Delivered at Procurement world Indaba forecasting the future and impact of procurement on business and supply chains .For more information visit www.procurementcentral.co.uk

1. Disruption and the
future
Stephen Wills
Disruption
Future

2. PROFILE: Steve Wills
CONTRACTING EXCELLENCE
 A lifetime in Procurement and as CIPS award winning CPO
 London Olympics, Aviva, AXA Procurement Director Managing
1bn Euro spend
 Fellow of Chartered Institute of Procurement & Supply and
previous Board member
 MBA in Strategic Procurement Birmingham University

3. Our training develops people
and facilitates change

5. What will
procurement
look like in
2030 and
what major
disruptors are
changing the
game ?
This Photo by Unknown Author is licensed under CC BY-SA

6. How disruptors like to be seen
• Agitators .
• Force of nature .
• The shock of the new .
• A change agent .
• A knight in armour .
A Disruptor is a Change Agent
Positive Disruption = Positive Change
that you can see or feel
But it can be handled brutally or tenderly

7. • New CEOs are disrupters
• They facilitate change and leave a legacy
• Procurement not consulted on the impact of change
• All business is subject to constant change so
procurement must be ready to plan ahead
• Be proactive and not reactive to change
• We have Governance and protect the business
• Procurement jump into spaces of “opportunity “
to expand the remit
• Without thinking of the impact on their function
• CSR , sustainability , Modern Slavery and
Regulation are all examples
• When they realise the impact on their workload
they try to disseminate it in the business
• We all enjoy being disrupters but not being
disrupted
Disruption and the future

8.  Finds new ways to add value
 Organizes for relevance
 Questions the status quo
 Establishes networks with SME’s when you can’t
expand the staff
 Communicates results that support business goals
 Experiments with new technologies and ideas
 Contributes to revenue and profit
8
According to Joanna Martinez, Author of A
Guide to Positive Disruption, when
PROCUREMENT is causing Positive
Disruption, it :
© Joanna Martinez, Supply Chain Advisors LLC, October 30,2018. All

9. According to Clayton
Christensen,* tactical Companies
Focus on “What’s Profitable”
Focus on most demanding customers
Exceed the needs of some segments
Figure out ways to tweak results and make
improvements whether clients want them or not
Tactical Procurement do
Something Similar
 Focus on “What We Do Well”
 Focus on largest spend
 Exceed the needs of some
segments… and ignore the ones
where we don’t have the expertise
 Figure out ways to tweak results and
make improvements whether our
internal clients want them or not
Business in a Disruptive Environment
Then a disruptor comes in and takes away the
business that is not being well served
© Joanna Martinez, Supply Chain Advisors LLC, October 30,2018. All
Rights Reserved

10. Technology is changing Procurements landscape incrementally
:
Cognitive Procurement:-
Artificial Intelligence
Spend Analytics
Big Data
• Complexity
• Volume
• Value
Data protection
Category and spend management
Forecasting demand & Budgeting
Payments
Block Chain
Crypto currency
3 Way Matching
Virtual ledgers
Fraud & Cyber crime
Strategic Sourcing
Internet of Everything
Networks of Networks
E-sourcing & Selection
ERP ,P2P , E auctions
Adoption & Compliance
Contract Management systems
GRC tools
Performance and monitoring
Fast Contracting
“4th Industrial Revolution”

11. CHANGE FACTORS ANALYSIS
Socio-Cultural How might changes in attitudes, fashions or other trends impact on the expectations of customers, suppliers
and other stakeholders
Technological The impact of technology in the form of materials, innovations or working methods that can impact on the
organisations operations
Economic The underlying changes in the macro (inflation, unemployment, interest rates, currency value) and micro
(changes in costs and supply factor) economy
Environmental The impact on waste and the environment and the need to comply with environmental standards
Political The likely implications of a change in government or governmental policies in the countries that can affect the
organisation’s operations
Legal Changes in legislation, quality or environmental standards that can affect the organisation’s supply of products
or services
Ethical The areas of the organisation’s supply chain that can be impacted by adverse publicity through any perceived
breach of ethical standards such as the use of modern slavery or human rights

12. Porter’s five forces model -understanding market disruption
Buyer’s
bargaining power
Threats from
substitutes
Supplier’s
bargaining power
Threats from
new entrants
Competitive
rivalry
within the
industry

13. Disruption and the future requires future proofing supply chains against the
impact of Risks
5 fundamental ways to damage an organisation

14. Define our Future Vision
• Business partners
• Proactive Leaders
• Value creators
Today :
• Cost , Risk and Innovation
• Budget reductions
• Achieve efficiency and streamline processes
• Achieve savings by reducing spend and business
costs
• SLA reporting
Tomorrow :
• Improve profit
• Operational excellence through supplier innovation and market
intelligence
• Reduce total costs through productivity
• Minimise tail spend
• Focus on business metrics
• Harness technology for efficiency
• Add value

15. • Move from Price , TCO , Profit to Value
• Drive Innovation
• Be Eco and sustainability champions
• Continually Improve Productivity and efficiency
• Knowledge of Market intelligence
• Understand Micro and Macro economics
• Focus on Business metrics and outcome
• Harness new technology and integrate
• Increase strategic relationships
• Understand Forecasting and demand planning
• Remove urgent last minute demands
• Reduce one time suppliers
• Use Real time and accurate analytics
• Use Strategic category and TCO management
• Use your deep domain expertise
• Focus on business outcomes
• Find a new way of operating
• Find new talent and different skills
• Use collaboration and partnership
• Use Soft consultative approach
• Use Transparency and sharing
• Be located at the point of activity
New Procurement

16. Findings of a CIPS PSR Specialist Knowledge Group who were focused on future People
Process and Technology
People :-
• Relational and judgement skills will still be required
• Focus on being Agile and managing blockers
• Networking , collaboration and pragmatic
• Specialist Category managers and business partners for senior relationships and high risk high complex spend
management
Process :-
• Design of process chanels that fit the business needs .Not a one size to fit everything approach
• Be more agile – Not everything is partnership with complex governance
• Use Kraljic to determine complexity and importance
• Use understood language to engage the business
Technology :-
• Continue to improve P2P and self-booking tools
• More Artificial intelligence tools eg contract assembly
• Use of compliance tools
• Ensure system integration

17. • Implementing change is only as good as your people process and governance
• Its not one size fits all approach as Kraljic teaches us in his 4 box model
• You need procurement partners in the business to communicate why change is
adding value and why it's necessary
• You will need strong implementation
• Capturing and monitoring data is not enough - its how you use the data
• Will you be a disrupter and shape the future or be disrupted ?
New Procurement

18. • Forecasting procurements future is like forecasting the South African weather
• Some blue skies and some stormy days
• Unsettled and variable
• More uncertainty and change to come
• Un predicable when it will happen
• If you are venturing into procurements future then take an umbrella and wrap up
safely
New Procurement