Disruptive Procurement (eBook)

Winning in a Digital World
eBook Download: PDF
2020 | 1. Auflage
XV, 135 Seiten
Springer-Verlag
978-3-030-38950-5 (ISBN)

Lese- und Medienproben

Disruptive Procurement -  Michael F. Strohmer,  Stephen Easton,  Martin Eisenhut,  Elouise Epstein,  Robert Kromoser,  Erik R. Pete
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Disruptive Procurement is a radical new approach to creating value and innovation by challenging the status quo in the entire product and service line. It requires going far beyond conventional desktop procurement to understand the value the company brings to its customers as well as the value that suppliers bring to the company.

By combining knowledge of these two dimensions, companies become far more flexible and they move closer to disrupting the environment in ways that create value.  To move toward Disruptive Procurement, companies need a holistic view and a complete new set of capabilities for staff in marketing, sales, R&D, manufacturing, innovation, and, of course, procurement.

This will only happen if procurement is fully backed by the Chief Executive Officer and companies embrace digital tools that will help make procurement slimmer and smarter.



Michael F. Strohmer leads Kearney's European Operations & Performance Transformation practice,  and is one of the founders of PERLab in Europe. Based in Vienna, Austria, he joined the firm in 2001. Michael has led projects with a broad range of international clients, mainly in post-merger integration and carve outs. His work encompasses the utilities, automotive, consumer goods and process industries in various European countries, as well as Russia and the United States. He is an expert in operations & procurement transformation, post-merger management, raw materials and large scale CAPEX projects. Michael has published several books and is also co-author of the books 'The Purchasing Chessboard,' 'Supplier Relationship Management' and 'The CPO - Transforming Procurement in the real world.' Michael likes to discuss with CxOs the future of the economy and especially the future of operations. He earned a doctorate degree in business administration and in law. Michael lives in Austria's picturesque lake region near Salzburg.

Stephen Easton has two decades of experience in consulting working with procurement organizations to help them grow their capabilities and create more value for their businesses. Stephen's work is cross-industry and encompasses sectors as diverse as banking and aerospace. Stephen started his career as a Chartered Management Accountant and holds an MBA from Cornell University. His first degree was in politics, philosophy and economics from Oxford.

Martin Eisenhut is a partner and managing director of Kearney's Central Europe unit. Based in Munich, he is also global leader of the firm's Industrial Goods & Services Practice, and leader of the Aerospace & Defense Practice for the Europe, Middle East and Africa region. Martin has extensive experience as a manufacturing strategy consultant and has supported an array of projects in engineered products, automation, aerospace and defense, automotive supply and microelectronics. Martin is widely recognized as a leader in industrial goods and services, and he also holds supervisory board positions in Europe. Before joining Kearney, Martin was the global head of the Engineered Products & High Tech Competence Center at Roland Berger Strategy Consultants in Munich and was a member of the Supervisory Board. Martin earned a computer science degree at the University of Passau in Germany and a doctorate in computer science at the Technical University of Munich. He also completed an apprenticeship as a skilled worker in a machinery company.

Elouise Epstein is a digital procurement futurist and Kearney vice president, based in San Francisco. She has nearly two decades of experience working with procurement and supply chain organizations to architect, design and adopt digital technologies. She works to disrupt sub-par technology adoption and build future strategies through advanced partnerships with startups and emerging technology solution providers. Elouise is an inaugural member of ISM's Thought Leadership Council and frequent writer and presenter about digital procurement. She is co-author of Kearney's Future of Procurement whitepapers, a twelve-part series developed in partnership with leading clients that charts a vision for future success in procurement.

Robert Kromoser has been with Kearney since 1998. He is based in Vienna, Austria, and gained most of his consulting experience in international projects in Germany, Switzerland, Belgium, Denmark, Netherlands, France, Italy, Great Britain, Taiwan, and the United States. He is a member of the leadership team of Kearney's Procurement Practice, with a focus on strategic sourcing, procurement transformation, and supplier risk management. Robert has led multiple projects in the automotive, construction equipment and machinery, chemicals and building materials industries. In several studies, he analyzed the role of strategic sourcing and procurement as a value-adding factor. Robert is also co-author of the Kearney book 'The Purchasing Chessboard.' Robert studied business administration at Vienna University of Economics and Business Administration in Austria and at Carnegie Mellon University in the United States. He lives near Vienna's famous baroque park, Augarten.

Erik R. Peterson is a partner at Kearney and managing director of the firm's Global Business Policy Council (GBPC), a strategic advisory service for business leaders.  In the most recent survey of the University of Pennsylvania's assessment of 6,600 think tanks, the GBPC was ranked the fourth best for-profit think tank in the world. Since joining Kearney in 2010, Erik has guided initiatives relating to strategic foresight, including a program on scenario planning with Oxford University and summits on strategic planning. In 2017, he was elected to the board of Kearney's Energy Transition Institute. Erik is also a senior advisor at the Center for Strategic and International Studies (CSIS).  Formerly, he was senior vice president at CSIS and held the CSIS William A. Schreyer Chair in Global Analysis.  Before joining CSIS, Erik was Director of Research at Kissinger Associates. Erik received an MBA from the Wharton School, an MA from The Johns Hopkins University School of Advanced International Studies, and a BA from Colby College.

Enrico Rizzon is a partner in Kearney's Melbourne office who has a decade of consulting experience primarily focused on organizational productivity and transformation programs. Recently, his focus has been on procurement and the ever-growing application of analytics in business. He now leads Kearney's Procurement and Analytics Solutions Practice for Asia Pacific. Enrico speaks regularly at conferences and frequently writes on procurement-driven transformation and more recently on the competitive advantage that can be driven through analytically enabled organizations. He is Chairman of the Melbourne Business School Centre for Business Analytics, where he helps shape future talent and research on business analytics. Enrico has an undergraduate degree in chemical engineering (Hons) from the University of Adelaide and an MBA from the Melbourne Business School.

Preface 5
Contents 8
About the Authors 11
1: Introduction 15
The Disruptive Setting for Disruptive Procurement 16
Anticipating the Next Phase 17
Immutable Shifts in the Global Geopolitical Balance 17
New Macroeconomic Uncertainties 19
Impact of Exponential Technologies 21
Eroding Institutions and the Decay of Public Trust 24
The Repercussions for Globalization: Imagining the Future 26
The Challenge of the Disruptive Environment to Disruptive Procurement 29
2: The Future of Procurement 32
A New Operating Model for Procurement 34
Enter Tangible Disruptive Procurement 36
Procurement Technology Is Coming of Age 36
Reinventing Procurement 38
The Beginnings of a Procurement Revolution 38
An App for Procurement? 39
The Digital Consumer Revolution 41
Creating Innovative Procurement Processes 42
Redesigning Procurement with an Eye to the Customer 43
Much of Procurement Will Soon Be Automated 43
Begin the Tech Journey Now 45
Speed Chess Will Be the Name of the Game 46
Suppliers Will Not Surrender 49
Buyers Need a Ruthless Focus on Gaining Power and Using It 50
Apple Has Already Made the Next Move 50
Procurement Talent: It’s Time to Panic 51
New Skills and a Whole-Brain Approach 52
Procurement Is Beginning to Look Like a Tech Company 52
Get Moving—You’re Already Late 54
A Procurement Imperative for CEOs 55
The CEO–CPO Disconnect 57
How CEOs Can Support CPOs 59
Agree to a Center-Led Operating Model 59
Support CPO Ownership of Value-Creating Processes 59
Create Shared Comprehensive Targets for Procurement 60
A Future-Proof Approach 61
3: Digital in Procurement 62
The Journey to Digital Procurement 64
It’s Urgent: Why Procurement Needs to Be Digital Right Now 65
The Impact of Digital on the House of Purchasing and Supply 65
Level 1: Procurement Strategy & Organization – Effectiveness
Collaborative Platforms 70
Agile Procurement Organizations 71
Level 1: Procurement Strategy & Organization – Efficiency
Intelligent Workload Distribution 72
Virtual Digital Assistants 72
Level 2: Core Processes – Effectiveness 72
Artificial Intelligence (AI) 72
Advanced Analytics 73
Cognitive Intelligence 74
Data Lakes 74
Purchasing Chessboard® Levers 75
Predictive Analytics 76
Blockchain 76
Digital Supplier Relationship Management 77
Supply Risk 360° 79
Level 2: Core Processes – Efficiency 79
Robotic Process Automation 79
Industrialization of Sourcing 80
Real-Time Process Transparency with Consolidated, Clean Data 82
Process Mining 82
Self-Service Portals 82
Level 3: Supporting Processes – Effectiveness 83
Output-Driven Performance Measurement 83
Metrics that Matter 84
Collaboration on Master Data 84
Level 3: Supporting Processes – Efficiency 84
Cloud Computing 84
Visualization 85
Automated Spend Cubes 85
What Are Procurement Leaders Doing Differently than Others in Digital? 86
2019 Procurement Study 87
How to Embark on the Digital Procurement Journey 88
4: Understanding Customers and Suppliers to Unlock Value 90
The Disruptive Power of Procurement 92
Get Out There 92
A New Approach to Procurement 92
Desktop Procurement 94
Adding Value in Break-Through Dimensions 95
Supplier Fitness Programs 96
Reducing Costs and Helping Suppliers Become More Competitive 97
Prescriptive Value Creation 98
Spotting Shortcomings in Suppliers’ Value Creation 99
Design for Value Creation 100
Understanding How Value is Created for Customers 100
Collaborative Business Development 103
Working Together to Define Optimal Specifications 103
360° Supplier Development 104
Developing Closer Relationships with Fewer Suppliers 107
Function Analysis 109
Defining the Relative Costs of Discrete Functions 110
Core Cost Engineering 112
Knowing How Suppliers Create Value Around Core Cost Elements 113
A Brief History of Disruption 115
Procurement as a Disruptor 116
Getting Started with Disruptive Procurement 118
Procurement Frameworks 125
5: Outlook 126
Procurement Is Becoming Smaller, Smarter and Speedier 128
Trend 1: Larger and More Complex Value Chain Processes 128
Trend 2: Procurement as the Central Data Analytics Hub 129
Trend 3: Procurement as a Service-Oriented Innovation Scout 130
How to Boost Procurement 131
What to Do #1: Skill up the Procurement Staff 131
What to Do #2: Think Speed 133
What to Do #3: Lay the Digital Groundwork Now 134
What’s Next 135

Erscheint lt. Verlag 12.4.2020
Zusatzinfo XV, 122 p. 35 illus., 34 illus. in color.
Sprache englisch
Themenwelt Wirtschaft Betriebswirtschaft / Management Logistik / Produktion
Wirtschaft Betriebswirtschaft / Management Planung / Organisation
Wirtschaft Betriebswirtschaft / Management Unternehmensführung / Management
Schlagworte Chief Procurement Officer • digitization • Disruptive management • Disruptive procurement • operations • procurement • purchasing • Supply Chain • Value Chain
ISBN-10 3-030-38950-2 / 3030389502
ISBN-13 978-3-030-38950-5 / 9783030389505
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