Contenu connexe Similaire à Procurement in 2017: The Road Ahead (20) Procurement in 2017: The Road Ahead2. 2
Copyright © 2017 - Ardent Partners Ltd.
ANDREW BARTOLINI
Chief Research Officer, Ardent Partners
Publisher, CPO Rising
11+ years as an industry analyst
• Researched and published extensively across all aspects of
supply management
• Benchmarked thousands of distinct procurement and AP
departments
6+ years at Ariba and Commerce One
• Rich experience in product marketing/management and
systems implementation, strategic sourcing, business process
transformation
Prior work history in consulting and investment
banking
MBA, Finance – Indiana University
BA, Economics – College of the Holy Cross
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Copyright © 2017 - Ardent Partners Ltd.
AGENDA
Introduction
The State of Procurement
Improving Performance in 2017
2017: The Road Ahead
Strategies for Success
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Copyright © 2017 - Ardent Partners Ltd.
Visit www.cporising.com today!
CPO RISING: THE SITE FOR GLOBAL CPOS
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TODAY’S PRESENTATION
Report Demographics
331 Respondents
o 68% VP or Director-level
o 89% work in procurement
o 77% from large enterprises
o 65% North America; 27% EMEA
o 25 industries
o Interviewed 30 CPOs
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THE CPO’S MANIFEST DESTINY
“The path we have taken isn’t the one I
intended. Every time we reach a new
platform, we realize that the next
journey is out there.”
~ Global CPO, CPG company
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REDUCED PRESSURE TO DELIVER MORE SAVINGS
(2009 – 2016)
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ALIGNMENT BETWEEN PROCUREMENT’S FOCUS AND
OVERALL BUSINESS OBJECTIVES
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PROCUREMENT WITHOUT SPEND ANALYSIS
CPOs who manage their
operations without spend
analysis….
Sourcing leaders who build
strategic sourcing pipelines
and run sourcing projects
without spend visibility….
Are Committing
Procurement Malpractice
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PROCUREMENT TECHNOLOGY ADOPTION IN 2016
26%
66%
34%
56%
33%
19%
29%
46%
58%
31%
Business Networks
ePayments
ePayables (AP Automation)
eProcurement
Supplier Performance Mgmt
Supplier Information Mgmt
Contract Authoring
Contract Repository
eSourcing
Automated Spend Analysis
Currently Use
© Ardent Partners - 2016
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IS PROCUREMENT AN ART OR A SCIENCE?
“Procurement is a blend of art and
science, combining business, category,
and supply expertise with leading
technology, data analytics, and
associated value-based decision support
capabilities.”
~ CPO Rising 2016: The Art and Science of Procurement
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MODERN PROCUREMENT COMPETENCY MATRIX
Goal: To help CPOs and their staffs understand the needed
skills to execute well and how to improve
• Define each skill
• Discuss its importance to procurement and career
• Highlight the “CPO Grade” for each skill
• Suggest ways to improve in these areas
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SUPPLIER COLLABORATION AND INNOVATION
“It’s amazing what we have been able to
achieve through competition and our
new strategy. Right now we’re working
on deep space travel programs that
would not be possible without tight
supplier collaboration.”
~ – Bill McNally, Deputy Chief Acquisition Officer (“CPO”),
NASA
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AFTER SAVINGS, TOP METRICS USED BY EXECUTIVES
TO MEASURE PROCUREMENT PERFORMANCE
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STRATEGIES TO IMPROVE PERFORMANCE IN 2017
People, Process, & Knowledge Levers:
Agility - better-equipped to adapt to change
Tight alignment to executives and enterprise objectives
Fluid resource allocation
Superior competencies across all areas but esp. sourcing process, category
management, and supply risk
Strong collaboration with line of business and functional peers
Holistic Source-to-Settle process
Supplier management programs that make a direct impact on supplier
performance
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TOP CPO HURDLES OVER THE NEXT 2-3 YEARS
39% - STAFFING &
TALENT
CONSTRAINTS
33% - ALIGNING
PROCESSES &
SYSTEMS
43% - BUDGET
CONSTRAINTS
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PROCUREMENT TECHNOLOGY IN 2017
Major advances in supply management technology past 5
years, but procurement excellence still starts and ends with
visibility
The need to improve, scale and collaborate makes the CPO’s
technology strategy is more important than ever
The future of procurement technology is emerging today
CPOs need a “procurement CTO” to track innovations and stay
abreast of the market
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TOP PROCUREMENT TECHNOLOGY TRENDS
34%
40%
55%
Integrated Strategic Sourcing
Suite (Spend Analysis,
eSourcing, and Contract
Management)
Integrated Procure-to-Pay
(eProcurement with
ePayables)
Deployed Cloud/SaaS/On-
Demand Solutions
© Ardent Partners - 2016
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PROCUREMENT TECH ADOPTION (2017-2018)
39%
26%
44%
29%
52%
46%
38%
35%
19%
31%
Business Networks
ePayments
ePayables (AP Automation)
eProcurement
Supplier Performance Mgmt
Supplier Information Mgmt
Contract Authoring
Contract Repository
eSourcing
Automated Spend Analysis
Plan to Use
© Ardent Partners - 2016
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Copyright © 2017 - Ardent Partners Ltd.
BIG DATA FOR PROCUREMENT
DEFINITIONS
Wikipedia Definition: A term for data sets that are so large or
complex that traditional data processing applications are
inadequate. The term often refers simply to the use of advanced
methods to extract value from data. Accuracy in big data may lead
to more confident decision making, and better decisions can result
in greater operational efficiency, cost reduction and reduced risk.
Big Data for Procurement: All of the spend, sourcing, contract,
and supplier information, plus process and transactional
information, in structured and unstructured formats, that must be
similarly managed in order to drive business value.
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“MONEYBALL FOR PROCUREMENT”
Data-driven, scientifically-based approach
Understand the drivers of procurement performance
Improve efficiencies and make smarter business decisions
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PREDICTIVE ANALYTICS
Developing algorithms, data models to better anticipate
future events – like risk events
Leveraging pricing, 3rd-party data to analyze commodity
markets and find ideal days, times, markets, and suppliers to
purchase goods and services
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BIG DATA STRATEGIES FOR 2017
BIG Data represents an opportunity to unlock BIG value
and to make procurement more relevant and agile.
Technology/analytics are critical to help to manage and
leverage BIG Data
The future of procurement analytics is emerging now
CPOs need a BIG Data strategy including technology,
resources, and organizational capabilities
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STRATEGIES FOR SUCCESS
Ensure that department objectives are mapped to the
primary goals and objectives of the enterprise
Develop and foster the skills that enable staff to
accomplish the things that support primary business
objectives
Demand greater investment in people and technology
Regularly assess the strengths and weaknesses of the
organization’s capabilities
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STRATEGIES FOR SUCCESS
Stay focused and vigilant throughout 2017
Weave agility into the organization’s fabric
Expand and automate the sourcing program
Develop and maintain a spend under management
“pipeline”
Cross-pollinate skills and staff
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Copyright © 2017 - Ardent Partners Ltd.
For more information please visit:
www.ardentpartners.com & www.cporising.com
Q&A / Discussion (Contact Info)
Andrew Bartolini
Chief Research Officer
Ardent Partners
abartolini@ardentpartners.com
@andrewbartolini