1) RFPs: Out: Fixed and signed the Scope of Work as a Prerequisite to start the sourcing process In: Give a problem statement to the Suppliers with expected outcomes, and let me propose solutions. 2) Evaluations: Out: Technical evaluations based on 50+ page documents submitted by each vendor. In: Live evaluations in collaborative workshops with vendors. 3) Award: Out: Based on Techno-Commercial scoring results In: Based on Proof of Concept demonstrations, Review of existing d

Everyone is talking about AI in Procurement, apparently even more than the LLM model developers. I do agree that the Procurement AI industry stands at a critical inflection point, but it's not because it is at a breakthrough stage. It is quite the contrary. With the circular validation ecosystem, the Digital Procurement industry has created an echo chamber that barely resonates with actual business results within its organizations. The data backs it up, and I will share many

Many organizations today are trapped in a cycle of adopting new tools simply because they’re “digital.” The consequence? Disconnected processes, tool overload, and unnecessary complexity. My favourite Procurement Centre of Excellence setup (done by  Supernegotiate ) proudly questions the necessity of every tool.  First, let us talk about what’s Wrong with Too Many Tools? Companies are flooded with procurement software: a.) Sourcing portals and e-auction platforms b.) supplier

The landscape of Procurement Negotiations has changed drastically. Most of the conventional methods of Sourcing are increasingly becoming obsolete. Here are some actual facts about your broken procurement processes: Case of Request for Proposal (RFPs) :  During the initial phase (i.e, Technical evaluation), Procurement teams often take a backseat on purpose. They assume the commercial negotiation will only start once the technical phase is over. This approach is extremely sho

I s tenure a good indication of expertise? Historically, and in the majority of the conversations, tenure is sold as a metric of experience and expertise. I have 17 years of experience in Procurement or I have been at this firm for 12 years etc. But, right now, I don’t think tenure should be seen as proof of expertise. In fact; tenure (without actual deep expertise) results in a significant decrease in risk assessment capabilities. Extremely damaging to the decision-making pr

Two aspects of Procurement teams of the future or Procurement Centre of Excellence setups of the future are emerging clearly. 1.) They are extremely specific and not generic Generic CoE setups end up as Reporting units. Your CoE resources will be busy churning our static dashboards, excel reports in pivots, and presentations for others. Lack of a specific niche or expertise is often substituted by Project management work.  Your CoE setup should have a.) Spend Analysis Experts

Here is my big, bold claim. Over the last few years, I have spent an enormous amount of time experimenting with data science, procurement operations, coding, and problem-solving in almost every aspect of strategic and tactical procurement operations. - The next popular digital procurement and procurement advisory will come from Procurement Excellence in-house.  - A solid Procurement Excellence team is category managers who can do data science (and not vice versa).  - Let us t

The Procurement CoEs are going to define Procurement Tech Landscape and its easy to either be driven by marketing hypes in Procurement CoE or they can make some really great progress in taking the industry forward. Here are my all time favourite 6 ideas that have kept me hooked since 3 years! 1- eSourcing technology: It is so dated but holds so much value. What the current technology stack lacks is strategic use cases. Sure, the UIs have came a long way but the focus is stil

It’s 2024, and if you are just starting up with your Procurement Digitization journey, you are in a much better position than companies locked in with legacy solutions. But, here is one advice that might not resonate with many. For 2024, I will not invest heavily in a long-term contract for a Procurement Digitization suite. The third point is key. Here are some reasons and, of course, solutions. 1 - Be cautious of companies selling "Ai" driven platforms and even more with com

We'll get to the points straight away. 1. For Non capex, Indirect Procurement and Subscription Driven SaaS Procurement requirements : Investing in esourcing suite doesn’t make sense anymore in 2024! Stop it. Here are some of the reasons There is hardly any value in running RFPs for such categories in 2024! As a CPO, you Need to prioritise agility over running 6 month long RFPs. If you'll stop running RFPs on such categories, most of the esourcing suites will become redundant

I started my journey of what eventually we would summarize as “Procurement Data Scientist”. Interestingly, I found some nuggets while pondering over my last 3 years notes on Procurement excellence roadmap! These are my personal opinions as a procurement category manager, having done the granular “boots on the ground” work in procurement and logistics operations! What appeared as grunt work at that time has now become my forte to judge whether a technology product is a hype or

In continuation to the last post on changing dynamics in the Procurement world, here are some unconventional KPIs to monitor the effectiveness of Procurement in 2024! 1) Old: Cost Savings New: Budget released and given back by Procurement to P&L statement at the end of each quarter. Not only does this metric ensure no budget creep happens, but it also ensures that the impact of negotiations and cost saving is directly translated into P&L improvement (the north star in Procur

One key event to watch out for this year is Renminbi (CNY) vs USD. Consumer prices in China have fallen in 5/7 months and fell by 0.8% in Jan Growing risk of deflation This impacts the consumption negatively. People dont buy things when prices keep falling! The buying decisions are delayed. This reduces the consumption further. IMF has been asking China to move towards a weaker Renminbi. China doesn't agree and is holding CNY steady. Supernegotiate's Opinion and Why this is r

Carbon Emissions futures are trending down 40% YoY. (I can't be happier about this as I am so against this whole concept, but nevertheless, one opinion doesn't count). Background of Carbon Credit Trading: The carbon trade is a result of the Kyoto Protocol, which called upon various countries to reduce their greenhouse gas emission rates. Parties that took part in this protocol can buy and sell the amount of greenhouse gas credits they have in the form of stocks. These credits

2024 Key Events Notes and Actions to Take (Part 2): Previously, I spoke about - Commodity Price Slowdowns - Consulting World Shakeup - Election Year of World - Slowdown to GenAI API startups - Accelerated Supplier Developments - USD Depreciation Now, I want to focus on Digital Procurement: - Slowdown in Meaningless Digital Procurement Spending: Firms will delay "good to have" digital procurement tools. Yes, Proof of contracts will increase, but actual contract conversions wil

2024 is going to be the year of Elections!   This will have an impact on Supply chains globally. Here is what 2024 looks like from a Procurement Perspective: 1) Commodity Price Slowdown: - Basic metals have already declined YoY, but now the inventory levels are hitting new highs. The inventory of Aluminum, Nickel, and Steel are all running high in December! - Combined with a slow demand outlook, this will put additional pressure on your suppliers for revenues. - The Chinese P

Top 4 things that I will DO in Q4 to create a HIGH IMPACT in Procurement organization: 1) Costs Management: Are you able to rejig your costing models to leverage the current situation? A) Falling commodity prices: - Aluminum is down by 30% YoY, Zinc by 22%, Copper by 27% - Steel by 33% B) Rising Energy prices: Recent decision by OPEC to cut Oil product, could be the catalyst to accelerate the recession apprehension. But, I think we are scheduled to see Crude back at 110+ leve

At Supernegotiate Procurement Labs, I am trying to bring the Procurement community focus where it should be. Solving high-impact problems. Currently, the Digital Procurement world is extremely noisy, and no groundbreaking innovations have happened in the last 10 years. We are still talking about the problems that existed in 2010. I have been working on a few 0-1 scale problem statements in Procurement for the last 2-3 years. Low success rate so far! But I am looking to land o

2023 is going to be a game-changer for the truly advanced Procurement team, and it is going to be a nightmare for mediocre ones. Why? Well, almost everybody is apprehensive about the 2023 economic scenario. Weakening consumer demand and lesser sales revenue would mean additional pressure on cost optimization (and hence procurement) for margin improvement. This, combined with the Supply chain crisis and inflation, is forming the Bermuda Triangle for Procurement in 2023. Cost s

1) Identify suppliers and categories where you can play & make strategic changes and product innovations 2) Data & Digitization have uplifted the Procurement Skillset Requirement. If you are not asking for both while hiring your team, you are rooting for mediocrity 3) Look for local optimization opportunities. This should be done iteratively & not once-off 4) Specificity: Develop specific knowledge about your category, new process or cost modelling. This can not be taught or