How Can Procurement Respond to Uncertainty?
EBG | Network hosted an insightful webinar on how procurement can navigate uncertainty, featuring Rolls-Royce’s transformation journey and insights from Ivalua. Below is a summary of the key takeaways.
Context of Uncertainty
Procurement professionals face unprecedented challenges from global disruptions such as COVID-19, geopolitical tensions and sustainability demands. This webinar explored how procurement can act strategically to mitigate these challenges and ensure resilience.
On Demand Session
Re-watch the webinar below.
Key Highlights from the Webinar
1. Rolls-Royce’s Transformation Journey
- Digital Procurement Excellence: Rolls-Royce modernized its procurement systems to focus on resilience, data centralization and user experience.
- Streamlining Processes: Platforms like Ivalua helped Rolls-Royce unify and simplify procurement operations.
- COVID-19 Impact: The pandemic exposed vulnerabilities and underscored the need for agile systems to manage supplier risks and optimize cash flow.
2. The Role of Technology in Mitigating Disruptions
- Data as a Strategic Asset: Centralizing procurement data enabled better decision-making and risk management.
- Supplier Collaboration: Enhanced supplier portals and dashboards ensured transparency and efficiency across supply chains.
- Agility and Adaptability: Aligning processes to digital tools was more effective than customizing tools to fit legacy workflows.
3. Behavioral and Organizational Change
- Encouraging Adoption: Techniques like gamification (e.g., the iValua Badge program) encouraged system adoption and linked it to professional development.
- User-Centric Design: Intuitive systems fostered better engagement and satisfaction among users.
4. Insights from Ivalua
- Unified Platform: Ivalua demonstrated its ability to manage all spend categories (direct, indirect, services) on a single platform.
- Supplier Risk Management: Tools like risk dashboards and performance tracking proactively addressed supplier vulnerabilities.
Lessons Learned
The session highlighted several key takeaways:
- Adoption is Key: User adoption and process alignment are as critical as the technology itself.
- Start Small, Scale Fast: Incremental changes can showcase quick wins, laying the groundwork for broader transformation.
- Data Powers Resilience: A centralized data approach enables swift action during crises, from renegotiating contracts to managing supplier disruptions.
Looking Ahead
Digital procurement systems are no longer optional but essential for navigating future disruptions and ensuring business continuity. Collaboration—both within organizations and across supply chains—will be paramount for effective responses.
EBG’s commitment to fostering cross-functional and cross-organizational learning remains vital for equipping professionals to thrive in an uncertain world. Platforms like this webinar offer invaluable insights to navigate the complexities of modern procurement.
About Rolls-Royce
Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet’s vital power needs.
Civil Aerospace
Civil Aerospace is a major manufacturer of aero engines for the large commercial aircraft, regional jet and business aviation markets.
The business uses its engineering expertise, in-depth knowledge and capabilities to provide through-life support solutions for its customers.
Defence
Defence is a market leader in aero engines for military transport and patrol aircraft with strong positions in combat and helicopter applications.
It has significant scale in naval and is the technical authority for through-life support of the nuclear power plant for the Royal Navy’s submarine fleet.
About Dave Fryer
Dave is leading a £20m+ project to transform and simplify the direct procurement processes and systems of Rolls-Royce globally across the Civil, Defence and Group Business Services divisions. This project will deliver significant value to Rolls-Royce over multiple years in terms of enhanced spend and contract management savings, process efficiency and up skilling of our global procurement teams.
About Ivalua
Ivalua is a leading provider of cloud-based Spend Management software. Our complete, unified platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, improving ESG performance, lowering risk and improving employee productivity. We are trusted by hundreds of the world’s most admired brands and recognized as a leader by Gartner and other analysts. Learn more at ivalua.com. Follow us at @Ivalua.