Agile & Strategic Wins the Race
In the not too distant future, quick and dirty financial gains will no longer be the only value-creation lever considered to evaluate buyers and their performance. So long Savings…the new challenge facing buyers will be the multiplication and diversity of the objectives and KPIs to which they will be held accountable.
In a keynote speech at Matinale Digital Achat 2019, a procurement event held in Paris, Gérard Dahan, CMO and SVP EMEA at Determine, a Corcentric company, shared with the audience his vision of tomorrow’s procurement professionals’ key capabilities and performance indicators. Here are the key takeaways to “future-proof” your organization:
Improve business performance by creating value all-around
To be “future-proof,” buyers need to secure a solid understanding of other business functions and strategy by developing a holistic and non-fragmented line of thought. They will need to master their business value chain and be able to create value for both internal and external customers. Some examples include:
- Helping marketing and sales to deliver a product or service and reducing time-to-market
- Reducing supply chain costs
- Assisting the Finance department to improve cash flow and working capital
Manage all risks
Going beyond traditional supplier and financial risk management, buyers will be required to manage a vast array of new risks: resilience risk, reputational risk, commercial risk supply chain risk, information security and privacy. New buyers must be able to set up an overall risk management framework that enables them to manage all supply chain related risks throughout the source-to-pay life cycle.
Be ready to address a data surplus (aka big data)
Some experts predict that by 2020, the new information generated per second for every human being will amount to approximately 1.7 megabytes! Procurement departments contribute to this exponential growth of data. Every day, their information systems generate an enormous volume of unstructured data that needs to be retrieved, stored, cleaned, formatted, analyzed and shared across their networks (ERPs, suppliers, internal and external stakeholders, etc.). To facilitate this big data management, and harvest its benefits, buyers need to understand the new technologies at hand: cognitive sourcing, predictive analysis, supplier scouting, machine learning (to name a few), as well as how to connect these technologies to their existing IS landscape and how to leverage them in order to:
- Facilitate the information flow, analysis and sharing
- Improve decision-making
- Automatically perform repetitive tasks
- Produce high-quality reporting and insights
- Promote better costs and risks management
Be your suppliers’ preferred customer!
We are entering an era where buyers will no longer select the suppliers they want, but rather, suppliers will select their customers. Buyers of the future have the skillset to adapt to this trend reversal and redesign supplier relationships to capture innovation and enter new markets and countries nimbly. Ultimately, by developing this new type of relationship, procurement departments will help their companies win new contracts in partnership with their suppliers, distributing the profits among associated business partners – also known as “revenue sharing.”
Agile, hyper-informed and connected = Navigators of uncertainty
From fluctuating oil prices to data breaches, all businesses are striving to be prepared for the unexpected. The new generation of buyers is at the forefront of their organization for uncertainty mitigation. Their skills? Being able to take advantage of collaborative tools and artificial intelligence to detect, anticipate and adapt to weak signals, trends, market fluctuations and other events impacting the supply chain, helping their business network to do the same along the way. Future buyers need to be connected to the outside world 24/7. And for that, they need an open solution that is able to connect via APIs to a myriad of solutions bringing tremendous benefits.
Determine, a Corcentric company, has developed an open Source-to-Pay Cloud Platform that can integrate any third-party applications. By opening our platform to the outside world, we support the evolution of the procurement function.
If you are ready to get more collaborative across stakeholders, suppliers and other business functions in your procurement organization, contact us to schedule a personalized demonstration of our integrated, modular Procurement solution on the Determine Cloud Platform