This Week in Procurement

This Week in Procurement: Financial Statement Analysis for Procurement

By February 22, 2020 February 23rd, 2020 No Comments

TOP STORY: Spotting a Supplier’s Financial Distress

Despite the recent emphasis on soft skills in procurement recruiting and talent development, there are still a few technical skills that we need to develop. Financial statement analysis is right at the top of that list. In this week’s top story, Sören Petsch, Vice President of Global Procurement for Alliance Data card services, provides advice and best practices for reviewing supplier financial statements for the sake of uncovering ‘red flags’ as early as possible in qualification and risk management.

ON THE POD: Unpacking the Standing Neutral W/ Kate Vitasek

A “standing neutral” is a form of alternative dispute resolution. It is different than an arbitrator, mediator, or certified deal architect in that a standing neutral (a person, not a posture) is brought in before conflict occurs. He or she is part of a contract’s governance structure and is mutually approved by the parties to the contract.

In this week’s podcast, Kate Vitasek, a member of the graduate faculty in executive education at the University of Tennessee and the creator of the Vested model, explains the larger context of the standing neutral and provides case studies to illustrate its application and effectiveness.

HEARD ON THE STREET: Procurement as a commercial function

“Procurement is going to become much more of a commercial function within a business, to the extent that it may not even be called ‘procurement’ anymore. It could instead be known more commonly as ‘commercial support’ or perhaps become subsumed as part of a broader commercial group focussed on suppliers and buyers.” (Ed Cross, Executive Director, Odesma, Ltd.)

“Does the phrase “digital transformation” mean anything anymore? If it ever did, it probably doesn’t now. If every company is digitally transforming, saying that a company is undergoing digital transformation doesn’t impart information.” (David McCann, Deputy Editor, CFO Magazine)

“Our recent What Workers Want report showed that, even for those organisations investing in digital transformation and automation, where you could assume technical skills take precedence, attitude and soft skills remain vital. […] In fact, 73% of respondents to our survey believe that the key to making digital transformation a success is an open mindset to change – far greater than the number who cited technical skills (25%).” (Simon Winfield, Managing Director, Hays UK & Ireland)

TURN BACK TIME

Previously on the Art of Procurement podcast…

This week in 2019: Episode 240: Bridging The Gap Between Procurement & Accounts Payable W/ Matt Clark

This week in 2018: Episode 172: A Ninja’s Guide To Effective Negotiations W/ Mark Raffan

This week in 2017: Episode 123: The Big Idea: Are You Ready For Procurement 4.0? W/ Tania Seary

This week in 2016: Episode 024: How To Start Building True Two-Way Collaborative Supplier Relationships, With Alex Short Of Vizibl

BITS & PIECES

The Coronavirus Calamity Continues…

+ Asia Pacific air cargo industry traumatized by Coronavirus (SupplyChain24/7)

+ Negotiating Performance Based Contracts (Negotiations Ninja)

+ Don’t Toss That Cup: McDonald’s and Starbucks Are Developing Reusables (Bloomberg News)

+ 5 Steps To Increase Procurement’s Influence (Strategic Sourceror)