In our latest webinar recap, we will be discussing the insights shared by Chief Procurement Officers (CPOs) on the topic of procurement value orchestration. The webinar featured Joe Chmielewski, Deloitte, Vishal Patel, Ivalua and moderator Kelly Barner, Art of Procurement. Our contributors provided valuable insights into procurement value orchestration–covering the role of technology, talent, and process, as well as the emerging trend of generative AI in procurement.
Providing Knowledge and Facilitating Business Decisions
Joe Chmielewski first highlighted the evolving nature of procurement and the need to adapt to changing requirements. He emphasized the importance of providing knowledge and frameworks that enable businesses to make informed decisions.
Vishal Patel added that presenting data at the right moment can have a significant impact on purchasing decisions, supplier selection, and sustainability priorities. He shared an example of a construction company collaborating with competitors to create more demand for sustainable materials, demonstrating the importance of long-term objectives and strategic partnerships in driving sustainable procurement practices.
Importance of Data and Timing
One key point highlighted in the webinar was the importance of data and timing in procurement decision-making. According to Vishal Patel, presenting data at the right moment can have a significant impact on the decision-making process. Whether it’s deciding on a purchase or selecting a supplier, having access to the right data at the right time is crucial for agile supply chains. This is especially true when it comes to sustainability, as organizations need to prioritize and flow down sustainability requirements to their suppliers.
The Importance of Process in ESG Initiatives
Kelly Barner brought up the topic of process and its significance in ESG (Environmental, Social, and Governance) initiatives. She highlighted the need for processes that can adapt to changing supply markets and company priorities. Joe Chmielewski shared that organizations with robustly written policies and documented processes are more likely to perform above average.
However, the key differentiator is the ability and permission to rigorously follow those processes and policies. It’s important to have involvement and commitment to the fundamental building blocks of sustainable procurement processes.
Process and Policy Execution
The discussion also emphasized the significance of process and policy execution in procurement. While many organizations have well-documented processes and policies, the key differentiator is the ability and permission to rigorously follow them.
The takeaway? It’s not about having a new level of process and policy, but rather the commitment to actually engage in those fundamental building blocks. This involves avoiding shortcuts and ensuring that stakeholders follow the established processes and policies.
The Role of Technology: Generative AI
Vishal and Joe then highlighted the role of technology, specifically generative AI in procurement. Generative AI is not a magic solution, but it has the potential to assist with anything relating to content creation, modification, and summarization. Procurement deals with a lot of content – RFPs, Supplier information, surveys, evaluations, PR/POs, invoices, catalogs and more are all forms of content.
The key is to put generative AI in the hands of customers and partners to rapidly create numerous use cases across the source-to-pay process. This can save time and allow procurement professionals to focus on strategic aspects.
The Evolution of Generative AI
The discussion touched on the evolution of generative AI and its impact on procurement. While generative AI is still in its early stages, there is a lot of potential for its application. It has the ability to automate tasks that are currently time-consuming for procurement professionals, freeing up their capacity for higher-value roles.
However, it’s important to note that creating space is not enough. Training and investing in the capability to leverage generative AI is essential to fully realize its benefits. Ivalua addresses more on AI in our recent blog post: Transforming Procurement with Generative AI: A Practical Approach.
The Mindset of Orchestrators of Value
Kelly Barner then reflected on the essence of orchestrators of value, highlighting their ability to quickly recognize and explore new opportunities. She emphasized that it is not about being part of an exclusive club but rather having the curiosity and discipline to set up new initiatives for success.
Orchestrators of value are open to testing and piloting new technologies and approaches, even if they may not ultimately adopt them. Joe Chmielewski added these active participants are significantly more likely to have tested generative AI, demonstrating their proactive approach to embracing emerging technologies.
Conclusion
Overall, the webinar provided an eye-opening discussion on the crucial role of orchestrators of value in procurement. It’s not just about following strict processes and policies, but also about collaboration, data analysis, and technology.
One of the most interesting points raised was the potential of artificial intelligence in procurement. Although it’s still in its early stages, the ability to automate tasks and assist with content creation, modification, and summarization could be a game changer. However, this also means investing in training and capability development to maximize its benefits.
The speakers also emphasized the need for procurement professionals to adapt and evolve with the times and truly become orchestrators of value in their organizations. It’s clear that the traditional approach to procurement is no longer sufficient, and by fully embracing these insights, professionals can transform their role and add significant value to their organization.
