SlideShare a Scribd company logo
1 of 24
Download to read offline
1
Enabling Transformation:
Getting the right help
Richard Beaumont
5 June 2019
www.ip-sm.com
Your vision is to transform through embracing change…
Busy buying with
lots of process
Change
Transform to
strategic sourcing
3
www.ip-sm.com
We are told we can just go buy tools, use them and deliver…
4
www.ip-sm.com
You invest time, resources, money and what do you get…?
Cost Time Labour Systems
5
www.ip-sm.com
Change is not about adopting tools…
…it’s about transforming capabilities
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
6
www.ip-sm.com
Do we really do “Category Management”?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
7
www.ip-sm.com
Let’s remind ourselves what “Category Management” is
“Category Management is a strategic
approach which organises procurement
resources to focus on specific areas of
spends. This enables category managers to
focus their time and conduct in depth
market analysis to fully leverage their
procurement decisions on behalf of the
whole organisation”
• Category strategy is a systematic
approach to guarantee initial significant
improvements and a long term
sustainable guideline on how to create
value within the category
• A category strategy should include a
holistic cross-functional analysis on how
a category can increase value and
reduce waste.
• A successful category strategy should be
aligned to the company's priorities
CIPS McKinsey
8
www.ip-sm.com
What should we be thinking about?
Establish –Spend Analysis, Requirements, Suppliers, Market
Evolve – Strategy, Ideas, Options, Innovation, Risks
Elect – Decide on chosen Initiatives
Execute – Negotiate, Contract, Implement, get Results
Review – Manage KPIs, SRM, Risk Management, Initiatives
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
9
www.ip-sm.com
Why does Category Management matter?
10
100%
Idea/
Concept
20%
80%
40%
0%
60%
Cost impact
Function
definition
Specification
defintion
Supplier pre-
selection
Sourcing? Contract &
Ordering
Cost Reduction Opportunities
Here you win!
Here you try not to
lose!
www.ip-sm.com
Have we developed our team’s capability?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
11
www.ip-sm.com
What should we be thinking about?
Organisation – Are there clear roles and responsibilities?
Skills Gap Analysis – Strengths and areas for improvement?
Procurement Knowledge – Do the team have the hard skills?
Wider Skills – Do we have the soft skills? Communication, Influencing,
Negotiation?
Support & Mentoring – How are we supporting our team?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
12
www.ip-sm.com
• How will you
prepare your
team for the
future?
• What is the
current skill
level of your
team?
Building capability relies on assessment and development
Assessment
Development
13
www.ip-sm.com
Have we really thought about our Suppliers?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
14
www.ip-sm.com
What should we be thinking about?
Supplier Categorisation – Which suppliers are critical?
Approach – What systems/process do we use?
Communication – What methods, timing and technology?
Performance Management – Is robust and effective?
Innovation – Are we working with suppliers to improve our business?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
15
www.ip-sm.com
Have we assessed and managed our risks?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
16
www.ip-sm.com
What should we be thinking about?
Risk Assessment – Do we understand our risks?
How do they map to our categories?
Risk Process – How do we manage risks?
Risk Ownership – Do we have clear risk owners?
Risk Mitigation – How are we actively mitigating risks?
Continuous Improvement – Can we demonstrate good outcomes?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
17
www.ip-sm.com
Do we really manage our Contracts?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcuremen
t/Digitisation
18
www.ip-sm.com
What should we be thinking about?
Contract review – What contract do we have?
Contract Storage – How do we manage contracts?
Key commercial terms – Do we understand them?
Review & Renewal – Do we have a structured approach?
Best Practice contracting – Are we building in data protection, innovation, risk?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
19
www.ip-sm.com
…and after all this; how could digitisation help us?
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcureme
nt/Digitisatio
n
20
www.ip-sm.com
What should we be thinking about?
Source to Contract
Knowledge Management e.g. Commodities
Supplier Relationship Management
Contract Management
Procure to Pay (P2P))
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement
/Digitisation
21
www.ip-sm.com
Getting things done is a challenge
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
22
www.ip-sm.com
With support you can transform successfully…
Strategic
Procurement
Category
Management
People
Capability
Supplier
Relationship
Management
Risk
Management
Contract
Management
Process/
eProcurement/
Digitisation
23
Questions?
Richard Beaumont
www.linkedin.com/in/richardbeaumont

More Related Content

Recently uploaded

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKELtd
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaEricBonilla13
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxesiyasmengesha
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 

Recently uploaded (20)

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Personal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric BonillaPersonal Brand Exploration Presentation Eric Bonilla
Personal Brand Exploration Presentation Eric Bonilla
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 

2019 ipsm conference_01_richard beaumont

  • 1. 1
  • 2. Enabling Transformation: Getting the right help Richard Beaumont 5 June 2019
  • 3. www.ip-sm.com Your vision is to transform through embracing change… Busy buying with lots of process Change Transform to strategic sourcing 3
  • 4. www.ip-sm.com We are told we can just go buy tools, use them and deliver… 4
  • 5. www.ip-sm.com You invest time, resources, money and what do you get…? Cost Time Labour Systems 5
  • 6. www.ip-sm.com Change is not about adopting tools… …it’s about transforming capabilities Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 6
  • 7. www.ip-sm.com Do we really do “Category Management”? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 7
  • 8. www.ip-sm.com Let’s remind ourselves what “Category Management” is “Category Management is a strategic approach which organises procurement resources to focus on specific areas of spends. This enables category managers to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation” • Category strategy is a systematic approach to guarantee initial significant improvements and a long term sustainable guideline on how to create value within the category • A category strategy should include a holistic cross-functional analysis on how a category can increase value and reduce waste. • A successful category strategy should be aligned to the company's priorities CIPS McKinsey 8
  • 9. www.ip-sm.com What should we be thinking about? Establish –Spend Analysis, Requirements, Suppliers, Market Evolve – Strategy, Ideas, Options, Innovation, Risks Elect – Decide on chosen Initiatives Execute – Negotiate, Contract, Implement, get Results Review – Manage KPIs, SRM, Risk Management, Initiatives Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 9
  • 10. www.ip-sm.com Why does Category Management matter? 10 100% Idea/ Concept 20% 80% 40% 0% 60% Cost impact Function definition Specification defintion Supplier pre- selection Sourcing? Contract & Ordering Cost Reduction Opportunities Here you win! Here you try not to lose!
  • 11. www.ip-sm.com Have we developed our team’s capability? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 11
  • 12. www.ip-sm.com What should we be thinking about? Organisation – Are there clear roles and responsibilities? Skills Gap Analysis – Strengths and areas for improvement? Procurement Knowledge – Do the team have the hard skills? Wider Skills – Do we have the soft skills? Communication, Influencing, Negotiation? Support & Mentoring – How are we supporting our team? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 12
  • 13. www.ip-sm.com • How will you prepare your team for the future? • What is the current skill level of your team? Building capability relies on assessment and development Assessment Development 13
  • 14. www.ip-sm.com Have we really thought about our Suppliers? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 14
  • 15. www.ip-sm.com What should we be thinking about? Supplier Categorisation – Which suppliers are critical? Approach – What systems/process do we use? Communication – What methods, timing and technology? Performance Management – Is robust and effective? Innovation – Are we working with suppliers to improve our business? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 15
  • 16. www.ip-sm.com Have we assessed and managed our risks? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 16
  • 17. www.ip-sm.com What should we be thinking about? Risk Assessment – Do we understand our risks? How do they map to our categories? Risk Process – How do we manage risks? Risk Ownership – Do we have clear risk owners? Risk Mitigation – How are we actively mitigating risks? Continuous Improvement – Can we demonstrate good outcomes? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 17
  • 18. www.ip-sm.com Do we really manage our Contracts? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcuremen t/Digitisation 18
  • 19. www.ip-sm.com What should we be thinking about? Contract review – What contract do we have? Contract Storage – How do we manage contracts? Key commercial terms – Do we understand them? Review & Renewal – Do we have a structured approach? Best Practice contracting – Are we building in data protection, innovation, risk? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 19
  • 20. www.ip-sm.com …and after all this; how could digitisation help us? Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcureme nt/Digitisatio n 20
  • 21. www.ip-sm.com What should we be thinking about? Source to Contract Knowledge Management e.g. Commodities Supplier Relationship Management Contract Management Procure to Pay (P2P)) Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement /Digitisation 21
  • 22. www.ip-sm.com Getting things done is a challenge Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 22
  • 23. www.ip-sm.com With support you can transform successfully… Strategic Procurement Category Management People Capability Supplier Relationship Management Risk Management Contract Management Process/ eProcurement/ Digitisation 23