CPOstrategy - Issue 21

I s s ue 21 • w w w.c p o st rate g y.co m

In conversation with Michael Pleuger and Detlef Schultz

5

key issues facing procurement in 2021

Collaboration and alignment under One Keolis

E xecutive In si g hts

High-quality supplier data: Why you need it —Stephany Lapierre, CEO, Tealbook

Listen to our latest podcasts

Lars Feldskou Group CPO of Danish Crown discusses a centralised global procurement function

SUBSCRIBE HERE

Sarah Golley

Tania Seary

VP of transformation at Virgin Media, put people first in digital transformation

Founder of Procurious, on ‘falling in love’ with procurement

Welcome to issue 21 of CPOstrategy Supplier data matters. But you knew that already.

The question is, does high-quality supplier data matter now more than ever before? Stephany Lapierre, CEO of Tealbook, joins us this month to give it to us straight; in 2021 we have absolutely no reason to be working with messy vendor masters.

“Your e-procurement technology stack is only as good as what you feed it,” she says. So it’s time to start rethinking about your supplier data.

Elsewhere, Abe Saxionis, CPO of Keolis North America, lifts the lid on a major procurement transformation journey that will see the transportation services provider collaborate better with each and every part of its ecosystem under a vision of One Keolis.

“As a company starts out and we begin to grow organically, we all are working more like independent businesses. It gets to a point where, in order to continue to expand and take advantage of the value the company brings to the table when dealing with customers or suppliers, we need to be more united. That’s the concept behind One Keolis.”

In an enthralling discussion, the gloves were off as I sat down with Michael Pleuger and Detlef Schultz - two powerhouse names in procurement. From an over reliance on consultants, to Jurgen Klopp’s philosophy on legacy, we tackle some of the key issues that procurement professionals are (and aren’t) addressing in 2021.

You definitely don’t want to miss this issue.

Dale Benton, Editor content@b2e-media.com

EDITOR IN CHIEF Andrew Woods

EDITOR Dale Benton

SOCIAL MEDIA MANAGER Callum Rivett

CONTRIBUTING EDITOR Nell Walker Kevin Davies

GRAPHIC DESIGNER Dhruti Vithani

CREATIVE LEAD Mitchell Park

VP GLOBAL FINTECH & INSURTECH Alex Page

VP TECHNOLOGY Andy Lloyd Craig Daniels

VP PROCUREMENT Heykel Ouni Greg Churchill Richard Deane

PRESIDENT & CEO Kiron Chavda

Contents

22

Why high-quality supplier data is more important than ever before

6

Collaboration and alignment under One Keolis

32

In conversation with Michael Pleuger and Detlef Schultz

44

72

How the 2020 crisis is shaping the 2021 procurement agenda

Procurement and cricket for everyone

56

Procurement 4.0: best-in-class procurement and beyond

www.cpostrategy.com

5

Collaboration and alignment under

One Keolis How procurement successes born out of cross-company collaboration and sponsorship have become second nature to the business for Keolis NA, truly feeding into a One Keolis vision.

Written by

Dale Benton

Produced by

Richard Deane

Co l l a bo rat ion and alignment unde r O n e Keo l i s

www.cpostrategy.com

7

Y

ou’ve heard it before.

A procurement transformation journey is underway as

an organisation has come to realise that procurement is well and truly a key cog in its operations, if not the key cog.

Procurement isn't simply cost savings or filing through the data and identifying some capital that could be clawed back to better serve the bottom line.

Make no mistake, this is a core element of procurement, but there’s a lot more to it than that. A company has to simply let procurement capitalise on one of its biggest strengths: opportunity.

Take Keolis for example. As one of the world’s leading public transport operators, Keolis has operations the world over from the UK and Sweden, to Australia, USA, Luxembourg and China. It goes without saying that a company of this size and scale has tremendous opportunity in

the job to reengineer our procurement

its procurement functions, the question is

process, to transform it to become more

whether it realises this?

profit-oriented for Keolis, and to consol-

In Keolis North America, CPO Abraham

idate our volume and rationalize the

Saxionis is the man in charge of all

supplier base, which has grown exces-

procurement operations. More specif-

sively high,” he explains. “We have over

ically, he’s spearheading a significant

3,500 suppliers which we do business

re-engineering of procurement for a

with and as we progress, we want to

company which, while smaller in size than

establish more strategic relationships

its parent group, is experiencing tremen-

with outside companies, ones that we can

dous growth.

consolidate more of our volume with and

“Just over a year ago now, I was given

consider long-term improvements in what

Co l l a bo rat ion and alignment unde r O n e Keo l i s

we provide to our end customer.”

Simple enough on paper, but as any

early 2021, Saxionis can already point to significant successes that he has been

procurement professional will profess,

able to unlock together with his procure-

there are many steps to take even before

ment team.

one begins a journey like this. Most nota-

“Truth be told, in the past the company

bly, gaining the trust and the so-called

hadn't been tracking savings and

‘operational buy-in’ from the executive

reporting savings or even the impact of

board. Thankfully, Saxionis can boast of

procurement on profitability,” he contin-

being blessed with an executive team well

ues. “Through the initiatives we have

and truly behind this journey before he

undertaken, we have been able to save

even set foot in the business. This alone,

millions of dollars in this one-year period.

clears some of the initial hurdles that can

We can demonstrate this right down

often slow down progress.

to the nearest dollar and cent, and our

“I enjoy the sponsorship not just of the North American CFO, but also of our CEO of North America, and the CEOs of the

intent is to continue to do that as we move forward.”

Saxionis, a seasoned procurement

different divisions out there, who all real-

professional with a wealth of experi-

ize the power of procurement,” he beams.

ence working with IBM, EY and the Bank

And why wouldn't they? As we speak in

of America, knows all too well of the

www.cpostrategy.com

9

growing significance of procurement. As

there is a need to improve profitability. It

a procurement professional, he’s known it

should absolutely be the first area that

all along and his experience coupled with

they try to reengineer or improve, but

an intense enthusiasm for procurement

it's typically an afterthought. Because

means he is well and truly the right man

while this is happening, suppliers are

for the job at Keolis NA. Not that there

enjoying the freedom of increasing

was any doubt. “I realized a long time ago

prices and making a profit that's typically

that there is a humongous opportunity

much higher than what we were doing

for any company when you're looking at

at the time.” This is where the company

something that has the effect of directly

follows the One Keolis principle. Keolis

increasing profitability. Clearly, you want

looks to no longer be defined by Division

to do more,” he says. “As I have worked

A, Division B, or Division C, rather it is

in over a dozen companies throughout

one company that integrates all of its

the years, personally, I have found that

resources, not just technologies, but also

procurement was always the last place

its people.

companies look at to reduce cost when

ELEVATE THE ROLE OF PROCUREMENT Our Procurement Performance Management platform enables teams to manage their sourcing pipeline — all while sharing their performance with Finance and stakeholders.

Keolis by its very definition is

“ Through the initiatives we have undertaken, we have been able to save millions of dollars in this one-year period. We can demonstrate this right down to the nearest dollar and cent...”

— Ab ra ha m Sa xi oni s C hief Procurement Officer at Ke o l i s N o rth A m e ri c a

low-margin business which enters into

to the bottom line through automation

very competitive contracts and agree-

of manual processes. Procurement is

ments to serve the local governments,

the prime game for that, because of the

municipalities and so the company must

number of transactions that we support

always be looking to find ways to continue

on a monthly basis,” he says.”

to improve profitability in order to make

“We’re able to showcase the fact that if

those contracts sustainable over the long

we do a good job dealing with suppliers

term. The key to doing this speaks to a

while also gaining an understanding of

broader procurement conversation that's

the internal processes of the company,

happening the world over; the consoli-

bring ideas to the suppliers and part-

dation of, access to and analysis of data

ner with suppliers to improve internal

from both the external suppliers but also

processes of our own company, then

from internal processes.

will have a significant impact on the effi-

“It's no secret that technology has had a significant impact on how we do things.

Where we were very manually intensive

ciencies and the effectiveness of internal operations.”

An example Saxionis points to high-

in the past, we now have opportunities

lights is perhaps one that will strike a

to leverage technology to automate all

chord with many procurement profes-

those processes, and we have the ability

sionals. More often than not, indi-

to identify the opportunities for further

vidual commodities in which Keolis

improvements with significant impact

purchases from individual suppliers or www.cpostrategy.com

11

Co l l a bo rat ion and alignment unde r O n e Keo l i s

manufacturers may end up being billed for individually. “We definitely don't want them to be billing us by division,” he laughs. “So one of our main objectives is to bring efficiencies to the company through vendor consolidation as well as invoice consolidation and summarization of what we do, including POs and all that kind of stuff, through data analysis.”

Saxionis and his teams had to collect all the data that would enable them to perform the analysis and identify opportunities that represent the biggest return for the business so that procurement could also prioritize its efforts. In his experience, Saxionis has seen far too many people “put their jogging shoes on and run in the wrong, or even opposite, direction of where the end line is”.

“For us, it was important from the beginning to know which direction to run once we put our sneakers on,” he says. “To assist in change management, we had an external consultant come in and perform an assessment of the different divisions, which yielded some insights that we were able to use as the springboard to launch a handful of initiatives that were fairly simple to target and undertake and which helped us score some early successes.”

These initiatives were created in line with the overarching strategy of fostering collaboration among the divisions in order www.cpostrategy.com

13

“ We don’t just want to do business with the largest suppliers for the benefit of saving a dollar. We’re very community-oriented and so we award contracts to smaller businesses that are minority-owned” — A b ra h am S a xi oni s Ch i ef P ro cu rement Officer at Keolis N o rth A m e ri c a

Co l l a bo rat ion and alignment unde r O n e Keo l i s

to get everybody to look at the same

stressed through working with us. We

data together and determine what the

want suppliers that are healthy and ones

most efficient way would be to improve

that can support us in our journey for

cost structure. This approach allowed

years to come. But at the same time, we

Saxionis to prevent the aforementioned

don't roll over and take the first price

individual bills per category per supplier

offered to us without consideration. We

per division. Having the data and the

have that understanding early on with our

collaboration meant that procurement

suppliers. We want a balanced relation-

could serve as a counterweight in the

ship, a fair handshake and to be able to

middle of the whole negotiation to make

both come out winners out of the partner-

sure the cost picture remains balanced.

ships we form. So long as you have the

“We want our suppliers to be profita-

data and you lay out the facts, there isn't

ble, by the way,” he interjects. “We never

much subjectivity that goes into the deci-

want our suppliers to become financially

sions at that point.” www.cpostrategy.com

15

So it’s clear, and of no surprise to anyone, that data-driven analysis is critical. Fact-based analysis is what creates success in procurement. Keolis, a relative newcomer to North America, was in a position where its procurement systems were not integrated. With an operating model built around acquiring transportation contracts either run by governments or other companies, turning around those businesses is critical to Keolis’ success.

It's a strategic advantage for Keolis to bring in companies in which it can make a profit at the end to support its stake-

gathering capabilities presented in real

holders. Through this, Keolis also inherits

time. This implementation is geared

technology, which is then integrated into

around bringing consistency and integra-

its own ecosystem. “The processes, the

tion across the footprint to support not

basic systems and capabilities are not

only procurement, but the entire busi-

there for us to get the data. So we work

ness. This is where Keolis works closely

to understand how we can get to the data

with Per Angusta, a SaaS Procurement

and how we can integrate them into our

Performance Management Software.

reporting and analysis structure,” says

Designed so that Keolis can gain a clearer

Saxionis. “And that’s where the journey

picture as to the savings, budget plans,

was born as we realized that we cannot

targets and forecasts, Saxionis describes

continue on this path without a technol-

Per Angusta as “a great tool in our

ogy solution that would make all of that

toolbox”.

easier, more seamless, and more transparent for us, while improving controls.”

And thus, towards the end of 2020,

“It brought a lot of discipline in our environment because it serves as the certified source of information for savings

Keolis began the process of select-

that we are generating,” he says. “We

ing and implementing a new ERP solu-

have closed the loop between procure-

tion across the entire footprint. Upon

ment and finance, where in the past, a lot

completion, Keolis will have better data

of things would fall through the cracks.

Co l l a bo rat ion and alignment unde r O n e Keo l i s

www.cpostrategy.com

17

“ It gets to a point where, in order to continue to expand and to be able to take advantage of the value that the company brings to the table when dealing with customers or suppliers, we need to be more united.

That’s the concept behind One Keolis” — Ab ra h am S axi oni s C h ief P ro cu rement Officer at Keolis N o rth A m e ri c a

Co l l a bo rat ion and alignment unde r O n e Keo l i s

It's both a method to capture initiatives,

the same causes we do. For example, if

but it's also a communicator tool in that

we take out trees and vegetation in doing

it allows us to integrate the fruits of our

something, we work with suppliers to see

labors and make them visible into the

if they could actually plant a tree and help

reporting of the business."

in that aspect of the business.”

As highlighted throughout, there is a

Elsewhere, Keolis works closely with

desire through procurement to improve

distressed business enterprises (DBE),

the financial and operational perfor-

smaller minority-led companies that can

mance of Keolis and while it’s clear that

be supported in order to grow. This is not

Saxionis subscribes to the school of

simply hearsay, as Saxionis certifies: “We

thought that it's not just about surviving

don't just want to do business with the

and making sure that the P&L is growing,

largest suppliers for the benefit of saving a

he also understands the societal respon-

dollar. We're very community-oriented and

sibility that rests upon Keolis’ shoulders.

so we award contracts to smaller busi-

This feeds directly into the procurement

nesses that are minority-owned. That's

reengineering journey.

another aspect that's also important to

Keolis operates with a “Think like a passenger” motto. A passenger is very conscious of safety, that’s undenia-

procurement. We have to take certain steps to meet our objectives in that area.”

So Keolis is reengineering its procure-

ble, and Saxionis does highlight how

ment processes, implementing a new

the suppliers it works with must align

ERP system to gain a better understand-

with Keolis’ commitments to safety.

ing of both its internal processes and that

The modern day passenger is also very

of its suppliers, and indeed consolidating

conscious of the world around them and

those suppliers in order to unlock great

what businesses like Keolis do to make

efficiency and opportunity. This is all well

the world a better place.

and good, but what about the people

“Keolis is very focused on its impact

behind the scenes? A new process or

and is sensitive to its impact on the envi-

technology is nothing if it isn't powered by

ronment. Our discussions and our logic

people with the right skillset and know-

in dealing with suppliers is ensuring we

how to leverage these changes.

do the right thing for the environment,”

“We are in the process of form-

he says. “We're working with suppliers to

ing a shared services organization for

ask them to believe in and contribute to

procurement, and for other areas in www.cpostrategy.com

19

the organization,” says Saxionis. “As a company starts out and we begin to grow organically, we all are working more like independent businesses. It gets to a point where, in order to continue to expand and to be able to take advantage of the value that the company brings to the table when dealing with customers or suppliers, we need to be more united. That's the concept behind One Keolis.”

Keolis is looking to establish a center of excellence and shared services environment at what Saxions refers to as the “platform level” or, headquarters to support the local needs of the divisions in a strategic manner. “This needs a lot of change management knowledge and skills to make it possible without disrupting the business by alienating the people who are already doing a fantastic job supporting their individual businesses,” he adds.

As we speak in 2021, officially one year into this journey, Saxionis has already highlighted the demonstrable impact of the work he and procurement are doing to the bottom line of the company. Again he highlights that the bigger successes for procurement are the ones where cross-company collaboration and sponsorship has become second nature to the business, truly feeding into the One Keolis vision. This collaboration is the key Co l l a bo rat ion and alignment unde r O n e Keo l i s

to success for Keolis overall, not simply for procurement.

“There are so many times where you hear management saying one thing, but the troops are not following it. For us, it was very important to get the buy-in and the support of the people who actually do the work, the directors and their teams in each of the divisions to realize that they no longer should be working on their own when they are dealing with a particular vendor; they need to leverage the power of Keolis to succeed in what they do,” says Saxionis. “We have been able to demonstrate this through facts. That's the successful formula to use in this.”

www.cpostrategy.com

21

W hy hi g h -qualit y sup p lier data is mo re i mp o r ta nt t h a n ever b efo re

Why high-quality supplier data is more important than ever before Written by

Stephany Lapierre, CEO Tealbook

www.cpostrategy.com

23

A

new year brings new priori-

St e p h a ny La p i e r re i s t h e fo u n d e r/C EO o f Te a l b o o k , a h i g h l y c o v e t e d s u p p l y c h a i n t h o u g h t l e a d e r, a n d o n e o f t h e most influential minds in emerging data technologies. She has been r e c o g n i z e d a s o n e o f t h e To p 1 0 0 M o s t I nf l u e nt i a l Wo m e n i n S u p p l y C h a i n ,

ties for procurement teams across the globe. After last

year’s unexpected challenges, CPOs are evaluating every facet of their procurement strategies to find areas for improvement.

According to Deloitte’s 2020 CPO Flash Survey, 66% of CPOs cite cost management as their top priority, while 47% also expressed a need to expand their current supplier base. Further goals include increasing visibility into Tier 1 and Tier 2 suppliers, empowering procurement team members to work more efficiently, and deepening supplier relationships.

Every one of these areas is important, and fortunately, one critical piece impacts all of them: supplier data quality.

In 2021, there is no good reason to be working from messy, outdated vendor masters. Clean supplier data is powerful, and the effect that data has on your ability to meet your organizational goals should not be overlooked. By prioritizing the need for reliable, complete, and rationalized supplier data, CPOs will see incredible gains made towards every one of their objectives.

W hy hi g h -qualit y sup p lier data is mo re i mp o r ta nt t h a n ever b efo re

“ In 2021, there is no good reason to be working from messy, outdated vendor masters.”

www.cpostrategy.com

25

Clean Data Can...

1. Facilitate Strategic Decision Making Better results start with better decisions, but if your supplier data is unreliable, you don’t have the information you need to make the best choices for your organization. Data-driven decision making is the cornerstone of a future-minded strategy, and can be enabled by pursuing digital transformation that starts with a foundation of clean data.

An article from Harvard Business School cites the benefits of data-driven decision making as the ability to be more confident in your decisions, the ability to be proactive, and the ability to use data to drive cost savings. Put into a procurement lens, clean supplier data will allow you to move faster—making better decisions about which suppliers to work with, how to best leverage their capabilities, and how to use your supplier information as a competitive weapon to receive more advantageous bids, reduce risk, and optimize spend.

W hy hi g h -qualit y sup p lier data is mo re i mp o r ta nt t h a n ever b efo re

" W h y r e l i a b l e s u p p l i e r d a t a m a t t e r s ” W i t h w i t h S t e p h a n y L a p i e r r e ( C E O , Te a l b o o k ) & J i m B u r e a u ( C E O , J AG G A E R )

2. Maximize Value from Technology Investments Your e-Procurement technology stack is only as healthy as what you feed it.

Even if you have premium software, if you’re inputting bad supplier data, your tools are not going to be performing at maximum efficiency.

Before re-evaluating the solutions your team is using, consider focusing your attention on data quality.

Is your data incomplete? Stagnant and outdated? Rife with duplicates and contradicting information?

No matter the specifics of your data problems, you can solve them by seeking out an automated data enrichment solution that integrates with your current technology stack. www.cpostrategy.com

27

3. Revolutionize Supplier Discovery

organizational arms. Supplier data plat-

and Relationship Management

forms with integration capabilities can

Having clean supplier data means that

easily solve this problem by powering

you’ll be able to find more suppliers faster,

multiple technology solutions—different

reduce onboarding times, and manage

tools to fit the needs of different depart-

supplier relationships across your entire

ments, powered by the same clean,

organization.

enriched, harmonized supplier data.

These wins are rooted not only in data quality, but also in data completeness.

4. Expand Your Supplier

Not only does having complete and accu-

Diversity Program

rate data about your current suppliers

Best-in-class supplier data solutions

allow you to fully leverage those relation-

will offer visibility into Tier 1 and Tier 2

ships, but complete data about potential

suppliers. This is particularly important

suppliers can help you fill gaps within

when trying to expand your supplier

your sourcing plan and narrow down

diversity efforts and account for all qual-

prospective suppliers by sustainability

ified diverse spend. In the same Deloitte

and diversity accreditations, location,

survey mentioned above, 90% of organi-

company size, year founded, and more.

zations rated visibility into their extended

Complete data also means that your

supply networks as moderate to very

supplier records are updated to reflect the

low. This means that these organizations

relationship between a supplier and your

are missing out on the benefits

entire organization, not just your procure-

of knowing who their suppliers are

ment team. A large company with multiple

working with, and being able to lever-

departments using the same suppliers

age those relationships to create a

is always at risk of creating dissonance

healthier, more diverse supplier

between the data sets owned by different

chain for themselves.

W hy hi g h -qualit y sup p lier data is mo re i mp o r ta nt t h a n ever b efo re

“ Your e-Procurement technology stack is only as healthy as what you feed it”

www.cpostrategy.com

29

Don’t settle for Bad Data

W hy hi g h -qualit y sup p lier data is mo re i mp o r ta nt t h a n ever b efo re

We will never forget the lessons we learned about procurement in 2020.

For many of us, we witnessed the most significant supply chain disruption of our careers, and the strategies that emerged from these challenges will become the best practices of the future. Chief among these lessons was not underestimating the importance of data quality.

Make 2021 the year you start demanding more from your supplier data. It’s the perfect time to evaluate the quality of your vendor master data, and to determine if it’s working as hard as it could to serve the needs of your organization, in good times and in bad. www.cpostrategy.com

31

IN

CONVER

In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

RSATION WITH...

Michael Pleuger and Detlef Schultz Part one

The gloves were off as we sat down with Michael Pleuger and Detlef Schultz, two key procurement practitioners, to talk about the current state of procurement and what tomorrow may look like for the procurement professional…

Written by

Dale Benton www.cpostrategy.com

33

Dale: It’s easy to talk about procure-

procurement arena.It’s a challenge to get

ment in a post pandemic world, but what

a grip on all these offers and come up with

is happening now, what are procurement

a technology vision of what one wants

professionals facing right now?

procurement to look like.

So the challenge is understanding

Michael: Right now a key focus

what role does procurement want to

for many is trying to truly understand

play? What's my value contribution to

just how COVID-19 has changed the

the company? Where does procurement

world of procurement.

add value?

But while that is happening, there is also

Historically, procurement defined itself

the further exploration of digital road-

predominantly through the delivery of

maps. CPOs and procurement executives

savings, and thinking of cost savings is

are getting excited about

still a must. It's a hygiene factor, but there

all the new opportunities that are out

is so much more procurement has to

there. When you look at all these new

deliver and the CPOs of today have to

technology providers in procurement,

figure out ‘what is my value contribution?

you can do contract management,

And where in the value chain do I want to

supplier collaboration, auctioning and

make an impact?’

bidding and automated negotiations. You

The third is the relationships with our

can do everything and people are really

suppliers. Again, a supplier was simply a

getting excited.

means of fulfilling my demand with supply

And on top of this, we as CPOs are real-

and that's it. The tools of procurement

ising that we now have to log into 15 differ-

were predominantly scale and scope,

ent procurement applications every single

and they tried to figure out how to get the

day. So what’s the solution? Some form

best price at the best time and the best

of cockpit that allows the CPO to orches-

quality at the best place. That was the

trate it all in one place.

mantra of procurement.

Today the situation looks entirely differ-

Detlef: The challenges nowadays are

ent because through digitalization and the

threefold. The first is this huge variety

disruption of business models and change

and offer of applications. There are tons

in global supply chains towards regional-

of startup companies with new appli-

ization and localization, procurement is

cations solving certain problems in the

now working with a supplier ecosystem

In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

Detlef Schultz

“ Companies who outsource activities to consultants doing operational and technical tasks, in my opinion, just have too much money. Because who should do it?

You.” — D etlef S ch u ltz

Michael Pleuger

www.cpostrategy.com

35

“This approach of asset based consulting or immediate actionable insight is going to make a massive change for the future of consulting in procurement [...]

Consulting companies that are willing to disrupt themselves and cannibalize their core business will be future winners.”

— M i ch ael Pleuger

In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

in which suppliers can be suppliers, i joint

previous crises and previous situations

development partners, joint business

and they're happening right now at a time

model disruptors, and even competitors.

where procurement is in the limelight and

It’s much more complex than it ever was

more people understand its importance.

before, and in that context, procurement

But with that obsession comes misinter-

has to ask itself what is my role here? In

pretation at a senior level.

my opinion, the role of procurement must

What happens when a board demands a

be a value chain orchestrator because

procurement transformation because they

procurement is at the crossroads of exter-

just know it needs to be done as everyone

nal and internal information. They must

else is doing it. I think it’s also going to be a

be the most informed department in the

particularly interesting challenge because

enterprise so they can juggle all those

COVID-19 has highlighted procurement,

balls and make sure that they have an

and the businesses that have done well

impact on the value chain throughout the

during these times because of their

various relationships. Make no mistake, it

procurement functions,have rightly been

is a difficult job.

highlighted. But for those who aren't there yet with procurement, they are going to

Dale: You’re right, things evolve and

want to catch up now more than ever

shift over time, but if you were start-

before. Could they end up looking to

ing out today as a CPO brought in to

achieve this in the wrong way?

deliver a supply chain transformation or to ‘fix’ procurement, as is the trend at the

Detlef: How do I manage procurement

moment, and what is clear is that everyone

if my board is not aware of what procure-

still doesn't have a unified single solution

ment should stand for? In spring of 2020,

to solve the challenge. This was already an

for the first time ever, a German sitting

ongoing conversation and then COVID has

chancellor talked about procurement.

come along and created a new sub-con-

I do this for 30 plus years, and suddenly

versation as part of that.

the chancellor of Germany talks

Everything you thought would be a

about procurement? That's an elevation

sure fire way to succeed, you must now

of the function which has never been seen

reconsider completely because of these

before.

new challenges. These challenges may be somewhat similar in some regards to

When there is a white space between what procurement does and what the www.cpostrategy.com

37

board thinks procurement does that

it, surely there's going to be those who

simply means that the CPO has done a

believe it’s just noise because they don't

bad job in communicating what procure-

care for procurement?

ment is all about. There has been zero

This may sound cynical but it's almost a

storytelling. There has been bad stake-

selling technique in convincing people to

holder management and there has been

buy into your services because “trust me

no sharing of success stories. Because if

I can deliver what you need.” But are you

you do it smartly, talk to your stakeholders

just trying to pull the wool over people's

and tell them a story about how you helped

eyes because it's going to benefit you (as

them to be successful, they will reiter-

a function) more than it's going to benefit

ate your story, and they will become an

them (as another arm of the business) in

enforcer of your story. It’s all about story-

the end? Zoom out a little further and look

telling at the end.

at procurement consultants.

I’ve spoken to a CPO who told me that

Dale: But can it go the other way

his first task was to rid a company of

though? You do need to be showing off

consultants because he was speaking to

the successes you're delivering through

consultants to handle his other consult-

procurement. But for every person who

ants, all because they said they had the

sings to that tune of success and buys into

solution he needed. That set off a few

In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

“ In spring of 2020, for the first time ever, a German sitting chancellor talked about procurement.

I do this for 30 plus years, and suddenly the chancellor of Germany talks about procurement?

That's an elevation of the function which has never been seen before.”

— D etlef S ch u ltz

www.cpostrategy.com

39

alarm bells in my head.Has there been an increase of people who claim to have the secrets to fix all your problems if you let them come into your business for a period of time? What happens after they move on? Are you left in a position where you suddenly need another consultant to look at it again? Are people taking advantage of procurement and currently elevated status?

Detlef: Did we work with consultants?

Yes. Did we ask consultants to do operational jobs? No. I, in most cases, used consultants to input into our thinking, but never asked them to do the job I was supposed to do. Companies who outsource activities to consultants doing operational and technical tasks, in my opinion, just have too much money.

Because who should do it? You. I have always experienced times when people with a big budget use consultants to do the slides and prepare presentations. I mean, if you have that money, great. Go for it. But in reality, I think you should be in the position to manage those things yourself.

Dale: They play a key role, of course they do, but it does interest me because much like there are multiple consultants, multiple people can come in at different stages In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

of a journey. The CPOs that I tend to have spoken to have come in with a set timeframe; I'm going to be here for five years and then I'm going to move on and deliver something somewhere else. At that stage when the CPO moves on, does somebody else come in and say, "Right, everything that person's just delivered, let me change that up even further"? What’s that transition period look like?

Detlef: It’s a good point you bring up there. I see the challenge of internal talent fostering and encouragement because what you just described is often the case when external people come in and replace the acting or former CPO. A good CPO starts to develop his or her own people to the degree that you have a succession plan. If you have a succession plan, you can be pretty certain that people who were on your executive management team or your procurement management team, keep the direction you jointly agreed to take, and don't make a sudden 180 degree turn and do something completely different.

If you look at Vodafone, for instance.

I hired Ninian Wilson (CPO, Vodafone) around 2011/21 and we worked five years together before he took over from me.

Ninian took my work as the basis for what he developed further. I'm very proud of www.cpostrategy.com

41

In c o nve rs at ion wit h Mich ael P leu ger a n d D et l ef Sch u l tz

what he did because he accelerated what

believe consulting will change massively.

we had started doing and he just keeps

Clients are no longer willing to do what

pushing Vodafone into the right direction.

Detlef said. This approach of asset based

This is what I challenge CPOs on when

consulting or immediate actionable insight

they say, "Oh, my successor changed

is going to make a massive change for

my direction 100% and did something

the future of consulting in procurement.

completely new." That’s bad succession

Clients will no longer be willing to pay for

planning.

busloads full of consultants analyzing and conceptualizing for weeks and months to

Michael: I hear that very often when

deliver a pile of paper. Consulting compa-

I speak to new CPOs. They tell me;

nies that are willing to disrupt themselves

"We're 25 years behind. We have to play

and cannibalize their core business will be

catch up now."

future winners.

But how can that be? It's impossible.

Clients want asset based consulting,

To your point, Dale, I'm curious to see

where you bring your own analytics tool.

what the situation will be five years later.

You suck out some data, and artificial

I remember Liverpool manager Jürgen

intelligence helps you make some first

Klopp famously said in his first press

assumptions, and then you bring in really

conference for the club that it doesn't

experienced people for a couple of days

matter what people think when you come

to validate those assumptions and reach a

into a job. It's more important what they

hypothesis that will be validated again. You

say when you leave the job.

end up with the same results in days that

And as we speak, he hasn't left Liverpool

would have previously taken you weeks

yet, but you can already tell that there will

and months and millions of euros or pounds

be a lasting impact and a lasting recognition

or dollars. This approach of asset based

for his work.

consulting or immediate actionable insight,

When I think about the future of consult-

and specifically in the area of procurement

ing in procurement, the reason I decided

is going to be a massive change for the

to leave it was because I fundamentally

future of consulting in procurement.

Continued in part 2….

Be sure to read part two of this fascinating discussion with Detlef and Michael in issue 22 of CPOstrategy! www.cpostrategy.com

43

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement agen d a

How the 2020 crisis is shaping the 2021 procurement agenda:

facing procurement in 2021 We take a look at the key issues facing supply chain and procurement professionals in 2021 as we begin to navigate our way towards a post-covid19 world. The information has been provided by The Hackett Group www.cpostrategy.com

45

Reduce spend cost The backbone of all procurement activity, reducing purchasing costs will never not be at the very top of the procurement agenda list. Even in times where procurement has reached a significantly elevated state, the broadest explanation of any procurement function will often include reference to the need to reduce purchasing costs.

The pandemic has caused a great deal of uncertainty, and during times of uncertainty we often return to what we know.

Procurement must continue to focus on its core mission of spend cost reduction and it must do so by leveraging digital tools and business partnerships to maximise savings.

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement agen d a

Procurement must continue to focus on its core mission of spend cost reduction and it must do so by leveraging digital tools and business partnerships to maximise savings

www.cpostrategy.com

47

Accelerate procurement digital transformation Open any page of any magazine (including CPOstrategy) and you’ll quickly be able to spot a feature that explores a current or future digital transformation of procurement. It is a constantly evolving conversation and will most certainly not be slowing down anytime soon. Some of the biggest hurdles that have held procurement back from investing and implementing have almost been blown away in these times of crisis and future success will depend in large part on broader implementation and adoption of digital tools. The bigger known tools come as no surprise; AI and smart automation. Previous years have been spent on looking, exploring and experimenting with these technologies, now is the time to start taking action and ensuring that when these transformations take place they incorporate the needs of the entire business and not simply focusing on the procurement function or the technology itself.

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement agen d a

...these new technologies provide the opportunity for procurement to become much more data and insight driven, allowing teams to unlock more savings value, to improve process delivery and the end-user experience www.cpostrategy.com

49

Align skills and talent with changing business needs Here’s one thing that seems to get lost amongst the talk of new tools and new processes. How often do we hear about the skillset and the talent that already exists within an organisation when they tell us about their new procurement transformation? It’s an old adage; people are your most valuable asset and as we move towards implementing new processes and changing our operating models to be powered by new technologies, we need to invest in upskilling our existing talent resources. Look at one of the biggest changes we have seen; working from home. How prepared and skilled enough were we all to be able to shift our whole working model into our own homes? The future will require a new type of CPO and procurement professional and so we must look at updating both the soft skills and the hard skills in order to be able to stay ahead of the game.

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement agen d a

Procurement will need to update both soft skills (e.g., strategic thinking and business acument_ and hard skills (e.g., analytic decision-making and technology savviness) www.cpostrategy.com

51

Increase spend and infulence Ask any procurement professional over the last 30 years and they will tell you just how much influence they have in a business. Ask anyone else in the same organisation and they may struggle.

Over the last 10 years procurement has (rightly) found itself in conversations at the highest level of business, but that doesn’t mean it can simply sit back and enjoy its moment in the spotlight. 2020 has put the eyes of the world on procurement and spending and so it needs to constantly be thinking about how it increases its spend influence to be seen as a top-performing procurement organisation. How it achieves this is through business partnership, customer centricity and agile processes but its important to recognise that when procurement sits down at the top table it needs to be able to bring a fresh perspective. Each and every time.

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement

da

Procurement must first understand what the business is looking for and then organise around those needs - for example, negotiations expertise of market intelligence - to deliver value

www.cpostrategy.com

53

Enable corporate sustainability goals Sustainability is such a lofty term. It can mean so much to people and it can also mean nothing at the same time.

Procurement sustainability is definitely moving its way up the agenda list for many CPOs and boards and when you stop and think about it, it really is a no brainer.

Corporate social responsibility goes hand in hand with procurement and supply chain management as the function by its very definition touches almost every facet of an organisation and how that organisation impacts the world around it. So what are we doing about it? Well, first of all we are moving away from simply ticking the boxes of regulation and actually finding means of capitalising on the very real business value that comes from risk management, reduced costs and improvement of brand value and we have sustainable best practice to thank for it. Consumers, governments and even business leaders are far more aware of their sustainable impact on the world and many have now taken great lengths to set ambitious targets to put their money where their mouths are. There’s never been a better time to start making great strides on sustainability goals and procurement will prove the key to getting there.

How the 2 02 0 cr isis is sh ap ing t h e 2021 p ro cu rement agen d a

In the past, sustainability meant little more than complying with regulations…

C H ECK O U T O U R B ROC H U R E B u d w e i s e r A PAC : bringing people together for a better world through procurement

www.cpostrategy.com

55

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

Procurement 4.0:

best-in-class procurement and beyond

Ivan da Mata, CPO of Claro Brazil, details the telecommunication giant’s journey towards best-inclass procurement...

Written by

Dale Benton

Produced by

Richard Deane

www.cpostrategy.com

57

W

hat does procurement mean

supply chain relationship management.”

to a business? Does it exist

As a leader in Telecommunications

solely to monitor the costs

in Latin America and one of the largest

and control the spending and look at

multiservice operators in Brazil, Claro

every possible avenue to save company

Brazil is present in over 4,200 Brazilian

money? Once upon a time this was most

municipalities with its networks provid-

certainly the case, but over the last two

ing services to over 96% of the Brazillian

decades the business landscape has

population. As the world continues to

borne witness to a major evolution of this

become increasingly digital first, Claro

once reactive and somewhat dismissed

offers integrated solutions for connectiv-

function. Procurement in 2021 is a very

ity, entertainment, productivity and digital

different beast even if the core principles

services in a truly convergent way, joining

remain the same.

fixed and mobile platforms, firmly estab-

“Nowadays Procurement walks hand

lishing itself as a leader in Pay TV and

in hand with the business areas,

broadband all the while being the fastest

with product development and with

growing operator in mobile services.

go-to-market areas,” explains Ivan da

Innovation then is key to Claro Brazil

Mata, CPO of Claro Brazil. “Time to

and in 2018, the company hired Ivan da

market is key for any organization’s

Mata as CPO to oversee a major procure-

success, so procurement needs to keep

ment transformation journey. With more

the supply chain information and supplier

than 20 years of experience in procure-

relationships up-to-date in order to bring

ment in different industry disciplines, da

solutions and innovation quickly from the

Mata joined the business at a time when

market to the organizations.

it was also delivering a significant digital

“The impact of Procurement is directly

transformation. His mission was clear:

related to the P&L and so procurement

support this digital transformation with a

is now closer to the end consumers

fast, business-oriented and best-in-class

of the organizations. In other words,

procurement function.

procurement went from a ‘cost control

This transformation journey focuses

and savings agent’ to a ‘business enabler

on three main goals for Claro Brazil:

function’, contributing not only to manag-

Category Excellence as a leverage for

ing costs, but also to generating revenue

cost reduction and gathering of business

through innovation, time to market and

insight, Team Excellence as a catalyst

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

www.cpostrategy.com

59

www.stratesys-ts.com

ADOPTION

Starting strong makes all the difference

Stratesys makes it easy for you!

BRINGING REAL BUSINESS VALUE TO YOUR SAP ARIBA PLATFORM Guarantee and increase suppliers adoption within your Ariba platform Active onboarding support to engage your suppliers in your Ariba journey

Maximize your savings with strategic sourcing and auctions program training Measure your procurement performance with complete supply chain ROI dashboards Involve all your organization in the new challenge with effective Digital Change Management for Ariba projects

User experience improvement with complete and robust integration between Ariba Cloud Modules and corporate systems gaining end-to-end monitored procurement processes Enable new enhancements to make your Ariba platform more powerful (intuitive comparative map, full integration buying-sourcing-buying, supply chain tracking process)

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

Make fast sourcing decisions that quickly help you save time and money

and enabler of long-term results and

called ‘Procurement Turnaround’ which

Supplier Excellence as a guarantee of

specifically looked at the elimination of our

competitive advantage by innovation

purchasing process backlog and reducing

and risk management.

lead times all the while improving stake-

“Procurement was not keeping up with Claro’s businesses' fast pace transfor-

holder engagement.”

In defining Category Excellence for

mation and so we laid out a roadmap

Claro Brazil, da Mata highlights that

that would see us achieve Procurement

procurement was internally oriented

4.0 for Claro Brazil by 2021-2022 and

and that it engaged with stakeholders

beyond”, explains da Mata.

So the scene was set and da Mata embarked on a journey of transformation to establish and implement a procurement strategy that will result in significant excellence in procurement, an optimized structure and delivering key savings for the business. How does a journey like this begin? What does day one look like? For da Mata, day one consisted of

“ This greater proximity to business areas was key for gaining the organization’s recognition that procurement is a strategic function and is involved in the decisionmaking process. For me, it was the most important achievement we could get”

reflection and identifying what

— Ivan d a M at a

the business felt was its ‘weak-

CP O, C l aro B raz i l

est’ and biggest ‘pain points’ within procurement. “We really needed to

in a ‘fragmented’ way and therefore it

understand what needed to be resolved

simply was not leveraging spend. This in

through the adoption of proven best prac-

turn created the backlog of purchasing

tices based on benchmarks that resulted

processes, significantly high lead times

in a clear roadmap for the initial transfor-

and what da Mata describes as ‘low

mation with short term process simplifica-

value capturing.’

tion implementation,” notes da Mata. “This initial phase of the transformation was

“Our buyers were loaded with transactional activities and couldn’t see the www.cpostrategy.com

61

impact of their activities on companies’

improved value for money and simplified/

results,” he says. “Through our new spend

lean processes to interface with the busi-

categorization towards the marketplace,

ness areas,” says da Mata.

the implementation of Category Plans and Strategic Sourcing we enabled our

These centers are:

Category Managers to consolidate the

Center of Excellence (CoE)

spend, proactively plan their activities

Focused on planning and continu-

and engage with the business areas and

ous improvement through KPIs, lean

suppliers more often, adding value to the

processes and procedures and Systems

solutions developed together with them.”

optimizations / Automation / Robotization

All the best processes and sourcing

/ Digitalization

strategies sound simple and effective on paper, but in practice there iss one

Center of Operation (CoO)

element that's absolutely fundamental

Focused on tactical and transactional

to any organization and any journey; the

activities such as Saving delivery and

people. For a procurement function that

lead time reductions, Rapid Sourcing

promises to be at the centre of the busi-

and Simplified operations

ness and to be aligned with each and every business unit in order to enable

Center of Business (CoB):

efficiencies, realising key savings and

Focused on strategic activities to

unlocking greater innovation, it is neces-

collaborate with the business areas,

sary to invest in its people. Da Mata

Strategic Sourcing, Category manage-

recognises this and so does Claro Brazil

ment, Special projects and Supplier

with its focus on Team Excellence as a

and Business Areas engagement

catalyst and enabler for long-term results.

One of the outcomes of the

While a procurement function is noth-

Transformation Project was the creation

ing without its people, procurement is

of three procurement centers of activ-

defined by its relationships with suppli-

ities in order to segregate the transac-

ers. As the leading telecommunications

tional, tactical and strategic activities

services provider in Brazil, supplier rela-

of procurement. “With clearer roles and

tionships are key to maintaining that posi-

KPIs in place, the teams were developed

tion. As a procurement practitioner for

to deliver value through short lead times,

more than 20 years, da Mata recognizes

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

Ilana Faria, Head of Procurement CoE and CoO, says that the “segmentation of the procurement activities was fundamental to improve all the KPIs of the area year over year.

We have established clear objectives for each procurement individual and implemented a meritocratic people management process making our team far more engaged as they can see themselves as a key part of the business, impacting the companies’ bottom line results.”

Júlio Pinheiro, Head of Procurement CoB – Networks, compliments that “the reclassification of the categories towards the marketplace instead of inwards resulted in a much greater capture of value in the negotiations, especially because of the synergies we have identified between the different purchasing families and subfamilies.”

Márcia Lima, Head of Procurement CoB – Clients, adds that “the implementation of the Strategic Sourcing methodology and the rituals established to follow up the action plans was crucial to gain our internal customers confidence and resulted in a much greater proximity with business areas.”

Washington Gonzaga, Head of Procurement CoB – Corporate Services, highlights “the importance of the Category Planning methodology in establishing a much more organized procurement function, oriented to capture value by directing the resources to a set of prioritized actions along the year calendar and by mapping all categories opportunities.”

Flávia Fernandes, Head of Procurement Special Projects – “being responsible for the interface with Claro’s Corporate Business Unit we could clearly notice that the dynamic collaboration among our CoE, CoO and CoB teams have contributed significantly in achieving the speed and negotiation results that this internal customer demands.” www.cpostrategy.com

63

Photo by Kerry Penny Kearney Chicago

Unleash the power of procurement The benefits of state-of-the-art procurement go far beyond savings. Join forces with Kearney to empower your procurement team to reach new performance heights. kearney.com

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

this and highlights that supplier rela-

Very often in a transformation of this

tionships can be and really are the key

size in an organization such as Claro

competitive advantage for any business,

Brazil, the very first challenge in procure-

regardless of industry.

ment is one of operational buy-in. After

“Supplier Excellence, as a guarantee of

all, procurement plays a key role in the

competitive advantage by innovation and

revenue streams of the business and for

risk management, is key to our transfor-

the CEO and the executive board they

mation journey,” he says. “We introduced

will need proof that this journey is the

a new P2P platform to engage with and

right decision for the business. For da

transform our relationships with suppliers

Mata, he was blessed to find himself in a

and integrate them into our supply chain

position of confidence and extreme trust

workflow, enabling improved control, risk

from day one. “We had strong support

management, performance management,

from the top management, especially

contracts compliance and spend analy-

our CEO, from the very beginning,” he

sis for continuous improvement. It also

says. “There was a clear comprehension

allows for increased automation and digi-

of the opportunities to be captured by a

talization, freeing people’s time to focus

strong Procurement function. They knew

on added value activities.”

that getting closer to the businesses and

“ Procurement was not keeping up with Claro’s businesses’ fast pace transformation and so we laid out a roadmap that would see us achieve Procurement 4.0 for Claro Brazil by 2021-2022 and beyond” — Ivan da M at a C P O, C l aro B raz i l www.cpostrategy.com

65

bringing them on board was crucial for

are often the breeding ground for great

the transformation success.”

success. Overcoming the challenge is in

Not only was this vote of confidence

itself a success but learning from them

important for da Mata to start this jour-

and using that insight and experience to

ney knowing he had the backing of those

prosper is where the real successes lay.

in charge, but it also allowed him to be

For da Mata, success has come in many

honest and to work with the business in

forms already. One key success for him

a way that delivered real tangible change

has been one that has allowed for greater

as opposed to lofty goals that continued

focus on value added activities.

to be just out of reach. As with any trans-

“For one, the implementation of

formation journey, there's a balance that

segregated teams (CoE – Center of

needs to be struck between transform-

Excellence / CoO - Center of Operations

ing and performing. With Claro Brazil,

/ CoB – Center of Business) within the

time to market is and always will be key

Procurement area and it working in

to the business, but how can da Mata go

perfect consonance was key to free-

about implementing change in a business

ing buyer’s time to focus on added value

that has already experienced incredible

activities, such as Strategic Sourcing,

success? How can he attempt to change

Category Planning and Strategic

the mindset and working culture without

Negotiations,” he explains. “Those added

causing disruption to that success?

value activities enabled buyers to better

“Changing people’s mindset was for

understand the categories and to be

sure the biggest challenge of our trans-

closer to the stakeholders, working head

formation journey,” reflects da Mata. “We

to head with the business areas.”

had many people doing the same thing

It’s no secret that, despite its moment

for many years and the change propo-

in the spotlight, procurement is a func-

sition touched pretty much everyone in

tion that must establish its credibility to

procurement. The introduction of a meri-

the wider business. While this is a notion

tocratic and self-developing environment

that is indeed changing, procurement

and highlighting a clear purpose for the

has a clear impact on the bottom line of

procurement professionals was key for

a company and so CPOs need to ensure

them to embrace the change and enabled

that the changes they implement and the

us to surpass this challenge.”

processes they bring in are right for the

While challenges are unavoidable, they

business at all times. In order to bring

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

www.cpostrategy.com

67

change, trust is key. Results establish

Given the story of procurement, it

trust and credibility and this requires a

would be remiss of us not to look at the

lot of communication with the board-

significant role that supplier relationships

level. Deliver key successes and the

play in the procurement ecosystem. Just

credibility you now have means that the

as technologies and processes evolve,

pathway to delivering further success is

so do the relationships that an organiza-

a little smoother.

tion has with suppliers and vendors and

“This greater proximity to business

this is something that cannot be taken for

areas was key for gaining the organi-

granted. Not only that, when a company

zation’s recognition that procurement

undertakes such a significant transfor-

is a strategic function and is involved in

mation it requires the eye and the expe-

the decision-making process. For me,

rience of a key partner in order to ensure

it was the most important achievement we could get,” says da Mata. “Nowadays procurement has its seat in order to contribute in discussions to build up annual budgets and has a clear view of the strategic projects that the procurement work will have to support to enable their viabilization and implementation.”

“ The journey has not ended and perhaps it never will as we are always evolving and seeking for excellence in our sector” — I va n d a M at a C P O, C laro Bra zil

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

the direction it takes and the decisions it

achieve,” he says, “They have supported

makes are indeed the right ones. Da Mata

us throughout the entire implementation

recognises this and speaks to the key

process, from processes redesign right

relationship Claro Brazil has with Kearney

up to organizational structure. Put simply,

and Statesys in realizing the vision of this

working with Kearney was absolutely key

procurement journey.

in gaining momentum and credibility in

“Kearney has been instrumental in mapping the maturity level of our procure-

our transformation journey.”

With all the talk of technology and

ment then comparing with benchmarks

an industry awash with a never-end-

within our sector and designing the path

ing selection of tools and suites, Claro

for our transformation, where we would

Brazil looked to Stratesys for the imple-

like to get and what we would like to

mentation of its P2P suite. Like any good

www.cpostrategy.com

69

working relationship, the value of the

could get speed on the implementation

connection will not end once the tool

project and best usage of the suite. We

will be implemented, it grows and

can’t ignore the role they have played in

evolves. “Stratesys has added a lot of

helping us with Change Management and

value with their knowledge, not only with

adopting an agile methodology. These

the suite itself but marrying their knowl-

are two things that can easily be taken

edge of market best practices to our real-

for granted in a transformation journey,

ity as a telco company and to our pre-es-

but Stratesys were there for us when we

tablished process” says da Mata. “This

needed them.”

process had to be redesigned so that we

It’s easy on paper to say that a partner

Pro cure ment 4.0: b est-in-class p ro cu rement a n d b eyo n d

really stood tall and went above and

journey planned for 2019 and 2020 with

beyond the traditional relationship

great success, there’s no denying of that,”

model of service and solution and

beams da Mata. “The journey has not

da Mata is all too aware of this. He

ended and perhaps it never will as we

highlights that the way in which a rela-

are always evolving and seeking for

tionship transcends that perspective

excellence in our sector,”

is through transparency, openness and

“We need to be bold and lean to keep

honesty. After all, the decisions you take

up with our business needs and mission

together are ones that could cost you

to offer the best services and solutions to

a lot of money or unlock major savings

our customers,” he adds. “The fast pace

across the entire organization.

of technology in our sector demands

“An open relationship with these

procurement to always be up to date,

partners was key for our achievements.

faster, simpler and effective in contracting

Problems were exposed transpar-

and delivering materials and services. In

ently and discussions seeking the best

order to keep the transformation alive, we

solutions and alternatives were widely

have a Strategic Planning of two years that

explored and coordinated together with

establishes where we want to be in this

our teams of experts,” he says. “When

period of time and which is unfolded in an

entering a transformation journey with a

annual action plan to capture the benefits

level of complexity such as ours, it was

of the transformation as soon as possible.

crucial to count with these reliable part-

“Our 2021-2022 plan will require us to

ners, that brought experience of dozens

have our P2P suite fully implemented in

of similar sizable projects that enable

the first year to enable a fully automated

speed and assertiveness to our journey.”

purchasing process further. In this way our

The future is uncertain, that’s for sure,

buyers will be able to engage more and

but what da Mata and procurement has

more with the business areas working truly

been able to do so far in its journey has

as consultants and influencers in the deci-

laid down solid foundations in which

sion-making process in what regards to

Claro Brazil can continue to build upon

engaging with our partners, vendors and

and unlock the door to greater innova-

service providers.”

tion through a best-in-class procurement function.

“We have completed our transformation www.cpostrategy.com

71

Procurement and

CRICKE

for everyone Nour-Eddine Boufertala, Head of Procurement at England & Wales Cricket Board, explores how procurement is key to growing the wonderful game of cricket...

Pro cure ment and cr icket for ever yo n e

Written by

Dale Benton

Produced by

Heykel Ouni

www.cpostrategy.com

73

Pro cure ment and cr icket for ever yo n e

W

hen we think of procure-

will look to put a bat and ball into more

ment, and all the focus on

and more hands and introduce more

transformation of the func-

people to the power of cricket over the

tion that dominates the discourse, our minds and that of the CEO and CFO will

next five years.

“Put simply, we want to inspire people

often zoom in on the seemingly obvious

to say cricket is a game for me, includ-

deliverables. Cost savings, increases

ing engaging children and young people,

to the bottom line and opening up new

transforming women’s and girls’ cricket

revenue streams for the business tend to

and supporting a range of different

be the ‘go-to’ key phrases in any procure-

communities across England and Wales,”

ment conversation. But what happens

explains Boufertala.

when the organisation is a government

“We have a lot of BAME initiatives and

organisation? And what does that mean

we want to work collaboratively with

for the deliverables and the benefits

British South Asian communities and

that the key stakeholders seek through

make the sport more accessible. We want

procurement? If profit and revenue isn't

everyone to enjoy playing cricket and to

the ultimate goal for a business, what

enjoy the game. What we have is not a

more can procurement achieve for it?

complicated network, but a lot of people

This is certainly the challenge facing Nour-Eddine Boufertala, Head of Procurement at England and Wales

are included in the process and the procurement plays a key part in all of this.”

Like many procurement professionals,

Cricket Board (ECB). As the national

Boufertala’s procurement career didn’t

governing body for all cricket in England

start until later in life. Having worked

and Wales, the ECB supports the game

as an industrial engineer before catch-

of cricket at every level - from the grass-

ing on to supply chain and procurement

roots to the professional game. The ECB

(and ultimately training in the profes-

has 300 staff all across the UK who work

sion), Boufertala cut his procurement

closely with first class counties, county

teeth while working with Thales as a

cricket boards and other partners to

raw materials buyer. Here, he worked

promote the game as widely as possi-

across a number of markets including

ble. As part of its Inspiring Generation

aerospace, rail and military and eventu-

Strategy for the national game, the ECB

ally moved on to Hitachi Europe to focus www.cpostrategy.com

75

again on procurement in the rail industry. When the call came from ECB, as procurement manager, the big question staring him right in the face was; what use is his procurement experience in the fast paced major global industries when trying to grow the reach of a sport like cricket? It’s a question that Boufertala finds himself quite privileged to be in charge of answering. exactly known for as the function simply

“First and foremost, it was a truly unmissable opportunity for me,” he

did not exist. So, my vision and my task

beams. “But make no mistake, I was

was to build everything from scratch.”

coming from a well-established procure-

It almost goes without saying that

ment department in a huge global organ-

building a procurement function from

isation to a sector that procurement isn't

scratch is no simple task. This is where his

Lightscope Spend Analytics Here’s how to convert legacy finance data into a procurement based view of spend and drive savings Lightscope spend analytics acts as a wrapper for your legacy finance system, providing you with an easy path to deep supplier insight and savings opportunities.

• • • • • •

Spend analysis & opportunity assessment Supplier to category mapping Category strategy Supplier master data management Duplicate invoice detection Procurement savings pipeline

• Risk profiling • • • •

Modern Slavery Geopolitical Environmental Financial

• Contract management • Digital signature

We work collaboratively with organisations to create tailored solutions and deliver fast results.

For an initial discussion, please call Todd Collinson on +44 (0)208 064 1885 or send an email to toddcollinson@lightscope.com

Pro cure ment and cr icket for ever yo n e

See everything...

lightscope.com

experience in working for major corpo-

plane is reflected close to 20 years

rations such as Thales and Hitachi helps.

later when the plane is in flight. At ECB,

“In terms of procurement, this is where we

Boufertala relishes the step-by-step

had the biggest contingency in terms of

nature of his mission.

headcount. It was a massive department with a lot of process,” he says.

“It shaped me for what I'm doing right

The evolution of procurement is a long and ongoing tale, as industries the world over continue to adapt and to change

now. It shaped all my understanding

their approach to the function as the

of procurement. On one side you have

necessity and perspective of procure-

to build and maintain a functioning

ment continues to rise. Over the course of

procurement, on the other side you

his career, Boufertala has seen the shift

have to convince the internal stakehold-

from transactional to strategy oriented

ers about procurement.”

procurement and continues to see it to

By his own admission, moving to ECB

this day. But how does this differ in sport?

was the perfect move for Boufertala as it

Where is the procurement conversa-

presented him with the unique opportu-

tion when compared to other industries?

nity to see the direct impact of procure-

Boufertala’s role sees him look to inspire

ment. Reflecting on his previous procure-

future generations of cricket fans and

ment experience, he points to how the

indeed players, supporting the game from

reward for procurement in building a

the grassroots level right to the highest

“ P ut simply, we want to inspire people to say cricket is a game for me, including engaging children and young people, transforming women’s and girls’ cricket and supporting a range of different communities across England and Wales” — N o u r- Ed di ne B oufer t a la Head of P rocurement at England & Wal e s C ri c ket B o ard

www.cpostrategy.com

77

level, and reduce spend, improve level of service and enable innovation. These goals are by no means radically different than say, a Fintech company, but for ECB procurement has only entered the conversation over the past five years.

“I think the sport industry wasn't ready to have procurement, because the context was totally different,” says Boufertala. “But right now, terms of procurement, we are lucky enough to take the best from each industry to make it simple and efficient. We weren't behind so to speak, but we will catch up very quickly with the other big businesses, because as a procurement professional netted from the aerospace and the rail industry, I can take the best of those worlds and adapt it to the ECB and to the broader sport.”

This is where his experience in particular proves key. As a procurement professional who has lived and breathed procurement in large organisations, Boufertala understands the ins and outs of the function. Most importantly, he knows how to successfully and unsuccessfully bring about change in procurement.

“We need to have something simple and quicker because people don't understand sometimes the supply chain and how it applies to cricket” he says. “I’m Pro cure ment and cr icket for ever yo n e

“Football used to be defined by talk about the big four (Arsenal, Chelsea, Liverpool, Manchester United). They were the only one at the top of the league every year, now there are a lot of people who can challenge for the titles,” he says. “This means that a lot of clubs can invest more and more on players and give high salaries to have the best players.

“Of course, if they invest a lot, this is because they have something in the background that can help them make these investments. Procurement helps a lot here and this is fast becoming a competitive edge in sports because you can spend more on players if you have less spend or if you have better deals through procurement.” dealing with experts in cricket and they

With procurement being a relatively

need to understand what I would bring to

new thing for both the sport and for

the table. If I'm coming with an extremely

ECB, Boufertala needed to outline a

complicated process, it would be very

roadmap. The goals were clear, but the

hard for them to adhere to procurement.”

journey to get there not so much. As with

Here, Boufertala refers to the supply

many procurement journeys, ECB’s is

chain and procurement conversations

one defined by quick wins and curiosity.

happening in football, arguably the more

Boufertala speaks of needing to be curi-

successful and broadly known sport. He

ous and asking stakeholder after stake-

speaks of how over the last few years, foot-

holder questions about their role, their

ball clubs have started to invest in in-house

successes and indeed their pain points.

procurement best practices as they have

In better understanding what strengths

recognised that how much they can spend

and weaknesses were already present,

on the pitch (player transfers) depends on

Boufertala could then look to identify

how lean the organisation is internally.

the right path. www.cpostrategy.com

79

“It’s about finding quick wins to begin

impact of procurement and they will start

with and looking for solutions in the

to ask me more about other ways in which

market to improve the level of service

procurement can help.”

because the stakeholders don't have time

With a focus on creating simple, effi-

to do it,” he says. “Let's look at the goal

cient processes and bringing new tech-

of wanting more women and girls play-

nology to the procurement table, one of

ing cricket. Currently, the stakeholders

Boufertala’s first projects was a rehaul-

are only focusing on how we can make

ing of ECB’s existing travel management

cricket more attractive to that audience.

processes. Due to the nature of the sport,

Procurement can come in and really help

travel and overnight stay was essential

make significant progress there.”

and ECB had around 240 hotels that it

“If we reduce a cost here, you can invest

would use on an annual basis. ECB would

more in making the game more attractive.

deal directly with the hotels with a lot

So, for me, I really started from scratch

of physical interaction and face to face

to say this is what would be considered

dealings involved. Boufertala looked at

a quick win. Once we have a quick win,

streamlining this service and implemented

people would be convinced about the

an online booking tool that would allow

Pureprint Group is a global marketing services provider.

We are proud to be the trusted print partner for the ECB. We can provide an in-depth audit on how you can save money and reduce your impact on the environment.

Please contact us at: CPO@pureprint.com www.pureprint.com

Pro cure ment and cr icket for ever yo n e

PROVEN. AWARDED. TRUSTED.

“ We weren’t behind so to speak, but we will catch up very quickly with the other big businesses, because as a procurement professional netted from the aerospace and the rail industry, I can take the best of those worlds and adapt it to the ECB and to the broader sport” — N ou r- Ed d i n e B oufer t a la H e a d of P rocure ment at England & Wale s C ri c ket B o ard

any staff member to have instant access

is good because it forces me to better

to all hotels in the system, saving time. A

understand every single department and

fine example of a simple and quick win

how procurement can improve the level of

that instantly improves the level of service.

service for them.”

“I created all the tender document

In any procurement journey, the road

process and procurement policy. Looking

from A to B is never as simple as it sounds.

at all of the best tools and best prac-

Contingency plans, risk assessments

tices to make sure that we have the best

and even unforeseen factors can impact

value for the best services. I’m still doing

and influence a journey and in 2020,

it to this day,” he says. “It involves a lot of

the COVID19 pandemic was an unprec-

communication. This is key to the success

edented factor that no one could have

when you build a new project or a new

prepared for. For ECB, an organisation

department, because people need to be

built around live sport and thousands of

with you. If they're not on my side, it's very

spectators physically in stadiums watch-

hard to make changes. But that's why this

ing live games, the challenges presented

is part of my job, convincing people inter-

are ones that to this day are continuing

nally and externally that what I'm doing

to prove difficult to overcome. www.cpostrategy.com

81

“We lost almost 800 days of live events in stadiums, to put a number on it,” says Boufertala. “In 2019 we won the ICC Men’s Cricket World Cup. It was probably the best year ever. We hosted The Ashes series against Australia for men and women in the UK. It was a magical year for cricket.

Then 2020 came and that momentum was impacted. In those circumstances, we worked hard to give the best entertainment possible to our fans.”

As the year unfolded and governments and countries began to work towards a post-pandemic world, having spectators at sporting events was still proving difficult and unsafe. The ECB trialled the safe return of sports with 1,000 spectators in The Kia Oval in London and Edgbaston in Birmingham, but unfortunately had to cancel the second test due to public health guidance. But through challenge came opportunity, and this was an opportunity born out of sound procurement practice.

“We are extremely lucky to have Sky and BBC as broadcasting partners. We had the first live women's game on BBC Sport since 1993. It was live on Sky and BBC and we had an audience of more than two million viewers,” he says. “We are extremely proud of that and it was the first live cricket event on the BBC for the last 21 years. I think in terms of the timing of Pro cure ment and cr icket for ever yo n e

the deal with BBC and Sky, it was perfect.

We were not expecting COVID and everything that happened, of course, but at least we could give something to the spectator. Because ultimately the spectator is the end user. This is who we want to please at the end. So, we genuinely have something to be extremely proud of in what was a dramatic year.”

These games were played behind closed doors in a bio-security bubble, something that Boufertala highlights as a first for sport in the UK. “Quite literally, we didn't have any layout, or existing examples that we could copy. We had to start from scratch,” he says. “This was an opportunity for procurement to shine because we needed to work fast and work efficiently with both internal and external stakeholders to help to make it happen and to do it in the right way.”

“The team was instrumental in making it happen. Before we could get anywhere near opening, we needed to have PPE equipment on site so we went to tender.

We had a fast-track process, and within two weeks we secured enough PPE equipment just to make it happen. It was a way to show how procurement can be efficient and how procurement can help.”

Procurement was fundamental in securing the PPE equipment, security management for the site, as well as onsite www.cpostrategy.com

83

Pro cure ment and cr icket for ever yo n e

Nour-Eddine Boufertala Head of Procurement at England & Wales Cricket Board As a senior procurement professional, Nour has successfully delivered global transformation projects and achieved significant influence at both the VP and CFO-level though a blend of functional leadership, business development and positive supplier relationship management skills. Recognised as a collaborative leader with strong negotiating and influencing skills, Nour’s ability to motivate and lead people in diverse cultural environments has proved key to his success. As Head of Procurement at England & Wales Cricket Board (ECB), Nour works across the UK with first class counties, county cricket boards and other partners to promote the game as widely as possible. As part of its Inspiring Generation Strategy for the national game, Nour and ECB look to put a bat and ball into more and more hands and introduce more people to the power of cricket over the next five years.

tracking system and fever camera detection. Boufertala feels that the speed at which this could be achieved, together with the effectiveness, showcases just how procurement is a reliable department within the ECB. With the pandemic still a pressing concern, the future for live sport is one of uncertainty, but for ECB and the procurement journey there is still a long way to go. Boufertala speaks of the key focus on bringing the safe return of cricket at all levels, providing support and financial security across the whole game.

Beyond that, the ECB will continue to look to deliver The Hundred, an incredible 100-ball cricket tournament that was due to start in the summer of 2020 and subsequently postponed to 2021.

This, Boufertala notes, will be huge for the future of cricket in the UK. www.cpostrategy.com

85

“ T his is key for me; step back to see the strong values that the company has. It wouldn’t be possible to work in a company where I don’t trust the value, and this has enabled me to give my best and it is these values which will be the key to the success for procurement, the ECB and the sport itself” — No u r- Ed d i n e B oufer t a la H e ad of P rocurement at England & Wal e s C ri c ket B o ard

“I am convinced that it will be a massive

the disability game, and having more

success,” he beams. “Running at the same

South Asian communities engaging

time, we'll have international games and

with our sport at every level.”

the women's game. So this will be key

“This is why this is extremely reward-

for us for this summer. The success of

ing because we're working in so many

this will help us immensely in growing

different areas but all of them are

women and girls' participation, growing

extremely exciting for the future and

Pro cure ment and cr icket for ever yo n e

are extremely bright for cricket.”

Boufertala has mentioned numerous

We're making people happy. We're engaging with a lot of kids and more

times just how privileged he feels to be

kids are playing again up and down the

in his position with the ECB. At almost

country. Oh, and we very recently won

every opportunity, it’s a privilege that he

the world cup. This is key for me; step

remembers and is certainly not some-

back to see the strong values that the

thing he takes for granted. “It's extremely

company has. It wouldn't be possible to

important to work in a company where

work in a company where I don't trust the

you trust the values,” he says. “I trust the

value, and this has enabled me to give my

values of the ECB and the values of the

best and it is these values which will be

sport in general. It's important sometimes

the key to the success for procurement,

to take a step back. What we are doing

the ECB and the sport itself.”

can be extremely difficult. But when we step back and think about what we have achieved, we're not saving lives, we're not doctors. We're talking about sports.

BE LIKE SAM

Are you leading a Procurement or Technology transformation?

CPOstrategy & Interface Magazine offer a unique opportunity to showcase your story and give a voice to that journey Get in touch. Be like Sam and share your story!

F I ND OU T MOR E