGS

58 EVENTS

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d Heads of Procurement

AECOM MANAGEMENT SERVICES: DEVELOPING AND OPTIMISING PROCUREMENT WRITTEN BY D a l e B e n to n PRODUCED BY H ey ke l O u n i 2

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JOSEPH LEE, VICE PRESIDENT OF PROCUREMENT AND SUBCONTRACTS, EXPLORES HOW AECOM OPTIMISES ITS PROCUREMENT TO BECOME A STRATEGIC SOURCING ORGANISATION

found that procurement was still viewed as something of a cost centre.

“They received requirements and executed them. That was it,” he explains. “There was little value-add; no metric, performance or accountability to the team. After assessing, I recommended we stand up a strategic

W

hether it’s building iconic

organisation; one more forward-lean-

skyscrapers, planning new

ing that could negotiate long-term

cities, delivering clean water

agreements in order to create efficien-

and energy, securing nations or building economic infrastructure, AECOM is a company that delivers projects and programs to improve people’s lives in more than 120 countries worldwide.

Naturally, given the scope of its portfolio, AECOM requires a procurement and supply chain function that goes above and beyond the traditional procurement role - one that is often passive and reactive. This is where Joseph Lee, Vice President of Procurement and Subcontracts for AECOM’s Management Services Group, comes into the fold. The Management Services Group is responsible for providing services for federal governments around the globe. Joining the business in early 2017, Lee was tasked with creating a plan to transform the procurement organisation and to assess it in its existing format. Here, he 4

AECOM

cies in our transactions. The idea was

to create a strategic sourcing organ-

from PR requisitioning to the buying:

isation that manages multiple cate-

a process that would normally take

gories and, from there, a procurement

around 10 days. Lee looked at reduc-

organisation drawing from strategic

ing that to one or two days and pushing

agreements in place.”

it even further to around 30 minutes.

Once this plan was approved, Lee

“Another element we looked at is tech-

turned his attention to other efficien-

nology as a tool to manage our end-to-

cies, and he brought in Lean Six Sigma

end supply chain, because we only had

Black Belt to look at the company’s

a single, transactional tool in place,”

processes and develop ways in which

says Lee. “What we have done is reach

they could be improved. This would

out to Amazon Business, which gives

include building greater cycle times

you more tools and visibility, allowing

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5

FOR MODERN SUPPLY CHAIN AND PROCUREMENT IT,

AECOM CHOSE IFS

AECOM’s Management Services Group is transforming their supply chain and procurement processes with IFS Applications, helping them become more agile, flexible and responsive to the dynamic mission priorities of their federal and commercial customers. #forthechallengers

you to have more sourcing capabilities

an operational perspective to buy

and be able to bucket and source with

through the company’s contracted

limited suppliers.”

suppliers. On paper, these transform-

Following the implementation of

ative steps sound simple, but they

Amazon Business, AECOM can better

allowed AECOM Management Services

control its tail spend allowing Lee to

to see clear successes as part of this

look at generating even more effi-

journey. However, Lee is quick to high-

ciency in the company’s purchas-

light that there is always challenge in

ing. Lee increased the dollar thresh-

transformation, particularly when it

old for micro-purchases from $3,500

comes to procurement.

to $10,000 allowed by the Federal

Lee approached the challenges in

Acquisition Regulation (FAR). What

three key areas: people, processes,

this did was give the ability back

and tools. Given the new tools that Lee

to AECOM’s internal customers,

had implemented, he needed to ensure

giving them what they need from

that he had the right people with the w w w. cp o stra te g y. co m

7

right capabilities in order to deliver on the promise of these new processes.

“There’s two parts of what we are planning to do with our people,” explains Lee. “We’re actually making the investment, we’re training them, we’re helping them understand the value of customer service. We’re actually making the investment. We’re training them, and we’re helping them understand what customer service is. We’re helping them improve on their visibility, transparency to our customer, and we’re providing them with the tools to be more successful. Likewise, we’re bringing in more seasoned strategic sourcing folks to run and execute our strategic sourcing plan.”

Lee is a firm believer in developing people. He highlights that in the three areas - people, processes, and tools, no single area should fail, but he places people at the very top of the list with regards to importance. “When you’re making investment into viewing your process, into automating your process, and putting in the tools, you also need to make that investment to your people.

You need to go back and look at their capabilities and identify the gaps,” he says. “You just don’t hire someone because they have the background, the education, and the skills, to be able 8

AECOM

to execute then put them to work and that’s it for the next maybe five or 10 years. You continue to develop them, just like you’re continuing to enhance your process.”

The goal for AECOM Management Services was to become a forward leaning, strategic sourcing organisation. But what does strategic sourcing mean to AECOM? Lee admits that it can mean many things to procurement professionals and organisations around the world, but for him, it’s simple: “It’s about aggregating your spend to optimise your buy,” he says. “What this means is

“ WHEN YOU’RE MAKING INVESTMENT INTO VIEWING YOUR PROCESS, INTO AUTOMATING YOUR PROCESS, AND PUTTING IN THE TOOLS YOU ALSO NEED TO MAKE THAT INVESTMENT TO YOUR PEOPLE. YOU NEED TO GO BACK AND LOOK AT THEIR CAPABILITIES AND IDENTIFY THE GAPS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

that you can look at your spend category and go back to your business customer, then start understanding the forecasts to be able to leverage your spend and then go back to the suppliers.

You are optimising your buy because you understand the volume better to be able to drive your cost down.”

Procurement is built in equal parts by its internal operations and its external robust supplier network. As AECOM transforms its procurement process for its government clients, this has an impact on the supplier relationships that are in place. As Lee notes, strategic sourcing doesn’t stop at the internal level. “It’s a 360-degree cycle,” he says. w w w.a e com.com

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“We have supplier meetings on a quar-

a licence to do that and that’s what I call

terly basis to understand the spends

supplier engagement.”

and understand the forecasts. Only then can you adjust your forecast.”

“Your supplier is not only working with

The journey of transformation is one of continuous evolution and following the successful implementation of

you as part of your relationship. They

Amazon Business and Lean Six Sigma,

understand your requirements and we

Lee is already working on the next form

encourage them to be more of an inno-

of evolution. AECOM is currently testing

vative contributor to our business. What

Robotic Process Automation (RPA) and

I mean by that is, we have a strategic

improving supply chain technology and

long-term agreement with the suppli-

execution. Here, the company is working

ers, and they see our requirements and

closely with global software company

our patterns over time. I want them

UiPath and global enterprise applica-

to be able to come to me and identify

tions company IFS, respectively.

ways in which we could do something cheaper, or more efficiently. They have

AECOM is working with IFS to implement a full-suite ERP system that w w w. cp o stra te g y. co m

11

“ Y OU JUST DON’T HIRE SOMEONE BECAUSE THEY HAVE THE BACKGROUND, THE EDUCATION, THE SKILLS, TO BE ABLE TO EXECUTE, AND PUT THEM TO WORK, AND THAT’S IT FOR THE NEXT MAYBE FIVE OR 10 YEARS. YOU CONTINUE TO DEVELOP THEM, JUST LIKE YOU’RE CONTINUING TO ENHANCE YOUR PROCESS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

is robust and modular and allows for sourcing and contract management while also providing greater control over risk mitigation, property management and logistics. With IFS Applications, AECOM will be able to automate and streamline numerous front and back office processes, enabling the company to tighten the procurement cycle, regardless of whether inventory is received at an AECOM warehouse, a customer location or a construction site.

The technology will allow AECOM to be more agile, flexible and responsive to the dynamic mission priorities of their federal and commercial customers.

“They also have a ‘lobby platform’ that is a dashboard in which we can access everything,” says Lee. “With IFS, we realised that with what we need today, and what we need in the future, they are the ideal partner to help us get there on both fronts. We work side by side with IFS.” With UiPath, AECOM has proven out the use of Robotic Process Automation (RPA) where software “robots” act as digital workers to automate common and repetitive tasks. Any process that is manual, time consuming, fairly structured and data collection are all candidates for Robotic Process 14

AECOM

“ YOUR SUPPLIER IS NOT ONLY WORKING WITH YOU AS PART OF YOUR RELATIONSHIP, THEY UNDERSTAND YOUR REQUIREMENTS AND WE ENCOURAGE THEM TO BE MORE OF AN INNOVATIVE CONTRIBUTOR TO OUR BUSINESS” — JOE LEE VICE PRESIDENT, PROCUREMENT AND SUBCONTRACTS AECOM

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Joe Lee Vice President, Procurement and Subcontracts AECOM Joe Lee is the Vice President of Procurement and Subcontracts for AECOM Management Services. Joe joined Management Services in 2017, leading a geographical and diverse group of procurement and subcontracts professionals. His organization is responsible for overseeing the acquisition, planning and execution, performance management, and risk mitigation of Management Services suppliers across all programs both domestic and international.

Prior to AECOM Management Services, Joe worked at Raytheon as Director of Supply Chain leading the Subcontracts group responsible for the acquisition of various raw materials, products and services for a successful end-to-end supply chain for all manufacturing requirements.

Before Raytheon, Joe worked at Deloitte and TouchÊ where he has held various leadership positions. He served as Practice Leader in Subcontracts and Procurement leading his team in support of the Federal System and Grant Management. Under his leadership, the team transformed from a passive to a strategic organization contributing in Deloitte’s business growth in the MENA region. He also held a position in Risk Management and Corporate Compliance Joe earned his undergraduate degree in Business Administration from the University of the East, and completed his Masters Certificate in Government Contracts at George Washington University

Automation (RPA). AECOM is testing

transformation journey, but Lee is quick

the implementation of bots into their

to recognise that no transformation ever

repetitive processes, again covering

really ends. In fact, he believes it is his

the areas of risk mitigation with their

responsibility to continue to improve and

supplier’s source selection and due

optimise the organisation every day.

diligence. “The source selection and

Where will the company be in a year’s

due diligence process entail accessing

time? “Probably with more tools that

and collecting data from a variety of

I have implemented and will be imple-

sources in order to determine suppli-

menting as part of the process improve-

ers financial, corporate integrity, and

ment and optimisation,” he says. “It

operational capabilities and capacities

never ends. Whether that’s from a

to meet AECOM’s business objectives

people, process or tools perspective.

and minimise risks in our supply chain,”

You don’t stop. Continue to develop and

explains Lee.

optimise your organisation in order to

In a few short years, AECOM has

keep you on top of your game.”

already come a long way along this

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Negotiation techniques in procurement Eman Abouzeid, Global Procurement and Supply Chain Professional reveals the secrets to great negotiation in procurement‌ WRITTEN BY E m a n A b o u ze i d

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N

egotiation is a two-way communication skill. One person has one price or idea

in mind, while the other person has a different price or idea. Therefore, negotiation is defined as a discussion with the aim of ultimately agreeing on a price or outcome that is acceptable to both parties.

It may be that both parties get 100% of what they set out to achieve, or that one person gets exactly what they want and the other person does not, or that a third outcome is agreed that goes some way to meeting the requirements or expectations of both parties.

Of course, there will also be situations where the parties cannot agree and the deal is not done.

As a procurement professional, you would probably associate negotiation

Negotiation is partly an internal

with commercial negotiations of price

process (e.g. when buyers negotiate

and other contract terms (payment,

with user departments over the details

delivery, quality, and so on). However,

of a requisition) and is partly exter-

negotiation is a fact of life, every-

nal process (e.g. negotiations between

one negotiates something every day.

buyers and external suppliers).

Negotiation is a basic means of getting

In this article, we will explore the

what you want from others, it is a back-

process of negotiation and some of the

and-forth communication designed to

techniques that can be implemented, in

reach an agreement when you and the

order to ensure having an effective and

other party has some interests that are

successful negotiation process with

shared and others that are opposed.

different parties.

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N E G OT I AT I O N T E C H N I Q U E S I N P R O C U R E M E N T

Negotiation typically follows a set

starting position for the negotiations –

process with the following five key

price, terms, etc.

steps: 2. DEFINING GROUND RULES 1. PREPARATION AND PLANNING

Each party needs to know what is

Both parties will prepare and research

expected of them, for example, by deciding:

the information needed to confirm their

• Where the negotiations will take place.

position. They also need to consider the history of the negotiation – how they got to where they are today. It is important to consider what the desired outcome will be but also to consider the

If there are any time constraints.

• I f there are any issues not for considerations or off limits.

• What will happen if an agreement is not reached. w w w.c postrate gy.com

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“ The ideal solution should be a ‘win-win’ situation where each side feels they have achieved something that satisfies both parties’ interests; in this case, they may build a lasting and productive relationship” — EMAN ABOUZEID GLOBAL PROCUREMENT AND S U P P LY C H A I N P R O F E SS I O N A L

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N E G OT I AT I O N T E C H N I Q U E S I N P R O C U R E M E N T

3. EXCHANGE INFORMATION: CLARIFICATION AND JUSTIFICATION Each party explains their position. In the case of a supply contract negotiation, the buyer will describe what they want to purchase, and the seller will describe what they offer and what the benefits will be for the buyer. Having prepared thoroughly for the negotiations each party should have all the information required to educate the other party.

4. BARGAINING AND PROBLEM SOLVING This is where the ‘give-and-take’ of negotiation happens. It needs to be an open exchange with both parties seeking a solution that will be worthwhile for each other. Eventually, they should agree on an outcome.

The ideal solution should be a ‘win-win’ situation where each side feels they have achieved something that satisfies both parties’ interests; in this case, they may build a lasting and productive relationship.

However, where the buyer has the power and there is an alternative supplier that will fully meets the buyer’s needs then there is nothing wrong with a win-lose for the buyer. Not all transactions require collaborative and long-lasting relationships. w w w.c postrate gy.com

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5. CLOSE: COMMITMENT AND IMPLEMENTATION This step is about clarifying the agreement and starting to put in place what has been agreed by recording the details, including the timescale, and how it will be implemented.

In a business environment there is likely to be a contract which each party will need to sign. There may be some further negotiations over detailed terms of the contract that may not have been covered in the main negotiation process.

NEGOTIATION PERSONALITIES:

• Open, hard: will listen to the other party,

In your negotiations with others you will

but may still stick to their position.

encounter several different approaches,

•O pen, soft: will trust and follow the

which may be related to the negotiator’s

other party.

personality, or related to the context

• Closed, hard: may stick to a rigid stance.

and circumstances of the negotiation.

• Closed, soft: cautious but willing to listen.

You can consider these as being on a scale of hard and soft, and open and

It is important to be aware of your own

closed as demonstrated below:

style as well as that of the person you are negotiating with, when you are willing to

• Hard: tough and challenging negotiator.

adapt, you will achieve the best rapport.

• S oft: easy to get along with but may say ‘yes’ just to avoid conflict.

• O pen: very trusting and open – and assumes others to be the same.

• Closed: may be cautious and apprehensive about sharing any information.

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N E G OT I AT I O N T E C H N I Q U E S I N P R O C U R E M E N T

HOW TO HANDLE NEGOTIATIONS

BE PROFESSIONAL:

SUCCESSFULLY:

• Keep careful control of your emotions

When negotiating, keep in mind the

even if other negotiating parties

following advice and tips on how to deal

become upset or annoyed.

with the negotiation process.

• Never promise something that cannot be achieved.

LISTEN: • Listen carefully and observe the other side’s point of view.

• If you do not listen carefully, you could miss opportunities.

COMMUNICATION: • To succeed you must be able to clearly and effectively put across your position to the other party.

ANALYSE:

PATIENCE:

• Analytical skills are helpful for assessing

• Always respect the other party and be

the situation as negotiation progress.

• They are also useful when problem solving if negotiations reach a blockage.

patient with them, even if they are not patient with you.

• The other party may need to take more w w w.c postrate gy.com

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time than you would like to consider your proposal.

• Remain calm and in control of the situation to maintain a good business relationship.

PROBLEM SOLVING: • Identify problems, issues, risks and challenges when they arise.

• Do not try to evade them – work out a solution.

PERSUASION: • Getting someone (or a group) to do something that you want them to do.

THE MAIN CRITERIA OF EFFECTIVE NEGOTIATIONS: Negotiation is considered as an “effective negotiation” if it has the following four criteria:

4. “ Working relationships or business partnerships” are preserved or

1. The negotiation has produced “a

even enhanced.

wise agreement” – one that is satisfactory for both sides, and divisive

IN CONCLUSION:

issues are satisfactorily resolved.

Negotiation is “the art of letting the

2. The negotiation is “efficient” – no

other person have it your way!” You

more time-consuming or costly

should get the deal you want whilst

than necessary.

making your opponent feel the same.

3. The negotiation is “harmonious”

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Short-term victories will not create

– fosters rather than inhibits good

long-lasting business relationships.

interpersonal relationships.

Both sides must leave the negotiation

N E G OT I AT I O N T E C H N I Q U E S I N P R O C U R E M E N T

“ Negotiation is “the art of letting the other person have it your way!” You should get the deal you want whilst making your opponent feel the same” — EMAN ABOUZEID GLOBAL PROCUREMENT AND S U P P LY C H A I N P R O F E SS I O N A L

table believing that they have gained.

Therefore, no skill is more central to your professional career than the skill of negotiation, and as negotiations expert Chester L. Karrass famously put it, “In business, as in life, you do not get what you deserve, you get what you negotiate”.

I hope this has been of interest to you and furnished you with some knowledge to consider.

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DIGITAL DISRUPTION IN BROADCAST MEDIA Through operational efficiency and procurement strategising, OSN navigates the ever-evolving landscape of digital broadcast media WRITTEN BY D a l e B e n to n

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OSN

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O

ne of the largest global industries, most susceptible to and dictated by innovation and

digital disruption, is multimedia entertainment. From its earliest iterations back in the early 20th century, television and broadcast media has defined and redefined the media landscape and with the advent of digital media and streaming and on demand services placing the power of choice directly into the customer’s hands, it shows no signs of slowing down.

“What we are seeing is a global phenomenon, where the number of linear television channels are being reduced to primarily news and sports content, because these are live and viewers want to watch them live,” explains Maytham Al-Khairulla, VP of Business Support at OSN, the leading entertainment network across 24 regions across MENA. “But when

business.” He also clarified that “It is of

it comes to movies, series and docu-

note to mention that our move to digital

mentaries, what we started to see is

refers to transferring our video assets

a lot of that content moving to Video

to the digital cloud and further digitising

On Demand VOD and the Over The Top

our operation; it does not mean that our

(OTT) applications hosted on cloud

content will only exist on digital plat-

servers, viewers want to flexibility to

forms. The way we deliver our content

watch the content at their own time”.

to will not change in the immediate

So, we are now in the middle of what

future and our subscribers will continue

we call a digital transformation of the

to enjoy all of our amazing content

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OSN

“ What we are seeing is a global phenomenon, where the number of linear television channels are being reduced to primarily news and sports content, because these are live and viewers want to watch them live” — REEM ASHRAF HEAD OF PROCUREMENT OSN

through our box”.

Al-Khairulla has worked with OSN for

function in order to strategise the technology sourcing of the business. This

close to 20 years and has witnessed

is where Reem Ashraf came into OSN

first-hand this evolving media land-

as Head of Procurement. Bringing with

scape. This in turn has seen his respon-

her significant experience in the tele-

sibilities within the business change

communications industry, particularly

in order to drive value and operational

in the sourcing of technology, Ashraf’s

efficiency to better serve the region’s

major responsibility is to enable OSN

digital media demands. In 2015, he was

to be “one step ahead of the game of

tasked with building a procurement

digitalisation”. w w w.c postrate gy.com

37

“Typically, 70% of organisational spend is on third parties, with the remaining 30% spent internally,” she explains. “If they want to adapt to a certain industrial change or evolution, then they must reconsider this big chunk of their spend capacity to the external party. That’s where we are right now at OSN, we are looking to be one step ahead of digitalisation and internet based consumption, whether it’s from the client side or from the vendor.”

One of the biggest changes Ashraf has witnessed is in the spend behaviour of marketing. Only as recent as two years ago, the largest spend in marketing was in an offline capacity, with banners and artwork. Now the spend lies heavily in the digital world. “While this may not have as much of an impact on how much or little we spend, it’s about how wisely we spend in that space,” she says. “We need to be elevating our knowledge as to how to consume the budget in a very efficient way in the digital space. Will it be on cost per click, or per impression? With influencing and blogging ad space growing, alongside Instagram and Facebook, we need to look at how OSN can efficiently spend in that space.”

The key for OSN here, Ashraf believes, 38

OSN

“ The technology procurement professional has to go out there and maintain a very close collaboration with the main cloud providers in the region” — REEM ASHRAF HEAD OF PROCUREMENT OSN

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39

is for its procurement function to under-

must be “on top of their game” in order

stand the evolution of the business

to stay ahead. “OSN is a pioneer in

and how to efficiently commercialise

deploying a cloud first policy that means

its deals in order to create the maxi-

for any internal services or software

mum benefit and create a commercial

requirements from the business units,

edge. On paper, the idea of adapting and

we deploy a cloud first adoption that

evolving may seem simple, but Ashraf

does not consume a lot of on-premise

understands that there are challenges

technology capacity,” explains Ashraf.

that must be overcome. Procurement

“The technology procurement profes-

is a valuable function, one that has

sional has to go out there and maintain

horizontal liability and vertical liability

a very close collaboration with the main

and Ashraf believes that procurement

cloud providers in the region. We have to

professionals need to adopt different

keep a very close eye on the technology

spend trends and behaviours across

vendors, and the technology OEM, as

industries. “Procurement setups have to have adaptation within their DNA for them to serve multiple industries, if they want to elevate their knowledge and expertise,” she explains. “With the media industry, OSN’s procurement function has definitely adapted in order to accommodate the updated requirements of the business. We operate categorically within the procurement function.”

For every category of spend, OSN has a procurement professional handling those transactions. This takes the form of technology spend, marketing spend and general and administrative spend, to name a few. Each category manager

40

OSN

we’re about to deploy cloud data centres

business units, it needs to be aware of

that are geographically present in the

what technologies or new systems or

UAE. You have to be ahead of your game

approaches are being used to service

in that.” This same approach applies

OSN’s clients. This in turn requires

to the marketing spend; the category

proactive and efficient communica-

manager has to elevate their knowledge

tion with vendors to explore their build

in order to understand which digital

maps and their view of what technol-

marketing agencies are performing the

ogy advancements they are witness-

best in the UAE and which have the best

ing in the industry. “OSN needs to

leverage in the social media space.

be analysing and evaluating how far

A procurement function is only

the vendors have advanced for them

as strong as its supplier and vendor

to help OSN with their technological

network and Ashraf understands that,

and digital advancements,” explains

in working closely with the different

Sharif. “We need to be recalibrating our

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OSN

engagements with the suppliers, probably introducing new suppliers into our ecosystem, and deploying new technologies.”

Al-Khairulla concurs, and points to an example in which suppliers of cable, dishes and equipment required to install satellite reception, supply OSN with equipment for testing in the region. “They send us new technologies to test here in Dubai,” he says. “Because of the heat and humidity levels being so different than say, Europe or China, they test it here. There are sometimes specific cases with suppliers who are involved with us during the research and development of new technologies. OSN is a very good opportunity for global suppliers to enter into the Middle East market.”

A key part of Al-Khairulla’s role is to look at implementing operational efficiency across OSN, which is no small feat for a company that spans 24 countries.

“It’s about looking at each department and the energy generated,” he says. “Then we look at how we can generate more revenue as we look at the cost and how we can optimise it. For example, we constantly go back and negotiate the prices to make sure that they are suitable for what we need, and deploy the latest technology to make sure that the technology provides a good quality viewership to our customers.”

The media landscape is one of constant flux, with today’s means of consuming entertainment painting a very different picture than that of 10 years ago.

The challenge for organisations like OSN is to try and understand what the landscape of tomorrow will look like. “We’re in the middle of the disruptive era of media,” says Ashraf. “Everyone is in the process w w w.c postrate gy.com

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“ We’ve taken a leap of faith in terms of digital spend and digital transformation spend” — REEM ASHRAF HEAD OF PROCUREMENT OSN

44

OSN

of figuring out what will make sense and what will monetise, and what will sustain year on year and in the coming three to five years with regards to the future of television and the future of media consumption and media viewership.”

“Even vendors in the vendor ecosystem, are in the middle of this destructive era as well. So, they are going hand in hand with OSN to figure out what makes sense commercially and technologically, and what doesn’t. Organisations who figure out this critical equation are going to sustain the most, and I believe OSN is in that path as well. We’ve taken a leap of faith in terms of digital spend, and digital transformation spend. I would say a very big portion of this has proved a success.”

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND WRITTEN BY D a l e B e n to n WITH CONSTANT INNOVATION AND MARKETPLACES CHANGING FASTER THAN EVER BEFORE, PROCUREMENT IS UNDERGOING ITS OWN TRANSFORMATION. INCREASINGLY, COMPANIES ARE LOOKING TO SUPPORT FASTER, DECENTRALISED PROCUREMENT FUNCTIONS THAT WILL IN TURN ALLOW FOR DECENTRALISED DECISION MAKING. HERE WE LOOK AT 5 KEY SHIFTS IN PROCUREMENT FOR 2020, AS DETAILED BY GARTNER 46

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VALUE DRIVERS: FROM RISK MITIGATION TO LEVERAGING KNOWLEDGE Businesses have been investing in new technologies in order to better understand their operations. Data capture and analytics have allowed companies to make informed business decisions, based on insights from data analysis. In recent years, the focus of this analysis has been on risk mitigation and cost reduction. Over the next year, business will begin to leverage the knowledge it has gained on spend, suppliers and markets in order to better identify new sources of value and eliminate inefficiencies.

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND

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THE ROLE OF PROCUREMENT: TRANSACTIONAL TO STRATEGIC The very perspective of procurement has changed radically over the last decade.

Companies have almost begun ‘waking up’ to the notion that procurement is no longer a simple cost centre and in recent years, more and more of them have placed procurement at the heart of their operations. Over the next year, procurement will continue this evolutionary journey as businesses will shift it further, taking on more high-value work and focusing more and more on ‘top-tier’ buys. This will see experienced category managers spending more time developing category managers throughout the business, with the skillsets changing to include process expertise and coaching others.

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND

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BUSINESS ROLE: BUSINESS PARTNERS ENTER THE GAME With the role of procurement becoming increasingly strategic, the lines between traditional procurement professionals and separate business units are blurring. More and more business units are aligning to the procurement function, taking on more responsibility and combining their specific expertise with that of the procurement role. As a result of this, procurement will enhance its training and coaching capabilities to help ease business partners into a position where they can source on their own. New tools and processes will be defined in order for business partners to execute sourcing events independently and mechanisms will be put in place for evaluating sourcing discipline executed by the business.

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND

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DELIVERY MODEL: A CENTRE OF EXCELLENCE The very model of procurement will change, shifting towards a model defined by a CPO, Category Manager and Procurement process experts. What this ultimately means is that experienced procurement managers will conduct the most important purchases/buys and the procurement process experts will provide guidance to the business units. Overall, procurement will develop a better understanding of the varying levels of business partner sourcing discipline, meaning that the overall team will focus on process excellence and less on specific category knowledge.

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND

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RESOURCES: INVESTING IN PEOPLE AND TECHNOLOGY Investing in people, skillsets and talent is nothing new, but the way in which procurement will invest in its people and its technology will change. Reallocating budgets from outsourcing and corporate overhead will see procurement look towards professional and analytics skillsets. Technology investment on the other hand will shift to include robotic process automation software and customer experience technology.

This will see greater use of customer experience experts and an increase in professional advisory skill sets.

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5 SHIFTS IN PROCUREMENT FOR 2020 AND BEYOND

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EVENTS OF 2019/20 W R I T T E N BY Kev i n D av i e s

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THE TECHNOLOGY INDUSTRY CAN EASILY BE DESCRIBED AS THE MOST MERCURIAL AND TRANSFORMATIVE. NEW IDEAS AND INNOVATIONS ARE FUNDAMENTALLY SHIFTING THE BENCHMARKS OF BUSINESS PERFORMANCE, SKILLS DEVELOPMENT AND EMPLOYMENT. THESE TECHNOLOGY CONFERENCES PROVIDE E XPERTS AND INDUSTRY PROFESSIONALS WITH A MUCHNEEDED BIRD’S E YE VIE W OF WHAT ’S HAPPENING NOW AND WHAT THEY CAN EXPECT TOMORROW…

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15.10.19 PROCURECON EU The ProcureCon event series are the only interactive, peer- led platform for senior procurement practitioners. For over 15 years, ProcureCon has helped companies transform their programs through innovative presentations, panel discussions, workshops and intimate networking sessions – designed to take you beyond cost savings.

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EVENTS

30.10.19 600MINUTES SUPPLY CHAIN AND PROCUREMENT 98% of operators view attending 5G World as important to their job role, so come and learn, network and partner with 2,500 telecoms professionals at the only global event defining the future of 5G, where 63% confirmed operator speakers at 5G World are CxO and VP level.

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31.10.19 CIPS UK CONFERENCE

At the 2018 CIPS UK Conference, procurement professionals gained practical solutions to the challenges they are facing and left the conference with the insight they need to make the shift to becoming a strategic, collaborative function that adds value. The 2018 speaker line-up featured the most influential speakers, incorporating Procurement Power List winners.

This one-day event was packed full of keynotes, case studies, panel discussions and debates with Q&A. The day split into three streams after lunch: fit for purpose tech, strategy through people and resilient supply chains. There were CPOs from leading organisations speaking and a large variety of content that really served the profession and addressed our most vital concerns.

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EVENTS

10.12.19 PROCUREMENT AND SUPPLY MANAGEMENT MASTERCLASS This masterclass looks at both the concepts of procurement and supply management, negotiation techniques, and current and future trends. It includes digital transformation, disaggregation of supply chains, and circular economy theories. It will improve attendees’ understanding and expose them to cuttingedge and future thinking.

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13.05.20 PROCUREMENT LEADERS CONGRESS 800 procurement thought leaders came together across three days in London (2019) for the inaugural World Procurement Week, and at the heart of this was World Procurement Congress.

Co-chaired by Jet Antonio and Joe Agresta, who encouraged delegates to Be bold in your vision. “Be fearless in all you do, the event broke down barriers and channelled high velocity procurement across highly immersive and thought-provoking sessions.�

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EVENTS

09.06.20 PROCURECON MARKE TING EU 2020 200 of the world’s most dynamic marketing procurement executives to help you solve strategic marketing sourcing problems during 50 interactive case studies, roundtables and workshops across 3 value-packed days. ProcureCon Marketing inspires new thinking and provokes action by providing passionate debate around real-life case studies that showcase process innovation, new tools and technologies and cuttingedge strategy. “Return to the office not just with ideas but with practical steps, the most up to date information in the most interactive way, learning from your peers and benchmarking against the most progressive and highest spending advertisers in Europe.”

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Experts in procurement and supply chain Founded in 2008, Prokura is an entrepreneurial consulting company specializing in procurement and supply chain. Led by highly-experienced specialists from McKinsey & Company and The Boston Consulting Group, Prokura has already become a key player in the market, creating significant savings for leading private and public organizations in Nordic countries.

Prokura’s expertise combines deep functional skills and product, process, and service-industry experience to help clients build competitive and differentiating purchasing and supply chain capabilities that deliver value and allow companies to operate profitably and invest in the future.

Our expertise covers a broad spectrum of skills and we have developed a number of our own tools and methods. These include; diagnostics and optimization potential assessment, development of strategies and objectives and optimization of organizations, systems and processes.

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