Man and Machine

I was asked the question “if data is key to the future of procurement, how can we enjoy less screen time and more physical collaboration?” when speaking on The Procurement Show recently. Here were my conclusions to the question:-

  1. This is a pivotal time for procurement, where we have been given the opportunity to access more business data and therefore create more automated strategic analysis as a consequence, thus having the ability to influence and advise stakeholders more effectively. This assumption relies on :-
    1. The source input data being accurate;
    2. P2P processes and systems being optimised and embedded in the business;
    3. Procurement staff have been trained to work effectively with larger, more strategic data sets and are able to influence better with the output;
    4. The business is operating at steady state, with highly trained cross functional teams, with established automated reporting to allow more time to collaborate and therefore reduce the screen time on data crunching accordingly.  
  2. The reality is somewhat different because:-
    1. Businesses experience change in different functions at different rates and times, where priorities on updating themselves on procurement and supplier systems takes a back seat in reality;
    2. Suppliers may not be able to dock onto your business management systems effectively and may not have the level of training or investment in technology that you have;
    3. Budgets for training procurement staff , stakeholders and suppliers have not been optimised;
    4. Input data can be inaccurate and anomalies go undetected.
  3. In order to develop an elite breed of procurement advisors, with time less screen time placed on data management and more on collaboration, we have to ensure that there is investment in training and education, not only to get them, but the stakeholders and the suppliers to a similar level of competence on systems and the selection of what data reports are key and why. 
  4. Boards expect more for less as we invest in automation and assume that training has already taken place. It is up to the CPO to ensure that the budgets for systems, upgrades, training, and stakeholder commitment to collaboration is agreed with the Board upfront. Equally the added pressures of change cycles and supplier uptake of systems will impact procurement efficiency.

For more on this multifaceted debate on ways of working, post pandemic, and the impact of AI and automation on our daily lives, with Jonathan O’Brien and Paul Philpott, go to the podcast  https://positivepurchasing.com/podcast-the-procurement-show/