Procurement necessity Project partners
Procurement: Essential to the business. Essential to the customer.
Written by
Dale Benton
Produced by
Kiron Chavda
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
3
“I
had no idea, to be quite honest with you, what procurement was,” laughs Manny Satija, Vice President,
Strategic Initiatives and Supply Chain, CSA Group, as he recalls his career jour-
ney. “Obviously, by definition, I know that procurement means to buy, but that’s kind of where it started and stopped for me at the time.” Procurement, for all the talk of transformation, strategic realignment and gaining “a seat at the table” remains a career and profession in which the complexity and the significance it has within an organization simply does not extend beyond those within the function. More often than not, we hear of people “falling into
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
better to continue to become essential.” This belief was something that drew him to CSA Group back in 2016, as the company was looking to embark on a significant procurement transformation to better leverage the strategic value within the whole procurement and supplier ecosystem. CSA Group needed a leader that had overseen the procurement operations of a major global company and possessed a transformational mindset through consulting services. With over a decade of experience working with IBM, Satija fit the bill and over the last three and a half years he has contributed to the implementation of a new ERP and CRM system to better support the technology transformation, procurement” but for Satija, having
as well as ensuring that this technology
moved into procurement with IBM in the
continues to enable greater automation,
early 00s, before taking on his current
not only in the procurement and broader
role with CSA Group, it does not matter
supply chain front, but across the organ-
what he thought then as what he thinks
isation in various other forms of process
and indeed knows now is that he (and
transformation. “My career, and in parti-
the function itself) needs to be essential to
cular these last few years, has been
a business. “You always need to be essen-
about transformation,” he says. “It's about
tial, no matter what you do in your job,” he
having a mindset that believes no chal-
says. “You need to be essential to your
lenge is unachievable, if you put your mind
customers, to your leadership and you
to it and you've got the right support from
need to be essential to your employees.
the C-suite, or if you continue to focus on
The day you stop being essential to your
learning and developing yourself.”
company is the day you need to start thinking about how you can do things
So Satija was tasked with delivering and enacting real transformational change 5
for procurement at CSA Group. Given the
and when numbers hit boardrooms,
transformation of the broader procure-
conversations accelerate fairly quickly,”
ment conversation the world over, Satija
he says. “There is a complexity within
was all too aware that one of the bigger
procurement and an ability to deliver not
challenges that he and many others face
just savings, but also to be recognised as
is one of trying to look beyond simple cost
the group that needs to be sitting at the
savings. The core element of procure-
table when conversations are being had
ment is and always will be the bottom line
about strategic investments. It’s critical
and how to deliver cost savings for a busi-
because you'll find a lot of C-suite strate-
ness, but Satija and many procurement
gists looking to make big investments in,
professionals just like him understand
for example, setting up a new corporate
that cost savings are not the only deliver-
division in a certain part of the world and
able to a business – they are just the start
that's going to involve investment in real
for procurement. “Make no mistake, one
estate and in technology.
of the most critical imperatives for any organisation will always be cost savings
“So, if you have thought leaders from procurement at the table who have
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
“ There is a complexity within procurement and an ability to deliver not just savings, but also to be recognised as the group that needs to be sitting at the table when conversations are being had about strategic investment” — M a n ny S at i j a V i ce P res ident , Strategic Initiatives an d Sup p l y C h ai n , C SA G ro up
experience in construction and technol-
him to enact real strategic change.To do
ogy purchasing, all of a sudden this can
this successfully however, it had to go
actually drive the shift from “a great idea”
beyond the CEO and the CFO. “It was
to a discussion and decision informed
about ensuring that I got full buy-in from
by knowledge and data provided by the
the rest of the executives in the organi-
procurement function.”
zation, so that I could have that straight
Thought leadership, as defined by
conversation without having to wait to get
Satija, comes through knowledge of the
everyone at the top involved,” he says.
supply market and foundational knowl-
“The reality is, even though the CEO and
edge of numbers. Most importantly
a CFO may have a certain view, if you're
for him, it's about how these numbers
not able to collaborate and partner with
impact business models, set the stage
other C-suite members while delivering
for extremely productive conversations
value, it'll always raise the question: What
and grab the attention of the C-suite.
need is there for a procurement leader
Grabbing the attention of the C-suite
outside of someone that's going to nego-
is crucial for a transformation jour-
tiate deals for us? You can’t be essential
ney and when Satija joined he found
to the organization if the organization
himself needing to have buy-in from both
can’t see any reason for you to be.”
David Weinstein, President and CEO
A crucial part of Satija’s first year with
and Farhan Imam, CFO. He credits the
the business saw him spending time with
“extremely supportive” role they have
the business, building key relationships
played and continue to play in allowing
to better understand the pain points 7
and what their needs were and how procurement could help. This is where Satija points to a sizzling steak analogy. “You walk into a steakhouse and the servers come to your table with a steak that's sizzling, and you're extremely hungry and you're excited to take a bite into that steak,” he says. “You’ve gone to a great restaurant and heard great reviews about the steak. You have a seat and there's the sizzle. As soon as you take a bite into that steak, it's chewy, and doesn't taste right and in a heartbeat that destroys the reputation of that restaurant.” Elaborating on how the sizzling steak represents procurement for CSA Group; “the sizzle comes from building those foundational relationships by explaining the great things procurement can do. But when the other members of the executive team then take a bite into that steak and they don't see value coming out of those conversations, the relationship can go downhill pretty quickly. For me, it's not just about having the sizzle. It's about delivering on the promise of the sizzle and making sure that steak tastes just right.” A fitting analogy, but how does that translate into tangible resources? How does one measure that sizzle and ultimately deliver on that promise? People and talent. Satija’s whole team needs to have that same mindset. For him, this Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
“ For me, it’s not just about having the sizzle. It’s about delivering on the promise of the sizzle and making sure that steak tastes just right” — Man ny Satija Vi c e P re s i de nt , Strate gi c I n i t i at i ves an d Sup p l y C h ai n , C SA G ro u p
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means that he and his team are not just
Satija has overseen a move from a fully
procurement people, they’re problem
decentralized function to a centralised
solvers who can work with the business
one, with multiple work streams in the
and solve business problems. “Let's see
area of people process and technol-
how we can work together to solve your
ogy. Through the implementation of a
business issue and see how my skills can
new CRM and ERP system, procure-
help deliver that,” he says. “That mindset
ment is now blessed with key data that
has gone a long way within our organiza-
can better inform decision making and
tion to establish the respect from our CEO
indeed enable greater business collabo-
and CFO from the onset and to continue
ration. Satija is keen to look at how CSA
to get that admiration and respect from
Group can further leverage technology
other leaders in the business.”
and data to streamline processes and
At a broad level, this procurement jour-
enable seamless control from a govern-
ney has been one of ensuring that “every
ance perspective. What's important for
dollar that's committed to a supplier runs
him though is to remember that a shared
through the procurement organization.”
understanding of what technology and
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
data analytics could and should mean for
data in the systems, so it's about ensuring
the business is crucial. “Every company
that the value we deliver through analyt-
has to think about what digital transfor-
ics supports the objective or the mission
mation means to them based on conver-
of the organization. You've always got to
sations that they have, certainly for us
start by asking what the mission of the
as procurement leaders, with their chief
organization is? Then, after technology
technology officer,” he says. “Having a
serves those base level initiatives, how
base level alignment with the chief tech-
can the procurement investment further
nology officer is critical to understand
support that?”
what the roadmap for the company is,
Procurement is a results-driven game.
and then fitting procurement into that
Throw digital transformation into the
roadmap is the secondary discussion.
mix and the investments in technology
“Where procurement comes in is how
and analytics and results become more
the adoption of the procurement side will
important than ever before. Technology
enable the mission of the organization.
is a costly investment and so getting
With AI and analytics, we have plenty of
it right and being able to back that
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“ ...if you want to grow, you’ve got to be able to think about how you can drive change. Change that matters to your company, change that matters to the ecosystem that you’re in and change that matters to the world” — M a n ny S at i j a V i ce P res ident , Strategic Initiatives a n d Sup p l y C h ai n , C SA G ro up
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
investment with results is everything.
“It goes back to being essential in
Analytics is about using rich data to get
everything you do every day in terms of
insights out and drive changes in a cate-
what matters to the company and what
gory, strategy or a category plan. Satija
matters to your job. It should always
points to how he and his team are able
be part of your discipline, your way of
to use analytics overlaid over existing
thinking. If you recognize something's
data sets to come up with insights that
not working, it's better to be transpar-
have helped procurement drive deci-
ent about that with the stakeholders
sions that will deliver to the bottom line.
and having a very agile mindset and way
This, he feels, means that they can start
of thinking coupled with the ability to
rethinking why spend patterns exist in
course correct when you're finding things
a certain way. “We've been able to look
aren't working. This will help not only the
at disparate data sets, through multiple
procurement group but the organization
platforms of technology and really bring
as a whole.”
them together,” he says. “Now, what
Transparency, honesty and possess-
we have is a truly crystal-clear view of
ing an agile mindset to problem solve
what's happening in the business.”
have always been key traits in procure-
When discussing transformational
ment, but now more than ever before,
change, one rightfully focuses on cham-
these are crucial. In early 2020, the world
pioning the successes and the lasting
was gripped by the COVID-19 pandemic,
meaningful change. For many, Satija
causing severe disruption to both busi-
included, it’s more impactful to actually
nesses and human life. Where there is
hold your hands up from time to time and
adversity there is opportunity, and Satija
admit where things may not have gone
firmly believes that the pandemic has
to plan. For him, there’s more to learn in
presented a huge opportunity for many
those mistakes and in actual fact, the real
organizations to look at the resilience
meaningful change is often born in these
and flexibility of their procurement func-
moments. “I think recognizing there's a
tions. After years of talking, procurement
problem and accepting that is step one,”
must now walk it. “COVID obviously took
he says. “Moving beyond that to under-
the world through unchartered territory,”
stand why that's a problem and how
he says. “I think many companies are
you can quickly course correct is the
still navigating, but therein lies the abil-
right approach.”
ity to showcase to an organization that 13
you can be flexible and agile and change your course to support what the organization needs and what matters most to move forward.” Moving forward meant focusing on two key areas; realigning objectives to focus on cash management and focusing on operational continuity. To do this, Satija had to look closely at financial safety and conserving cash because nobody knows what the impact will be in one month, six months or two years from now. But what companies do know is that cash conservation and having a strong balance sheet is going to help in uncertain times. This of course, changed the conversations that Satija was having around procurement. “One thing we did was shift gears and put all attention on things such as medi-
grade testing and certification program.
cal grade PPE sourcing,” he says. “CSA
“Going back to what I said about opera-
Group was considered to be an essential
tional continuity, it's important to note
business. So, we looked at how we could
that we had no idea that we'd be support-
support the world as a whole, when there
ing this, but if you take your group and
are struggles to source PP&E, what are
become flexible, nimble, agile, and you
the areas that we can do to actually help
support two main areas at a time like
and provide social good?”
this - for us that meant, financial safety
Through this, CSA Group launched
and operational continuity - you can then
a key initiative on medical grade, PPE
rethink what you are doing as a procure-
testing, inspection and certification,
ment group and readjust your priorities to
with procurement looking to help the
get through the storm.”
business get the right suppliers and
Despite the shifting of gears, the road
processes in place so that it can be
ahead for CSA Group remains one of
the recognized partner for a medical
opportunity and looking further at how
Pro cure ment : Essent ial to t h e b us i n es s . Es s ent i a l to t h e cu sto mer.
procurement can continue to support the
is, if you want to grow, you've got to be
organization to harness the data that's
able to think about how you can drive
embedded through the technology imple-
change. Change that matters to your
mentations to obtain further insights and
company, change that matters to the
make meaningful decisions to support
ecosystem that you're in and change
the growth of the company. For Satija,
that matters to the world. Keep on driv-
it’s about continuing to be essential to
ing change and innovation and not just
the business. One could argue that he
for the sake of driving it. Drive change
has demonstrated that as a function,
and innovation that will support growth
but he reflects on a key bit of advice he
for the company that you work for and
heard once upon a time.
the world that you live in.”
“Being comfortable will never drive growth,” he says. “The former IBM CEO always used to say that comfort and change do not coexist. What that means 15