February 2024 | procurementmag.

com

WHIRLPOOL CORP
Cutting Complexity
to Boost Sourcing
Performance

PROCUREMENT
EVENTS 2024 MCKINSEY
Why Sustainable
Sourcing is a
Net Zero Essential

bp
FUTURE STRATEGY
Ulrich Angeli, Procurement Director, Discusses Sustainability, Supplier Diversity,
and Procurement role in Supporting the wider Business Strategy

Globality SAP Coupa Ivalua

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CHIEF CONTENT OFFICER SENIOR DESIGNERS DIGITAL VIDEO PRODUCERS MARKETING MANAGER
SCOTT BIRCH REBEKAH BIRLESON ERNEST DE NEVE KATHRYN WEBB
SAM HUBBARD THOMAS EASTERFORD
HEAD OF MULTIMEDIA PROJECT DIRECTOR
DREW HARDMAN
NEIL PERRY FEATURE DESIGNERS STUART IRVING
SALLY MOUSTAFA
JULIA WAINWRIGHT
EDITOR MEDIA SALES DIRECTOR
VICTORIA CASEY PRODUCTION DIRECTORS
GEORGIA WILSON LEWIS HAMMOND
EMMA WALLER GEORGIA ALLEN
CHIEF DESIGN OFFICER DANIELA KIANICKOVÁ MANAGING DIRECTOR
ADVERT DESIGNERS
MATT JOHNSON LEWIS VAUGHAN
CALLUM HOOD PRODUCTION MANAGERS
HEAD OF DESIGN ADRIAN SERBAN JANE ARNETA CEO
ANDY WOOLLACOTT YEVHENIIA SUBBOTINA GLEN WHITE
VIDEO PRODUCTION
MANAGAER KENDRA LAU
LEAD DESIGNER
EMMA WALLER KIERAN WAITE
FOREWORD

Tackling challenges
can be the greatest
achievement
It can be easy to celebrate success, but it is vital to

“This issue
understand the strategy and methods to reach it

is full of
In any boardroom or team meeting around the world,
the good news is the easiest to share, but it is how

challenges,
you tackle challenges to reach that positive news
that can be the real test for a professional. This issue

and how is full of challenges, and how they can be overcome.

This includes how embedding ESG practices into
they can be a procurement strategy can accelerate sustainability

overcome”
progress and how navigating procure-to-pay
complexities of technology and policy can be
overcome in our special report.
We also explore how Whirlpool Corp. have
delivered strong cost savings with the help of
intelligent procurement and product design strategy
as they pivot towards a longer term vision.
Let’s not just celebrate success – let us recognise
the skilled work it takes to overcome the obstacles
to reach it in the first place.
Enjoy the issue

PROCUREMENT MAGAZINE NEIL PERRY

IS PUBLISHED BY
[email protected]

© 2024 | ALL RIGHTS RESERVED

procurementmag.com 5
The Portfolio
WORK WITH US
CONTENTS
UP FRONT
14
14 THE PROCUREMENT
INTERVIEW
bp’s future strategy
with Ulrich Angeli

18 LIFETIME
OF ACHIEVEMENT 18
Patricia Stroup is transforming
the sourcing function at Nestlé

22 PEOPLE MOVES 24
New year, new opportunities

24 THE MONTH
THAT WAS
Highlights from January

PROCUREMENT
EVENTS 2024 000
26
8 February 2024
FEBRUARY 2024

38 Red Sea
Global

FEATURES
26 TOP 10 54
Events that should be on every
procurement executives’ radar

38 RED SEA GLOBAL

The supply chain challenges
of delivering red sea tourism
‘Giga’ projects
P2P
Strategies
54 P2P STRATEGIES
Navigate P2P complexitIes with
technology, policies and buy-in
66
66 SAP
How the company is keeping
up with the pace of change

82 SUPPLIER SELECTION
Whirlpool Corp reducing
complexity and boosting 82
performance

procurementmag.com 9
In Association with:

CPO s
THE TOP 100

OUT NOW
Championing CPOs from global organisations, celebrate
those who elevate the industry day in, day out.

Read now
FEBRUARY 2024
90 LOCAL GOVERNMENT
PROCUREMENT
Adding value for New
South Wales councils
90
102 GEN AI IN
PROCUREMENT
The future of Gen-AI
in procurement

112 SUSTAINABILITY
McKinsey partner Peter Spiller
explains how procurement
can be sustainable
Local Government
Procurement

112

102 Sustainable Sourcing

a net Zero Necessity

procurementmag.com 11
LEARN MORE

Stephany Lapierre
Founder + CEO
TealBook
TealBook: Setting a new benchmark for supplier data quality

Stephany Lapierre, Founder and CEO, explains how “Procurement teams need accurate data in a
Tealbook uses AI to autonomously gather, verify and consistent and easily accessible way,” Lapierre says.
enrich supplier data across existing applications. “If businesses have better data, their systems will
produce better outcomes and, ultimately, procurement
Stephany Lapierre founded TealBook with a will have more value within an organisation.
strong conviction that poor-quality data hinders
procurement teams’ ability to drive efficiency and “It wasn’t until 2017, when I met TealBook’s first
deliver actionable insights. Now, as TealBook’s CTO, that I realised we could achieve this without
CEO, Lapierre and her team leverage technologies suppliers having to come to a portal. We could, in fact,
– such as machine learning (ML) and artificial build on Google to leverage some of the models, to
intelligence (AI) – to help enterprise organisations then find information on businesses and make sense
access a single, trusted source of supplier data. of it in a profile that procurement can consume.”

TealBook enables organisations to efficiently centralise TealBook’s relationship with VISA

their supplier data, consolidating fragmented records Over time, TealBook has cultivated a robust partnership
from different sources into one comprehensive with VISA, a leading global financial services company.
supplier record. With the Supplier Data Platform
(SDP), TealBook utilises AI to autonomously “Empowered by high-quality, trusted supplier data,
collect, verify and enrich supplier data, promoting large enterprises are able to drive financial prosperity
transparency and delivering actionable insights to while shaping a positive impact on our world,” Lapierre
procurement teams and the overall business. says. “They have the opportunity and responsibility
to leverage their buying power, aligning it with their
Uncomplicating Supplier Data Management commitment to sustainability and social responsibility.”
TealBook pioneered the utilisation of AI
technology to gather and enhance supplier
data, transforming the way procurement teams
collect and manage vital information.

procurementmag.com 13
THE PROCUREMENT INTERVIEW

ULRICH
BP’S FUTURE STRATEGY WITH

ANGELI Procurement Magazine Discusses Sustainability,

Supplier Diversity, and Procurement role in
Supporting the wider Business Strategy at bp

WRITTEN BY: GEORGIA WILSON

Q. WHAT IS YOUR
INDUSTRY BACKGROUND?
» A bit of background about myself,
my name is Ulrich Angeli. For more
than two decades I have worked in the
procurement environment, I worked for
ULRICH ANGELI Siemens for seven years, General Electric
TITLE: HEAD OF PURCHASING, for five years, and now I am delighted
PROCUREMENT DIRECTOR, to be a part of the bp family for the
AUTHORISED SIGNATORY last 11 years. In my current role I lead
COMPANY: BP the procurement of one of the biggest
refineries in Europe which comes with
INDUSTRY: OIL AND GAS
a lot of tangible responsibility.
LOCATION: GERMANY
Q. WHAT DOES THE OVERALL
Angeli is a procurement leader ACTION STRATEGY FOR
with more than two decades PROCUREMENT AT BP LOOK LIKE?
of experience in the industry. He has » Coming from a carbon intensive
a proven track record in developing, environment of integrated oil – which
implementing, and managing strategic, we have been known for, for many
tactical, and operational sourcing years – our strategy has had to adopt
and procurement best practices a sustainability approach given the
and transformation programmes. developments in the environment.
We did this around three years ago,

14 February 2024
bp sustainability framework
“Our purpose is reimagining
energy for people and our planet.
Our sustainability frame translates
our purpose into action and underpins
our strategy to become an integrated
energy company. It sets out aims in
the areas where we believe we can
make the biggest difference for bp,
our stakeholders and society.”
Source: bp

procurementmag.com 15
THE PROCUREMENT INTERVIEW

reinventing bp by transforming it into an

integrated energy company.
“We will identify
Sustainability is a critical foundation
of our strategy and we have three pillars:
those partners
resilient hydrocarbons, convenience
and mobility; low carbon energy; and
who want
a fully integrated supply chain. In the to create a
sustainable future
end, you want to talk to your children
and say that you have done something
good for the planet.
for us in order
Q. COULD YOU TALK TO ME ABOUT
YOUR SUSTAINABILITY EFFORTS?
to transform”
The first of three major topics is net zero
across our entire operations, upstream We will do everything to support this
business, and sales on an absolute basis in procurement which means culture
by 20050 or sooner. However, we have of and capability, procurement practices,
course also short term aims for 2025 as well and data insights supporting those
as 2030. These were the biggest milestones elements. Our policies, goals, and
which are non-negotiable for us. supplier expectations also drive this.
The next is to install methane Specifically we are working with our
measurements at all our existing major suppliers to decarbonise the supply
oil and gas processing sites by 2023 to chain, as well as promote and respect
achieve a 50% reduction in the intensity human rights in the supply chain, unblock
of our operations. We are also increasing value through diversity, and encourage
our investment significantly in renewable suppliers to use resources responsibly
energies as we head towards 2025 by embracing a circular economy.
(US$304bn a year) and by 2030 US$5bn.
bp has in fact recently acquired four Q. HOW CRITICAL IS IT THAT
wind farms in the North Sea – a heavy PROCUREMENT NOT ONLY SUPPORTS
investment of more than US$10bn in THE WIDER STRATEGY, BUT
Germany for renewable energy. ACCELERATES IT GOING FORWARD?
» It is more than critical, if you can
Q. HOW ARE YOU LOOKING TO imagine that. On the one hand we
INCREASE YOUR SUPPLIER DIVERSITY have our own operations. On the one
AND SUSTAINABLE PURCHASING? hand we have our own explorations,
» bp is continuing to increase its diversity of course, which is basically where we are
and inclusion when it comes to suppliers. responsible. The amount of investments,
This particularly affects our US colleagues, the amount of money which is going into
and we are overachieving our targets in the system from such a big company
this area. We take this area very seriously. like bp is making the difference in terms
Sustainable purchasing is also a core of how the supply chain is being set up,
focus area for bp and myself specifically. which means we have several two digit

16 February 2024
41%
reduction in absolute
emissions against the
2019 baseline

5.8GW
cumulative total
renewable energy
generating capacity
developed to FID

Title of YouTube video

often goes over two lines 0.05%
methane intensity
(calculated using our
existing methodology)
WATCH NOW

US $4.9bn
transition growth
investment

billion investments every year, which we » Do it sooner rather than later, because
will put into the system. this will be the future of how we are
So in future it will mean not only doing business here. But you have to
the price which will be decisive, make sure that you do not jeopardise the
it will be the safety and the quality too. balance sheet, you still have to work for
So the carbon footprint that you provide the shareholders, but you also have to
as a supplier, we believe will be the key work for the planet in future.
differentiator in future. So make sure that this transformation
We will identify those partners who is being conducted as fast as possible
want to create a sustainable future for us and make sure that this transformation
in order to transform. While performing, is a transformation that make your
business still needs to make money in money and sustains your business,
the end, no doubt about it. But we will but making sure that you aim for the
combine this with the sustainable needs sustainable future in where possible,
of the future and the planet. start small and then step by step it will
develop, but if you have the opportunity,
Q. WHAT ADVICE WOULD YOU HAVE make it a big bang, go for it.
FOR OTHER ORGANISATIONS WHO Angeli spoke at Manufacturing LIVE
ARE GOING THROUGH A SIMILAR 2023 delivering a keynote on bp’s
JOURNEY AND MAYBE EARLIER ON sustainability transformation strategy.
IN THAT PROCESS? To watch the full keynote, click here.

procurementmag.com 17
PATRICIA
STROUP
LIFETIME OF ACHIEVEMENT IN PROCUREMENT

A Believer in Sustainable and Diverse Relations,

and Advocate for Dairy Farmers, Patricia Stroup
is Transforming the Sourcing Function at Nestlé

D
edicating almost 20 years Alongside her talented team,
to the transformation of Stroup navigates the complexities
Nestlé’s sourcing, Patricia of procurement risks, disruptions,
Stroup is a leading and negotiations and sustainability initiatives,
influential figure in not only as well as transforming the sourcing
the food and beverage industry, but the of key commodities for both Nestlé
wide procurement function itself. and the wider food value chain.
“The last couple of years have “Our work has brought together
really shown businesses the value priorities on social responsibility,
of procurement – and not just as sustainability impact, business results
a purchasing function/PO function, but and building long-term partnerships.
the strategy of procurement and the value I’m a deep believer in forging diverse
we bring in managing risk,” says Stroup. partnerships with a team of international
“The executive team has acknowledged experts, who I have the great pleasure
the procurement team’s work in keeping to count as partners,” says Stroup.
product on the shelf, managing cost and
managing inflation. I don’t think this is just
Nestlé, this is across the board.”
With a long history in the dairy PATRICIA STROUP
industry, Stroup grew up on a farm. TITLE: CPO
“I’ve got a degree in dairy science, COMPANY: NESTLÉ
and I actually had my own dairy farm in
INDUSTRY: FOOD AND BEVERAGE
my 20s and early 30s so I understand
what they are facing,” she says. LOCATION: SWITZERLAND
As CPO of Nestlé, Stroup leads the
company’s cultivation of long-term and For more than 25 years, Stroup has
strategic supplier relationships, as well been deep rooted in the food and
as its work with farmers to implement beverage industry. From working
regenerative agricultural practices and the farms to leading the sourcing
support better conditions for farmers. and procurement of multi million
Stroup says: “Coming to Nestlé was dollar organisations, Stroup has
my first time working for a big public been an advocate for strategic value,
company. I was a bit nervous at the sustainability, diversity and the
time, because I really wanted to stay working conditions of farmers.
connected to farmers, but one of the Currently, Stroup is the Global
reasons I decided to come was because Vice President and CPO of Nestlé
it has a unique connection to the farm and CEO of Nestrade.
community around the world.”

procurementmag.com 19
PROCUREMENT MAGAZINE:
TOP 100 CPOS 2023

Celebrating the best of the best from

global organisations, Procurement
Magazine champions innovative and
influential Chief Procurement Officers
(CPOs) – or equivalent roles – who are
elevating the industry.
I am honoured to be recognised In January 2023, Stroup became
as a distinguished leader within chairperson of the International Dairy
this impressive community. Even Food Association (IDFA)’s Executive
more importantly, I am proud of the Council. The association represents
unwavering dedication of our Nestlé the nation’s dairy manufacturing and
Procurement teams that is reflected in marketing industry, supporting more
this Procurement Magazine ranking. than 3.2 million jobs.
Throughout 2023, along with IDFA has a diverse range of members,
our committed suppliers, Nestlé from multinational to single-plant
Procurement teams have worked companies and dairy companies
hard to responsibly deliver taste and and cooperatives to food retailers
nourishment to people and their pets and suppliers. All of which are at the
around the world. Together, we prove that edge of innovation and sustainable
collaborations are the keys to growth! business practice.
Patricia Stroup, CPO, Nestlé Staying true to her roots, Stroup
utilises her voice at Nestlé and IDFA

20 February 2024
LIFETIME OF ACHIEVEMENT IN PROCUREMENT

WATCH NOW

to advocate for dairy farmers, striving

for greater efficiency, sustainability “We want to work
and supplier diversity.
“The dairy industry has its cycles like
with farmers
every commodity-based industry, based
on supply and demand, it’s just economics
to improve
101,” she explains, “but I always say to efficiency and
sustainability”
farmers that I’m not here to win against
you, you’re not my competition, you’re
part of our team. We want them to win.
“We want to work with farmers to just a case of this is where you are now,
improve efficiency and sustainability, and this is where we want you to go.
so we do on-farm assessments with our They then need to come up with an
farmers covering everything from animal action plan explaining how they are
care and soil erosion to water quality going to get there; it helps them become
and stewardship. But it’s not pass or fail, more competitive.”

procurementmag.com 21
PEOPLE MOVES

NEW YEAR, NEW

OPPORTUNITIES
Discover Some of the Newly
Appointed C-suite Leaders Starting
2024 With new Opportunities
and Responsibilities

WRITTEN BY: GEORGIA WILSON

BINNY MATHEWS
“I am grateful for JOB FROM: S
ENIOR VICE
every minute PRESIDENT AND
GROUP HEAD OF
of my stay here PROCUREMENT, INFOSYS

[Infosys]. I have JOB TO: C

HIEF PROCUREMENT OFFICER
(CPO), ACCENTURE
had a blast. It is For the last 15 years, Mathews has been
not easy to leave. integral to the successful procurement

However, there is
operations at IT consulting organisation -
Infosys. A seasoned procurement executive,

something new Mathews, in his new role as CPO, will be

leading the strategic direction for Accenture’s
and more exciting global procurement spend, driving a

that is ahead”
sustainable and diverse value chain, and 360o
supplier partnerships.

22 February 2024
OSCAR GONZALEZ NICOLE VANDUSEN
JOB FROM: CHIEF JOB FROM: HEAD OF
PROCUREMENT OFFICER (CPO), PROCUREMENT AMERICAS
AXA MEXICO REGION, HSBC
JOB TO: HEAD OF PROCUREMENT JOB TO: DIRECTOR OF OPERATIONS
TRANSFORMATION, AXA (PROCUREMENT) AT 3M

Previously working for the likes of General Dedicated to process improvements in

Motors, QST Industries, Gates Operations, procurement, VanDusen has a track record of
and GE Capital, Gonzalez has been the CPO turning around procurement functions while
of AXA Mexico for the last four years. Being a leading large international teams. Previously
multilingual strategic purchasing executive with she has worked for the likes of FMC, Bristol-
more than 22 years of international experience Myers Squibb, Greatbatch Medical,
leading global organisation, Gonzalez has and HSBC before taking on the role of
taken on the role of Head of Procurement Director of Operations (Procurement) at 3M.
Transformation for the AXA Group.

CARMEN ERHARDT SANTI OCTAVIANI

JOB FROM: DIRECTOR JOB FROM: SENIOR AREA
CORPORATE PURCHASING / PROCUREMENT MANAGER
HEAD OF GLOBAL PROCESSES, (INDONISIA), MARRIOTT
OPERATIONS AND DIGITALISATION, HENKEL INTERNATIONAL INDONESIA
JOB TO: CHIEF PROCUREMENT OFFICER JOB TO: DIRECTOR OF PROCUREMENT
(CPO), SWISSLOG (INDONESIA), ACCOR

A high-energy digital process executive, A certified procurement professional and

Erhardt has diverse and international associate member of CIPS, Octaviani is
management experience in procurement and skilled in negotiations, vendor management,
supply chain. She has a collaborative mindset, contract management and procurement
with a passion for leading teams to implement compliance, Previously working for the likes
business focused processes and solutions to of PermataBank, The Ascott Limited,
drive change. With a track record in leading and Marriotts International Indonesia,
the entire purchasing value chain, Erhardt has Octaviani has taken on the new role of
taken on the role of CPO at Swisslog. Director of Procurement (Indonesia) at Accor.

procurementmag.com 23
THE MONTH THAT WAS

PROCUREMENT & SUPPLY

CHAIN LIVE: 2024 EVENTS
BREAKDOWN

Connecting the world’s procurement

and supply chain leaders,
Procurement & Supply Chain LIVE
will be returning in 2024 to bring the
biggest global businesses together
to deliver insightful keynotes,
fireside chats, and panel discussions
sharing valuable knowledge
and real-world experiences.
Find out more about our
upcoming events in 2024…

READ NOW

AMAZON BUSINESS:
PROCUREMENT AND WIDER COMPANY COLLABORATION

With procurement evolving from a back-office

role to a key voice at a board table, it is being
argued the function needs to become more
integrated with other parts of a business to aid
the wider success of a business and drastically
improve outcomes.
“Given complexity and an uncertain
business climate due to supply chain
disruption and inflation, procurement decision
makers across the globe see room for other
parts of their organisations to improve their
purchasing compliance,” says Alex Gagnon,
Vice President, Amazon Business WW.

READ NOW

24 February 2024
FOUR KEY INSIGHTS: GEP GLOBAL
VOLATILITY INDEX DECEMBER 23
An indicator for global procurement, purchasing and supply
chain professionals and leaders about the ongoing conditions,
shortages, transportation costs, inventories and backlogs,
GEP’s Global Volatility Index for December is showing low
demand and persistent weakness in the global economy.

READ NOW

MICROSOFT THE GLOBAL GARTNER:

EXPANDS PROCUREMENT HALF OF SUPPLY
PROCUREMENT & SUPPLY CHAIN ORGANISATIONS
OF RENEWABLE AWARDS 2024 TO IMPLEMENT
ENERGY DEBUT GEN AI
Microsoft has entered Procurement Magazine Latest Gartner survey
into a module and Supply Chain Digital reveals that 5.8% of
and engineering, launches The Global budgets on average
procurement and Procurement & Supply will now be invested
construction (EPC) Chain Awards in 2024. in Gen AI technology.
services agreement with Continuing to expand its This is also being backed
clean energy solutions content platforms, the up with an investment
provider Qcells as part comprehensive programme in talent, as 65% of
of an eight year alliance. will acknowledge survey respondents
The 12 GW agreement companies, professionals said they plan to hire
is designed to help and projects that have dedicated staff and
decarbonise the grid and demonstrated exceptional experts to help deploy
diversify the global clean performance, innovation the technology
energy supply chain. and strategic thinking. in 2024.

READ NOW READ NOW READ NOW

procurementmag.com 25
PROCUREMENT

CSOs
EVENTS 2024
Procurement Magazine Takes a Look at the
Year Ahead and the Events That Should be
on Every Procurement Executives’ Radar
WRITTEN BY: GEORGIA WILSON

N
avigate the vast and complex industry
that is supply chain and procurement
with the help of key insights, trends,
innovations, strategies, and more being
discussed by C-suite executives from
leading global organisations.

26 February 2024
TOP 10

s
procurementmag.com 27
TOP 10

WATCH NOW
09
Digital Procurement
World (DPW)

10
Website: Digital Procurement World
(DPW)
Date: 9-10 October 2024
Location: Amsterdam
IG Global Accelerating innovation by connecting
Executive Summit startups, technology leaders, major
Website: SIG Global corporations, and investors, Digital
Executive Summit Procurement World (DPW) 2024 aims to
Date: 25-27 March 2024 respond to the world’s biggest challenges in
Location: Omni Grove Park Inn, the procurement and supply chain space.
Asheville, North Carolina Across the two days, industry leaders
will take part in talks, technology
Packed with the latest best practices, showcases, next-level networking,
cost-cutting strategies, innovative performances, culinary, and wellness
processes, and risk mitigation sessions, deep diving into digital
approaches, SIG Global Executive transformation, people and culture, risk
Summit 2024 is a three day event of and resilience, compliance, efficiency and
like-minded professionals. agility, sustainability and much more.
Taking part in roundtables, workshops,
breakout sessions, and networking
events, those attending will hear from
leaders in the industry discuss sourcing,
outsourcing, talent, governance and
compliance, disruptive digitalisation,
and third party risk management.
WATCH NOW

28 February 2024
WATCH NOW
07
ISM World
Website: ISM World

08
Date: 29 April-1 May 2024
Location: MGM Grand, Las Vegas

Providing cutting-edge education,

networking and insights from the
industry’s thought leaders, ISM World
100 CPO Summit provides procurement and supply chain
Website: 100 CPO Summit professionals the opportunity to connect
Date: 3 October 2024 with innovative suppliers and discover
Location: The H Dubai, UAE the latest products and solutions.
Across the three days, ISM World
Dedicated to bringing together CPOs and 2024 will deep dive into sustainability, AI,
key-players to present and discuss current women in supply chain, industry trends,
risks and trends in procurement, the 100 machine learning, risk and resilience, and
CPO forum will be returning for its third the state of procurement and its future
year into driving competitive growth and to name a few.
drive revenue for its attendees. Companies speaking in 2024, GSK,
100 CPO Summit 2024 provides real Qualcomm, Walmart, General Motors,
world best practices from those on the BDO, DuPont, Apple and many more.
ground, with informative knowledge
and the opportunity to exchange learnings
and experiences.
2024’s agenda is yet to be confirmed,
but it promises to provide insights into
the right strategies, techniques and
technologies to drive innovation and
revenue growth to stay ahead and meet
future procurement landscape demand. WATCH NOW

procurementmag.com 29
TOP 10

06
ProcureCon Europe
Website: ProcureCon Europe
Date: 17-19 September 2024
Location: Hyatt Regency Barcelona
05
World Procurement
Tower
Congress
Connecting worldwide leaders, ProcureCon Website: World Procurement
Europe 2024 provides an engaging and Congress
immersive experience with Europe’s Date: 14-16 May 2024
biggest companies. The interactive event Location: Intercontinental London –
covers commercial strategies, people and The O2
culture, the role of a CPO, digitalisation,
transformation, transparency, risk Dedicating its 2024 theme around Horizon
and resilience, supplier management, 2030 – Glide paths for sustainable growth
sustainability and much more. – World Procurement Congress 2024
ProcureCon offers a variety of session aims to tackle the biggest challenges,
types including keynotes, roundtables, case supporting its global community. Now in
studies, workshops, and a ‘Dragon’s Den’ its 18th year, the congress has welcomed
model. Speakers are yet to be announced, over 1,100 CPOs to the stage and more
but previous companies include Siemens, than 12,000 delegates.
Airbus, AstraZeneca, Allianz, and DuPont. Over three days, World Procurement
Congress will deep dive into ESG, circular
supply chains, net zero, technology,
strategy, supplier relationships, AI, risk
and resilience, and much more!

WATCH NOW

procurementmag.com 31
TOP 10

04
Procurement Summit
Website: Procurement Summit
Date: 12-13 June 2024
Location: Hamburg, Germany

An exhibition for digitalisation and

innovation in the procurement sector,
the Procurement Summit returns
for its seventh year. Over two days,
the event will include speakers,
panels, and workshops discussing
transformation, sustainability, people WATCH NOW

and culture, diversity and inclusion,

03
and ESG.
Leading organisations to speak
at the Procurement Summit 2024
include Mars, Engie, Bayer, Porsche
Holding Salzburg, The Sustainable
Procurement Pledge, and many more.
Gartner Supply Chain
Symposium/Xpo™
Website: Gartner Supply Chain
Symposium/Xpo™
Date: 6-7 May 2024
Location: Barcelona, Spain

WATCH NOW Pragmatic advice and future-focused

insights, Gartner Supply Chain
Symposium/Xpo™ 2024 offers leaders
in procurement and supply chain
access to the latest research to navigate
the disruptive industry. Hot topics
to be discussed at the event include
innovation, visibility, talent and culture,
cost optimization, risk management
and sustainability.

32 February 2024
02
Procurement & Supply Chain LIVE
(Singapore, Dubai and New York)
Website: Procurement & Supply Chain LIVE (Singapore, Dubai and New York)
Date: 21 March 2024 | 15 May 2024 | 5-6 June 2024
Location: Virtual

Connect with likeminded peers transformation, sustainability,

in the world of procurement and and more during keynotes, forums
supply chain at the virtual sessions and fireside chats.
of Procurement & Supply Chain LIVE Leading organisations speaking at
2024. Hosted in Singapore, Dubai the three events will include HPE, Shell,
and New York the three virtual events City Bank, Mondelēz International,
will serve as the ultimate platform MTN Group, Proctor & Gamble, Bosch,
to discuss strategies, digitalisation, Cognizant and The Kraft Heinz Company.

WATCH NOW

procurementmag.com 33
6 - 7 MARC H 2024
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Intimate conversations with CPOs
and amazing businesses with
cutting edge technology to move
supply chains forwards. Proud to
sponsor an amazing event”
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GLOBAL SUPPLIER DIVERSITY AND SUSTAINABILITY MANAGING DIRECTOR,
ACCENTURE (SPONSOR)

36 February 2024
TOP 10

Procurement & Supply Chain LIVE 2024

Website: Procurement & Supply Chain LIVE 2024
Date: 24-25 September
Location: Business Design Centre (BDC)
Connecting the world’s procurement digitalisation, Generative AI, Scope 3
and supply chain leaders… women in procurement, procurement
Returning to the Business Design and supply chain transformation, and
Centre (BDC), leading industry figures supply chain risk and resilience.
will gather on September 24-25 2024 to In addition, Procurement & Supply
deep dive into the trends, innovations, Chain LIVE 2024 will see the debut of
strategies and more from the world of The Global Procurement & Supply Chain
procurement and supply chain. Awards. The comprehensive programme
Over the two days C-suite aims to acknowledge companies,
executives will discuss a wide range professionals and projects that have
of topics including: procurement demonstrated exceptional performance,
strategies, strategic sourcing, innovation and strategic thinking.

WATCH NOW

procurementmag.com 37
38 February 2024
RED SEA GLOBAL

RED SEA GLOBAL

DELIVERING ON
SAUDI VISION 2030
WRITTEN BY: PRODUCED BY:
SEAN MARTIN
ASHCROFT DEVINE

procurementmag.com 39
RED SEA GLOBAL

Saudi Developer RED SEA GLOBAL

on the Supply Chain Challenges
of Delivering Red Sea Tourism
‘Giga’ Projects

F or so long Saudi Arabia was the world’s

biggest tourism blank canvas: its Red Sea
coastline is among the most beautiful
anywhere, and yet it remained untouched
and largely unvisited. Pretty much the only
foreign visitors drawn to the Saudi Kingdom
were pilgrims, heading for Mecca.
To say this situation is changing is a
colossal understatement. Take a moment to
process this figure: in the first nine months
of 2023, Saudi Arabia spent US$26.7bn on
tourism destinations and infrastructure. To
put this into context, in the league table of
national GDPs, $26.7bn would rank 107th out
of the world’s 177 countries, between the
GDPs of Laos and Nicaragua.
Now, as part of Saudi’s Vision 2030 plan
to diversify its economy – economically,
socially and culturally – a number of ultra-
luxury schemes are under way on the Red
Sea shores.
Among the developers involved in
delivering the tourism strand of Vision 2030
is Red Sea Global (RSG), which is wholly
owned by Saudi Arabia’s Public Investment
Fund (PIF).
The PIF is the sovereign wealth fund
of Saudi Arabia. It is the largest sovereign
wealth fund in the world, with estimated
assets of US$776bn.

40 February 2024
procurementmag.com 41
A Strong Construction
Pillar that Crafts Excellence
by Transforming Visions
into Realities
At ASTRA Construction, our commitment
goes beyond bricks and mortar. We blend
expertise with innovation, delivering projects
that stand as testaments to quality,
precision, and client satisfaction

Learn More
ASTRA Construction Co., an integral part forms the backbone of our organization,
of the ASTRA Group, is embarking on a driving innovation, excellence, and
journey that commenced in 1967, ASTRA success in every endeavour we undertake.
Construction Co. has evolved into the
visionary architect shaping Saudi Arabia’s ASTRA Construction Co. places
construction scene. Distinguished by its an unwavering emphasis on safety,
100% Saudi ownership and management. implementing rigorous standards
At the heart of ASTRA’s mission and protocols across all projects,
lies a commitment to contributing in addition to that, ASTRA is dedicated
significantly to Saudi Arabia’s 2030 vision, to sustainable construction practices,
actively participating in key projects prioritizing eco-friendly materials, energy-
pivotal to the nation’s progress. efficient designs, and waste reduction
initiatives, aligning its operations
ASTRA Construction Co. is a leading with global sustainability standards.
contracting entity, known for delivering
comprehensive construction services Having successfully completed numerous
across diverse sectors, consistently projects for a variety of major clients
integrates cutting-edge technologies in Saudi Arabia, ASTRA Construction Co.
and modern methodologies, ensuring has earned trust and credibility in the
that its projects are not only industry. Our commitment to excellence,
structurally sound but also at the precision, and client satisfaction has
forefront of industry advancements. solidified our position as a preferred
partner for a diverse range of clients.
Our operations span over commercial
and retail, residential development, In essence, ASTRA Construction Co. is not
education campuses, healthcare just building structures; it is constructing
facilities, hospitality resorts, industrial, a sustainable and prosperous future for
and infrastructure projects. Saudi Arabia, rooted in its unwavering
commitment to growth, innovation,
Our talented and diverse workforce and community development.
defines us, adeptly overseeing the various
departments of the company with a
wealth of experience and unwavering
Learn More
dedication. Their collective expertise

procurementmag.com 43
RED SEA GLOBAL

It was created in 1971 for the purpose of

investing funds on behalf of the Government
of Saudi Arabia, and is controlled by Crown
Prince Mohammed bin Salman Al Saud.
RSG is responsible for developing two
giant projects – so-called ‘giga projects’:
The Red Sea destination and the being not only of our guests but also of the
Amaala destination. communities and the environments within
The Red Sea is a brand-new luxury which we’re working”.
regenerative tourism destination along
the west coast of Saudi Arabia. It opened How Red Sea Global is organised
to guests last year, and by 2030 will be In his role, Edwards oversees three
home to 50 hotels, 8,000 rooms, up to departments. The Cost department deals
1,000 residential properties and its own with the estimating and budgeting for all
international airport. of RSG’s developments. Procurement
Amaala is a luxury tourism destination deals with the procurement of goods and
being developed along the Red Sea coast in services, while Commercial handles the
northwestern Saudi Arabia, about 150 miles commercial management of the countless
back down the coast. It is being developed purchase orders and contracts after they’ve
as one of the world’s premier luxury wellness been placed.
and sports retreats. Its entire team currently numbers
“These two projects are probably the 605 people, but it is growing by the day.
world’s most ambitious regenerative tourism The biggest challenge of his role, says
destinations,” says Ben Edwards, Group Head Edwards, is the sheer scale of the projects,
of Cost, Commercial & Procurement for RSG. and the supply chain capacity in the
Edwards adds that the company is Saudi market.
“putting people and planet first in what we “Market capacity within the Kingdom
do”, with a view of “enhancing the well- is the biggest single risk we face as an

“We’re already seeing our

roadshow events converting into
real awards to the supply chain”
BEN EDWARDS
GROUP HEAD OF COST, COMMERCIAL & PROCUREMENT
RED SEA GLOBAL

44 February 2024
BEN EDWARDS
TITLE: GROUP HEAD OF
COST, COMMERCIAL, AND
PROCUREMENT
COMPANY: RED SEA GLOBAL

Ben Edwards, Group Head

of Cost, Commercial, and
Procurement at Red Sea Global,
oversees The Red Sea and Amaala
projects in Saudi Arabia. These
initiatives are integral to Vision 2030,
focusing on economic diversification
and sustainable development.
Appointed in August 2022, Ben
brings over 25 years of international
experience in complex building and
civil engineering projects. His previous
role as Main Board Director at Tilbury
Douglas in London involved shaping
commercial strategies for lower-risk,
diverse projects. He holds a bachelor’s
degree in Quantity Surveying from
Northumbria University.

procurementmag.com 45
ELEGANCIA ARABIA:
ELEVATING SERVICE STANDARDS
ELEGANCIA ARABIA, A SUBSIDIARY OF ESTITHMAR HOLDING IS A LEADING SAUDI COMPANY
PROVIDING DIVERSE, FIRST-IN-CLASS SPECIALIZED CONTRACTING SERVICES, RANGING FROM
MEP, ELV, LANDSCAPE, FIT-OUT, INDUSTRIAL KITCHENS & LAUNDRY, WATER SOLUTIONS,
MARINE, AND MORE. IN ADDITION TO SPECIALIZED INDUSTRIES IN JOINERY, FURNITURE,
DECORATIVE METAL, STONE, AND HOT-ROLLED STEEL INDUSTRIES.

OUR TEAM OF EXPERIENCED PROFESSIONALS EXCELS IN DELIVERING MEGA PROJECTS WHILE

PRIORITIZING INNOVATION, SUSTAINABILITY, AND CLIENT-CENTRICITY.

WE ARE PROUD TO SUPPORT THE KINGDOM’S SUSTAINABLE DEVELOPMENT.

ELEGANCIA ARABIA
RED SEA GLOBAL

organisation,” Edwards says. “There are so

many projects being released to market, The biggest challenge
and the supply chain is limited within
the Kingdom.
in Saudi Arabia is
This is why Edwards and key members there are so many
of his team have been travelling the globe
to encourage companies to participate in
projects being
tenders for RSG projects. released to market,
The move has been very successful,
says Edwards.
and the supply chain
“We started in March 2023, with our first is limited within
procurement roadshow event in Qatar,
and have since done events in Egypt,
the Kingdom”
Turkey, the UK, Germany, South Korea and
Japan,” he says. BEN EDWARDS
GROUP HEAD OF COST,
Edwards adds: “The Qatar event has led COMMERCIAL & PROCUREMENT
to 2.5bn Saudi riyals (US$625mn) of contract RED SEA GLOBAL
awards to organisations we met back then.”

procurementmag.com 47
Red Sea Global Delivering on Saudi Vision 2030

WATCH NOW

The process of getting companies

on board with Vision 2030 projects is
multi-staged.
“We have the event, we meet the
companies, they then go through the pre-
qualification and registration processes,”
“Joint ventures are Edwards explains. “That might take four
months in some cases, and the companies
seen as a good way can then start to receive tenders.”

to bring in expertise Overseas events crucial for

from overseas, to recruiting new RSG suppliers

collaborate and Tender periods are usually between two and

four months before award, and Edwards
partner with a reveals that RSG “is already seeing the Qatar

local company” event converting into real awards to the

supply chain”.
He adds: “It’s been a very successful
BEN EDWARDS way for us to meet new companies, and to
GROUP HEAD OF COST,
COMMERCIAL & PROCUREMENT
encourage them to explore opportunities in
RED SEA GLOBAL the Kingdom – not just with us but also with
other giga projects.”

48 February 2024
RED SEA GLOBAL

procurementmag.com 49
RED SEA GLOBAL

Sometimes, he says, RSG meets suppliers system is now all online and is much easier.
who are not quite the right fit for its own “The Kingdom is also actively engaged in
projects but might be ideal for other giga- encouraging companies to form companies
project developers. and to participate in projects. There are also
“We have a good network of contacts with various incentive programmes led by the PIF.
our colleagues in the other giga projects, and For example, there’s one that is designed to
we share information for mutual benefit,” encourage investment and development in
says Edwards. the Kingdom’s manufacturing capability.”
Many of the overseas companies RSG The overwhelming message, Edwards
draws into its burgeoning supply chain will points out, is that ‘Saudi is open for business’.
establish an on-the-ground presence in the
Kingdom – a process that poses logistical Joint ventures helping to boost
challenges, but far fewer than was the case Saudi supply chains
in the past, says Edwards. Not all companies look to set up a Saudi
“It’s much easier than it used to be,” he operation. Some choose what Edwards dubs
says. “Back in 2012 it was really quite painful a “softer entry into the market”, by forming a
as an overseas registered company to set up joint venture (JV).
in the Kingdom but it’s been vastly simplified.” This, he says, is particularly true of
He adds: “The Ministry of Investment construction: “JVs are seen as an easier
has a dedicated team to help international way to bring in expertise from overseas
companies get registrations sorted out. The to collaborate and partner with a local

procurementmag.com 51
RED SEA GLOBAL

“By growing leisure tourism

we’re creating a new industry
in Saudi Arabia, which in
the past has only offered
religious tourism for people
coming for pilgrimage”
BEN EDWARDS
GROUP HEAD OF COST,
COMMERCIAL & PROCUREMENT
RED SEA GLOBAL

company who has already got boots on

the ground.
“They use the expertise as a start-point
to develop their own capability, and this is
quite a popular approach.
He adds that RSG has helped overseas
companies by matching them up with
potentially suitable JV partner companies “These are the custodians and the guardians
who are based in the Kingdom. “Usually it’s of these wonderful natural environments we
those with a high degree of success,” he are working in along the Red Sea coast,” says
says. “We’ve got some good JV relationships Edwards. “They make sure everything that we
participating in our projects through do is of the highest possible standard. It’s the
that programme.” same with health and safety.”
If creating a value chain capable of
delivering such vast projects is one Delivering on safety and
challenge, then actually delivering the quality are key to RSG
project is another. The challenge, he adds, is getting good
“They’re big construction projects, so contractors who are able to deliver the
it’s all about the workforce and resources,” projects to the right health and safety
Edwards points out. “But we also have standards and the right quality.
great focus on making sure the quality and “It’s challenging,” he admits, “and we have
the environmental protection are of the to leverage all of our capabilities as managers
absolute highest standards.” and developers to get the best out of that
To this end, RSG has a team of highly supply chain.”
qualified and experienced environmental Edwards continues: “Some of those
specialists. companies will need hand-holding and we’ll

52 February 2024
have to walk them step-by-step through “We also have vocational training
what we want. So, it’s a challenge, what programmes that train people to
with the volume of work that is available be chefs, mobility specialists and
and the sheer volume of suppliers in the horticulturalists,” says Edwards. “These
marketplace.” large-scale destinations need a lot of people
Operational challenges aside, RSG is to run them.
also keenly aware that part of its role is to “We also have an elite graduate
deliver the social aspects of Vision 2030, and programme, whereby we take 50 of the
developing opportunities for young Saudi top graduates from across the Kingdom’s
talent is very much part of this, Edwards says. universities, and run them through a
“By growing leisure tourism we’re creating two-year on-the-job rotational training
a new industry in Saudi Arabia, which has in programme, to develop and to nurture the
the past only offered religious tourism for talent that will be leading these projects in
people coming for pilgrimage.” the future.”
RSG has a number of ways it creates
opportunities for talented Saudi men and
women. It runs a hospitality scholarship
programme, whose intake is young students,
who are then trained in hospitality.

procurementmag.com 53
54 February 2024
P2P STRATEGIES

NAVIGATE P2P
COMPLEXITIES WITH
TECHNOLOGY,
POLICIES & BUY-IN
Navigate the Complex, Manually-Intensive Process
of Procurement With Stakeholder buy-in
and a Comprehensive Approach to P2P Strategies

WRITTEN BY: GEORGIA WILSON

P
rocure-to-Pay (P2P) – a strategic In this Special Report, Procurement
business process that involves the Magazine takes a look at the challenges
entire procurement lifecycle from in the procurement industry, what
initial requisition of goods and a successful strategy looks like, and the
services to final payments. role that automated procurement systems
and other innovative technologies play
Key stages of the P2P process includes: in streamlining and improving the accuracy
• Requisitioning of the P2P process.
• Vendor identification and selection
• Purchase order (PO) creation Detailed breakdown
• Goods or service delivery of the industry key areas
• Invoice receipt and verification Putting context to the complexities and
• Three-way match challenges the procurement industry faces
• Approval workflow (data from SAP and KPMG recent reports:
• Payment processing • 77% of executives can’t access real
• Payment reconciliation time spend
• Supplier relationship management • 50% can’t find alternative sources of supply
quickly enough
Efficient management of the P2P process • 42% experience reconciliation issues
is crucial for organisations to optimise costs, with invoices
enhance transparency, and maintain positive • 37% have semi-automated
relationships with suppliers. or manual systems

procurementmag.com 55
E-GUIDE

7 Ways eSourcing Can

Save Time & Money
eSourcing is an exceptionally powerful
tool that empowers procurement and sales
departments to speed up and streamline the
full lifecycle of the procurement process.

If you have yet to leverage this collaborative

technology, download our e-guide to discover
the top seven benefits of eSourcing.

DOWNLOAD NOW
P2P STRATEGIES

“For me, the old adage

of ‘build it and they will
come’ applies. If you have
simple, effective systems
and practices in place then
people will engage with
procurement organically” KATHLEEN
HARMESTON
KATHLEEN HARMESTON TITLE: NED AND BUSINESS
SUPPLY CHAIN AND PROCUREMENT TRANSFORMATION ADVISOR
SPECIALIST AND CIPS FELLOW
INDUSTRY: SUPPLY CHAIN
AND PROCUREMENT
• 41% say they find adoption
of systems difficult
• 47% say they are vulnerable to disruption, A supply chain and procurement
upstream costs, and labour costs specialist, Harmeston has 30 years of
• 43% say they don’t have visibility of their experience in consulting and operating
supply chains down to tier four at executive level in the space both in the
public and private sector. Her focus has
And so, with this in mind, Kathleen Harmeston, been on large scale transformation and
supply chain and procurement specialist and cost optimisation projects, organisation
CIPS Fellow explains that even if the function design, and her specialism is supply
has a really good procure-to-pay (P2P) system relationship management.
on board, but it is not adequately integrated

procurementmag.com 57
into the business, it raises the questions:
Do you have effective control of what you’re
buying? Do managers have enough visibility “For me, the old adage
of their financial commitments properly to
manage budgets? Are you getting the best
of ‘build it and they will
value for money? Are you managing the come’ applies. If you have
payment process efficiently?
“Procurement can be a complex,
simple, effective systems
manually intensive process. There are many and practices in place
challenges to manage from maverick spend, then people will engage
value leakage, lack of agility in moving to new
suppliers to limited access to supplier and with procurement
spend information. Procurement is often organically”
seen as painful and prohibitive when it can
be proactive, predictive, and powerful.”
KATHLEEN HARMESTON
“Often the percentage of spend under SUPPLY CHAIN AND PROCUREMENT SPECIALIST
contract and spend under management AND CIPS FELLOW

58 February 2024
P2P STRATEGIES

COMPANIES EXCELLING IN THIS INDUSTRY

throw out physical product catalogues
SAP and put the information online.
Understanding the potential of technology
SAP is a market leader in for procurement JAGGAER is leading
enterprise application software. Founded the Autonomous Commerce revolution,
in 1972, SAP helps companies of all sizes leveraging artificial intelligence and
run better by redefining ERP and creating machine learning.
networks of intelligent enterprises to provide
transparency, resiliency, and sustainability
across supply chains. GEP
Founded in 1999, GEP delivers
Oracle AI-powered procurement and supply chain
solutions to help global enterprises become
Founded in 1977, Oracle is a cloud more agile and resilient, operate more
technology company that provides global efficiently and effectively, gain a competitive
organisations with computing infrastructure advantage, boost profitability, and increase
and software to drive innovation, unlock shareholder value.
efficiency and become more effective.
Creating the world’s first autonomous database
to help organise and secure customer data, Coupa Software
Oracle is on a mission to help people see data
in new ways. Founded in 2006, Coupa Software
is committed to providing business
value via its cloud platform for business
JAGGAER spend management (BSM). Coupa
Software enables visibility and control
Founded in 1995, JAGGAER was for global companies to spend smarter
built on the revolutionary idea to and safer.

procurementmag.com 59
P2P STRATEGIES

is suboptimal – even if you have good

systems in place. It’s the policies, processes,
practices and relationships that you have
with the business that ultimately controls
spend,” says Harmeston.

“The influence of procurement

leaders varies a lot so the need
to approach transformation at
a controlled pace is an imperative”
MARK REDDY
DIRECTOR OF SPEND & GOVERNANCE,
ADVANCED

What does a successful P2P strategy look like?

A successful P2P strategy is one that takes
a comprehensive approach to procurement,
while also being efficient and cost-
effective. Mark Reddy, Director of Spend &
Governance at Advanced states: “It should
include a focus on automation, digitisation,
and data analytics to improve the overall
procurement operation. The use of Cloud-
based procurement software is fundamental
for enabling collaboration between teams for more strategic tasks, the business and
across various locations.” procurement working more closely are
When you’ve got a really good P2P together, better forecasting and budgeting
strategy in place the dashboard at executive capabilities, reduced invoice reconciliation
level is regularly used, category strategies are issues, the ability to draw down accurate
understood, the systems are user-friendly spend data (per supplier per category real
and accessible, analysis can be done ad hoc, time), and a simple and effective ordering
you’ve got data excellence for meaningful process which can be accessed outside
management information, and it becomes a of the office.”
part of the everyday processes and practices.
“You can get lots of data from a P2P Technology place in
system,” says Harmeston, “but that data a successful P2P strategy
needs to become meaningful information Playing a critical role in the procurement
to drive strategic decision-making. function, technology enables organisations
The benefits of a successful P2P to streamline its operations by minimising
strategy include freeing up staff time the time and cost associated with manual

60 February 2024
MARK REDDY
TITLE: GLOBAL DIRECTOR OF
GROWTH, SPEND & GOVERNANCE
work, reducing errors, and making COMPANY: ADVANCED
processes smarter.
“Technology also provides real-time A believer and passionate advocate of
visibility into procurement data, ensuring the role technology plays in improving
businesses can make quick and informed the way organisations perform by proving
decisions, while mitigating potential risks the environment for people to provide.
too,” explains Reddy. As Global Director of Growth, Spend
Agreeing with Reddy, Harmeston breaks and Governance at Advanced, Reddy
down some of the innovative technologies enables procurement and governance
driving successful P2P strategies: leaders to thrive by powering their world
“The obvious is automated invoice of work with market-aligned, fit-for-
platforms with cognitive OCR invoice purpose source-to-contract, procurement
capture, smart coding and payment marketplace/e-catalogue, data
approvals which integrate with existing ERP automation, and governance, risk
systems to reduce overpayments, duplicate & compliance management solutions.
payments and maintain payment terms.

procurementmag.com 61
CONSULTANTS OPERATING IN THIS INDUSTRY
company with leading capabilities in digital,
Bain & Company cloud, and security. Accenture combines
unmatched experience and specialised
A global consultant, Bain & Company skills powered by advanced technology and
was founded in 1973. The consultant works intelligent operations to embrace the power
alongside its clients to deliver extraordinary of change.
results, outperform the competition, and
redfine industries. Bain & Company has
a 10-year commitment to invest more than PwC
US$1bn into pro-bono services to help
organisations tackling today’s urgent challenges. Founded in 1998, PwC is a leading
professional services network
helping organisations and individuals to
Boston Consulting create value. Its purpose is to build trust
Group (BCG) in society and solve important problems.
PwC is committed to delivering quality
Founded in 1963, Boston Consulting in assurance, advisory and tax services.
Group (BCG) was the pioneer in business
strategy. Today, BCG partners with leaders
in business and society to tackle the most KPMG
important challenges and capture the greatest
opportunities. BCG works closely with its clients Founded in 1987, KPMG is a global
to embrace a transformational approach aimed network of professional firms
at benefiting all stakeholders. providing aduit, tax, and advisory
services to help its clients address
industry-specific issues and opportunities.
Accenture KPMG firms operate in 143 countries
and territories serving the needs of
Founded in 1989, Accenture is business, governments, public-sector
a global professional services agencies, and not-for-profits.

62 February 2024
P2P STRATEGIES

2Cloud and SaaS solutions can also assist

with secure mobile access of P2P systems,
anywhere anytime, and thus create a greater
THE IMPORTANCE OF
service level with stakeholders as well COLLABORATION,
as integrating ERP with CRM and P2P COMMUNICATION
for a holistic supplier perspective.” AND AGILITY
“One of the most prominent trends is
AI and its analytical and predictive benefits “Collaboration, communication,
to assist forecasting and budgeting and and agility are all essential. Effective
identifying cost reduction opportunities. collaboration between procurement
Real time dashboard reporting on costs, teams and suppliers is critical for
supply chain audits, certification and ensuring procurement processes
compliance is now readily available as are optimised. Clear and regular
well as e-bidding and tender evaluation. communication is also vital for keeping
A pull towards supplier collaboration and stakeholders in the loop with the latest
transparency is the result, helping businesses updates/changes. And agility allows
build strong contract management processes procurement teams to react quickly
and innovation, whilst being proactive on risk when there are fluctuations with
management of key suppliers. business needs and market conditions”
Cost optimisation and market - Mark Reddy, Director of Spend &
differentiation can now be realised Governance at Advanced
throughout the supply chain, via automated
and streamlined end-to-end processes,

procurementmag.com 63
2024 P2P STRATEGY
INNOVATIONS

“Innovations in P2P for 2024 include

the use of artificial intelligence (AI)
and machine learning (ML) as ways
to automate the procurement process
further. For example, the use of chatbots
to manage supplier relationships
and the use of predictive analytics
to forecast supply and demand”
Mark Reddy, Director of Spend
& Governance at Advanced

LIST OF PROVIDERS
SAP Basware Medius
CEO: CHRISTIAN KLEIN CEO: JASON KURTZ CEO: JIM LUCIE

Oracle Proactis Tradeshift

CEO: SAFRA CATZ CEO: STEPHEN LINE CEO: CHRISTIAN LANNG

JAGGAER Zycus Corcentric

CEO: ANDY HOVANCIK CEO: AATISH DEDHIA CEO: MATT CLARK

GEP Esker Vroozi

CEO: SUBHASH MAKHIJA CEO: JEAN-MICHEL BÉRARD CEO: SHAZ KHAN

Coupa Software Ivalua Kissflow

CEO: ROB BERNSHTEYN CEO: DAVID KHUAT-DUY CEO: SURESH SAMBANDAM

64 February 2024
P2P STRATEGIES

taking away potential resentment that demonstrate the benefits an integrated

stakeholders often feel towards procurement.” system can bring, from faster decision
While technology certainly has its place making to proactive risk management and
in delivering a successful P2P strategy, showcasing what suppliers can bring to the
“procurement teams do struggle with business. Advanced procurement systems
transformation, and maturity more broadly. can be highly effective but only if they are
The influence of procurement leaders varies hard wired into the business as usual culture
a lot so the need to approach transformation “says Harmeston.”
at a controlled pace is an imperative,” “For me, the old adage of “build it and
says Reddy. they will come “ applies. If you have simple,
“In a recent survey 37% of companies effective systems and practices in place
taking part stated that they’ve got semi- then people will engage with procurement
automated and manual data processes,” organically– but ultimately the most
adds Harmeston. So from my point of successful strategy is one that is supported
view this is a business issue with a valid and endorsed by the board encouraging
case for change. P2P technology can help the business to work in lockstep with
to accurately load and interpret data in you. The systems are only as good as the
a cost-effective manner and provide the application and integration of them into the
business with good real-time management business through the human connection”
information. Procurement can then Harmeston concludes.

procurementmag.com 65
SUPPLY CHAIN
TRANSFORMATION:
MATCHING THE
PACE OF CHANGE
WRITTEN BY:
NEIL
PERRY

PRODUCED BY:
GLEN
WHITE
SAP

procurementmag.com 67
SAP

SAP’s Mike Wade Explains How

the Company Is Keeping up With the
Pace of Change in Supply Chain and
Procurement Digital Transformation

W
hen Mike Wade reflects on the
business he arrived at in January
2012, SAP has been in the fast-
lane in terms of the growth of the business,
and the technology it develops. As the
company helps lead the way in procurement
and supply chain solutions technology, he
is proud to step back and appreciate the
extraordinary level of change there has
been at the company and in the industry.
“The business is hugely different from
when I joined on the 1st of January, 2012,”
he says. “At that time, we were an on-premise
organisation, and now as I begin my 13th
year, we’re a cloud organisation and the last
three years we’ve absolutely accelerated
that transition.”
The technological revolution of cloud
computing and the explosion of Gen AI in
that time has boosted the change, and Wade
is proud to be playing his part in that change
as Head of Digital Supply Chain in EMEA
South. What has not changed though is
the mentality of making sure the technology
serves the customer to achieve and exceed
their expectations. “We bring the customer
requirements and the technology together,”
he explains. “But the technology, without
understanding the customer and how we
can deploy it, doesn’t mean too much.”

A journey from the shop-floor to leadership

Wade is a self-confessed ‘process guy’ and
speaks passionately about the professional

68 February 2024
procurementmag.com 69
MIKE WADE
TITLE: HEAD OF DIGITAL SUPPLY
CHAIN IN EMEA SOUTH satisfaction he gets from knowing he has
COMPANY: SAP delivered for his customers, and for his team.
The other is the feeling of knowing he has
Mike Wade is Head of Digital contributed to moving the business forward
Supply Chain for the EMEA in some small way thanks to the activities of
South region for SAP looking after the day.
clients across 74 countries and 6 After considering a career in finance,
time zones. He has worked all over Wade found his way into the world of supply
the world as a senior leader, with chain management at a first job at a freight
experience in software, sales, partner forwarding company at London Heathrow
ecosystems and pre-sales. Prior airport. This led to roles in a UK Logistics
to joining SAP in 2012, Wade held Provider, at UK retailer The Body Shop and
senior roles at Infor, SSA Global, EXE then a Warehouse Management Systems
Technologies and The Body Shop. provider called EXE Technologies who
particularly wanted to recruit people with
SAP

an operational background. “They wanted “I can think of one example when I was
people who could go into customers with with a manufacturing business in Italy,”
operational credibility to help the sale, and he recalls. “I walked the shop floor with
it was the best thing I ever did,” says Wade. the manufacturing director, and we talked in
That role evolved over 13 years through the same language. I was able to understand
company acquisitions, which introduced what he was talking about and empathise,
him to the world of ERP and Procurement, and it is because I’ve come through those
MRP & Manufacturing, putting him in a unique experiences. So now I’m in leadership.
position with a skill-set of operations, I understand what it’s like to be a sales
leadership and technology. He feels that executive, the daily life, and I find it’s
a mix of experiences allows him to have always helped me.”
empathy with his customers, as by beginning
at entry level and working through different Understanding SAP customers
functions, it allows a greater understanding SAP needs little introduction as one of
of their needs. the world’s leading producers of software

procurementmag.com 71
“We’re a cloud
organisation and
the last three years
we’ve absolutely From its headquarters in Walldorf,

accelerated that
Germany, SAP has more than 230 million
cloud users, and over 100 solutions covering

transition” a wide range of business functions.

Reflecting on SAP, Wade again returns
to the strength of relationships with their
MIKE WADE customer base. “Our North Star is always
HEAD OF DIGITAL SUPPLY CHAIN
IN EMEA SOUTH, our customers and I’m pleased to say that
SAP the solution area that I represent, Digital
Supply Chain, continues to see significant
for business management. It has grown growth” he says. “I think developing and
since 1972 when known as System Analysis releasing technology is good and essential,
Programme Development (Systemanalyse but it means nothing unless you understand
Programmentwicklung) with five people on your customer and how that can be applied
the payroll, to a multinational with more in their business. So, the most important
than 105,000 employees worldwide. thing is that we listen to our customers.”

74 February 2024
SAP

SAP’s Mike Wade on Helping Customers

Keep Pace with Digital Supply Chain Change

WATCH NOW

The pace of digital change This progression excites Wade, as SAP

There is a direct correlation between the keeps up with the pace of change, but he
greatest challenges facing customers and says it brings a greater level of influence
the company, and the most exciting areas for the company. “It brings with it a big
of progress in digital transformations to responsibility because our customers expect
supply chains. Wade thoughtfully explores us to move at that pace now,” he continues.
that connection, knowing it is also a huge “In the cloud world, when the customer
opportunity for both parties. makes their initial investment, that is just
“The pace and the drumbeat at which the beginning of the journey. Now we come
we operate with our customers now is alongside the customer and make sure
much, much faster,” he says. “If you said to that they’re adopting and consuming the
me which of the main changes between SAP technology. That is the big change, probably
on the 1st of January, 2012 to here and now, the most significant change in the 12 years
it is the technology that we’ve developed, that I’ve been with the organisation.”
and it’s the speed at which we can develop It is a fundamental evolution in the
and release it. That’s the big game changer.” change of relationship between the tech

procurementmag.com 75
“The strategy
is all about
enabling our
customers to
operate resilient
and sustainable
supply chains”
MIKE WADE
HEAD OF DIGITAL SUPPLY CHAIN
IN EMEA SOUTH,
SAP
SAP

provider and customer, and has happened

at a time of persistent disruption to supply
chains that demand resilience and rapid
responses. Wade steps back and looks at the
unprecedented disruption of the pandemic
between 2020 and 2022, followed by the
ongoing geopolitical challenges currently
facing the world. He feels this period of
history has brought the questions of supply
chain disruptions into sharp focus as they
become front page news. The key question
remains exactly how SAP’s strategy is shaped
by these events.
“The strategy is all about enabling
our customers to operate resilient and
sustainable supply chains,” explains Wade.
“It is all about giving them the ability
to manage disruptions in a much more
forward-looking way than they were before.”
This is where the influence of AI and Gen
AI begins to prove invaluable, as customers
can now integrate this into
their supply chain planning process and
run impact scenarios even before they
have executed a strategy.

Using AI in an uncertain world

This ability to look into a likely or potential
future is a critical tool for customers, as
they try to keep pace with an unpredictable
trading environment and help them be
prepared for more eventualities than ever
before. “They’re looking at risk registers
within their supply chains, this is something
that’s been there for a while, but we’re
seeing it now becoming almost routine
in those organisations,” adds Wade. “The
ability to run a range of ‘what if’ scenarios
and risk registers early and our strategy
in the digital supply chain is to enable
our customers to do that.”

procurementmag.com 77
The integration of AI technology is a vital
tool in helping SAP’s solutions keep pace
“The pace and the
with the accelerating pace of change. Wade drumbeat at which
we operate with our
looks ahead and feels the range of use cases
will continue to grow in terms of how AI can
support supply chains operate. When this is
combined with the pre-existing package of customers now is
solutions they provide business, it promises
to be a powerful mix of technology.
much, much faster”
“We already connect the business
MIKE WADE
processes end to end in a way that no HEAD OF DIGITAL SUPPLY CHAIN
one else can. When you augment it with AI, IN EMEA SOUTH,
I think it puts our customers in a place where SAP
they really could empower the supply chain
community in their organisation in a way that One example he suggests is Camelot ITLab
they couldn’t before.” which is a long-standing implementation
partner of SAP, with a 25 year record of
Internal and external partnerships collaboration. They have worked together on
Even with the scale and experience of joint co-innovations and have a proud track
a company like SAP, Wade knows the record of more than 350 large s​ cale
immense value of their partner ecosystem, SAP transformations.
describing it as at the centre of their strategy. They were also a strategic co-development
He’s mindful that with SAP covering every partner for SAP IBP to bring DDMRP
corner of the globe, with customers from capabilities into preferred SAP Supply
SMEs to global corporations, there is Chain Solutions. “Camelot is a very good
a huge complexity to that network that and longstanding partner of SAP and
needs the help of partners to implement especially in the digital supply chain area,”
their solutions. says Wade. “I know the customers that
“Anyone that knows SAP knows we have work with them and the customers that
a huge ecosystem, and whenever I meet potentially will work with them in the future,
our partners, I always thank them because will get the service and the quality of delivery
we can’t do it on our own,” says Wade, that they’re expecting.”
understanding the importance of the As businesses try to leverage technology
relationship. “The real investment begins to keep pace with change, Wade has advice
post the sale because in the cloud world on how you can maximise the potential
it’s all about adoption and consumption of digital transformation by having solid
and driving the business value, what we internal partnerships and executive buy-in.
call the Customer Value Journey. SAP is He refers to one recent example where the
actively invested in our customers’ success.” programme has strong board sponsorship
When SAP partners with another and mandate, to the level the transformation
organisation, Wade says they have to was also celebrated in quarterly results.
have absolute trust in their ability to “Why has it been so successful? Why has
represent the standards SAP demands. it happened on time? And by the way, why

78 February 2024
SAP

Read more about

SAP Business AI
in Supply Chain

procurementmag.com 79
“We know our customers
always have options and
choices, so we earn the
right to be selected for
any investment that
they make”
MIKE WADE
HEAD OF DIGITAL SUPPLY CHAIN
IN EMEA SOUTH,
SAP

80 February 2024
SAP

has it happened on budget?” says Wade

in examining why the implementation has
been so successful. “Because the board was
behind it, got their shoulder behind it and
totally sponsored it.”

Earning your place in the market

With the pace of change growing, Wade
is clear on how SAP can continue to grow,
innovate and succeed in the next 12 to 18
months. That is not to take anything for
granted and to ensure their focus never
slips from the success of their customers.
He knows they always have alternatives
as fierce competition in the technology
marketplace intensifies with each new
release, update and AI innovation.
“We know our customers always have
options and choices, so we earn the right
to be selected for any investment that they
make,” continues Wade. “We have to listen
to our customers and help them achieve
their digital transformation. We always
make sure that we’re sharp, we deliver the
best technology in the market, and I know
I can speak for my team in the Digital Supply
Chain. I think we’re the best in the market.”
Wade is confident in their products,
and SAP’s ability to help their customers
get the best from them, but he does remain
humble trusting those customers to do their
own research and make informed decisions.
“A buyer will want to know where have you
done this before? Can I talk to that company
who has done it before?” he explains frankly.
“We are fortunate that we can point our
customers to other customers and then
they can make the decision based on
solid fact.”

procurementmag.com 81
82 February 2024
SUPPLIER SELECTION

WHIRLPOOL CORP:
REDUCING COMPLEXITY AND
BOOSTING PERFORMANCE
Home Appliance Giant Whirlpool Corporation
are Reducing Complexity, Increasing Procurement
Resilience and Ultimately Benefiting Their Customers

WRITTEN BY: NEIL PERRY

T
he future of procurement at of their procurement operations and
Whirlpool Corporation is “poised transforming their previously profitable
for a transformative journey,” operating models, to control costs, increase
explains David Nagy, Whirlpool resiliency and support sustainability efforts.
Corporation’s Director of Global Whirlpool Corporation are already seeing the
Strategic Sourcing. benefits of their strategic changes, as they
Home to the likes of Whirlpool, start to show demonstrable benefits to their
KitchenAid, Maytag, Consul, Brastemp, operational performance.
Amana, Bauknecht, JennAir, Indesit,
Yummly and InSinkErator, Whirlpool Procurement delivering cost savings
Corporation has delivered US$800mn A central part of the strategy has been close
in cost reductions in 2023 by moving away work with product design teams to find
from a short-term tactical model, to a long- opportunities to reduce the complexity of
term strategic approach. designs. “Procurement partners closely with
Against a backdrop of geopolitical engineering and manufacturing to identify
uncertainty and consistent supply chain opportunities to reduce part complexity
challenges, manufacturers around the by standardising designs, specifications,
world are trying to leverage the potential or materials across our products,” says Nagy.

procurementmag.com 83
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SUPPLIER SELECTION

“This enabled not only economies Reducing risk for a

of scale, but also streamlined resilient supply chain
operations and improved quality, 2022 annual sales: The overall goal of the
all of which can improve cost.” $20bn transformation has been to
Another pillar of that strategy maintain a resilient and agile supply
is selecting and partnering with
suppliers who can help achieve
61,000 base that reduces vulnerability of
disruptions and improves the speed
employees
operational excellence. By having of company reactions. This package
a common goal of delivering parts 56 of measures includes constant
both on time, and with a high manufacturing and evaluation of their supply base and
research centres
quality, Whirlpool Corporation using dual sourcing to protect from
Has reduced operational costs and problematic disruption.
allowed its teams to focus on delivering “Dual sourcing provides flexibility in
new and innovative solutions to the market. the event of a supply chain disruption,
Nagy believes that these methods are allowing us to shift supply between alternate
already helping to deliver results: “We’ve approved suppliers,” says Nagy. “We regularly
seen improved operational performance assess the various risks in the supply chain
which has ultimately improved our cost and where dual sourcing could be most
position. We expect this forward momentum beneficial. We then partner with engineering
to continue into 2024 and beyond.” and manufacturing to approve alternate

procurementmag.com 85
WHIRLPOOL CORPORATION
NAMED IN DOW JONES
SUSTAINABILITY WORLD
INDEX 2023

Whirlpool Corporation has been named

in the 2023 Dow Jones Sustainability
World Index (DJSI) in recognition of the
company’s dedication to responsible and
ethical business practices. This marks
the second consecutive year Whirlpool
Corporation has been named to the
World Index. The company is also on the
North America Index for the 17th year.
“For 112 years we have held ourselves
to the highest ethical standards in
our business operations, and we are
proud of our long history of purposeful
innovation, sustainable operations and
local community engagement,” said Marc
Bitzer, chairman and CEO of Whirlpool
Corporation. “Receiving this recognition sources on the most critical components.
once again validates the efforts of our We also are constantly evaluating our supply
thousands of employees and their base footprint by monitoring geopolitical
dedication to our vision of improving instability, natural disasters, and other
life at home.” supply chain disruptions to understand
Whirlpool Corporation continues where vulnerabilities exist and how we can
to invest in plant efficiency and waste proactively mitigate them.”
reduction by working closely with The benefit to the end user is still central
recycling and sustainability organisations in their approach. Since implementing their
to find new, innovative ways to supply chain resilience strategy, Whirlpool
eliminate waste and contribute to the Corporation have seen a reduction of supply
circular economy. chain interruptions resulting in reduced
logistics costs and less manufacturing

86 February 2024
SUPPLIER SELECTION

REGIONAL
NET SALES

58%
North America

20%
Europe, Middle East
and Africa

16%
Latin America

6%
Asia

down time. “Ultimately this improves order

fulfilment and stabilises cost, leading to “Responsible
sourcing is at
improved customer satisfaction,” adds Nagy.

Supplier selection and

responsible procurement the heart of
“Responsible sourcing is at the heart
of everything we do in procurement,”
everything we do
begins Nagy, discussing how their in procurement”
selection of supply partners is critical
in meeting their sustainability goals.
DAVID NAGY
Whirlpool Corporation regularly updates DIRECTOR - GLOBAL STRATEGIC SOURCING,
their supplier code of conduct, which is WHIRLPOOL CORPORATION

procurementmag.com 87
SUPPLIER SELECTION

WATCH NOW

a requirement for all their cost control and supply chain risk
suppliers, to make sure they select strategies are never at odds with
and collaborate with partners SALES BY sustainability strategies
who are aligned with its ethical CATEGORY or wider corporate values.
standards and business standards. 32% The company has already made
“We also assess our supply base Refrigeration significant progress with ESG
performance across a spectrum targets, with a commitment to
of responsible sourcing criteria 26% net-zero impact of operations by
including environmental, social, Laundry appliance 2030, and creating shared value
and ethical business practices, throughout the product lifecycle.
which has helped us identify 26% The company is also reporting
key partnership opportunities Cooking appliance 100% of large manufacturing sites
and deepen connections with achieving a 10 year commitment
suppliers that are aligned with 16% to be zero waste to landfill,
our standards,” adds Nagy. Dishwashing and 100% of electricity
and others
The company’s responsible consumption by US plants
sourcing strategy is embedded fully into its expected to be covered by the activation of
procurement processes to make sure that two offsite virtual power purchase agreements.

88 February 2024
Strategic plans for the future DAVID NAGY
With the future of Whirlpool Corporation’s IRECTOR – GLOBAL STRATEGIC
TITLE: D
procurement moving from a short- SOURCING
term tactical structure, to a long term
COMPANY: WHIRLPOOL CORPORATION
strategic approach, Nagy is confident
that methods like reducing complexity, INDUSTRY: HOME APPLIANCES
careful supplier selection and dual LOCATION: MICHIGAN, USA
sourcing will continue to benefit the
company and their customers around Nagy has worked within the procurement
the world. “We will continue to focus operation at Whirlpool Corporation since
on creating a resilient supply chain, 2010. He is a director within Whirlpool’s
reducing complexity, and sourcing Global Strategic Sourcing organisation,
responsibly along with doubling down responsible for global commodity
on innovation and supplier relationships management of motors, pumps, compressors
in order to unlock our full potential and and cooling systems. He graduated in 2009
deliver on our mission to earn trust and with a degree in Supply Chain Management
create demand for our brands in a digital from Michigan State University.
world,” he concludes.

procurementmag.com 89
LGP
ADDING VALUE
FOR NEW SOUTH
WALES COUNCILS
WRITTEN BY:
SEAN
ASHCROFT

PRODUCED BY:
STUART
IRVING

90 February 2024
procurementmag.com 91
LOCAL GOVERNMENT PROCUREMENT

Through Bulk Purchasing and Smart

Procurement Local Government
Procurement Delivers Huge Value
to NSW Local Councils

L
ocal Government Procurement
(LGP) is an organisation that provides
procurement services for the New
South Wales (NSW) local government,
which consists of 128 councils across
the state.
It’s a huge undertaking, with the total
amount of spend on suppliers hitting the
$13bn mark every year. To put this into
context, Australia’s four largest banks spend
around $5bn on suppliers – and that’s the
private sector.
“At $13 billion, we have one of the largest
supplier bases anywhere in the country,” says
Anubhav Madan, LGP’s Head of Procurement.
As a wholly owned subsidiary of Local
Government NSW, LGP was established to
help member councils acquire goods and
services as efficiently and cost effectively
as possible.
Each year, LGP saves NSW councils
millions of dollars in the procurement
of goods and services through negotiated
pricing and bulk purchasing power. In FY23,
LGP’s services have delivered an estimated
AU$76mn in efficiency savings.

LGP brings value-add to local authorities

But LGP’s focus is not solely on delivering
the best possible value for money on sector-
specific solutions, but also on streamlining
access to reputable suppliers and helping
minimise procurement risk for councils.

92 February 2024
procurementmag.com 93
LOCAL GOVERNMENT PROCUREMENT

The day-to-day difference these

services provide make the job hugely
“Local government
rewarding, says Madan. is much faster at
energy transition
“In the private sector you’re working for
a shareholder, and every time you create
value for the company it goes to the bottom
line,” he says. “But in the public sector you’re
than the federal or
building community value. Any money you state government”
save, or value you create, goes into building
a new community centre, a new library,
ANUBHAV MADAN
a new road, and there’s a different level HEAD OF PROCUREMENT,
of fulfilment that comes with that.” LOCAL GOVERNMENT PROCUREMENT
Madan says that recently, LGP worked
with a particular council on a project “As a registered training organisation,
to change the street lighting to LED. we also deliver training,” he adds, “including
“With a million dollars a month freed up various accredited courses to help
in cash flow, they were able to create a new procurement professionals achieve
park, and also extra funding for a road repair,” new qualifications.
he says. “That’s the sort of difference that “We also run a series of annual events,
you can make through good procurement where we impart information and knowledge
in the public sector.” from the procurement sector, as well
“The base procurement services are as knowledge from our supply base.”
centralised contracts with standardised Because LGP offers just a raft of services
terms and conditions for the benefit of all it requires teams of specialists.
councils,” Madan adds. “By aggregating these “I have a team that manages all the
we are able to get preferential rates through contracts, and another team that sets up
economies of scale, saving precious time the contracts,” reveals Madan, who says
in the tendering process, while ensuring he also has a legal team that looks at legal
compliance with their legislative obligations. issues, both in tendering as well as on the
We also provide consulting services to contract management side of things.
help the sector deliver complex outcomes “Then there is the Supplier Relationship
and training services to improve their Manager, who manages our pyramid of
procurement skills.” suppliers and makes sure we are engaged
with them, and they’re engaged both with
LGP provides a raft of us and the sector. This helps reduce costs,
consulting and training services improve quality, innovation and customer
LGP’s consulting services encompass satisfaction,” he adds.
issues such as probity, governance,
auditing and legislation compliance. Pandemic has changed LGP for the better
The advice is complemented by a range Madan joined LGP around three years ago,
of business tools, including procurement during which time he says the difference in
management resources with guidelines the company now compared to back in 2019
and benchmarking materials. “is like night and day”.

94 February 2024
ANUBHAV MADAN
TITLE: HEAD OF PROCUREMENT
COMPANY: LOCAL GOVERNMENT PROCUREMENT

Anubhav joined Local initiatives to improve procurement

Government Procurement value, capability and profile across
in November 2020, having spent the various public and private sector
last 10 years providing procurement organisations since 2004 across
consulting services to both private Asia, USA and Australia.
and public sector organisations. In this role as the Head of
In his last role in NSW Procurement, he and his team
Procurement within NSW Treasury, support the NSW Local Government
he was focused on architecting and sector with centralised contracts.
supporting state-wide procurement His focus is on optimising
reform initiatives that support and contracts, compliance and overall
deliver election commitments. procurement activity within the
Prior to that, Anubhav has been Local Government sector to provide
focused on designing and driving greater value to both buyers and
procurement transformation suppliers in the sector.

procurementmag.com 95
LOCAL GOVERNMENT PROCUREMENT

WATCH NOW

“When I joined it was very process driven, “ESG and sustainability has
focusing very much on delivering a contract, increased hugely in importance in the
and moving on to the next contract,” he says. local government sector,” says Madan.
“There wasn’t that much thought given to
why the processes were the way they were.” Sustainability becoming
Now, though, he says LGP is a much more local government focus
strategic and agile organisation. This, he says, is because local government
“People think deeply about whether is the closest tier of government to the
contracts should be awarded, plus we community, and people have been asking
not only have an understanding of what for more sustainable outcomes.
customers are actually buying but also the “Because of this, councils and the
real needs of customers. We are able to say whole sector have become more and
if a contract is really serving them.” more focused on sustainable outcomes,”
A big change in those three short years explains Madan. “For example, many
is also that ESG priorities have changed for councils are rolling out food and organic
local government. waste bins.”

96 February 2024
“We work with our Although LGP has had a sustainability
team in its organisation for some time,
partner network Madan says it has only been relatively
recently that they have become central
to ensure they’re to what local authorities want to do.

helping achieve
“Whereas before the Sustainability team
struggled to get their message heard, now

benefits for the they’re inundated with calls and queries

about how they can help this or that council
people of New to achieve their ESG targets,” Madan
reveals. “Queries might be about emissions
South Wales” reductions, waste, or even modern slavery.
But it is carbon emissions on which NSW
local authorities are most focused.
ANUBHAV MADAN
HEAD OF PROCUREMENT, “Almost every council has some kind of
LOCAL GOVERNMENT PROCUREMENT a net-zero target, and they’re very focused

procurementmag.com 97
“In the public
sector, when
you save money
you’re building
community value,
not improving the
bottom line, as with
the private sector”
ANUBHAV MADAN
HEAD OF PROCUREMENT,
LOCAL GOVERNMENT PROCUREMENT

Powering the world of local government procurement

Improve community outcomes through public
dollar optimisation, driven by innovative Learn more →
source-to-contract software.
LOCAL GOVERNMENT PROCUREMENT

on putting initiatives in place to deliver Local councils leading

on those targets,” Madan says. “Emissions Australia net-zero charge
reduction is one of the primary ESG focus Madan also points out that many NSW local
areas for councils because people in their authorities want to be seen to be leading
local community want to see responsible the net zero charge.
management of the natural environment “I think local governments are much
for future generations to enjoy. faster at that transition than the federal
“Until a few years ago, more than 80% or state government,” he observes.
of the state’s energy was derived from fossil Madan says that his category manager
fuels, but now the past 12-month average for energy is “always looking at different
is 70%. I expect the next 12 months to be ways to help councils set up contracts that
at 60%, and in another couple of years allows them to transition to green energy,
it will further reduce significantly. as well as deploy energy-saving initiatives”.
“So the change is quite rapid, and every He adds that LGP is also helping to
council out there wants to make sure that support wind and solar farms.
they are on the green side of energy, rather “We have one solar farm that was
than the black side.” commissioned specifically for local

procurementmag.com 99
governments,” he says. “One of our suppliers
created a single solar farm solely for
our councils.”
LGP has also built a sustainability toolkit that
it shares with councils, to help them get started
on their sustainability journey. It has proven
very popular.
“We use dashboards to glean insights around
contract and supplier performance; this helps
us investigate what’s working and what’s not
working,” says Madan. “We are also looking at
building dashboards that can compare one
council with another, in terms of outcomes
they’ve been able to deliver. The idea is to
showcase best practices from the sector at
our events so everyone can benefit.”

Partner ecosystem vital for LGP

With such a vast supplier network in place,
it is no surprise that the partner ecosystem
is hugely important to LGP as a company.
As part of its supplier relationship-
management programme it has segmented
its supply base into multiple tiers, and it
meets with specific suppliers on a quarterly
basis. Madan says that, together with its
suppliers, “we plan how to partner with
them on improving outcomes in the sector
as a whole”.
“There are many initiatives that have more for the benefit of the people
come out of this,” Madan continues. “For of New South Wales,” Madan says.
example, webinars around how energy One of LGP’s newest partners is Portt
markets are going to change, and how – an Advanced company – who provide
every council can prepare to be a part an intelligent procurement, contracts and
of that change.” supplier management platform.
He reveals that LGP is also looking at Madan says: “Portt will provide our
establishing a technology grant fund that contract lifecycle management system,
allows councils to access money from tech which is essentially our nerve centre.
providers, to help them implement digital This is where we can store contracts
transformation initiatives. and where we can automate multiple
“What we do with our partner network processes around contracts to make sure
– especially at the top end – is ensure they’re they’re always relevant to a supplier.”
engaged and are helping the sector achieve Madan explains that, once a contract is

100 February 2024

LOCAL GOVERNMENT PROCUREMENT

“The Portt software in the system, LGP has an automated surveys

that go out to suppliers and customers
application allows that helps monitor and measure the KPIs
developed for suppliers.
us to focus on “There’s performance-feedback dashboards

the more strategic built for supplier performance meetings,”

he says. “The Portt software application takes
aspects of our procurement contract management best

jobs”
practice and helps us build it into a seamless,
efficient machine so that we can focus on the
more strategic aspects of our jobs.”

ANUBHAV MADAN
HEAD OF PROCUREMENT,
LOCAL GOVERNMENT PROCUREMENT

procurementmag.com 101
102 February 2024
GEN - AI IN PROCUREMENT

‘A PARADIGM SHIFT’
THE FUTURE OF GEN-AI
IN PROCUREMENT
The Adoption of Gen-AI in Procurement Technology
Accelerated Through 2023, With all the Major Software
Providers Bringing new Innovations to the Table
WRITTEN BY: NEIL PERRY

I
t is an exciting time for procurement a seismic shift in the procure-tech industry
professionals starting to use and the discussion has evolved from ‘if the
the emerging technology, technology should be used’, to ‘how quickly
with the promise of time, cost it can be implemented’. “Generative AI was
and performance improvements, like a bolt of lightning that compelled every
but the exact impact on Gen-AI is still to be business and technology leader to sit up and
fully realised and understood as further tools take notice,” he says. “We’re no longer asking
and solutions reach the market. Moving past if businesses will adopt AI technology,
the initial hype surrounding the technology, but rather how quickly they can deploy
conversations are starting to deliver tangible it and realise its benefits.”
and affordable benefits to procurement The reason any business invests in
and supply chain professionals as they look technology is to deliver results for their
to gain a competitive advantage. “In 2024, customers, bottom line and staff,
AI hype will reach its peak,” says Pascal and that is something Seth Catalli, Chief
Bensoussan, Chief Product Officer at Ivalua. Revenue Officer at Globality, feels is the
“This time the hype will be matched by most important reason Gen AI will make
meaningful, relevant capabilities, and significant changes to businesses.
a raft of generative AI procurement tools “Done right, generative AI is a game-changing
will come to market, becoming accessible technology that can transform workplace
for procurement professionals.” processes and drive improvements to the
Muhammad Alam, President and Chief bottom line and speed-to-market,” he says.
Product Officer, Intelligent Spend and “CFOs need to start applying generative
Business Network at SAP, agrees saying that AI to improve productivity and gain
the potential benefits have created a competitive advantage.”

procurementmag.com 103
GEN - AI IN PROCUREMENT

“Generative AI was
like a bolt of lightning
that compelled
every business and
technology leader to sit
up and take notice”
MUHAMMAD ALAM
PRESIDENT AND CHIEF PRODUCT OFFICER,
INTELLIGENT SPEND AND BUSINESS NETWORK, SAP

Melanie Nuce-Hilton, SVP at GS1 US,

feels the surge in supply chain and
procurement technology investment has
signalled a ‘paradigm shift’ with AI emerging
as the pivotal player. “In a landscape marred
by inefficiencies and inconsistency,
the transformative potential of AI has come
to light,” she adds. “Just as consumers have
evolved around technology, supply chains
are poised to evolve around increasingly
advanced artificial intelligence.”

Importance of quality data

With so much hype about the potential Muhammad Alam
benefits of integrating Gen AI into TITLE: PRESIDENT & CHIEF PRODUCT
procurement strategies, one challenge OFFICER, INTELLIGENT SPEND AND
going forward is whether reality will reach BUSINESS NETWORK
the level of expectations. COMPANY: SAP
Walter Sun is the new Global Head of INDUSTRY: TECHNOLOGY
Artificial Intelligence at SAP, and believes Gen
LOCATION: ATLANTA, USA
AI is tied inextricably to the data it is linked to.
“Customers have always required relevant and Alam is an experienced technology executive,
reliable business results. That means they’ll currently President & Chief Product Officer,
need to find ways of combining generative AI Intelligent Spend and Business Network at SAP.
with their business-specific data,” he says. Previously he has spent his career at Microsoft,
However, Sun is concerned that data Capgemini and EY.
can be notoriously complex, sitting in

procurementmag.com 105
different systems and silos, meaning there human expertise is still critical to ensure
is a risk of valuable context being lost compliance and privacy isn’t compromised.
when it is combined. “Since generative AI is “Against sky-high expectations, procurement
only as valuable as the data it draws from, leaders must accept that Gen AI solutions
companies that can best combine their own are like any other tool – they are only as good
business data with generative AI to provide as the person using them or the data they
the strongest context to the models will are fed,” says Pascal Bensoussan from Ivalua.
have a significant leg up on the competition,” This call for vigilance is backed by Sarah-
he adds. Jayne van Greune, Chief Operating Officer
at Payen & ILIXIUM. She believes AI offers
Gen AI and compliance compliance teams a powerful tool to stay
The mood across the industry is that of competitive and streamlines costs and
excitement for the emerging technology’s processes to allow staff to focus on
potential, but with a note of caution that higher value work, but human expertise

106 February 2024

GEN - AI IN PROCUREMENT

Walter Sun Pascal Bensoussan

TITLE: GLOBAL HEAD OF TITLE: CHIEF PRODUCT
ARTIFICIAL INTELLIGENCE OFFICER, IVALUA
COMPANY: SAP COMPANY: IVALUA
INDUSTRY: TECHNOLOGY INDUSTRY: TECHNOLOGY
LOCATION: WASHINGTON, USA LOCATION: CALIFORNIA, USA
Sun is Global Head of AI at software giant SAP. Bensoussan is a serial entrepreneur and
He assumed the role after 18 years at Microsoft C-level executive with a proven track record
where he rose to become their Vice President for scaling up VC-backed enterprise SaaS
of AI for Business Applications and Platforms. companies to rapid revenue growth and
profitability. He has spent 5 years at Ivalua as
their Chief Product Officer.
Rodrigo Liang
TITLE: CEO
COMPANY: SAMBANOVA
Seth Catalli
SYSTEMS TITLE: CHIEF REVENUE OFFICER
INDUSTRY: TECHNOLOGY COMPANY: GLOBALITY
LOCATION: CALIFORNIA, USA INDUSTRY: TECHNOLOGY

Liang is Co-Founder and CEO at SambaNova LOCATION: CALIFORNIA, USA

Systems. He is an experienced technology Catalli is Chief Revenue Officer at Globality,
executive, with experience at Oracle as Sr. and has followed a career taking in large tech
Vice President and Sun Microsystems as companies around the world. His experience
Vice President. includes SAP, UiPath, Workday and DataSift.

Melanie Fang Chang

Nuce-Hilton TITLE: CHIEF PRODUCT
TITLE: SVP OFFICER & EVP
COMPANY: GS1 US COMPANY: COUPA
INDUSTRY: NON-PROFIT INDUSTRY: TECHNOLOGY
LOCATION: COLORADO, USA LOCATION: CALIFORNIA, USA
Nuce-Hilton is Senior Vice President, Innovation Chang is an experienced SaaS business leader
and Partnerships at GS1 US. She is passionate with a strong track record in bringing new
about supply chain standards, emerging products to market, growing existing product
technologies, and how we scale efficiency lines, and building teams. He has spent 7
and profitability across entire industries. years at Coupa in various senior positions.

procurementmag.com 107
GEN - AI IN PROCUREMENT

is still critical. “The technology should

“Gen AI solutions are be embraced and leveraged to help

teams weather the evolving landscape,”
like any other tool she says. “But compliance professionals
must continue to provide strong human
– they are only as oversight to mitigate risks and safeguard

good as the person

ethical principles.”
This leads to her wariness that the

using them or the technology needs to be used carefully as

it becomes more prevalent in workplaces.
data they are fed” “As AI systems depend on large quantities
of data to work effectively and accurately,
it’s imperative this reliance doesn’t create
PASCAL BENSOUSSAN
CHIEF PRODUCT OFFICER, data privacy concerns or lead to protocols
IVALUA not being met,” she adds.

108 February 2024

GEN-AI ADOPTION
GATHERS PACE

Research from cloud-based spend

management software experts Ivalua is
suggesting the adoption of AI use in the
sector is gathering pace.
The study of 850 procurement leaders
across Europe and North America
indicated that half have already adopted
generative AI tools in their operation, and
nearly a third say that such tools will help
procurement do a better job and improve
Adonis Celestine, Automation Practice decision making.
Leader at Applause, echos the need for
thoughtful implementation when it comes Key Survey Findings
to privacy concerns. “One notable problem • 49% of procurement leaders say their
has been the data privacy, compliance and organisation has already adopted
copyright infringement issues that call into generative AI tools, such as ChatGPT in
question the data sets being used to train the procurement/supply chain function
the algorithms,” he says. “However, concerns • 62% of procurement leaders believe
about adopting generative AI may be lesser generative AI tools, such as ChatGPT will
as AI companies take full accountability for help procurement to do its job better
the data used by their LLMs.” and improve decision making
• 35% of procurement leaders are
Fine tuning the future of Gen AI concerned that their role will be
As with any emerging technology that is still replaced by generative-AI
in a relative form of infancy, there will always

procurementmag.com 109
GEN - AI IN PROCUREMENT

ADOPTING AI RESPONSIBLY

A task force of more than 40 companies

have contributed to the World Economic
Forum’s new guidelines for the
responsible use of AI in procurement.
GEP took a leading role in the
project to develop a practical and
comprehensive guide on how to apply
artificial intelligence responsibly in the
sector. The guide details how it can be
applied to help optimise cost, resilience,
efficiency and sustainability.

Key Findings
• There is currently very limited guidance
on industry standard practice and
ways to minimise organisational risks
during adoption
• A procurement team needs to keep
a high level of control to make sure
AI tools deliver ethical, responsible
and reliable solutions
• There is a role for various business
functions in the deployment of AI
solutions including product teams,
IT, legal and procurement. be new ways to improve and optimise
“In the gold rush to apply AI to improve performance and outcomes. Rodrigo Liang,
how companies source suppliers and CEO at SambaNova Systems is excited
manage global supply chains, there is about the powerful potential of real-time
a very real risk that organisations will fine-tuning so they can better cope with
dehumanise decisions and unintentionally new data.
ignore waste, CO2 emissions, and “Generative AI has often been criticised
inequality, with devastating consequences for tapping into old data to drive mission-
to business, communities and the critical results,” he argues. “However,
environment,” explained Subhash the collaboration between hyperscalers
Makhija, Chief Executive Officer and and AI models will revolutionise
Co-Founder, GEP. the entire data analytics landscape,
matching current data with real-time

110 February 2024

Sarah-Jayne
van Greune
TITLE: CHIEF OPERATING OFFICER
COMPANY: PAYEN & ILIXIUM
INDUSTRY: TECHNOLOGY
LOCATION: UK
As the Chief Operating Officer for Payen and
ILIXIUM, van Greune is responsible for providing
the vision and strategy to achieve mission-
critical reforms, as well as advances in data
management and technical service operations.

Adonis Celestine
TITLE: AUTOMATION
PRACTICE LEADER
COMPANY: APPLAUSE
INDUSTRY: TECHNOLOGY
LOCATION: UTRECHT, NETHERLANDS
Celestine’s role at Applause as a practice lead
of automation, is to work with clients around
the world. His priority is to provide right
solutions to customers and help them with
their Quality Engineering evolution.

fine tuning, leading to significant speed, But what’s especially exciting is where the
accuracy and price improvements.” technology is headed,” he adds.
This is one of the many potential ways Chang expects with all the investment
to embrace the technology, and Chief Product heading into Gen-AI, it will help procurement
Officer at Coupa, Fang Chang feels there are keep pace with the changing demands in
even more opportunities the procurement business. “Future advancements will help
industry can still explore. “AI and machine procurement teams operate more efficiently
learning are already doing great things for and effectively, allowing for more automated
procurement, helping save costs and manage processes. These tools are not a replacement
risks,” he says. “From pricing intelligence to for humans, and I encourage practitioners
automating accounts payable processes to to think strategically about how AI can
identifying fraud, procurement teams already instead augment human decision-making
have immense opportunities to drive value. to accelerate value,” he concludes.

procurementmag.com 111
SUSTAINABILITY

SUSTAINAB
SOURCING
A NET ZERO
NECESSITY

112 February 2024

McKinsey Partner Peter Spiller Explains how
Procurement can be Sustainable in the Face of
Multiple Challenges, and why ESG Practices Must
Become More Embedded

BLE I
WRITTEN BY: n the summer of 2022 Microsoft,
SEAN was the latest in a string of high-
ASHCROFT profile companies to be accused of
greenwashing, when it revealed that
its Scope 3 emissions had risen by
22.7% year-on-year, despite pledging to be
carbon neutral by 2030.
While the company had succeeded
in reducing its carbon emissions in fuel,

O
energy, and company vehicles, it transpired
that most of these carbon savings were
pandemic-driven. In the meantime,
Microsoft’s procurement practices – around
purchased goods and the use of sold
products – threatened to derail its 2030

Y
carbon neutral pledge. Shortly after the news
broke, the majority of Microsoft’s partners
made promises to become net zero by 2050.
Ensuring that procurement is sustainable
is no easy task, yet when implemented and
managed correctly, it can lead to better
decision making, significant cost reductions,
and a more successful brand.
More importantly, it puts so-called
greenwashing practices in their place,
replacing them with strategies that actually
make a difference.
Here we speak to sustainable
procurement expert Peter Spiller for his
take on the subject. Spiller is a Partner
with McKinsey, and is based in its Frankfurt
office, where he advises clients across
industries including telecoms, high-tech,
automotive, and consumer goods on

procurementmag.com 113
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SUSTAINABILITY

“Broader sustainability sourcing materials and services – from

targets with suppliers specifications, cost, quality, and lead times
to ESG and sustainability compliance.
need to be anchored at the Sourcing managers are naturally making
supplier’s board level” trade-offs between these dimensions when
executing a purchasing event. In many cases,
the cost dimension matters most once
PETER SPILLER
PARTNER
certain thresholds in quality or specifications
MCKINSEY are met, and this will also be the case
going forward.
operations transformation, supply chain, and Sustainable sourcing may be more
procurement topics. He co-leads McKinsey’s expensive today, but it doesn’t have to be –
operations around environmental it is important to screen category by category
sustainability, and is a leader of its work in and SKU by SKU. Many procurement levers,
product development and procurement in for example de-specification and demand
the Europe, Middle East, and Africa region. management, often reduce both cost and
Spiller advises business leaders on ESG carbon footprints at the same time, creating
strategy, carbon accounting and tracking, a win-win.
supplier sustainability transformations,
and supply chain decarbonisation. In procurement, will sustainability
ever be as ingrained as ‘cost’?
How is inflation impacting We need to distinguish between two
sustainable procurement practices? sustainability dimensions: mandatory
Future-proof procurement is about requirements and the more consumer-
optimising several dimensions when led shifts.

procurementmag.com 115
MCKINSEY’S SPENDSCAPE
IS SUSTAINABLE
PROCUREMENT BOOST
Global management consulting firm
McKinsey has launched a software
solution that draws on emissions data
to create a Scope 3 baseline.
Spendscape brings together data on up
to 300,000 emissions factors across the
entire supply chain to create the baseline.
It works by breaking down data silos in
organisations. The software then analyses
market data and possible risks.
Such environmental risk is set to
increase with the upcoming expansion
of the CSRD directive (Corporate
Sustainability Reporting Directive).
The CSRD came into effect in January
2023, and means an estimated 40,000
EU companies are obliged to disclose
transactions across their value chains and Many companies already include compliance
– unlike the previous system – the data requirements, such as no child labour or no
will have to be digitised. toxic materials. These are mandatory, and a
But from 2024 onwards, the new well-enforced as supplier-selection criteria.
directive will progressively impact around Once these requirements have been
10,000 non-EU companies, who will met, companies can begin to focus on both
be required to disclose data relating cost and carbon footprint reduction in the
to enterprise-wide ESG performance. second dimension of sustainability.
Non-EU organisations that will be Of course, there are still tradeoffs to
affected include small and medium be made here when both requirements are
enterprises that are listed on the not equally met, but there are opportunities
European regulated market, small and to achieve this dual mission of carbon and
“non-complex” credit institutions and cost reduction.
also captive insurance companies (wholly
owned subsidiary insurers who provide How embedded is ESG
risk mitigation services for a parent compliance in sourcing?
company, or related entities. There is a significant need for further
ESG awareness and capability building,

116 February 2024

SUSTAINABILITY

not just in the procurement function but in manufacturer. Adding decarbonisation targets
general across the corporate world – but we to its procurement strategy, it has embarked
are seeing progress. on an ambitious journey toward net zero by
In the best case, procurement leveraging the latest digital solutions, including
professionals will become pioneers, both in McKinsey’s Catalyst Zero Product.
achieving sustainability targets with suppliers The result is a cost-optimised
and analysing their own operations but decarbonisation roadmap showing, for
also in their ‘tier-n’ value chain (supplier example, alternative suppliers for certain
development for sustainability). materials like iron, steel, and aluminium,
For many producing companies, the helping Danfoss create low-carbon versions
biggest part of the sustainability footprint – of existing products still at low cost.
carbon, waste and water – sit in the supply This supports its goal of reducing
chain and therefore with ‘tier-n’ suppliers. direct and indirect emissions from
purchased energy by 46.2%, reducing
What companies are the standard emissions across the value chain by 15%,
bearers for sustainable procurement? and becoming carbon neutral across its
One pioneering company I would name operations by 2030. (The full impact story
here is Danfoss, a global components can be found here).

procurementmag.com 117
SUSTAINABILITY

What is Danfoss doing that others are not? the same pressure as procurement
Successful companies optimise to become more sustainable. There
procurement spend from a dual mission are areas where procurement relies
objective, addressing cost and carbon at the on other functions to be in-step –
same time and same the priority level. for example, the R&D department when
Developing a joint baseline, re-designing products to allow more
they implement optimisation initiatives sustainable sourcing.
covering both dimensions and track them It is crucial to boost cross-functional
in a systematic way. Trade-off decisions are collaboration, share objectives, and
based on meaningful carbon pricing logic create transparent business cases –
or strategic considerations, and can lead to best practices that leading category
competitive advantage through securing management organisations have
scarce materials early on, for example. established already.
We see the bigger challenge with
How can procurement get stakeholders suppliers, especially with SMEs, that may not
on board with sustainability? have the resources and tools to accelerate
Internal stakeholders are under their decarbonisation efforts.

118 February 2024

How can these challenges be overcome?
Working together with suppliers must be
orchestrated on different levels. Broader
sustainability targets with suppliers need
to be anchored at the supplier’s board level PETER SPILLER
and be consistent with what the customer TITLE: PARTNER
company is asking from suppliers across
COMPANY: MCKINSEY
the board.
Open communication is critical, INDUSTRY: PROFESSIONAL SERVICES
including regular dialogues about mutual
expectations, joint ideation on how Spiller is a partner based in the Frankfurt
to become more sustainable, and best- office, where he advises clients across
practice sharing. Sustainability KPIs need to industries including telecoms, high-tech,
be embedded into the standard KPI systems automotive, and consumer goods on
and reviewed in the quarterly business operations transformation, supply chain,
review with the supplier on a regular basis and procurement.
to drive sustainable, inclusive growth.

procurementmag.com 119
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PROCUREMENT & SUPPLY CHAIN
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