Art of Procurement

So here we are: The Best of 2016 List. As the year comes to a close, I sat down to consider which episodes have been the most powerful and impactful in 2016. Some of these have been my personal favorites, others determined by download numbers. What I did try to do is to make the list as diverse as possible, and it features interviews with CPO's, CEO's, Founders, Educators and Consultants. There should be something for everyone here! For more information, visit: http://artofprocurement.com/bestof16

Pierre Mitchell was the first supply chain practitioner to become a procurement "industry analyst" with roles at AMR Research (now Gartner) followed by The Hackett Group, and now Spend Matters. There are few people, if any, that cover procurement than understand, and have such passion for, the growth of our profession. Both Pierre and I were together last week at the ISM Inside Indirect Conference 2016 in Las Vegas, and so we picked up the mic's and hit record! So, today's show is an informal chat covering a range of topics. Areas we cover include: What challenges in procurement is Pierre motivated to try and help solve? Has procurement evolved over 2016 or as we still in the same position, with the same challenges and questions, as we were 12 months ago? How can we differentiate marketing hype with reality when it comes to potentially game changing technologies? What is the most overused and most underused procurement KPI? For more information, visit: http://artofprocurement.com/ismindirect

On today's Art of Procurement, I answer a listener question. The question was: how do you make a supplier happy. Now, I'm going to assume that the right answer isn't to give them riches for providing peanuts! So, I sat down and thought through 6 different ways that I think we can all put at least a half smile on the faces of our suppliers this Christmas! For more information, visit: http://artofprocurement.com/113

I will be in Las Vegas this week at the ISM Indirect Conference, and with Las Vegas also known as Sin City, I thought it would be fun to look back at some old Art of Procurement episodes and come up with a list of 10 sins of procurement! Now, frankly, there are a lot more than 10! However, I had to stop somewhere! These are inspired by my own experiences, and the guests that we have had on the show. I kept them to what I think are our day to day dealings with suppliers and stakeholders rather than looking at it from an organizational design perspective. For more information, visit: http://artofprocurement.com/procurement-sins

This week I welcome Gordon Donovan on to the Art of Procurement. Gordon is a presently a member of the procurement leadership team at Metro Trains Melbourne, and he has a broad range of experiences as a practitioner including Head of Procurement roles, consultant and training. Gordon's career spans both the UK and Australia, and includes roles at organizations such as the UK National Health Service, Transport for London, Healthscope, ArcBlue and The Faculty. Today, we are going to discuss influence and I'm willing to say that there are few, if any, who have studied the topic of influence and procurement as thoroughly as Gordon. He wrote a 20,000 word dissertation for his Masters Degree on the topic of the development of influencing skills within the Australian procurement community, and he frequently weaves the topic into his procurement learning and development programs. Areas we cover include: The need to demystify procurement The difference between functional influence and influencing skills. The importance of facilitation skills An overview of different influencing styles and how to determine which style you should use depending on who you are seeking to influence Why kids are the best influencers and what we can learn from them Key traits of a successful influencer The power of inspiration Gordon's tips for building trust, which is the foundation of building influence. For more information, visit: http://artofprocurement.com/influence

With it being a holiday weekend here in the United States, I thought I would do is share with you one of my favorite submissions from The Procurement Revolution event from back in late September. More and more, I believe the mindset is a key enabler or roadblock in our efforts to think differently and elevate the procurement value proposition. Without that change in mindset, it makes the other necessities – such as competency development – almost irrelevant. And so I wanted to focus today in the topic of mindset. Today's piece was one that I really enjoyed. It is a submission from Elisabeth Lawrence. Elisabeth is a long time procurement executive who just after we recorded todays piece joined a leading materials company to set up their Category Management Center of Excellence. You will hear Elisabeth talk about the need to shift mindsets if we are to take procurement to the next level. For more information, visit: http://artofprocurement.com/mindset-shift

Scott Gillespie is an expert in procurement, and corporate travel. He was an original member of the AT Kearney team that launched the 7-step sourcing process in the 1990's, and has since founded a number of companies with a focus on helping organizations better understand, benchmark and measure the performance of their corporate travel programs. Scott also authors the popular blog Gillespie's Guide to Travel & Procurement. Scott passionately believes that corporate travel programs should be managed on outcomes and value, rather than cost alone. In today's Art of Procurement, Scott and I discuss innovative ways in which procurement leaders can manage the success of their travel program over and above the traditional cost-focused metrics. Areas we cover include: The basic key metrics that are foundational to any corporate travel program. The best sources of data for gathering travel spend information. Cost drivers that have the biggest impact on travel spend. An introduction to the concept of traveler friction. The importance of taking into account trip outcomes vs. just focusing on trip cost. What constitutes a "road warrior" and should they be subject to different travel policies vs. irregular travelers. An overview of four key metrics that enable value-focused measurement of a corporate travel program: Scrap rate of travel Traveler risk management index Attrition rate of road warrior population Trip quality For more information, visit: http://artofprocurement.com/travelmetrics

Today's episode is in response to a listener question. I was recently asked for guidance on how to maintain supplier relationships following a tough incumbent negotiation - particularly one that occurs mid-contract. Listen in to hear my share five considerations that I have used both as a practitioner and service provider to maintain relationships with my suppliers and clients following difficult negotiations. For more information, visit: http://artofprocurement.com/toughnegotiation

Jimmy Anklesaria is one of the most prominent thought leaders in procurement today. Jimmy is considered by many as the go-to expert when it comes to the strategic management of cost. He literally wrote the book (well, two books), and regularly travels the globe helping organizations reduce their third party costs. Importantly, he does this not through the leveraging of power but by using data as the foundation of fact based sourcing and continuous improvement. Today's episode of the Art of Procurement is the second in a two-part series with Jimmy focusing on the strategic management of cost. Back in episode 102, Jimmy shared his tips for understanding cost and cost drivers to enable fact based sourcing negotiations. Today, we shift focus, and discuss eight key steps that procurement professionals can take to manage and optimize costs once the contract has been signed. Areas we cover include: Should we have clauses in contracts that enable flexible pricing as major cost drivers change? If so, how should those be structured? Why a consumer price index (CPI) is the worst possible mechanism by which to adjust prices. The eight steps that procurement professionals can use to manage cost post contracting including Building a cost-management culture with your supplier Identifying the factors which have the biggest impact on the cost of a product or service How to reduce, change or eliminate activities that create costs. The importance of inherent capabilities in building a cost management culture across your procurement organization. For more information, visit: http://artofprocurement.com/postawardcost