procurement uberization

Is the “Procurement UBERization” the next big thing? (pt.1)

The outline of a new economy can be anticipated: unemployment, minimal wages, and pay-per-use models in many segments of our life.

Freelancing jobs will gain importance in the new economy. People that lose their job today will struggle to find new employment. This recession will change our approach to work and trigger a WHITE COLLAR UBERIZATION in all business functions.

C-level will strive for increased process efficiency and cost savings, as the top-line growth is limited. Still, the mentality of procurement has remained in the ’90s. Sourcing, savings, and consultants are more trusted than buyers.

A need for accelerated digitization with lower budgets and reduced procurement teams paired with increased expectations will be a new challenge for the leadership in procurement.

After exploiting “digital tools” and achieving operational improvements, the question remains on how to utilize the workforce best and add value in the UPSTREAM PART of the value chain.

Procurement UBERization (pt.2)

In the past decade, procurement professionals have struggled to reach out to senior stakeholders, identify business needs, develop compelling category analysis and implement category strategies.

I asked hundreds of category managers in the past years to clearly state challenges and business requirements in their categories. The result is devastating – SAVINGS in almost all cases! Reaching out to SENIOR STAKEHOLDERS for genuine business needs remains to be mission impossible.

In the new economy, a CEO should ask – do I need #procurement at all? Operation/tactics are ready to be digitized, while the exhausted economy will diminish sourcing results and decrease the headcount.

Despite not really understanding Procurement (because we missed the opportunity to teach them!) the C-level will expect stronger contribution in the upper part of the value chain.

New skills – courage, curiosity, connecting the dots, analysis-synthesis-simplification, and storytelling are more likely to be found among procurement freelancers.

Adopted new skills/tools, pay-per-use, ruthlessly measured performance procurement freelancers are emerging top performers. White-collar UBERization will hit procurement.

Are you ready for this substantial change?

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The internal analysis as the foundation for holistic category strategies

Do you remember the last time you took the wrong ramp onto the highway and how it made you feel? Most people instantly know that they took a wrong turn and hope that the next exit is not too far off. Unfortunately, our brain doesn’t experience the same stress when taking the wrong turn in developing category strategies. Category strategies in Procurement are a methodical approach for defining the best way to buy goods or services for their business. Done right, they help companies align business requirements with market realities to leverage market opportunities and mitigate risks. Done wrong, they might lead us down the wrong road.