Procurement-Magazine-May_2023

May 2023 | procurementmag.com

H C E WT

HO F O IS D L R O W E H T

The workforce of the future

The coming humanmachine convergence

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When one platform isn’t enough

Unlocking procurement potential

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Equity, Diversity and Inclusion

3 Diverse perspectives from the business world

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This year, we are bringing you a solely virtual event, Procurement & SupplyChain LIVE Virtual will highlight the innovators changing the industry. Brought to you by BizClik, Procurement & SupplyChain LIVE Virtual will be held on 28th June 2023, streaming remotely to virtual audiences around the world.

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The Procurement Team EDITOR-IN-CHIEF

ILKHAN OZSEVIM CHIEF CONTENT OFFICER

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GLEN WHITE

FOREWORD

Three equitable, diverse & inclusive perspectives on ED&I in business “True ED&I requires you to value, recognise and respect differences”

As the importance of ED&I grows in the business world and beyond, we asked three executives from different backgrounds what ED&I means for them and their companies Equity, Diversity and Inclusion (ED&I) is now a critical aspect of business and the procurement world; ‘critical’ both in the sense of being ‘paramount’, and as ‘open to analysis’ as to its meaning and ramifications. After all, it’s a project of immense proportions, and appropriately, its definition is still evolving.

“Often,” says Scott Dance, Director of Hays Procurement & Supply Chain for the UK and Ireland, “businesses tend to start that conversation with gender and race, but diversity goes far beyond that. True ED&I requires you to value, recognise, and respect differences.”

Alongside him, Camilla Currin, Senior Partner Manager at Trend Micro Europe, and Rob Collie, Group Director of Procurement at Sky, talk about the importance of ED&I from slightly different perspectives, but with much overlap, and though there are indeed differences – that’s the whole point.

ILKHAN OZSEVIM PROCUREMENT MAGAZINE IS PUBLISHED BY

ilkhan.ozsevim@bizclikmedia.com

© 2023 | ALL RIGHTS RESERVED

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CONTENTS UP FRONT 014 BIG PICTURE

014

Automated delivery services set to take over the procurement landscape

016 LIFE TIME ACHIEVEMENT

Google’s Chief Procurement Officer Jennifer Moceri

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020 FIVE MINS WITH

We caught up with Karl Poulsen to talk about procurement, the specialist insurance industry and Hiscox’s transformational journey

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086

MAY 2023

042 FEATURES

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042 TALENT MANAGEMENT ... is the key to unlocking procurement potential

052 DIGITAL ECOSYSTEMS Simplifying the Procurement Digital Ecosystem

064 DIGITAL WORKFORCE The workforce of the future will be a human-machine convergence

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074 ED&I

3 perspectives on ED&I in business

086 TOP 10

Procurement technologies

074 procurementmag.com

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COMPANY REPORT 026 UNITED UROLOGY GROUP Safeguarding health through supply chain

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Join the Virtual Event Disrupting Technology 8th JUNE 2023 VIRTUAL CONFERENCE

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Innovators are paving the way for a more resilient, sustainable and efficient future. The rules have changed. It’s time for DISRUPTION. Tech LIVE Virtual returns to highlight

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the innovators changing the industry

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BIG PICTURE

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May 2023

Automated Delivery Services set to take over the procurement landscape Worldwide

Automated Delivery Services (ADS) are expected to play a significant role in the coming years. With consumers increasingly demanding sustainable options for their e-commerce deliveries, companies are responding by providing more eco-friendly delivery choices.

As ever, the demand will also be reflected in B2B environments with ADS set to reshape the procurement ecosystem and their associated supply chains.

These services offer greater visibility on the environmental impact of delivery choices and help companies meet their sustainability goals. As this trend continues to grow, automated delivery services are set to become an essential part of the procurement landscape in 2023 and beyond.

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LIFETIME ACHIEVEMENT AWARD

Google’s Chief Procurement Officer

LEADS THE WAY IN SUPPLIER DIVERSITY With a career spanning three decades and an accomplished procurement record that merits serious attention, Jennifer Moceri is a model of impactful procurement strategies and a champion of DE&I

J

ennifer Moceri's journey to becoming the VP, Global Procurement & CPO at Google was not without its trials. She had to overcome various challenges and obstacles on her way to such a prestigious and important role.

But what makes her unique is her ability to stay accountable and resilient in the face of adversity, never losing sight of her ultimate goal.

Her story began in the automotive industry, where she quickly climbed the ranks through the procurement and supply chain function, developing advanced procurement practices, innovative supplier partnerships and a global perspective.

It was her time in the automotive industry that laid the foundation for her future success, teaching her the importance of efficiency and effectiveness in procurement.

After leaving the automotive industry, Moceri's career took her to various

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2010

Jennifer Moceri joined Google as VP, Global Procurement & CPO

renowned organisations such as Lear Corporation, Tate & Lyle and Diageo.

She devoted more than a decade to Lear Corporation, where she entered as Senior Buyer in Electronics, climbing the ranks up to Vice President of Global Purchasing in E-systems.

At Tate & Lyle she delivered a global procurement transformation that introduced a new level of transparency, gained trust and built global capabilities, enabling significant cost savings and raising the profile of procurement as a valued partner in the long-term business strategy.

It was her proven track record of success that caught Google's attention, and they knew that Moceri was the right person to lead their global procurement team.

Her leadership skills, combined with her passion for organisational transformation and building talent and capabilities to enable growth,

“We want to help build an inclusive economy that works for everyone” JENNIFER MOCERI

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LIFETIME ACHIEVEMENT AWARD

“ We’re providing access, development and investment in diverseowned companies through our supplier diversity programme” JENNIFER MOCERI 18

May 2023

US$4bn+ spent on supplier diversity programs since 2021

A Google office Source: Google

improve profitability, and increase value to customers make her a valuable asset to the company.

Under Moceri’s leadership, Google recognises its responsibility to promote diversity, equity and inclusion (DE&I) across all aspects of its operations.

Surpassing its goal of spending US$1bn with diverse-owned suppliers in 2021 (spending US$1.5bn), Google then set its targets higher for 2022 with ambitions to grow its spend to US$2.5bn, as well as expand its

programmes beyond the US, and the trend is expected to keep growing.

She says: “We want to help build an inclusive economy that works for everyone. This extends within our company and accounts for the economic impact that we can have when we buy goods and services.

That’s why we’re providing access, development and investment in diverse-owned companies through our supplier diversity programme”.

Moceri's story highlights the relevance of procurement in today's world of supply chain pressures.

She understands the importance of building collaborative relationships and maintaining a relentless focus on continuous improvement to drive step-changes in productivity.

Her ability to deliver exceptional results through a combination of innovation, efficiency and effectiveness is what makes her so respected and recognised in the business world. At Google, Moceri continues to deliver results, driving the company's procurement strategy forward and ensuring that it remains agile and adaptable to changing market conditions.

Moceri’s story serves as an inspiration to others in the procurement and supply chain industry, reminding them of the utmost importance of staying accountable and resilient, and never losing sight of their ultimate goal, no matter the adversity of the circumstances. procurementmag.com

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FIVE MINUTES WITH...

KARL POULSEN We caught up with Karl Poulsen to talk about procurement, the specialist insurance industry and Hiscox’s transformational journey PLEASE BEGIN BY INTRODUCING YOURSELF AND YOUR ROLE

» My name is Karl Poulsen and I’m

Chief Procurement Officer at Hiscox insurance. My job is to ensure that we get the best commercial value out of third-party spend.

HOW DID YOU COME TO YOUR CURRENT ROLE?

» I’ve been in and around KARL POULSEN TITLE: CHIEF PROCUREMENT OFFICER

EXECUTIVE BIO

COMPANY: HISCOX INSURANCE

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Karl Poulsen’s opportunity for Hiscox came about 18 months ago when the CEO recognised that business units in the company were buying in silos, and needed to unify and integrate disparate aspects of its operations to grow value.

May 2023

procurement roles for nearly eighteen years, and have worked in everything from banking to pensions and life insurance. I’ve really been focused in that area of financial services. The opportunity for Hiscox came about eighteen months ago, when the Executive of the company started to recognise that our business units were buying in silos, and they needed to unify and integrate disparate aspects of its operations to grow value. Hiscox has been on its procurement transformation journey ever since.

“ As a profession, we are able to deliver what they need” FOR THOSE THAT DON’T KNOW, WHAT EXACTLY IS SPECIALIST INSURANCE, AND HOW DOES IT RELATE TO PROCUREMENT?

» We are a collection of separate

business units which grew out of a London market presence. We deal in wholesale big ticket items, as well as having three retail businesses, across the UK, Europe and North America.

One of our sweet spots is in the Small to Medium Enterprises sector and professional services, we cover everything from prestige cars, to fine arts insurance.

From a procurement perspective, it means that we have multiple stakeholders who have different needs and specifications, and our role involves absorbing and concentrating that spend to maximise our value in the market.

10 years ago

what we meant by value was all about cost and service.

Now the meaning of value is changing

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FIVE MINUTES WITH...

AS AN OPERATIONAL EXCELLENCE SPECIALIST, WHAT WOULD YOU SAY ARE THE MOST IMPORTANT ASPECTS OF OE?

WHAT ADVICE WOULD YOU GIVE TO ORGANISATIONS IN TERMS OF THEIR TRANSFORMATION JOURNEYS?

operational excellence it’s about understanding where you’re generating failure demand. In this industry, the truth is that you’re always fixing things, because people price potential losses into the deal.

This is why I’m excited about our work with Ivalua because using their systems will mean that we won’t be simply going around chasing and fixing. Through their ecosystem it means that the quality of the job improves as it allows for systemising processes like guided buying, purchase orders, service receipts, automated invoices and the like. This also means that we can be a more efficient customer for our suppliers, so through the Ivalua system, we will be able to improve their processes.

it is that you need to improve now.

Ask yourself what you are trying to fix.

Sometimes the problems are obvious and simple. But once you’ve identified the issues, you then need to figure out what it is that’s underpinning them, and identify the demonstrable data sets that go with it. This can be really difficult, because if you don’t have a system already in place then how are you measuring it?

Don’t try and run before you can walk.

I think that with supply chain transformation in particular, there is a massive cultural component, often it is behaviours that need to change.

Also, transformations never go exactly to plan, but you need to keep faith that it will get there. For it to work though, you have to take people with you. You need to be providing a seamless colleague experience, and then your business case will follow through.

» As far as supply chain is concerned,

“ I’m excited about our work with Ivalua because using their systems will mean that we won’t be simply going around chasing and fixing, we will be able to grow value” 22

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» Spend time understanding what

ARE THERE ANY CHANGES THAT YOU’VE NOTICES IN THE INSURANCE WORLD THAT WE NEED TO BE AWARE OF?

» It’s incredibly dynamic. So it’s about how people interact. From a supply chain perspective, there is a big change around increasing regulation.

It can be specific to financial services and ESG has a massive part to play.

WATCH NOW

With technology, if we can get it to substantiate things such as carbon emissions, slavery etc. we can make it really meaningful. Nobody wants to be on the wrong side of the regulator, and it’s important that we act not just to the letter of the law, but to the spirit of the law, and a transformation journey can be important to be able to facilitate that.

given, but wider stakeholder groups will come into play, such as individual suppliers and their supply chain journeys.

WHAT’S THE ONE MESSAGE THAT YOU’D LIKE OUR AUDIENCE TO HEAR TODAY?

» This one’s easy. As a profession, we are able to deliver what they need.

WHAT DOES THE FUTURE OF PROCUREMENT IN YOUR INDUSTRY LOOK LIKE?

» I think it’ll look more around value as a whole. Ten years ago, what we meant by value was all about cost and service. Now that we are on a massive ESG journey, the meaning of value, and what we are beginning to value is changing. Of course, cost considerations will be an absolute

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SAFEGUARDING HEALTH THROUGH SUPPLY CHAIN 26

May 2023

WRITTEN BY: SEAN ASHCROFT PRODUCED BY: MIKE SADR

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UNITED UROLOGY GROUP

Why supply chain is a point of difference for US-based healthcare management services organisation, United Urology Group

U

nited Urology Group (UUG) is a US-based national network of 1,500 urology healthcarefocused employees. It has affiliate practices in Arizona, Colorado, Delaware, Maryland, and Tennessee.

Founded in 2016 and with its HQ in Maryland, it supports 220 providers in 95 locations across five states, making it one of the largest urology networks in the US. At heart, UUG is a management services organisation (MSO), providing administrative and support services to urology practices across the United States. This support includes revenue cycle management, financial management, human resources, marketing, and strategic planning.

David Forbes is VP of Supply Chain Management for UUG and is responsible for its source-to-pay programme, strategic sourcing, procurement, and accounts payable. He also provides consulting services in inventory management for UUG clinics.

The support Forbes and his team provide includes everything from human resources and sourcing services to IT. He says: “I source contracts for my practices. I aggregate everybody's spend and negotiate the best possible agreements with the right trading partners at the right level.”

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UNITED UROLOGY GROUP

“We aim to provide high-quality, patientcentred care”

Forbes also offers a wide range of urologic procurement support, or conditions, from the most “day-to-day blocking and common to the most tackling” as he describes complex cases. it. Accounts payable is “We aim to support another of his areas, and our affiliated practices his team also ‘owns’ the in providing high-quality, company’s source-to-pay patient-centred care,” solution that serves he says, “and to support its physician practices. our affiliated practices in DAVID FORBES UUG’s network of delivering care in an efficient VP SUPPLY CHAIN MANAGEMENT, UNITED UROLOGY GROUP practices are known for their and effective manner.” integrated urologic care UUG’s supply chain programs, a patient-first approach, clinical organisation is vital to this goal, says excellence, and innovative treatments for Forbes, who explains that it helps the 30

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DAVID FORBES TITLE: VP SUPPLY CHAIN MANAGEMENT COMPANY: UNITED UROLOGY GROUP INDUSTRY: HEALTHCARE David Forbes is a seasoned supply chain professional with almost two decades of experience. Currently serving as the VP of Supply Chain Management for United Urology Group, his team is responsible for providing end-toend source-to-pay support to over 220 urologists and advanced practice practitioners. David's extensive experience includes working with the Healthcare Industry Distributors Association to develop healthcare trading partner data communication standards, building value analysis and sourcing departments for a hospital-based system, and serving as a strategic sourcing consultant with The Advisory Board Company. He holds a B.S. in Business from Miami University and an MBA from Loyola University Maryland.

• Clinical efficacy • Patient experience • Clinician experience • Cost takeout “These are four metrics our practices look to base decisions on, whether small or major,” says Forbes.

He adds: “Clinical efficacy is about whether or not a decision made by our affiliated practices improve patient outcomes.

Clinician experience refers to the experience

EXECUTIVE BIO

company deliver on its Quadruple Aim strategy, comprising:

“ Shortages and back orders are the toughest part of the job. In the healthcare industry, we've never seen it as bad as it is right now” DAVID FORBES

VP SUPPLY CHAIN MANAGEMENT, UNITED UROLOGY GROUP

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UNITED UROLOGY GROUP

Safeguarding health through supply chain WATCH NOW

of physicians, nurses, and medical assistants when using the product or service.”

Patient experience, he explains, concerns factors such as patient comfort and recovery each of which “are key considerations in cost takeout”.

Forbes cites as an example the purchase of a simple piece of urological equipment, such as a catheter.

“Cost takeout is about what we can do to prune unnecessary costs from healthcare, but it is not always about monetary cost.

I might be able to negotiate a fantastic deal on the latest foley catheter, say, but if this product is going to cause urinary tract infections, or if it’s difficult to insert or remove, then it doesn't make sense to do it.”

Supply chain, he says, helps UUG deliver on its Quadruple Aim metrics.

“The obvious one is cost takeout, and the rest are impacted through the clinical integration of my department with our physician practices.”

220

Number of providers UUG has for its urology practices

95

Number of locations

5

Number of US states covered

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Partnering with Specialty Networks for Growth & Improved Patient Outcomes Specialty Networks and United Urology Group have partnered over the past decade to better practices across the group and improve patient care. The common focus on improvement in every area, along with clinical integration throughout, promotes consistent advancement at a clinical level.

Learn More

Partnering with Specialty Networks for Improved Patient Care Specialty Networks, partnered with United Urology Group since 2013, enhancing practice performance through data, events, and group purchasing support.

Specialty Networks is the parent organisation of companies including group purchasing organisation UroGPO, of which United Urology Group is a member.

Specialty Networks has presence in multiple specialties As a multi-specialist organisation, Specialty Networks has deployed GPOs in urology, gastroenterology, and rheumatology, alongside a robust data analytics platform (PPS Analytics) and also a research arm. The latter supports members like United Urology in conducting research inside their practices, with a data analytics arm to support practices while addressing gaps in care.

“The GPO establishes best-in-class purchasing agreements with manufacturers in areas including pharmaceuticals, services, and medical devices,” Darren Dieleman, Senior Vice President at Specialty Networks, says. “We’re aggregating not just United Urology Group, but also the other 720 urology practices across the country into one buying group, then negotiating value-added programs with manufacturers to support the individual members.”

The partnership with United Urology Group “What’s unique about the relationship between United Urology Group and Specialty Networks

via UroGPO is the fact that we share the common customer of our physician practices,” explains David Forbes, the Vice President of Supply Chain Management for United Urology Group. Alongside the benefits of the GPO, United Urology Group also utilises PPS Analytics – the data analytics arm of Specialty Networks – to streamline and identify potential gaps in patient care.

“We also run customised educational events at their individual pods and a series of live events across the country,” Dieleman explains. “We’re running a summit for United Urology in May to allow their practices, many acquired during the pandemic, to come together to establish longterm goals and objectives, network, and attend educational podium sessions.”

What’s next for the partnership?

“Live events, purchasing, reporting – there’s a much larger strategy ahead of us to help United Urology Group achieve in aggregate what they wanted to achieve individually as independent practices,” says Dieleman.

Specialty Networks and United Urology are moving forward with a hands-on approach to continually bettering themselves, the practices, and, therefore, patient care.

Learn More

UNITED UROLOGY GROUP

He adds: “This is why it's really important that as a supply chain organisation we’re closely aligned with the clinicians, so that we can be sure to execute on our collective goals.”

UUG is plugged into a large ecosystem of businesses who help it deliver on its goals.

These include: • Specialty Networks A niche group-purchasing organisation that negotiates agreements for specialty products, most prominently branded oncology pharmaceuticals.

• Medline Medical-surgical distributor Medline is a key supplier. “We recently partnered with Medline because they are designed to scale with us,” says Forbes.

• Neotract Manufactures a proprietary treatment called Urolift, of which our Chesapeake practice was an early adopter.

• Karl Storz A key player in scopes and video equipment, crucial instruments that help urology practices meet patients’ clinical needs.

Such partnerships help Forbes meet his defining goal: the care of patients, whose health, often delicate, he and his team hold in their hands.

Along with just about every other supply chain executive on the planet, Forbes has been faced with a difficult market over the past few years.

Being able to juggle everything and keep things moving in the right direction in the face of adversity “comes down to people and systems”, says Forbes. “It’s all about making sure that you have the right infrastructure in place.”

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“ We're evaluating AI tools to assist us not only with invoice processing, but also with strategic sourcing and contracts lifecycle management” DAVID FORBES

VP SUPPLY CHAIN MANAGEMENT, UNITED UROLOGY GROUP

He adds: I'll give you an example. When I first joined, only one other person other than me provided procurement support. When you're spread across the country like we are you can't expect somebody to be available at 7:30am Eastern Time and 6.00pm Western Time.

“So we made the decision to have somebody support our western markets, in Colorado and Arizona. Not only did this improve employee satisfaction, obviously, but it also made us more responsive to our market needs.”

Technology is another area UUG sees as a means to give it a competitive edge.

“We put a really heavy focus on the right technology in supply chain,” says Forbes.

“Our prime strategy around resource management is leveraging technology. In my own department, we're evaluating AI tools to assist us not only with invoice processing, but also with strategic sourcing and contracts lifecycle management.”

Technology, says Forbes, helps UUG serve its customers, who are the practices in the field, for which assist them to focus on the communities they serve. procurementmag.com

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UNITED UROLOGY GROUP

“ Over time we acquired additional practices and when you grow you need to scale-up your staff” DAVID FORBES

VP SUPPLY CHAIN MANAGEMENT, UNITED UROLOGY GROUP

But as with any sizable change project, there are hurdles to clear and barriers to break down.

“You’ve got to be sure that you choose the right solutions in the first place,” he says. “But you also need to ensure you're then using these solutions correctly.”

Data is a massive issue, as it is with so many digital transformations.

“Organising data around category management is a massive issue in supply chain in general,” says Forbes, who reveals that he and his team procure more than 200 categories of products and services.

He adds: “We have to make sure that our data is structured in a way that allows us to mine it, so that we can have efficient

request-for-proposals, without which we cannot manage our contracts.

UUG’s new procurement programme “is fully built out” says Forbes, who adds that it has made a huge difference to the company’s procurement and sourcing processes.

“When I first started, it was taking us upwards of eight days to reconcile inventory at the end of the month, but this past month, we did it all in a single day. All counted, all reconciled.”

He says that, although the procurement transformation was tough at first, it has been “a caveman-discovering-fire moment”.

“We are now able to intelligently manage inventory levels, and drive a formulary of products. We used to get complaints from vendors about not being paid, but now we now have steadfast processes in place that ensure prompt payment. We’ve gone from taking 57 days to process an invoice to about 10 days.” procurementmag.com

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“ Running a supply chain is like ‘being a conductor at the front of an orchestra’” DAVID FORBES

VP SUPPLY CHAIN MANAGEMENT, UNITED UROLOGY GROUP

Forbes says the rapid pace of the transformation was driven by the fact UUG was going through a period of rapid growth.

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In 2016, UUG included only a single practice, Chesapeake Urology, and operated only in the mid-Atlantic region.

“Over time we acquired additional practices,” Forbes says, “and when you grow you need to scale-up your staff.”

He joined the company in 2020 “when UUG was starting to get our legs back from the initial COVID push”.

That growth is continuing apace, says Forbes, who reveals the coming 18 months will see the group focus on integrating with its ambulatory surgery centre (ASC) jointventure partners.

These partners help operate the largest ambulatory platform in the US, comprising

UNITED UROLOGY GROUP

475 facilities serving patients in surgery centres and surgical hospitals.

ASCs are modern healthcare facilities focused on providing same-day surgical care, including diagnostic and preventive procedures.

They have transformed the outpatient experience for millions of Americans, by providing a convenient alternative to hospitalbased outpatient procedures. They also have a strong track record of quality care and positive patient outcomes.

In June 2022, UUG formed a joint venture partnership in 22 ASCs. At the time, UUG CEO Sanford Siegel said of the deal that “we have an exciting runway with USPI as our partner,

and we look forward to bringing our patientfocused cultures together” – a sentiment Forbes echoes.

“It’s an exciting time for us,” he says. “An exciting future.”

Customer satisfaction is everything and in supply chain that means being able to respond to needs in the field – “such as being able to procure items on shortage, or back order.”

Forbes says running a supply chain is like “being a conductor at the front of an orchestra”.

“I might need to set up a regional hub-andspoke in our Maryland market to manage a shortage, else we're going to run out of products to certain clinics.”

Forbes’ voice tails off, as he lets the implications of that sink in: compromised care for patients, some of whom will be seriously ill.

“It might be that we have to consolidate our inventory, and then I’m the conductor on that,” he adds, waving an imaginary baton.

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PROCUREMENT STRATEGY

TALENT MANAGEMENT

IS THE KEY TO UNLOCKIN PROCUREMENT POTENT Sara Horder is senior partner of Investigo, part of The IN Group, and untangles why talent management is pivotal to procurement in such testing times WRITTEN BY: ILKHAN OZSEVIM

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NG TIAL

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PROCUREMENT STRATEGY

“ The moment you undervalue a role, the attraction doesn’t really stay alive” SARA HORDER,

SENIOR PARTNER OF PROCUREMENT PRACTICE , INVESTIGO

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A

company is only as good as its people.

Talent management is vital to procurement as it allows organisations to identify and develop capabilities that can both both bolster its everyday proficiencies, and help it to navigate through wider challenges such as the pandemic, the Ukraine war and all the endless supply chain disruptions that we have come to know all too well.

As a result, the role of procurement in creating solutions has become even more essential than it was just five years ago.

Procurement departments need to ensure that they attract and retain top talent, to avert further crises and develop their companies. But how? “The key area is coming to market at the right level,” says Sara Horder, senior partner of procurement practice at Investigo.

Part of The IN Group, Investigo is a leading recruitment agency, delivering talent to a large client base of blue chip corporations, agencies and start-ups.

PROCUREMENT LEADERS NEED TO IDENTIFY AND DEVELOP HIGH-POTENTIAL EMPLOYEES WITHIN THEIR TEAMS TO BUILD A STRONG PIPELINE OF FUTURE TALENT

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Unlock hidden value in your Supply chain An award-winning collaborative supplier relationship platform Suppeco leverages the potential in relationships to solve key challenges within the value chain A practical solution built for the real world

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PROCUREMENT STRATEGY

“There is a reason why I still have my job – because it is a full time job!

SARA HORDER,

SENIOR PARTNER OF PROCUREMENT PRACTICE , INVESTIGO

“The moment you undervalue a role, is when the attraction doesn’t really stay alive,” she says.

“Feedback through interview processes is undervalued as a really good tool to retain your brand in the market, firstly because it allows a candidate to develop and see where they can improve if unsuccessful, and it also allows a business to reflect on what they want as well as retaining their brand and repeat applications in the future.”

Horder says that it's all about the process and brand you represent. “We have seen a big drive in employee branding and I think this is an important tool in terms of retaining and attracting talent. So it’s a great tool to both engage current staff, as well as to utilise to attract top talent to organisations.”

As a line manager, giving regular feedback is useful. It allows employees to address any

concerns, develop their strengths and work on their progress.

“Personally,” says Horder, “I believe coaching is a massive element to success, where you are leading people to the answers rather than telling someone how to do it.

“It's very similar when dealing with a supplier as a procurement professional, because what value do you get when you tell them what you want, rather than taking them on a journey? procurementmag.com

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Sarah Horder TITLE: SENIOR PARTNER COMPANY: INVESTIGO (PART OF THE IN GROUP) LOCATION: LONDON Senior partner across the interim portfolio at Investigo and Definia, responsible for mid-exec level procurement appointments and supporting delivery led consultancy projects for Definia.

Why Talent Management is Pivotal to Procurement 2005-2006

Guildford office opens, and business change and transformation division launches. Team grew from 20 to 26

2017

Nick Baxter becomes CEO. Cloud, data, and cybersecurity launch.

2022

A huge leap as we grow from 284 to 332 people.

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Managing procurement talent: Securing the future Procurement leaders need to identify and develop high-potential employees within their teams to build a strong pipeline of future talent.

For Horder, developing a culture of continuous learning and development is where you will develop high potential employees whilst also building a strong pipeline. “You also need to be covering all bases in terms of passive, internal and external candidates. Being proactive in the market is where I see a shortage across

PROCUREMENT STRATEGY

DE&I in the workforce and effective procurement DE&I can have a positive impact on business performance in a magnitude of ways from greater innovation and skill sharing, to increased productivity and higher revenues.

Horder says that when an organisation is hiring, it shouldn’t always hire the same capabilities, as that can limit the creativity in teams and halt growth. “Having a number of ways to do things allows for innovation, and having a broader skill set within teams can encourage continuous learning and development,” she says.

“So if you’re looking to recruit the very best talent, you’ll need to make sure you are doing everything you can to improve diversity in your business. You will also need to offer full transparency so that potential talent can see exactly what you offer, and choose your business over competitors.”

companies, because sometimes the best hires are made when a company isn’t actively looking. It's all about the introduction of ‘hot’ talent on the market, and what looks good is where businesses will stay ahead.”

She says that some businesses do really well in hiring at all levels, from graduate to executive level, “and this allows candidates to develop in an organisation, but also coming in at a higher level with different experience, provides the opportunity to do things differently and have a birds eye view of a department.”

Training procurement teams Training is imperative, especially when we talk about the development of the younger generation and the newly-forged culture of working-from-home. Horder says: “because of the working from home element, I think it’s really difficult for a lot of people to develop, learn and progress.

“Not having the ability to easily bounce ideas off someone who you might sit next to in an office, can directly impact productivity.

“Training also improves job satisfaction and retention, as it makes employees feel valued and that you are investing into the future. Team training days are really effective as they bring the culture together and set a framework for sharing new skills and ideas with colleagues which allow for development.” procurementmag.com

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PROCUREMENT STRATEGY

Introducing The IN Group WATCH NOW

“ So if you’re looking to recruit the very best talent, you’ll need to make sure you are doing everything you can to improve diversity in your business” SARA HORDER,

SENIOR PARTNER OF PROCUREMENT PRACTICE , INVESTIGO

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Key challenges and keys to overcome Horder holds that one of the biggest challenges companies have, “particularly large corporates,” she says, “is attempting to carry out their recruitment processes all by themselves. There is a reason why I still have my job – because it is a full time job!”

She says that an organisation can adopt the following techniques when they partner with a specialised recruitment business: n High quality candidates – whether they are passive or active n Specific market knowledge in terms of benchmarking particular roles n Customer services and building on a longer-term relationship where a partner can introduce you to future talent n Building the future – a good partner doesn’t just talk about the now – they futureproof what might be coming, and offer support on a longer-term All of the above are reflective to both a client and candidate and offer a great advantage of supercharging talent management.

“Overall, these days it isn’t just about the money,” says Horder. “It’s about the overall package and not just about the numbers. It’s about the training, the team, overall progression and business culture that will attract and retain talent.” She says that internal opportunities are also a decisive factor.

“For business in general, and perhaps now especially for procurement, for an organisation to be able to retain talent and develop internal employees in new areas, demonstrates that it values its people.” procurementmag.com

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DIGITAL PROCUREMENT

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WHEN ONE PLATFORM ISN’T ENOUGH:

SIMPLIFYING THE PROCUREMENT DIGITAL ECOSYSTEM WeWork’s Global Head of Procurement discusses how to navigate the complex procurement digital ecosystem and create a roadmap for digitisation.

WRITTEN BY: ILKHAN OZSEVIM

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DIGITAL PROCUREMENT

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n today’s rapidly evolving business landscape, where supply chain disruptions and technological advancements are reshaping industries, digitisation has become critical for procurement functions to remain competitive. The procurement technology market is set to double to US$12bn by 2028, but despite the many tools and software options available, it can be challenging for procurement leaders to make sense of it all.

In this article, Gary Levitan, Global Head of Procurement, Sourcing, Contingent Labour, & Supply Chain at WeWork, discusses the challenges of procurement digitisation. In his speech titled ‘When One Platform isn’t Enough,’ Levitan highlights the need for procurement leaders to take a regimented approach in evaluating their procurement processes and selecting the right digital tools. We delve into Levitan’s insights on how to navigate the procurement digital ecosystem, evaluate software solutions, and create digital solutions that promote good communication.

Gary Levitan of WeWork took to the stage at Procurement & Supply Chain LIVE London last year to discuss Procurement digitisation.

The subject of his address was ‘When One Platform isn’t Enough’.

Levitan is Global Head of Procurement, Sourcing, Contingent Labour, & Supply Chain.

What’s your take on the procurement digital ecosystem?

The supply chain disruptions that we’re going through now are creating opportunities for tools and processes, and it seems like there’s a new tool or piece of software that is released almost every single day.

At WeWork we’re going through so much transformation. procurementmag.com

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DIGITAL PROCUREMENT

“ The procurement technology market is still small. It’s about US$6bn, but by 2028 analysts expect it to have doubled” GARY LEVITAN CPO, WEWORK

The procurement technology market is still small. It’s about US$6bn, but by 2028 analysts expect it to have doubled.

That’s actually pretty substantial growth. But still, that’s not a giant software ecosystem market.

The two key metrics on this that are important is that 60% of the market share is held by the top 10 providers. We’re talking about tens of thousands of different tools and companies. Also, 30% of overall market share is held by one, SAP.

Really, procurement technology has been around only for 25 years or so, and today organisations are way more decentralised than back then. WeWork is a perfect example. There are many more people making purchasing decisions, and modern businesses require many different functions.

We can’t expect the tools and processes from the past to help us today.

There’s a lot of companies that are too complex for an all-in-one ecosystem of tools. You simply can’t analyse each part of your business to find what tool is best for you. So there’s still a huge need for that.

There are so many procurement software options. How do you make sense of it all?

There are so many different types of software platforms, tools and services that procurementmag.com

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DIGITAL PROCUREMENT

60%

OF THE PROCUREMENT TECHNOLOGY MARKET SHARE IS HELD BY THE TOP 10 PROVIDERS

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target the procurement function, and we’re not just talking large global organisations here. Any small procurement or supply chain function can be complex also.

As procurement leaders, we get pitched by software vendors every day. We go to conferences, where we get pitched even more. How do you even begin to make sense of it all?

I like to oversimplify everything.

I categorise all functions within a procurement end-to-end process as being two basic buckets. It’s either strategic or

“ Never lose sight of how you need to get from point A to point B” GARY LEVITAN CPO, WEWORK

End-to-end enterprise solutions enable change

it’s transactional. Once you organise your function in those two buckets, you’re now able to place a lot of these software pitches, tools and platforms into one or the other.

And then you start noticing which ones straddle strategic and transactional. But ultimately your strategic and transactional functions are not as related as some suppliers might make. They’re pretty different needs and functions.

So once you split things up like this it really helps you guide conversations when you’re being pitched.

Enterprises must be adaptive, resilient and able to scale or divert their operations quickly in the face of unforeseen supply chain challenges. To achieve this they must remove dated organisational and technological roadblocks and use technology as an enabler, by seeking a modular, integrative and extensible technology platform. Such a platform should embrace what Gartner calls the “composable enterprise” model: a data-driven, end-to-end platform made of composable services, that can be packaged together, or integrated with other software, ERPs, or technologies. Ultimately, a digital platform should allow a stepwise approach to implement new processes without adding additional systems and complexity. procurementmag.com

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WATCH NOW

Gary Levitan TITLE: CHIEF PROCUREMENT OFFICER, GLOBAL HEAD OF PROCUREMENT, SOURCING, CONTINGENT LABOUR, & SUPPLY CHAIN COMPANY: WEWORK LOCATION: HQ IN NY

“ You need to create an elegant user experience for your stakeholders” 60

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How do you decide what is right for your organisation?

At WeWork we’ve gone through so many transformations we’ve had to make such decisions multiple times and if I didn’t have a regimented approach it would be a complete disaster.

One of the first things I did at WeWork was map out my vision for an end-to-end procurement and supply chain process. This is critical. If you’re looking to digitise your organisation you need to know what the key functions are. You need to know how you’re going to get from where you are now, to where you need to be in order to deliver the value your CFO, stakeholders, and Wall Street needs you to deliver.

What is each step you have to take?

This is the key to evaluating tools. It’s extremely important. You might decide for example that there is no value in having a sourcing tool. I’ve been using email for 20 years and it works pretty spectacularly.

How do you create a digital solution that promotes good communication?

Another thing I did at WeWork around digitalisation was to know exactly how all the How do you evaluate component parts were end-to-end solutions? going to communicate with You take the same regimented each other.

EXPECTED VALUE OF approach to evaluating endYou need to create an THE PROCUREMENT to-end ecosystems. If you elegant user experience TECHNOLOGY MARKET don’t then you can end up for your stakeholders. As BY 2028 paying for tools you don’t procurement professionals, need, because a lot of what you cannot have anything you already have may be functioning well. holding up decision making, or nobody’s Never lose sight of how you need to get going to use it. They’ll find ways to go from point A to point B. Work out where you around it. need help and where you don’t.

So you have to understand how each This allows you to evaluate what’s being layer within your end-to-end process pitched, and how to create a roadmap for works together. You have a communication your digitalisation. layer, a workflow layer, and then you have If there is a sourcing tool out there that’s going to provide value I’m thrilled to look at it. But if I don’t need it then that makes the conversation more focused.

US$6bn

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“ As procurement professionals, you cannot have anything holding up decision making, or nobody’s going to use it” GARY LEVITAN CPO, WEWORK

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the financial control layer – typically your enterprise resource programme.

So again, when you map out the communication layers in your process, it guides conversations around these different tools.

Is it important to map out use-cases?

Yes, map out and create every potential use-case workflow you have. At WeWork we have some pretty easy-to-understand and rigid workflows for certain types of decisionmaking requests. But we still have thousands that are not mapped out and that are pretty unclear. Now we’re being more tactical about this, because if you’re evaluating a tool that is going deep into functionality, you need to test how it will potentially work.

But if you don’t know the workflow these tools or services are going to support, you will miss something, and somebody will end up being unhappy, a stakeholder gets left out, or it might break the entire system.

So a good way to get granular in analysing these tools is to have a clear idea of a day in the life of a user.

Join the Event Disrupting Procurement & Supply Chain 26 - 27 September 2023 Business Design Centre, London REGISTER FOR 2023

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THE WORKFORCE OF THE FUTURE WILL BE A

HUMAN-MACH CONVERGENC 64

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TECHNOLOGY

Digital workforces are already here and their growth is unstoppable. Matthew Rose, Procurement Transformation Practice Lead at KPMG UK paints his vision of its future WRITTEN BY: ILKHAN OZSEVIM

T

he evolution of the digital workforce: In a recent CEO study conducted by KPMG, over 70% of CEOs surveyed, agreed that retaining talent is a key priority for long-term success. Matthew Rose, Procurement Transformation Practice Lead and Partner at KPMG UK, says that the digital workforce was born out of a desire to get more from the available talent.

“Businesses sought to run leaner headcounts and focus the available talent on higher value tasks,” he says. “Using machines to automate transactional activity in, for example, the purchase-to-pay process and pivoting available procurement resources to spend more time on strategic and higher value category management activity.” Rose says that this first wave of machines focused on repeatable high volume tasks and lent heavily on robotic process automation and simple bots.

“With a talent crisis at the forefront of workforce planning, and the in-demand skills for new and emerging technologies, automation and artificial intelligence is increasingly being used for higher valueadded tasks – illustrated by the explosion of available solutions on the market," says Rose. procurementmag.com

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TECHNOLOGY

“ The lines between human and machineled tasks will become increasingly blurred such that the experience will be seamless” MATTHEW ROSE,

PARTNER, PROCUREMENT TRANSFORMATION PRACTICE LEAD, KPMG UK

“Collaboration, supply market research, sourcing and data analytics have all been targeted by new wave intelligence-enabling procurement technology.

“Rather than replacing humans in these roles, the machines often seek to augment human capability – enabling the procurement resources to do more with less or uncover insights that would not readily be available to humans.”

According to Rose, the digital workforce is now a blend of human and machine resources woven together in a mutually dependent process. “And,” he says, “like finding the right procurement staff, the challenge is often uncovering the right technology to join the digital workforce.”

Examples of successful implementation Recognising the challenge in identifying the right technology solutions, KPMG undertook a market scan across hundreds of providers.

“The aim was to identify leading technologies to automate and augment procurement functions,” says Rose. “We use those insights to help clients deploy the right intelligent solutions in their business, to think ahead and build the right platform for a successful digital workforce. For example: procurementmag.com

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“ Increasingly, the learning and development opportunities KPMG provides has a greater emphasis on areas such as design thinking and emotional intelligence – both key skills to leverage within the digital workforce” MATTHEW ROSE,

PARTNER, PROCUREMENT TRANSFORMATION PRACTICE LEAD, KPMG UK

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TECHNOLOGY

This is our KPMG WATCH NOW

“One of our global retail clients had a high volume of low value purchases. Those purchases in the tail spend offered little payback on time invested by procurement team members. The retailer chose to deploy automated intelligent negotiation technology to rapidly engage with vendors, negotiate terms and place orders. The technology enabled the retailer to address third party spend that wasn’t being touched by procurement and unlock millions in untapped savings.

“At another client in the oil and gas sector, KPMG helped the procurement team to deploy advanced AI-based decision making tools to help prioritise procurement projects and allocate resources effectively.

The solution helped to assess the business requirement, determine where existing supply solutions might exist, allocate the activity to the appropriate team and prioritise it in the work stack – delivering high single-digit improvements in efficiency.”

Matthew Rose TITLE: PARTNER COMPANY: KPMG LOCATION: UK Matthew Rose leads KPMG’s Procurement advisory team in the UK. He has 20 years experience in transforming procurement, building world class capability and unlocking 100s of millions in value for his clients. procurementmag.com

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TECHNOLOGY

Will the rise of AI and automation replace human workforces?

The extension of these and other technologies into every aspect of procurement inevitably leads to the question as to whether, one day, automation and AI will replace humans entirely. KPMG’s paper ‘Future Proof Procurement’, contemplates a scenario in which algorithms replace humans leading to the demise of the procurement function.

It concludes that, in order to survive, the procurement function will need to continually reinvent itself, finding new ways to deliver business value. “The good news is,” says Rose, “that there are many opportunities for procurement to deliver more – be that driving more innovation from the supply base, orchestrating ESG in the supply chain, or reducing risk back to source.

“Whatever form that value takes, procurement will need to harness digitalisation, be a catalyst for change, continuously learn, innovate and transform. That has fundamental implications for the skills required in the future digital procurement workforce.”

70%+

CEOs who think that retaining talent is a key priority for long-term success: KPMG Study

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Requirements of a successful digital workforce, and how KPMG empowers its employees When asked what kind of skill sets are required for a successful digital workforce, and how KPMG ensures that its employees are properly trained and equipped for this new way of working, Rose points out that with the rapidly evolving role of procurement, the traditional approach of matching people to jobs and role-based training will no longer suffice.

“Instead,” he says, “businesses need to move to a skills-based approach.

Procurement professionals will need skills to help them embrace new technologies, collaborate across functions, experiment, and adapt to the changing role of procurement.

“With the rapid pace of change, upskilling and reskilling employees to exploit and accelerate the digitisation of operations can only be a reality through greater emphasis on continuous learning.

For example, at KPMG, employees are aligned with this skills-based approach to learning and development – providing key transferable skills and helping them to be more agile to adapt and to embrace change.

“Increasingly, the learning and development opportunities KPMG provides has a greater emphasis on areas such as design thinking and emotional intelligence – both key skills to leverage within the digital workforce.”

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The future of workforces: Human-Machine convergence Rose thinks that the role of machines within the digital workforce will undoubtedly, only increase. “The relentless pressure on business to do more with less, the hunger for ever more data to drive better decision making and the need to operate at increasing pace supports a greater demand for machines,” he says.

“We can expect to see machines take on more high value add activity, increasingly advising on, and taking critical business decisions. For example, we can expect this when making sourcing decisions in realtime based on huge and complex data sets (market, political, economic, weather, supplier, etc.), that would ordinarily take humans weeks to analyse.

“The lines between human and machineled tasks will become increasingly blurred such that the experience will be seamless.

For example, with machines, procurement professionals, and business stakeholders working collaboratively and seamlessly to build and manage supply strategies.”

As opposed to a threat, Rose sees major opportunities in the emerging world before us. He says: “All this sums up to an exciting opportunity for procurement to add more business value. Procurement functions that embrace this new digital workforce will thrive – those that don’t, will struggle to survive.”

Matthew Rose leads the Procurement Transformation practice at KPMG in the UK. He has worked extensively with Fortune 500 businesses to transform procurement capability through people, process and technology. A recurring theme across these transformation programmes has been the importance of a workforce equipped to harness the opportunity that digital presents.

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“There are many opportunities for procurement to deliver more – be that driving more innovation from the supply base, orchestrating ESG in the supply chain, or reducing risk back to source” MATTHEW ROSE,

PARTNER, PROCUREMENT TRANSFORMATION PRACTICE LEAD, KPMG UK procurementmag.com

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EQUITABLE, DIVERSE & INCLUSIVE PERSPECTIVES ON ED&I IN BUSINESS

As the importance of ED&I grows in the business world and beyond we asked three executives from different backgrounds about ED&I for them and their companies WRITTEN BY: ILKHAN OZSEVIM

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SUSTAINABILITY

E

SUSTAINABILITY

quity, Diversity and Inclusion (ED&I) is now a critical aspect of business and the procurement world; ‘critical’ both in the sense of being ‘paramount’, and as ‘open to analysis’ as to its meaning and denotation.

After all, it’s a project of immense proportions, and fittingly its definition is still evolving.

We take a look at ED&I from three different perspectives – and three different professions – some aspects of which are in agreement, some in variance; but what is not open to question is the unmistakable growth in importance of ED&I in the business world and beyond.

“Attracting and retaining diverse talent and ensuring you are building an organisation that’s reflective of the

communities you work amongst is vital and no longer something organisations large or small can ignore,” says Scott Dance, Director of Hays Procurement & Supply Chain for the UK and Ireland.

Hays, for anyone who needs an introduction, is a multinational company providing recruitment and human resources services across 33 countries globally. In other words, they know about people; and they know about businesses.

“Often,” says Dance, “businesses tend to start that conversation with gender and race, but diversity goes far beyond that. True ED&I requires you to value, recognise and respect differences.”

Dance believes that embracing these differences will add value to any workplace, “however just having representation of diverse groups doesn’t go far enough,” he says. “Encouraging diversity can be seen as being invited to a party, but fostering inclusion is being asked to dance when you get there, and this is just as important.

“Diversity and inclusion are the end goal, and fostering fairness and equity is how we get there. As a company, we can do this by honestly reflecting on our progress and calling out discrimination where we see it.”

“ Attracting and retaining diverse talent and ensuring you are building an organisation that’s reflective of the communities you work amongst is vital and no longer something organisations large or small can ignore” SCOTT DANCE,

DIRECTOR OF HAYS PROCUREMENT & SUPPLY CHAIN FOR THE UK AND IRELAND

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“At Sky, we use the CIPS definition of supplier diversity,” says Rob Collie, Group Director of Procurement. “It puts the focus on the business to be inclusive, ensuring there is equity in access to opportunities and ability to do business.”

Supplier Diversity is another important aspect of ED&I; the explicitly businessrelated stem of its diversity branch; a stem whose ramifications seek to promote diversity by being inclusive of a more diverse supplier-base.

“Our inclusive procurement strategy has two equally important parts,” says Collie.

“The first involves using our power to support economic prosperity and opportunities for diverse suppliers, including businesses owned by historically excluded groups and the communities in which they operate.”

“ Businesses tend to start that conversation with gender and race, but diversity goes far beyond that. True ED&I requires you to value, recognise and respect differences” SCOTT DANCE,

DIRECTOR OF HAYS PROCUREMENT & SUPPLY CHAIN FOR THE UK AND IRELAND

Sky have adopted the standard diverse supplier definition of 51% owned and operated, with a focus on factors like ethnicity, gender, ability and sexual orientation.

“The second part of our strategy is all about taking action to ensure that all of our suppliers operate in a way that's consistent with our commitment to diversity, equality and inclusion,” he says. “This helps us create a more diverse and inclusive supply chain, which is good for business.” procurementmag.com

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OUR ED&I PANEL

Scott Dance TITLE: DIRECTOR OF PROCUREMENT AND SUPPLY CHAIN FOR UK & IRELAND COMPANY: HAYS

Camilla Currin TITLE: SENIOR PARTNER MANAGER COMPANY: TREND MICRO EUROPE

Rob Collie TITLE: GROUP DIRECTOR OF PROCUREMENT COMPANY: SKY 80

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To help us deliver on their strategy, Sky have partnered with organisations and advocacy groups, including The Black Equity Organization, MSDUK, WeConnect, Valuable 500 and Out Britain.

“We're delighted to work alongside these partners as we strive to make a positive difference,” he says.

Camilla Currin is Senior Partner Manager at Trend Micro. She recognises the importance of ED&I to business, and specifically to the cyber security world. She says, “to effectively address cyber threats, I think that it’s important to draw on resources from different regions and backgrounds, to create the most robust resilience possible.

The idea is that different experiences allow for different perspectives, and therefore different strengths.

“On a personal level,” she says, “equity, diversity and inclusion are crucial in inspiring the next generation to pursue a career in the industry. By recognising that anyone can succeed in this field and that it's one's drive, one ambition, and one passion that enables them to enter the industry – we can create an inclusive environment that empowers everyone.”

The cybersecurity landscape is an interesting one, and Currin says that primarily, people should be hired into positions based on ability and merit. This stands to reason. “It is critical to have people in positions with the

“ We can create a more diverse and inclusive supply chain, leading to better business outcomes and greater social impact” ROB COLLIE,

GROUP DIRECTOR OF PROCUREMENT AT SKY procurementmag.com

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UNDP Administrator EB remarks on a Diversity, Equity and Inclusion Strategy WATCH NOW

correct skillset in order to achieve the most out of that individual for the benefit of the company.

“However,” she says, “where there are people who are equally skilled and the one is from a different sex/gender/ethnicity to the standard employee, I would definitely lean towards having a person like that employed ahead of the standard model of employee in that particular business.”

Key challenges in implementing ED&I As Director of Hays Procurement & Supply Chain for the UK and Ireland, Dance says, “employers are putting in a significant amount of effort and taking action to build more inclusive workspaces. But there is still a long way to go, with the need for ongoing progress when it comes to attracting and retaining diverse talent, made even more pressing in a talent-short market.

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with organisations to support routes into employment such as charitable organisations or social enterprises.

Currently, just just over a quarter (26%) of employers say they work with governmentbacked skills programmes to support the recruitment of diverse talent, and 22% say they work with a charitable organisation/ social enterprise supporting routes into employment, so there’s certainly room for wider engagement here.”

Rob Collie, Group Director of Procurement at Sky believes that one of the key challenges businesses face in implementing a supplier diversity and inclusion strategy in the UK, is the lack of readily available data. “Unlike in the United States, where reporting is mandatory and diverse supplier identification is simplified through single point sourcing databases, obtaining reliable data in other regions can be difficult. “Without fact-based insights, it is challenging to make informed decisions

and drive successful change. Sky’s Inclusive Procurement Portal provides a clear entry path by allowing suppliers to do an initial registration with us. The portal serves as a diverse supplier sourcing database where we can identify diverse suppliers and match suppliers to opportunities.”

Collies also thinks that a lack of senior leadership buy-in can also hinder progress.

“However, our strategy is sponsored by our Group CFO and Comcast CPO, and is being delivered through a top-down and bottom-up approach, allowing us to accelerate and set bold objectives.”

He says: “By addressing these barriers, we can create a more diverse and inclusive supply chain, leading to better business outcomes and greater social impact.”

“ It is critical to have people in positions with the correct skillset in order to achieve the most out of that individual for the benefit of the company” CAMILLA CURRIN,

SENIOR PARTNER MANAGER AT TREND MICRO

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Advice to companies trying to implement ED&I and Supplier Diversity Hays’ Scott Dance says that If you’re just starting on your journey to improve your ED&I, it's important to recognise that prioritising is essential. “You won’t be able to make all of the changes you’d like at once.

To make your journey more manageable, take a staggered approach, resolving quickfix issues more immediately and setting out a long-term plan to resolve more complex issues that sit within the core of your business,” he says. “A more immediate change that you could implement may be a blind recruitment process to limit bias in the hiring process, whereas improving gender diversity, on the whole, may be part of a much larger conversation.”

Within their own business, Hays has set a target to increase female representation at the most senior levels of leadership in their business to 45% by 2025 and 50% by 2030. “With regards to your own workplace, it's important to both ask difficult questions about the goals we set and answer them frankly.”

“ I think that it’s important to draw on resources from different regions and backgrounds, to create the most robust resilience possible” CAMILLA CURRIN,

SENIOR PARTNER MANAGER AT TREND MICRO

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In terms of Supplier Diversity, Rob Collie says that Sky recognised the importance of having a dedicated resource for change from the outset, as it brings specialised knowledge and expertise to their procurement process.

“This has resulted in several benefits, such as increased speed, improved supplier relationships and consistency,” he says.

“To maximise our gains, we've found that it is key to align our procurement strategy with the needs of the business, whether that be achieving Net Zero or disrupting the market with Sky Glass.

“We also recognise the value of our incumbent diverse suppliers and ensure not to overlook their potential. By leveraging the expertise and resources of our existing suppliers, we can strengthen our relationships and achieve greater success in our procurement efforts.”

Trend Micro’s Senior Partner Manager, Camilla Currin says: “Businesses should implement equity, diversity and inclusion (ED&I) practices to benefit from a larger pool of perspectives, increase the talent pool, and become more attractive to future employees.

“This effort should tackle the roots of the issue, with organisations increasing their involvement and collaboration with schools, colleges, and universities to support activities such as STEM workshops. It is also crucial for organisations to establish processes that encourage role models to step forward and engage in mentorship with their younger peers.

“To build our strongest resilience, we must draw on perspectives from a diverse pool of talent and encourage future talent today, to tackle tomorrow's problems.”

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Procurement technologies are disrupting the time-honoured status quo and establishing new ways of doing things.

Here are the Top 10 procurement technologies WRITTEN BY: ILKHAN OZSEVIM

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s technology continues to develop at a rapid pace, the ingenuity of utilising the best and brightest tech in the procurement world is changing the function forever.

From strategic sourcing software to spend analysis, once analogue, paper-ridden processes are now supercharged through digitisation.

Here are the top 10 disruptive technologies in procurement.

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TOP 10

09 10

INTEGRATED E-SOURCING AND E-CONTRACTING TOOLS Technology is a catalyst that facilitates progress and innovation in various industries including procurement, and e-sourcing and e-contracting have replaced traditional analogue methods. The digital nature of these technologies enables more effective and efficient tracking and management of procurement data, which results in time and cost savings for businesses. Additionally, these technologies have led to improvements in other areas, such as security and compliance, which are essential in modern procurement practices. As procurement becomes increasingly reliant on data and technology, integrating these tools will continue to be a game-changer for the entire industry

TOP COMPANIES

Synertrade, IBM, Scanmarket, SmartSource, Ivalua Spend HQ, Workday, SAP, Coupa, Sievo

88

May 2023

PROCUREMENT PERFORMANCE ANALYTICS Procurement performance analytics is a compass for businesses navigating the procurement landscape. By collecting and analysing procurement data, organisations can gain valuable insights that lead to informed decision-making and better performance. This process empowers businesses to identify areas for improvement and track progress toward key performance metrics.

With procurement performance analytics, companies are able to make data-driven decisions and confidently steer their procurement operations toward greater success.

TOP COMPANIES

Procurify, Zycus, Coupa, GEP SMART, SAP Ariba, Oracle, JAGGAER, Ivalua

TOP 10

07

SUPPLY CHAIN MANAGEMENT (SCM) SOFTWARE

08

PROCURE-TOPAY SOFTWARE Procure-to-pay (P2P) software may sound banal, but they are powerful tools that streamline the purchasing process and accounts payable systems, effectively merging the flows of onceseparate departments. The measurable impact of implementing P2P software solutions has caused them to soar in popularity. With integrated solutions that can track the in-and-out flow of entire procurement processes and provide information all the way up to the final payment, P2P solutions have revolutionised procurement, and are now regarded as essential for boosting productivity and efficiency in today’s business world.

Supply chain management (SCM) software is like a bird's eye view of the intricate movements of products or services as they journey through supply chains. The more sophisticated the software, the closer to real-time tracking it can provide.

SCM software is a multitasking powerhouse, managing inventory tracking, vendor management, fleet management, logistics, and analytics.

The more data and tech that flows into these systems, the clearer the vision of the entire supply chain, empowering businesses to achieve greater efficiency, reduce costs, and make informed decisions.

TOP COMPANIES

IBM, Microsoft, JDA Software, Kinaxis, Infor, SAP, Oracle, BluJay, LLamasoft

TOP COMPANIES GEP Worldwide, Proactis Holdings, BirchStreet, SAP Ariba, Coupa, Basware, Oracle, JAGGAER, Zycus,Tradeshift procurementmag.com

89

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TOP 10

ELECTRONIC AUCTION AND REVERSE AUCTION PLATFORMS

06

CONTRACT MANAGEMENT SOFTWARE (CMS) Contract management software (CMS) is the legal guardian for procurement teams, protecting them from the complexities of agreement-making that can have legal ramifications. CMS automates the entire contractual process, from renewals to workflows, eliminating the need for manual labour.

In the past, businesses had to juggle between multiple tools to manage their contracts, but now with CMS, everything is integrated into a single platform. This streamlines contract management, leading to enhanced supplier relationships, cost savings and increasingly, the inclusion of ESG, and D&I provisions.

Electronic auctions, or eAuctions, enable potential suppliers to compete in real-time for prices of goods or services under auction. These systems allow for commercial competition while also forcing prices to stay low, adding benefits to procurement and the economy. Reverse eAuctions take this further, with competitors starting at their ideal price and gradually lowering it as they vie for business.

This method can lead to significant cost savings and enhanced supplier relationships.

TOP COMPANIES

Oracle, Zycus, Coupa, BravoSolution, Ivalua, Proactis, Ariba, SAP Fieldglass, GEP, JAGGAER

TOP COMPANIES

Icertis, Coupa, Agiloft, Apttus, Concord, ContractWorks, SAP Ariba, Ironclad, SpringCM, Trackado procurementmag.com

91

03

SUPPLIER MANAGEMENT SOFTWARE

04

STRATEGIC SOURCING SOFTWARE Strategic sourcing software is a suite of procurement solutions that work together to support upstream procurement processes. This software is typically used by businesses to achieve the necessary critical mass of spend.

To qualify, strategic sourcing software must be capable of storing structured data, offering side-by-side comparisons of sourced products and enabling internal data collaboration, improve procurement efficiencies and make informed sourcing decisions that lead to cost savings and better supplier relationships.

TOP STRATEGIC SOURCING SOFTWARE:

Ivalua, Keelvar, Proactis, Basware, Workday, JAGGAER, BravoSolution, SAP Ariba, Coupa, Zycus Strategic Sourcing, GEP 92

May 2023

Supplier management software is a powerful tool that enables businesses to effectively manage their supplier relationships. With the ability to automate and streamline supplier management processes, businesses can improve supplier performance, reduce costs, and mitigate risks.

This software allows businesses to make informed decisions about their suppliers, leading to improved efficiency and enhanced supplier relationships. Popular examples of supplier management software include SAP Ariba Supplier Lifecycle and Performance, Coupa Supplier Management, and Ivalua Supplier Management.

TOP COMPANIES AND THEIR SM SOFTWARE SAP Ariba, Coupa, GEP SMART, Zycus, Aravo, JAGGAER, Ivalua, HICX, Determine, Hiperos

TOP 10

SPEND ANALYSIS TOOLS Imagine having a crystal ball that gives businesses a peek into their spending habits and illuminates areas where cost savings can be achieved.

Spend analysis tools are precisely that.

They empower businesses to gain a comprehensive understanding of their spending by importing and analysing data from multiple sources, including purchase orders and invoices.

These tools come equipped with several useful features that allow businesses to visualise their spending patterns, identify categories and suppliers that consume the most resources, and even compare their spending with industry benchmarks or similar companies.

By leveraging data visualisation, businesses can quickly identify

patterns and trends within their spending data. Category and supplier analysis provide insight into how much a company is spending on specific goods and services and which suppliers are driving those expenditures. This knowledge helps businesses identify areas of overspending and locate opportunities for cost savings.

Spend analysis tools also include advanced reporting, enabling businesses to generate detailed reports and export data to other systems for further analysis.

With these features, businesses can make informed decisions about their spending habits, leading to significant cost savings and a healthier bottom line.

TOP COMPANIES

GEP SMART, Sievo, SAP Ariba, Coupa, Zycus, D&B, Rosslyn, BravoSolution, Proactis, JAGGAER

procurementmag.com

93

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TOP 10

96

May 2023

TOP 10

EPROCUREMENT PLATFORMS eProcurement platforms are the ultimate shopping assistants for businesses, providing seamless and effortless purchasing experiences.

They offer a one-stop-shop solution that simplifies the entire procurement process, from browsing through electronic catalogues to managing suppliers.

With the ability to purchase everything from raw materials to office supplies and capital equipment, these platforms can help businesses save valuable time and money. By reducing errors, increasing visibility and promoting collaboration between buyers and suppliers, eProcurement platforms create a more efficient and productive environment.

What's more, these digital

environments enable businesses to negotiate better deals with suppliers, allowing them to leverage substantial cost savings. With electronic catalogues, purchase order creation, invoice processing and supplier management all in one place, eProcurement platforms are the perfect solution for businesses looking to streamline their procurement process. In the modern business world, any procurement organisation without an eProcurement solution, is living in the past.

TOP COMPANIES

SAP Ariba, Coupa, Procurify, Tradeshift, JAGGAER, Basware, Zycus, Ivalua, Determine, BravoSolution

procurementmag.com

97

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