This Week in Procurement

This Week in Procurement: The Inherent Failures of Long-Term Contracts

By January 17, 2020 February 23rd, 2020 No Comments

Podcast: The Value of Digital Procurement in Manufacturing

Manufacturers are all about efficiency, although you might not think so based on what we hear about their ERPs and other legacy systems. Sundar Kamak, Global Head of Manufacturing Solutions at Ivalua, tells us in this week’s podcast that momentum is really starting to build for procurement digitalization in manufacturing – especially among larger companies. He also shares his perspective on the overall trends he has observed in this space.

Must Read (Listen…)

This week’s ‘must’ can either be a read or a listen (based on your preference) as the Harvard Business Review Ideacast interviews Kate Vitasek, David Frydlinger and Oliver Hart about The Inherent Failures of Long-Term Contracts — and How to Fix Them. Not only is this topic of obvious interest to procurement, this is a unique opportunity to hear contract management discussed by an economist, an attorney and an outsourcing specialist at the same time.

What We’re Reading, Watching & Listening To:

+ We don’t talk about outsourcing as much as we used to, but that doesn’t mean it isn’t happening. In fact, in some parts of the typical operation, outsourcing budgets are on the rise. Case in point: 3PL budgets are expected to increase by more than 5% in 2020, according to new research by Gartner. For procurement, that means more contracts, an elevated need for risk monitoring and mitigation and hopefully an opportunity for cost optimization.

+ If you are starting 2020 as a first time manager, congratulations! Now the pressure is on to be a good manager too. You may want to consider reviewing these 6 Mistakes Rookie Leaders Make from Gordon Tredgold. After all, it is quite a transition from being a technical leader or individual contributor to heading up a team… be on the lookout for signs that you’re repeating the mistakes of others’ past experiences.

+ It is commonplace to evaluate spend categories and suppliers in the larger context of market conditions. What else should we be evaluating in context? Procurement! Czech Republic based procurement executive Robert Sobcak reminds us in a new article for The Procurement Italia Magazine that our priorities and our results are, have always been and will always be based on the needs of the moment. As a result, we may feel some sense of disconnect from one phase of evolution to the next.

Quick Reads:

+ How do you measure your social media impact? (Tom Augenthaler on LinkedIn)

+ Platforms in 2020 (Sourcing Innovation)

+ 2020 Predicaments in Services Procurement — No Light at the End of the Tunnel (Spend Matters)

+ 4 Ways To Address Disengagement In Your Workplace (PASA)

+ Negotiation in an age of automation (IACCM)

Looking Back

+ This week in 2019: Episode 235: Building Meaningful Brands On Personal Connections W/ Sarah Scudder

+ This week in 2018: Episode 167: The Value Of Real Life Networking In A Virtual World W/ Tania Seary

+ This week in 2017: Episode 118: The Differentiators Of Category Management Leaders & Followers, W/ Mark Webb

#TakeAction

By now you’ve officially been deluged by analyst predictions, thought leader hunches and influencers calling their ‘shot’ for 2020. What is 2020 going to be like for YOU? In the scramble to get the new year underway, it would be easy to fall back on old habits with learning & development, social media engagement and networking. What did you think you were going to do differently this year? Pick one small healthy professional habit and set aside 30 minutes a week in your calendar to make it happen. Need suggestions? Reply to this email – we’ll be glad to point you in the right direction!