Lesley Wardropper – PASA: Recent Episodes
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Procurement teams play an essential role in ensuring that organisations have access to the right resources at the right time and price. However, traditional procurement practices can be slow, bureaucratic, and disconnected from business objectives.
To address these challenges, many organisations are adopting agile methodologies in their procurement processes. Agile procurement involves breaking down silos between departments and fostering collaboration among all stakeholders involved in the procurement process.
This article will explore key strategies and best practices for building a high-performing agile procurement team that leverages technology, data analytics, stakeholder engagement, and continuous improvement to drive value creation for the organisation.
Understanding The Benefits Of Agile ProcurementThe importance of adopting agile procurement techniques in today’s fast-paced business environment is becoming more and more popular.
Learn how to apply agile to procurement online over three days from 24 May
It is not just about being quick on your feet but also having the ability to be flexible and adaptive. The benefits are far-reaching, from cost-effective procurement strategies to improved collaboration among stakeholders.
Agile procurement techniques allow teams to respond quickly to changing market conditions by fostering an environment that promotes experimentation and adaptation. This approach focuses on delivering value to customers through constant improvements rather than relying solely on traditional project management methodologies with fixed timelines and deliverables. By embracing agility, organisations can reduce costs while improving their responsiveness to customer needs.
Cost-effective procurement strategies go hand-in-hand with agile procurement practices since they encourage a continuous review of expenditures and identify opportunities for savings. Procurement leaders must adopt innovative approaches that leverage technology such as e-procurement systems or Artificial Intelligence (AI) tools like predictive analytics to optimize spending decisions continuously. As a result, businesses can achieve significant cost reductions without compromising service quality or supplier relationships.
Fostering collaboration among stakeholders is another critical aspect of agile procurement. Collaboration involves working together across different departments within an organisation, breaking down silos, sharing knowledge, and creating cross-functional teams that align objectives towards achieving shared goals.
Agile frameworks facilitate this cooperation by providing visibility into each stakeholder’s contribution throughout the process, enabling everyone involved to stay informed, engaged and accountable for the success of the initiative at every stage of its development.
Fostering Collaboration Among StakeholdersHaving a comprehensive understanding of the benefits that agile procurement brings is crucial in building an efficient and effective team. However, it is not enough to rely solely on theoretical knowledge. Stakeholders play a vital role in ensuring the success of any project, making stakeholder engagement imperative.
Effective communication is key in fostering collaboration among stakeholders. As the leader of an agile procurement team, it is important to ensure that all parties are heard and their concerns addressed. This can be achieved through regular meetings, workshops, or even informal discussions.
Attend agile procurement training online with from 24 May 2023 over three days.
Trust building also plays a critical role in stakeholder engagement as it ensures that everyone involved works towards achieving common goals. Team building goes hand-in-hand with trust building. Encouraging team members to interact outside work-related activities helps build stronger relationships, which translates to better teamwork when working on projects. It also creates a more conducive environment for innovation and creativity where ideas can flow freely without fear of judgement.
Transitioning into leveraging technology and data analytics: In today’s fast-paced business world, staying ahead requires embracing technological advancements fully. Leveraging technology and data analytics provides an opportunity for procurement teams to streamline processes while gaining insights into market trends and supplier performance analysis.
Leveraging Technology And Data AnalyticsTo achieve high performance and win in today’s fast-paced business environment, agile procurement teams must leverage technology and data analytics. The use of modern technologies such as process automation has become essential to streamline the procurement function. Process automation reduces manual workloads, increases efficiency, and accuracy while minimizing errors associated with human intervention.
Predictive analytics is another critical area for leveraging technology in an agile procurement team. Predictive analytics uses machine learning algorithms to identify trends and patterns from large datasets that can inform better decision-making processes. This allows the team to anticipate future demands, identify potential risks or opportunities, and make proactive decisions based on insights derived from real-time data analysis.
To fully harness the power of technology and data analytics, it is important to have a robust system in place that integrates all relevant tools and platforms. An effective system should be able to capture data from multiple sources, provide accurate insights into key metrics, enable collaboration across different departments within the organisation, among other features.
With this kind of system in place, an agile procurement team can optimize their operations by automating repetitive tasks and using predictive analytics to make informed decisions.
Leveraging technology reduces manual workload and increases efficiency. Predictive analytics identifies trends and patterns and allows for proactive decision-making.
In summary, embracing technology through process automation and predictive analytics helps agile procurement teams stay ahead of competitors by increasing productivity levels while reducing operational costs significantly.
To ensure continuous improvement and adaptability while leveraging these technologies successfully requires a culture of innovation that prioritizes experimentation beyond traditional methods coupled with a willingness to learn new skills continually.
Continuous Improvement And Adaptability1. Leveraging data insights is key for agile procurement teams to stay competitive and maximize efficiency.
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To ensure that team members are utilizing data correctly, it is important to provide them with the appropriate training and resources.
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Automating processes can help to reduce errors and enable the team to focus on more valuable tasks.
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Automation should be implemented strategically with a focus on optimizing the process and ensuring data accuracy.
Leveraging Data InsightsAs an agile procurement team lead, one of the key strategies for building a high-performing team is leveraging data insights.
Data-driven decision-making can help identify areas where improvements are needed and enable teams to adapt quickly to changing market conditions.
Procurement analytics can provide valuable insights into supplier performance, contract compliance, and spend analysis.
By analyzing this data, procurement teams can identify opportunities to reduce costs and mitigate risk in their supply chain.
For instance, if there is a consistent trend of late deliveries from a particular supplier, the team can address the issue proactively by either renegotiating terms or finding an alternative vendor.
In addition to identifying problems, procurement analytics also allows teams to track progress towards goals and evaluate the effectiveness of implemented solutions.
This continuous improvement approach ensures that the team remains adaptable and responsive to changes in the market.
Ultimately, leveraging data insights enables agile procurement teams to make informed decisions that contribute to overall business success.
Automating ProcessesAs an agile procurement team lead, it is crucial to continuously improve and adapt processes in order to stay efficient and competitive. One effective way of achieving this is through streamlining workflows and reducing errors by automating certain tasks.
Automating processes can free up time for team members to focus on higher-value activities, while also ensuring consistency and accuracy. By automating repetitive or manual tasks such as data entry or invoice processing, procurement teams can reduce the risk of human error and minimize delays in the supply chain.
This not only saves time but also improves overall efficiency and customer satisfaction. Furthermore, automation can provide real-time visibility into key metrics such as inventory levels or supplier performance, enabling teams to make informed decisions based on accurate data insights.
However, it’s important to note that automation should be implemented strategically and with careful consideration of its impact on existing processes. It may require significant investment upfront, both in terms of technology infrastructure and staff training.
But when done correctly, automating processes can help create a more agile procurement function that is better equipped to respond quickly to changing market conditions and drive business success.
Best Practices For Building A High-Performing Agile Procurement TeamTo build a high-performing agile procurement team, Organisations should focus on several best practices.
First and foremost, providing extensive agile procurement training to the team is crucial. The team members must be well-equipped with the necessary knowledge and skills to carry out their roles effectively in an agile environment. This includes understanding the principles and values of agility, as well as mastering tools and techniques such as user stories, sprint planning, backlog grooming, and retrospectives.
Another essential factor that contributes to building a successful agile procurement team is effective communication skills among its members. In an agile environment where frequent collaboration and feedback are integral components of success, clear communication channels are vital. A lack of proper communication can lead to misunderstandings, delays or even failure to achieve project goals.
Therefore, it’s critical to promote open dialogue between team members through regular meetings, daily stand-ups, progress reports, and other means of transparent communication.
In summary, building a high-performing agile procurement team requires investing in comprehensive training programs that equip them with the required skills and knowledge for working successfully within an agile framework. Additionally, promoting effective communication skills within the team fosters collaborative efforts while ensuring transparency throughout all stages of projects. By adhering to these best practices consistently over time will result in more efficient processes leading to higher quality outcomes for your organisation’s procurement needs.
Agile procurement has become increasingly important in the business world due to its ability to create value, increase efficiency, and improve collaboration among stakeholders. According to a survey conducted by Deloitte, 78% of executives believe that agility is crucial for their organisation’s success.
Building a high-performing agile procurement team requires combining various strategies and best practices.
To foster collaboration among stakeholders, it is essential to establish clear communication channels, set realistic expectations, and encourage feedback. Leveraging technology and data analytics can help streamline processes, reduce costs, and identify areas for improvement.
Continuous improvement and adaptability are also key components of an agile procurement team as they allow organisations to respond quickly to changing market conditions.
It’s important to create a collaborative environment where everyone works together towards achieving common goals.
By implementing these strategies and best practices discussed above, we can build a high-performing agile procurement team that delivers exceptional results while continuously improving our processes.
With this approach, we can stay ahead of the competition and meet our customers’ evolving needs effectively. Agility isn’t just about being fast; it’s about being flexible enough to adjust your course when necessary while maintaining focus on delivering quality outcomes that add value across your supply chain network.
The procurement function plays a crucial role in driving business success, but in today’s fast-paced and unpredictable business environment, chief procurement officers (CPOs) face many challenges.
A recent article by McKinsey & Company, identified 10 key actions that CPOs can take to overcome these challenges and ensure the success of their procurement function.
McKinsey says the good procurement teams are raising the bar, and distancing themselves from the bad with clear daylight.
“What’s more, the procurement function itself continues to face major changes that have made its traditional operating models obsolete,” McKinsey said.
“Front-running procurement organizations are increasingly distancing themselves from the rest of the pack, deploying their talent, capabilities, technology, and insights into the world’s complexity in ways that propel them far ahead of the rest of the pack.
McKinsey says CEOs should put procurement leaders at the “center of the company’s response to the current context” and task them with a clear mandate to protect margins.
Ten actions for CPOs to act onDigitalise the source-to-pay processCPOs need to adopt digital tools and platforms to automate and streamline the entire source-to-pay process, from sourcing and contracting to payment and performance tracking. This can help reduce costs, improve efficiency, and enhance visibility across the supply chain.
Optimise supplier relationshipsProcurement teams should focus on building strong relationships with suppliers to improve collaboration, innovation, and risk management. This can be achieved by setting clear expectations, providing regular feedback, and investing in supplier development programs.
Increase spend influenceCPOs need to increase their influence over spend decisions by partnering with business units and senior leaders to align procurement goals with overall business strategy. This can help drive greater savings, improve quality, and mitigate supply chain risks.
Embrace sustainabilityProcurement teams need to play a leading role in promoting sustainability across the supply chain by setting clear targets, measuring progress, and collaborating with suppliers to reduce environmental impact. This can also help enhance brand reputation and attract customers who value sustainability.
Build a resilient supply chainProcurement teams should focus on building a resilient supply chain that can withstand disruption and mitigate risks. This can be achieved by mapping the end-to-end supply chain, identifying key risks, and implementing contingency plans.
Leverage advanced analyticsCPOs need to leverage advanced analytics to gain deeper insights into procurement performance, identify cost-saving opportunities, and make more informed decisions. This can also help improve supplier performance and reduce supply chain risks.
Foster innovationProcurement teams should actively seek out innovative products, services, and suppliers that can drive value for the business. This can be achieved by creating an innovation-friendly culture, partnering with startups, and investing in research and development.
Upskill the procurement teamCPOs need to invest in developing the skills and capabilities of their procurement teams to keep pace with changing business needs and technological advancements. This can be achieved by providing training and development programs, offering opportunities for cross-functional collaboration, and building a diverse and inclusive team.
Adopt agile ways of workingProcurement teams should adopt agile ways of working to improve flexibility, speed, and responsiveness. This can be achieved by breaking down silos, empowering cross-functional teams, and adopting iterative processes.
Align with the broader ecosystemCPOs need to collaborate with other functions and external partners to drive greater value across the supply chain. This can be achieved by partnering with logistics providers, working with startups and innovation hubs, and collaborating with industry associations and government bodies.
Read Procurement 2023: Ten CPO actions to defy the toughest challenges.
Supplier diversity is a growing trend that aims to ensure that businesses source their goods and services from a diverse range of suppliers.
This not only promotes inclusivity and social responsibility, but it can also lead to improved business outcomes such as increased innovation and cost savings.
In Australia, supplier diversity is gaining traction as more businesses recognise the benefits of working with a diverse range of suppliers.
According to a report by the Supply Nation, the Indigenous business sector alone is worth over $1.3 billion and is growing at an annual rate of 12.5%. Additionally, a 2018 report by Diversity Council Australia found that organizations with a diverse supplier base were more likely to report increased innovation, improved brand reputation, and better financial performance.
In this article, we’ll explore some of the key strategies outlined by Forbes Business Council that can help businesses get the most out of their supplier diversity investments.
- Set clear goals and communicate them: Define your supplier diversity goals and make them known to everyone in your organisation. Communicate these goals to your procurement team, suppliers, and stakeholders, so they understand the importance of supplier diversity and how it aligns with your organisation’s values.
- Conduct regular training: Training is essential to ensure your procurement team understands how to identify and work with diverse suppliers. Regular training sessions can help your team understand the benefits of working with diverse suppliers and how to find them.
- Build relationships with diverse suppliers: Build relationships with diverse suppliers by attending networking events, industry conferences, and supplier diversity events. These events provide opportunities to meet and connect with diverse suppliers and learn about their products and services.
- Monitor supplier performance: Monitoring supplier performance is critical to the success of your supplier diversity program. Regularly track supplier performance to ensure that diverse suppliers are meeting your expectations, and you are receiving high-quality goods and services.
- Hold suppliers accountable: Ensure that your diverse suppliers are meeting your expectations by holding them accountable. Develop metrics to measure supplier performance and establish consequences for suppliers who fail to meet your expectations.
- Integrate supplier diversity into your procurement process: Embed supplier diversity into your procurement process by including supplier diversity goals and objectives in your procurement policies and procedures. By making supplier diversity a core part of your procurement process, you can ensure that it is a priority for your procurement team.
Supplier diversity programs in AustralasiaA program implemented by Westpac focuses on increasing the participation of minority-owned and women-owned businesses in their supply chain.
Under the program, Westpac sets targets for the percentage of their procurement spend to be allocated to diverse suppliers. The bank also provides support to diverse suppliers by offering training and development programs, networking opportunities, and mentoring.
In addition, Westpac requires all of its suppliers to comply with their Supplier Diversity Code of Conduct, which outlines the bank’s expectations around diversity and inclusion in their supply chain.
In New Zealand, the government initiative “Māori Procurement Capability Development Programme” is aimed at increasing the number of Māori-owned businesses in the government supply chain.
Māori businesses made up 6% of the total of government procurement contracts for the 2021/22 financial year, the New Zealand Government say. This equated to more than 3,200 contracts awarded to Māori businesses worth a total value of about $930 million.
Final word on supplier diversityIn conclusion, supplier diversity programs offer significant benefits to businesses, including promoting inclusivity and increasing opportunities for diverse suppliers.
Getting the most out of your supplier diversity program requires clear goals, regular training, building relationships, monitoring supplier performance, holding suppliers accountable, and integrating supplier diversity into your procurement process. By following these tips, your business can maximise the benefits of its supplier diversity investments.
The future of healthcare and aged care is the focus of an upcoming two-day conference hosted by PASA in May featuring exclusive keynotes from StewartBrown, Johnson and Johnson, Bain & Co, KPMG and Uniting Care NSW.
It’s the 8th annual edition of the Health and Aged Care Procurement Conference to take place at Sydney’s Royal Randwick Racecourse on May 10 and 11.
Free tickets for the first 150 buyers.
Stuart Hutcheon, Managing Partner for StewartBrown, features on day two which is dedicated solely to Aged Care after Health procurement goes under the spotlight on day one.
Stuart’s presentation ‘A financial analysis of the parlous state of the aged care sector post Royal Commission’ will cover research and financial insights by StewartBrown which indicates real and sustained financial pressure on aged care providers’ bottom lines.
An alarming January report released by StewartBrown found 70% of aged care homes were running at a loss.
Leading conference comes at a critical time The conference comes at a critical time for the healthcare and aged care sectors, as they continue to face unprecedented challenges and changes.
The cost of aged care to the Australian taxpayer is expected to skyrocket in this year’s Federal Budget on 9 May.
Ballooning costs are estimated to jump to $29.6bn from $24.8bn in 2022, a leap of 23 per cent.
With an ageing population, rising costs, and changing regulations, the need for innovative solutions and efficient procurement processes has never been more important.
The conference will provide valuable insights and practical strategies for attendees to navigate these complex issues and contribute to the long-term sustainability of these vital sectors.
Procurement plays a crucial role in managing costs and ensuring that the health and aged care systems can operate efficiently and effectively in the future.
Bain & Co to feature patient experience presentationDay one, dedicated to health procurement, will feature several keynote speakers, including Damian Angus, partner at Bain & Co. Damian will discuss how new models of care can improve the patient experience and bring better outcomes at a lower cost.
Zarina Carty, director of procurement services and IT at SA Health, will explore the challenges of achieving value and savings in procurement during times of cost pressure.
Susan Martin, managing director of Johnson & Johnson MedTech ANZ, will offer a supplier’s view on the value-based healthcare philosophy and the importance of innovation in the medtech industry.
On Day two, Nicki Doyle, lead partner at KPMG, and Nicole Aspray, director of sourcing and procurement advisory (health) at KPMG, will share how procurement can empower aged care providers to deliver exceptional care through smarter procurement.
Chris Heptinstall, CPO at Uniting Care NSW, will explore the role of procurement in stemming the financial crisis facing the aged care sector.
Procurement professionals can also benchmark against case studies from NSW HealthShare, SA Health, NZ Health, Austin Health, Australian Unity, Red Cross Lifeline, Uniting Care, Integrated Living and others.
Register for Health and Aged Care Procurement on May 10-11.
Dr Ian Watt, former head of the Public Service, has called for systemic changes to be made to the rules governing the $80 billion in annual Commonwealth procurements.
He warned that little has been improved in over a decade. InnovationAus reported, Dr Watt’s call for change came just hours before evidence was presented in a parliamentary inquiry that suggested former Coalition minister Stuart Robert could benefit financially from his friends’ company.
The company was alleged to have helped multinational companies secure government contracts worth millions of dollars. Dr Watt, head of Prime Minister and Cabinet from 2011 to 2014, urged the inquiry to recommend sweeping changes to all agencies by revising the Commonwealth Procurement Rules and introducing more accountability.
Dr Watt was called in late last year to review contracts linked to the alleged lobbying scandal involving Mr Robert, consulting firm Synergy 360 and technology vendors.
Dr Watt, whose review was limited to the actions of officials only and not the behaviour of the former minister, the firm or the vendors, found no clear misconduct but alarming patterns of poor procurement practices.
He said Federal spending was $80 billion annually on procurements – almost 5 per cent of GDP.
He told the inquiry a clean sweep was needed to systematically improve procurement issues.
“Really, there’s no solution short of doing this systematically across the board, for agencies as a whole… And I think really, it’s time for the Australian government, the Australian Public Service to look much more systematically these issues,” he told the inquiry.
He even said agency heads needed to take more accountability for procurements.
“It’s important that the government signal very clearly to agency heads that this is one of the things is going to bite you. And I think that would help,” he said.
“What I learned as an agency head was, quite simply, you may not have made the decisions that your predecessors made, but you’re responsible for them. And that I think is something that I think all agency heads should ponder over.
“I’m sure my colleagues will say ‘Well, that’s gratuitous advice and thank you very much.’ But it’s actually true.”
Go to InnovationAus to read the full article.
The heady days of bumper salary increases in procurement could be cooling off, says procurement and supply chain recruitment specialists Cozens Mabel.
In its latest quarterly update, Director of Cozens Mabel Ilsa Cozens said the market remained strong for procurement but the 15-20% salary rises were expected to ease off.
For those who have moved employers in 2022, the good news is that they saw decent salary increases ranging from 15-20%, particularly in the $150-200k bands.
“Candidates moving employers over 2022 saw decent salary increases (15-20%), particularly in the $150-200k bands,” Ilsa says. “However, there are signs that this is tapering out now and candidates are unlikely to see the same increases that we saw in the last 12 months over the remainder of 2023.”
Hiring freezes in play Cozens Mabel’s Quarter 1 report, states some larger companies had introduced hiring freezes or increased hurdles in the hiring process and there was a slight shift towards contracting and fixed-term roles over the quarter.
“Contractor demand has increased slightly across most sectors in the quarter, particularly where organisations look to deliver strategic uplift programs without putting added pressure on increasingly stretched existing team members,” Ilsa said.
“Contract to perm models are also being used more regularly by some organisations to secure good talent whilst navigating the challenges of bringing on permanent staff during hiring freezes or temporary restrictions.”
Juggling hiring with business as usualSome organisations facing work pressures and staff shortages have really stretched hiring teams, Cozens Mabel said.
Many are juggling interviews and candidate interactions with a growing volume of business-as-usual activities, financial pressures, and hiring barriers, says Ilsa.
“So, whilst this market has produced so many positives, it’s also a good time to take a step back and look at how your brand can be enhanced (or in some cases weakened) in the current environment, for both candidates and employers (and recruiters),” Said Ilsa.
How to Stand Out in the Hiring Process: Tips for Candidates and EmployersFinding the right candidate for a role can be a daunting task for employers, but it can also be a challenge for job seekers to stand out in a crowded market. Here’s some tips from Cozens Mabel.
For Candidates:Sell YourselfA great CV is crucial to selling yourself to potential employers. However, many hiring teams and recruiters also use LinkedIn to evaluate candidates, and it’s amazing how often a LinkedIn profile doesn’t match up to the CV or fails to promote the value that you could bring to other organizations. A strong profile and CV should show impact in each role, with examples of problems or challenges that you have worked on and how you improved or uplifted the situation with financial and non-financial outcomes.
It’s not what you, it’s who you know? Finding your next role often comes down to who you know. Building a strong profile on LinkedIn and developing your network of contacts can help build your brand and increase engagement. This can be as simple as building out your contacts, joining relevant groups, and sharing useful industry articles.
Interview TimePreparation is key to acing interviews. Do your research on the hiring company and the interviewers by searching websites, recent articles, and LinkedIn profiles. Annual Reports are a great source of information. Testing your equipment beforehand and dressing professionally will help you make a good first impression, even if the interview is online. Even if you have doubts about the role, always have the initial meeting to establish connections and build your brand in the market.
Keep relationships openWhether you get the job or not, remember to enhance (not damage) relationships during this process. The procurement and supply chain sector in Australia is relatively close-knit, so you may come across the hiring team or the potential employer again in some capacity.
Enhance Your Brand in Every Contracting JobContracting offers exposure to a range of different companies, projects, and people. Seeking regular feedback and proactively looking for ways to add value, even in challenging environments, will enhance your brand, which is crucial in all markets, especially contracting.
For Employers:Sell Your OrganisationEmployers who do well in attracting top talent spend time highlighting key achievements within their team(s), in-flight or anticipated strategic uplift plans, and what opportunities exist for the candidate to make a real difference in the role. An interview is also a great chance to give the candidate a short summary of your individual career highlights and why it’s a great place to work.
Flexible workingFlexible working arrangements and clear opportunities for career advancement are two of the most important factors that top talent look for in an attractive employer. Having a solid position on your flexible working arrangements and highlighting other areas of value, such as wellness or social initiatives, will score highly with candidates.
Breaking the newsWhile a recruiter or hiring team may break the bad news to unsuccessful candidates, some hiring managers will arrange a time to provide feedback and keep connected to the candidate over the course of their careers, often leading to future employment discussions.
Two of Australia’s leading enterprise SaaS platforms have joined forces to launch an integrated procurement and ESG offering.
This partnership between source-to-contract procurement platform provider VendorPanel and givvable will allow organisations to leverage their procurement spend to drive positive sustainability and ESG outcomes, the two organisations said in a media joint media statement.
VendorPanel and givvable’s platforms are both award winners in their own rights. VendorPanel is a procurement platform with innovative capability in supplier data augmentation and givvable has an ESG platform using powerful AI and data models.
The new partnership offers organisations an integrated solution, empowering buyers with the right information to purchase goods and services from suppliers with strong ESG credentials.
The technology is being rolled out to VendorPanel’s QLD customers initially, following the Low Carbon accelerator funded by QLD Government.
It will next be made available nationwide to all of VendorPanel’s government and corporate customers following this opening launch period.
Frances Atkins, givvable CEO and Co-Founder, said: “We know the strength of our data and insights, and the tangible results that can be achieved through easier access to suppliers taking action on ESG.
“Partnering with VendorPanel will enable us to support billions of dollars in procurement decision-making in one platform by providing buyers with the data they need, when they need it.”
VendorPanel’s CEO James Leathem said pressure on ESG commitments was intensifying for organisations across many business areas and multiple stakeholders.
“Today, the pressure to deliver on ESG commitments is intensifying from all directions, from businesses to employees, and investors to governments. More and more, organisations are seeking suppliers who have strong ESG credentials,” said James Leathem, CEO of VendorPanel.
“We have already proven that VendorPanel’s intelligent data augmentation can change real-world outcomes. Not only does it support smarter procurement processes, but also more informed and better decisions. The technology is used to deliver significant benefits for local economic development as well as social procurement. The results of these initiatives have won multiple awards for innovation and excellence,” added Leathem.
“ESG is a fundamental part of procurement in 2023 and has always been an integral part of the VendorPanel vision, and this partnership with givvable continues to strengthen our ESG offering,” said Leathem.
“We know our solutions have a positive impact on economies across the country. We have seen 84% local supplier engagement through the VendorPanel supplier Marketplace and geo-location functionality, and we are excited to see how our partnership with givvable can positively impact ethical sourcing in a similar way.”
Atkins added: “We have continued to enhance our offering since starting out in 2020 to help our clients get better visibility, and to provide them with the data, insights and resources they need to improve the sustainability performance of their supply chain. This partnership with VendorPanel allows us to expand that powerful capability across VendorPanel’s, predominantly government, user base – it’s an exciting prospect for the future of ESG in Australia.”
This integrated offering is available now via VendorPanel with more information on the givvable website too.
Editors note: Vendor Panel is a paid sponsor of PASA’s events.
Procurement’s aim for visibility and transparency is transformed into practical insight by data.
Greater visibility enables procurement to maximize savings while ensuring the company can remain competitive in the digital landscape.
When it comes to categories like cloud software, where buyers can act independently, visibility allows procurement to improve savings leverage and avoid “shadow spend” with centralized oversight.
This Art of Procurement Podcast features Emily Campbell, Director of Product Design & Research, and Nick Pinkman, Sr. Cloud Manager at Vendr.
The pair discuss the importance of centralizing workflows for managing spend and headcount, the types of cloud savings procurement should negotiate, and the data they should have before entering a cloud software negotiation.
Listen to the Art of Procurement Podcast.
Competition is hotting up for a high-profile procurement manager role with a national organisation.
According to LinkedIn, more than 100 applicants have applied for Australia Post’s Procurement Manager role to lead and manage their Group Procurement team.
The Linkedin advertisement says the company is undergoing significant transformation in response to a rapidly changing commercial landscape. The successful candidate will be responsible for developing and implementing cost-effective sourcing and procurement strategies, the advertisement says.
The role will be required to support the organisation’s Post 26 strategy, released in late 2022. This strategy provides a roadmap to keep the organisation competitive for the next 200 years.
Tough times for Australia Post In March 2023, the Federal Government announced a review, entitled, Postal Services Modernisation, into Australia Post to ensure it remains financially viable. Government News revealed Australia Post suffered a record first-half letters loss before tax of $189.7 million. The average household now receives about one-third the number of letters a week it did in 2007,
What is expected in the roleAn “experienced procurement professional with exposure to large corporate best sourcing practices and processes” is desired according to the job advertisement.
Other attributes of the ideal candidate include “sound commercial knowledge and understanding, including an understanding of national/global providers, contract law, probity practices, and procedures.”
See job ad.
Less than 20% of procurement teams are getting the digital technology they need, research from Gartner reveals.
Gartner’s Jeremy Suter Director of Advisory says the profession is largely “self-sabotaging” itself by refusing to make the right case for procurement technology for fear of it being knocked back.
Gartner’s research revealed 24% of the tech the procurement profession needed it doesn’t ask for.
Jeremy, who spoke at PASA’s recent ProcureTech event, said the profession was scaling back requests just to get them approved.
“We’re guaranteeing we’re not going to get exactly what we want and we might even end up getting a lesser version of the things we didn’t want in the first place. Which is really why I would consider this to be self-sabotage rather than self-censorship when it comes to your, procure procurement technology approvals,” he said.
More than 250 procurement professionals and key decision-makers were surveyed on how can procurement more consistently secure approval for desired technology solutions.
Why business cases get knocked back The top three explanations by procurement leaders for business cases being refused included:
- Resources available but directed to another priority.
- Resources not available.
- The business case overall isn’t persuasive.
However, for decision-makers, the top three reasons were somewhat different, suggesting procurement doesn’t sell its request well enough to those with the tech purse strings.
- Insufficient value proposition to justify resources requested
- Business case overall isn’t persuasive
- Resources not available
“They (decision makers) told us that when they rejected these business cases or not fully funded them, it’s because we didn’t make a compelling enough case or demonstrate enough value proposition for the resources we’re asking for,” Jeremy said.
Image credit: Gartner
The Gartner research revealed business cases presented by procurement were falling short of the mark. A total of 57% of business cases did not fully explain the problem the technology would help to solve.
“If we’re going to convince somebody that we need to solve a problem, we’re going to need to convince them that there’s a problem in the first place, right?” Jeremy said.
“And yet, 57% of the time we’re not even clearing that.”
Three ways to make your business case more persuasive1. Improve the data – use strong facts and figures 2. Craft a more compelling narrative – clearer explanation of data can lead to 1.6 great approval rates. 3. Build and leverage a coalition of support – building buy-in can increase approval rates by two times.
“We can almost pre-wire the business case. Get other functions or stakeholders on board with what we request, and importantly, before we request it. And again, this is to help tackle a common, decision maker concern surfaced by the surveys that we did, that we don’t always effectively get buy-in for our business cases before we submit them,” Jeremy said.
How framing can help with business cases through Jeremy urged procurement to consider the use of framing as a means to give business cases a better chance at the approval stage.
“Framing leads an audience to interpret an argument in a specific way by deliberately choosing phrasing and words to express a fact or figure in a way that resonates or aligns with the audience’s pre-existing beliefs and priorities without changing the fact or figure,” Jeremy explains.
Image credit: GartnerWhen it comes to communicating the request, Jeremy said having a clear plan in place can help the business case get a better chance of being approved.
Communications tactics that can pay off include:
- Develop clear communication plans for how you will
build and pitch the business case
- Emphasize alignment between your request and other functions’ priorities
- Identify in advance which facts and figures need to be emphasized to each stakeholder
- Identify different ways facts and figures can be framed to make them most persuasive
In closing, Jeremy says procurement technology has always been hard to get and predicted this would get harder.
He said procurement business cases that were clearer and more persuasive were more successful and need to “ask for exactly what you want.”
Building advocates is something else he championed and encouraged the development of “a coalition of supporters” to support the business case.
We are excited to announce that The 8th Annual PASA Health & Aged Care Procurement Conference is taking place on 10th & 11th May 2023 at The Royal Randwick Racecourse, Sydney.
We are offering an early bird special whereby the first 150 buyers to register will receive a complimentary two-day ticket to this event. We expect these tickets to sell out quickly, so please secure your place by registering here.
This year the conference will be even bigger than in previous years and includes issues surrounding “health” as well as “aged care”. The theme for this year’s event is geared to the unique challenges facing procurement in the health & aged care sector.
Up to 300 buyers are expected to attend to hear from an expanded programme – invited speakers include the federal minister, the CEO of a leading aged care provider, CPOs from several health authorities, hospital groups and aged care providers. A handful of top consultants in the space will also speak, as will specialists in key topic areas relevant to healthcare provision including critical facility services, net zero targetting & delivery, contract nursing provision and ESG initiatives in the sector.
Vendors will be able to buy vendor-tickets next month or take the chance to co-sponsor the event or book one of the few remaining exhibitor spaces here
REGISTER NOW for your free ticket here – detailed programme and all new website to be published by end February 2023.
I look forward to seeing you in May.
Lesley
LESLEY WARDROPPERMANAGING DIRECTOR
Mobile: 0413 029 709
E: lesley@pasa.net.au
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This August 15th and 16th we will be running the 23rd btTB Annual Travel Conference at Randwick Racecourse in Sydney. btTB has been the biggest business travel conference in Australasia for over two decades.
Travel has always been a difficult and opaque area of supply, and the many changes post-Covid have made supply chain knowledge even more valuable in this category.
We always try to present a range of issues and topics that are of real practical use to travel buyers, as well as sessions that consider larger themes and the future. And as with all our major events, we are keen to hear from you so that we can tailor a program that fits well with your interests and needs. Therefore, please let us know if you have any subjects or issues that you would like to see covered at this year’s btTB Conference, and we will do our best to incorporate them.
Also, you might want to present on a travel topic yourself. We are always keen to have procurement and category managers presenting at our events. If so, we would love to hear from you and provide you with the opportunity to share your experience with an audience of your peers.
The following is a short “early working list” of suggestions:
- Making travel management a best-case example of category management under pressure
- Why travel is a great place to learn broader procurement skills
- Getting real with managing travel carbon
- CSR: Beyond policy documents
- Travel data security: What is possible? What are the risks?
- Reducing the amount of travel: Does it matter if you go too far?
- Can I book international travel on my online booking tool in 2023?
- How are TMCs surviving in the new environment? How have they changed?
- The things you can do to minimise the cost impact of rising airfares
- Is it time for travel buying consortia again? Can it succeed this time?
- The industry restructure has created new partners in the supply chain, with consequences.
- NDC – Your annual practical update
- What should I outsource in travel procurement and management? What are the benefits, costs and risks?
We are looking forward to another big gathering of buyers and suppliers at Randwick in August, and we hope that you leave the event with a bag full of information, ideas and contacts.
Please let us know if you have any ideas for the content and format by contacting lesley@pasa.net.au
Sponsorship/Exhibition opportunitiesThe btTB trade show features leading providers in the business travel supply chain, providing buyer delegates with the opportunity to explore potential new product and service offerings and suppliers with the opportunity to identify and engage with potential new customers including procurement managers, travel managers, corporate travel agents and corporate buyers as well.
Please contact deanna@pasa.net.au to discuss which sponsorship options would best suit your needs.
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Thank you! As a Christmas thank you to our procurement community for supporting us, we’re hosting a free PASA Connect Personal Development Day to help you get 2023 off on the right foot. If your role is on the buy side in procurement, you are invited to join us on Wednesday 7th December 9.30am to [...]
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Australasia’s most influential procurement conference 12th & 13th October Flemington Racecourse, Melbourne Don’t miss out on an unrivalled programme with the best learning and networking opportunities of the year Join buyers from the following organisations who have already registered to attend: Deakin University, CPA Australia, Uniting AgeWell, Australian Unity, SA Health, KONE, Douglas Shire Council, [...]
The post See who is attending The PASA Flagship event LIVE in Melbourne 12th & 13th October 2022 appeared first on Procurement and Supply Australasia.
The winners for the 2022 btTB Travel Awards were announced yesterday on the final day of the 22nd btTB Annual Travel Conference at The Royal Randwick Racecourse, Sydney. A huge congratulations to the following winners: The Judges were so impressed by two outstanding Buyer nominations that two runner up places were also awarded: Commenting on [...]
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The 22nd btTB Annual Business Travel Conference & Awards 6th & 7th September 2022 The Royal Randwick, Sydney This year at the 22nd Annual Business Travel Conference, we focus on the substantial changes to both travel management and the supply chain. Our mission is to help you manage safety, savings and supply in the new [...]
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btTB 2022 Annual Travel Awards After two tumultuous years, travel buyers and suppliers have had to adjust and adapt, with fractured data and no rulebook. And so for the 2022 Awards, we invite travel buyers and suppliers to tell us how they have steered their way through the new uncertainties, by simply answering a few [...]
The post Nominations now open for btTB Travel Management Awards appeared first on Procurement and Supply Australasia.
A week after launching a new three-year procurement strategy to build capability of public servants, the Western Australian Government has stepped up efforts with purchasing power to promote gender equality. The State Government has announced a 12-month procurement pilot to shine exposure on gender equality in the workplace. Under the move, WA is the second [...]
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The countdown is on for next month’s PASA 7th Annual Aged Care Procurement Conference – shaping up to be the biggest and best yet. This Conference is for all levels of procurement expertise and addresses specific aged care procurement skills to improve your procurement practices.Check out the line-up below and register now to be part [...]
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A great opportunity to remotely edit the weekly newsletter/eZine and content collation to support the digital marketing strategy of a small B2B events company based in Queensland. About PASA … Established for 22 years, the PASA brand has built a strong reputation within the procurement industry running conferences, events, industry roundtables and training programmes supported [...]
The post We are hiring: In-house EDITOR – Part-time, wfh appeared first on Procurement and Supply Australasia.
The Nigels Winners Winning a PASA Award is a prestigious recognition of procurement excellence. Not only are the winners judged against their peers’ efforts in competition, but also against a minimum standard for excellence defined by our esteemed judging panel of procurement experts. Winners must pass a standard of excellence, we believe. This year we [...]
The post Winners of the Inaugural Nigels Procurement Awards announced appeared first on Procurement and Supply Australasia.
Can ‘Lean Agile Procurement’ solve our biggest problem – how long it all takes? Three courses left in 2021 – all now ONLINE: LAP1 – 19th – 21st October: 9.00am to 1.00pm AEDT for three mornings The BIG ROOM Simulation Workshop – 5th November : 9.00am to 1.00pm AEDT for one morning LAP1 for Government [...]
The post What is Agile Procurement – and why does it work so well post-Covid? appeared first on Procurement and Supply Australasia.
Congratulations to Swinburne University of Technology – this year’s winner of the btTB-GBTA 2021 Environmental Travel Management Award which was announced at the annual btTB-GBTA virtual Conference on 14th September. As winners they will receive for their organisation two prizes to help further their sustainability program. Thrust Carbon is an innovative and fast growing environmental [...]
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Check out these three bespoke training workshops which have been specifically developed to address skills and capabilities vital to effective procurement: Facilitated by Jonathan Dutton FCIPS FCIM, CEO at PASA, this workshop is perfect for procurement managers looking to get more strategic in their perspective on our profession, for experienced category managers getting ready to [...]
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Join us at the PASA Connect virtual Open House for just 25 minutes and you could WIN a nespresso coffee machine PASA would like to invite you to join us at our virtual OPEN HOUSE on Thursday 22nd July at 1130am AEST. In less than half-an-hour, we can briefly: Explain the FIVE benefits of PASA [...]
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