Jumpstart to Digital Procurement: Pushing the Value Envelope in a New Age 303051983X, 9783030519834

Table of contents :
Acknowledgements
Contents
About the Authors
List of Figures
A New Concept of Procurement
Part I: Value: Whatever Matters to the Business
Savings: The Right Applications for the Right Spend
Real-Time Analytics: Getting Your Data Together
Starting Position: A Big Toolbox but Little Data
Remaining Challenges
How Digital Is Changing the Game: Real-Time Analytics Solutions
Ensuring Sufficient Data Is Available to Conduct Comprehensive Analyses
Reducing the Workload for Buyers in Analytics Setups
How It Has Been Done: Automated Price Calculations at an Automotive Tier 1 Supplier
How It Has Been Done: Using Digital Solutions to Identify Savings via Design Change Scenarios
Real-Time Supplier Follow-Ups
How It Has Been Done: Bid Optimization at a Telecommunications Company
Looking Ahead
AI-Based Buyer Steering: Machines Thinking Smarter Than Us
Starting Position: The Big Question of Which Tool to Use
Remaining Challenge
How Digital Is Changing the Game: AI-Steered Negotiations
How It Has Been Done: The Coach in Real Life-6% Savings in 12 Months
Looking Ahead
Automated Tail Spend Management: Tackling the Untackleable
Starting Position: Managing a Large Number of Items
Remaining Challenges
How Digital Is Changing the Game: Bringing Transparency to the Blind Spots
Creating Tail Spend Transparency
Managing Tail Spend More Efficiently
Reducing Tail Spend to Extract Value
Looking Ahead
Enablers That Make It Work
Innovation: Finding the Right Partners
Starting Position: Procurement Innovation Based on a Company´s Strategic Direction
Remaining Challenges
How Digital Is Changing the Game: Ensuring the Right Suppliers Are Mobilized with the Best-Suited Approach
Pinpoint Suppliers to Focus on to Receive the Best Innovation Targeted to a Given Strategic Ambition
Select the Best-Suited Levers and Approaches to Motivate Strategically Chosen Suppliers for Innovation Generation
How It Has Been Done: AI-Based Supplier Innovation at an Automotive OEM
Enhance Transparency Between Innovation Needs of Business Partners and Supplier Innovation Capabilities
Looking Ahead
Enablers That Make It Work
Quality: Highlighting What Is Actually Delivered
Starting Position: Not Even Knowing Where Quality Is Needed
Remaining Challenges
How Digital Is Changing the Game: Making The Fragmentation Manageable
Understand Where Quality Matters Most
How It Has Been Done: Quality Management at a Fast-Food Producer
Identify Where Quality Problems Occur Throughout the Supply Chain and Even Predict Upcoming Failures
How It Has Been Done: Quality Management at a Chemicals Manufacturer
Allow Companies to Take the Most Appropriate Actions to Mitigate Failures in the Future
Looking Ahead
Enablers That Make It Work
Sustainability: Adding Sustainability as Procurement´s New Value Proposition
Starting Position: Anchoring Sustainability in the Procurement Setup
How It Has Been Done: Sustainable Sourcing at a Global Leading Brewing Company
How It Has Been Done: Implementation of a Detox Program at a Leading German Supermarket Chain
Remaining Challenges
How Digital Is Changing the Game: Bringing Facts and Visibility to an Intransparent Supply Chain
Revealing the Hidden Threat Through Data Mining
How It Has Been Done: Sustainability Threat Monitoring at a Chemicals Producer
Building Trust Over Complex Supply Chains
Looking Ahead
Enablers That Make It Work
Speed: Leveraging Bots as Our New Best Friends
Starting Position: Ensuring a Lean Setup
Remaining Challenges
How Digital Is Changing the Game: Robots as Our New Best Friends
Speed Up Repetitive, Time-Consuming Tasks, Such as Approvals or Data Transfers
How It Has Been Done: Robotics at a Construction Material Manufacturer
Leverage Machines in Tasks Requiring Judgment and Decisions
How It Has Been Done: AI-Based Tendering Evaluation Tool at a Packaging Producer
Automate Even Repetitive Tasks That Currently Rely on Human-to-Human Interaction Such as Phone Calls
Looking Ahead
Enablers That Make It Work
Risk: Predicting the Future and Acting on It
Starting Position: Building a Solid Understanding of What Might Happen
Remaining Challenges
How Digital Is Changing the Game: Bringing Structure to Black Swans
Establishing Transparency Throughout the End-to-End Supply Chain
How It Has Been Done: Global Supply Chain Monitoring at a Leading Manufacturer in the Optical Industry
Ensuring the Right Risks Are Tackled with the Right Lever Set
How It Has Been Done: Leveraging Cognitive Technology in Supply Risk Management at a Multinational Technology Corporation
Looking Ahead
Enablers that Make It Work
Part II: Enablers: What Makes It Work
Organization: Building the Procurement Function of the Future
Starting Position: Deploying Resources Where Value Is Created
Upcoming Challenges
How Digital Is Changing the Game: A New Type of Buyer Pool
How It Has Been Done: Digitized Procurement at an Automotive OEM
Looking Ahead
Processes: Clear, Lean, and Automated
Starting Position: Ensuring a Lean Setup
Upcoming Challenges
How Digital Is Changing the Game: Doubling Down on Clarity and the Capture of Data
Setting Up Processes to Allow the Automation of Redundant Work Steps
How It Has Been Done: Automation of Operational Buying Function
Ensuring Processes Capture Data Sufficiently for AI-based Steering
How It Has Been Done: Setting Up the Tail Spend of the Operational Buying Function
Looking Ahead
People: A New Skill Set for New Roles
Starting Position: Driving Both the Skill and Will of Employees
Ability to Perform
Willingness to Perform
Upcoming Challenges
How Digital Is Changing the Game: Requiring Different People Profiles, Skills, and Stronger Motivation
Having Digital Solutions Take Over Current Procurement Tasks
Ensuring Development of the Skills Needed for New Digital Solutions
Motivating Buyers to Drive the Change Needed
How It Has Been Done: Procurement Transformation at a Global Bank
Looking Ahead
Performance Management: Bridging the Value Delivered
Starting Position: Performance: Measuring Value, an (Almost) Unsolvable Task
Upcoming Challenges
How Digital Is Changing the Game: A Final Verification of Procurement´s Value
How It Has Been Done: Performance Management at a Global Automobile Manufacturer
Looking Ahead
Collaboration: Leveraging Business Partners in the Inside and Outside
Starting Position: Current Best Practices in Collaborating with Business Partners
Structural Layer of Collaboration
How It Has Been Done: Supplier Collaboration at a Laser Technology and Machining Tools Company
Relational Layer of Collaboration
How It Has Been Done: Managing Supplier Relationships at a Global FMCG Company
Upcoming Challenges
How Digital Is Changing the Game: Tackling the Barriers of Collaboration
Connecting Widespread Information Sources to Develop Collaborative Wisdom
Leveraging AI Defined Service and Product Clusters to Tailor Collaboration Approaches
How It Has Been Done: AI-Supported Innovation Scouting at a Leading Premium Auto Manufacturer
Looking Ahead
Part III: Digital Foundation: The Basis of All Our Decisions
Digital Analytics: The Data Foundation for the Next Procurement Revolution
Four Steps to Unleash the Full Value Potential
How It Has Been Done: Digitization of Decision-Making at a Large Food Producer
Ensuring Long-Lasting Change through Digital
Establish Governance to Monitor the Change Process
How It Has Been Done: A Successful Transformation Story
How to Navigate the Jungle of Possibilities to Unleash the Full Value Potential
Finally, a Look at the Technology
RPA/Bots
How It Has Been Done: RPA at a Construction Materials Manufacturer
Big Data and Advanced Analytics
How It Has Been Done: Big Data at an Automotive Manufacturer
AI
How It Has Been Done: AI at a Consumer Packaged Goods (CPG) Company
Collaboration
How It Has Been Done: Collaboration at a Machining Producer
Blockchain
How It Has Been Done: Blockchain at a Diamond Producer
Utopia Versus Dystopia: A Brief Look at the Decades Ahead