Procurement, Sourcing and Supply Chain Challenges during Covid-19

Andy and Christophe discuss the challenges procurement faces during Covid-19. From re-thinking strategic contracts to dealing with supply disruption, and whether remote working is still effective at a time when the procurement function needs a more important seat at the executive management table.

This episode is filled with important question for the procurement professional:

1. How organisations are dealing with suppliers issues, product availability, shortages and delays, transportation and logistics disruptions, price increases?
2. Is working from home as efficient and effective as working from within an organisations when dealing with a crisis such as Covid-19?
3. Shall organisations work together to develop local manufacturing and know-how capabilities to overcome overseas supply challenges?
4. Is the notion of strategically addressing a transparent and extended supply chain finally gain the traction it deserves?
5. Are we finally realising than price savings is just not enough, but rather ensure that suppliers earn additional profit to support buyers in time of crisis? And instead work together to eliminate costs?
6. How have suppliers' contracts been adjusted with Covid-19? and who pays for it?
7. Is dealing with one or two main suppliers to achieve economy of scale still working? or would this approach be too risky in time of crisis?

Those are some of the questions that need to be addressed, and perhaps having a Procurement Strategy and Procurement Plan is no longer enough to plan ahead, a 3rd element might be necessary: Procurement Crisis Management & Strategy need to be planned and simulated.

For further information about the content discussed in this Procurement Podcast episode and how it could be relevant within your organisation, please feel free to reach out to Andy Franks or Christophe Barriere-Varju.

Should you wish to discuss any of these questions in upcoming Procurement Podcasts, please do get in touch.

About the Procurement Podcast

This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals.

Think your colleagues might be interested? Please share this Procurement Podcast!

Reducing Embodied Carbon in the Building & Construction Industry with Monica Richter and Hudson Worsley. In this episode of the Procurement Podcast, Andy Franks and Christophe Barriere-Varju speak with Monica Richter and Hudson Worsley to introduce MECLA and the purpose of the Alliance. MECLA stands for Materials & Embodied Carbon Leaders’ Alliance which is a collaboration of organisations that have come together to drive reductions in embodied carbon in the building and construction industry. MECLA seeks to align with the Paris Agreement targets and principles of the circular economy and recognise that the building and construction sector is a complex ecosystem. As you listen to this podcast we will touch on some of the key MECLA initiatives such as: Demonstrating a clear demand and activating supply of low embodied carbon materials. Developing common language for design specifications, procurement guidelines and tendering criteria as standard practice for government agencies and companies. Better understanding and/or developing where appropriate benchmarking tools, measurements, implementation guides and practice notes, such as EPDs, LCAs, BIMs, definitions, principles and simplifying tools. Knowledge sharing through best practice education, case studies, myth-busting, demonstrations, and supporting innovation in materials and processes as part of a pre-competitive approach. Helping to manage industry’s climate transition risks, risks associated with adopting innovative materials and the required skills development. Focussing on priority materials; steel, cement and concrete, and aluminium due to their carbon intensity. A must-listen podcast on this extremely important topic for our planet. For more information or to participate in the MECLA initiative, please contact Monica Richter at MRichter@wwf.org.au Disclaimer: BvW Global and its director Christophe Barriere-Varju (Co-host of the Procurement Podcast) is a founding Partner of MECLA. About Monica Richter Monica Richter is an economist and social ecologist with extensive experience in environmental sustainability with an interest in the role of business in accelerating the uptake of low and zero carbon solutions. Recent career highlights include establishing the Business Renewables Centre – Australia, deep engagement in WWF’s PandaLabs Innovation Program, and running the Science Based Targets Initiative in Australia, getting companies to set ambitious long term greenhouse gas emission reduction targets aligned with a 2oc/1.5oC pathway, in partnership with Global Compact Network Australia. Monica recently collaborated with the NSW government and Lendlease to launch reports on the need to tackle embodied carbon in the building and construction industry and Materials Embodied Carbon Leaders’ Alliance (MECLA). Monica is a thought leader and has been invited to participate in many forums and conferences as both a speaker and a chair.  Monica is a graduate of the Future Directors program, a Board Member of the Australian Sustainable Built Environment Council,

How to Focus Procurement Activities with Jody Rowe. With years of expertise in the Oil & Gas industry, Jody Rowe is the CEO of both Rowe Advisory (resource advisory firm) and Promitheia Procurement, providing procurement online solutions that support procurement professionals. Jody shares her views about how Covid-19 forced businesses to better manage risks and into the obvious cost reduction activities and why any Procurement activities should start with a good plan. With Covid-19 raising the profile of Procurement it has also highlighted the need for strong governance and the essential of having a good “Procurement Plan” in order to focus resources on high value / high risk spend — and the importance of getting the basics right. Covid-19 has raised the profile of businesses to manage risk, whether it’s supply chain risk, or managing contracts to get that value out of it. Andy Franks (Procurement Podcast Co-Host) enquires as to where Procurement should sit in an organisation and its implications regarding how the procurement is regarded. Christophe Barriere-Varju (Procurement Podcast Co-Host) asks whether companies have gained or lost productivity with allowing remote work. A fascinating interview with plenty of good insights to be gained for all procurement professionals, from entry levels to career long professionals. About Jody Rowe Jody is an accomplished specialist in the resources sector over 30 years’ experience gaining a strategic view of the market, its needs and opportunities for growth and continuous cost improvements. A current Non-Executive Director for Strike Energy Limited and previous work experience includes senior Commercial roles in Australia and the United Kingdom working with organizations such as BG Group-QGC, Santos, Rio Tinto and Barrick Gold with particular focus and activity on mega projects GLNG and QCLNG and large scale mining operations. A subject matter expert and tactical adviser for business development, contracts, procurement, tenders, negotiations and reviews where risk is significant. A strength is the conceptual and analytical ability to deal with ambiguity and complexity that often accompanies high profile projects and companies. Jody is a strong advocate for the Contracts and Procurement profession, Local Content, Women’s networking and Emerging Talent, presenting at APPEA September 2013, Major Construction Conference October 2013 and Oil and Gas Procurement Leaders November 2013. Jody is the Chief Executive Officer of Rowe Advisory and Promitheia Procurement. Jody Rowe on LinkedIn. About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Think your colleagues might be interested? Please share this Procurement Podcast!

Using Procurement Collaboration to Improve an Organization with Paul McCarthy. Paul McCarthy talks about buying products and services in a way that is effective, not necessarily cheap, but the best for your company, the best for right now, and the best for the future. Paul talks about a huge procurement knowledge gap that began with procurement employees that began their career post the 2008-09 financial crisis. With 10 years of expertise to 2019-2020, and a market now in decline, the focus is still buying as cheap as possible, but at the same time this approach expedites the decline of the market in the paper industry due to poor(er) profitability of its participants. And with COVID-19 coming along, the decline of the market has been even more dramatic. McCarthy regularly challenges his organization to look for everything and anything that is other than magazines and newspapers. He regular asks his staff — quote — “find ways to replace plastic with paper, don’t ask children, ask your parents. Remember when fish was wrapped in paper not plastic?” Only by adopting a collaborative approach, paradigm shifts can occur, new uses of products can be identified that will keep organizations alive. Finally, by ensuring all functions work in sync toward the same end goal — and getting employees to buy into this paradigm shift, everyone should be able to sell the organisation. About Paul McCarthy Managing Director SCA Graphic Paper UK Limited. Driving sustainability in print and paper from the forest to the office. SCA £10.7bn turnover brands include GraphoCote, GraphoInvent and GraphoNews. McCarthy has spent 12 years in paper sales, most recently as publishing sales manager at Sappi Fine Paper Europe. Prior to joining the paper trade he worked in magazine production and was commercial production manager at Condé Nast. Paul McCarthy on LinkedIn. About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Think your colleagues might be interested? Please share this Procurement Podcast!

The Role of Procurement in the Banking Industry with Tony Crane In this episode of the Procurement Podcast we talk about the Role of Procurement in the Banking and Financial Industry and the impact the Bank’s Supply Chain has onto the end consumer. During our conversation with Tony Crane, we uncover some hidden areas that Banks can explore to continuously add value to their vertical supply chain, and how difficult it is to articulate the customers benefits — often emotional — and then being able to deliver a real customer experience. About Tony Crane Tony has worked in the Financial Services industry for over 24 years having started his career as a cashier with Nationwide in 1996. Since then he has worked in leadership roles at Barclays, RBS, Santander, Bank of Ireland, Lloyds and a range of smaller FS institutions and start-ups. Tony speaks frequently in the UK & around Europe on the topic of Customer Experience and the impact societal change will have on the Financial Services Industry. Tony Crane on LinkedIn. About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Think your colleagues might be interested? Please share this Procurement Podcast! The post Episode 011: The Role of Procurement in the Banking Industry with Tony Crane appeared first on The Procurement Podcast.

Advanced and Strategic Procurement with Mario Adamo In this episode of the Procurement Podcast we talk about Advanced and Strategic Procurement with Mario Adamo. Brace yourself for an almost hour-long in depth conversation with Procurement defined as “Optimising price, availability, reliability, innovation, TCO in consultation with stakeholders and where Procurement is embedded into the organisation as a ‘complex and strategic’ fact based function.” And in Mario’s words, “Procurement is to be able to think at the next level and bring all the pieces together into concise and well articulated plans.” Mario Adamo’s is the founder and Managing Director of AVA Consulting Partners and has over 20 years of International Procurement and Supply Chain experience in line roles and consulting having worked at companies such as McKinsey & Company, General Motors, Foster;s Group, AT Kearney and corProcurement across a wide range of industries — FMCG, Mining, Oil & Gas, Phamaceutical, Manufacturing, Transport/Logistics, Automotive, and Government. About AVA Consulting Partners Mario Adamo on LinkedIn AVA Consulting Partners — Sustainable Capability Building, Dynamic Coaching Approach, Clever and Practical About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Think your colleagues might be interested? Please share this Procurement Podcast! The post Episode 010: Advanced & Strategic Procurement with Mario Adamo appeared first on The Procurement Podcast.

High Performance Procurement Program – HP3 Event In this episode of the Procurement Podcast we speak with attendees of the High Performance Procurement Program (HP3) developed and presented by Rob Halsall. Listen to the valuable information and feedback from: David Dellow – Contract and Commercial Manager Group Procurement at QBE Insurance; Rey Louw, Head of Procurement & Property at Alinta Energy; Kara Watson – Customer Interactions at Westpac; Marie Viant – Procurement Manager, IT & Professional Services at Origin Energy; Thomas Poulton – Global Portfolio Lead at Macquarie Group; Avneel Naidu – Senior Commercial Manager at Westpac; Zoe Lin – Senior Category manager at Westpac; Juan Casas – Procurement Specialist at Alinta Energy. About the High Performance Procurement Program (HP3) Due to COVID-19, The High Performance Procurement Program is now available via Virtual Platform Delivery. For more information on how to build creative, adaptable & resilient performance & sustainable results, please visit https://www.theexecutiveathlete.com The Program Topics Include: The Evolution of High Performance Successful Self-Leadership Habits Future Proof Your Operating Model List Management & e2e Talent Experience Data Visualisation Strategies Developing Team Creativity & Agility Building Increased Advocacy & Influence ​Additional Resources: The Executive Athlete Overview Articles Rob Halsall on LinkedIn About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Think your colleagues might be interested? Please share this Procurement Podcast!

What is Procurement? A Recap from our 2019 Procurement Speakers & Leading Executives All of our podcasts begin with the same question: ‘What is Procurement?’ Yet the answers differ greatly. In its first year the Procurement Podcast offered insights from Procurement Professional with deep knowledge about the profession. What is Procurement? There is no single answer. Yet, Procurement, the Procurement function, and the Procurement profession in general offer many keys to unlock the potential performance within any organisation. Here is a summary of the insights gained from our procurement guest speakers in 2019. We urge you to listen (re-listen), Take a notepad, listen to our guests and start noting down Procurement ideas and approaches to implement in 2020. Episode 007: High Performance Procurement with Rob Halsall Rob Halsall (former Chief Procurement Officer at Westpac New Zealand and Managing Director of The Executive Athlete) talks about not just what Procurement is, but how improvements can be made at an individual level using a blend of proven contemporary behavioural science and neuro-leadership practice Episode 006: Circular Economy Procurement with Myla Bulaon and Tania Lalor Myla Bulaon (NSW Department of Education) and Tania Lalor (Local Government Procurement) discuss the importance and approaches to embed Circular Procurement as one of the enabler of Circular Economy over the traditional Create + Make + Dispose value creation model. Episode 005: The Role of Strategic Enabler with Jean-Michel Carriere In his role of Chief Procurement Officer for the NSW Department of Communities and Justice (Australia), Jean-Michel Carriere discusses the role of Procurement as an enabler to achieve strategic objectives – to enable outcomes around: A customer-centric approach to Procurement; Strong Category Management; Governance & Risk Mitigation; Procurement Capabilities; Continuous Improvement. Episode 004: Sustainable Procurement with Sarah Collins As the Australian Broadcast Corporation (ABC) Head of Procurement, Sarah Collins is passionate about Procurement and Sustainable Procurement. Sustainable Procurement is a growing topic amongst most Australian organisations. Climate Change, Modern Slavery, Circular Economy, Reconciliation are some of the elements that fall within Sustainable Procurement. However, many people still do not clearly understand the business imperative that sits behind integrating sustainability into procurement and supply chain management practices. Episode 003: Procurement’

High Performance Procurement (HP3) In this episode of the Procurement Podcast, we speak with Rob Halsall (former Chief Procurement Officer at Westpac New Zealand) about not just what Procurement is, but how improvements can be made at an individual level. Rob Halsall is the Founder and Managing Director of The Executive Athlete whose aims are to provide a range of talent profiling & training solutions, commercial & strategy advisory, as well as corporate coaching options to build creative, adaptable and resilient performance. Using a blend of proven contemporary behavioural science and neuro-leadership practice, combined with extensive transformational leadership experience, The Executive Athlete can assist individuals, and in this case — Procurement Professionals — achieve organisational outcomes. Listen to this podcast as Rob offers some incredible insights! About The Executive Athlete As Founder and Managing Director of The Executive Athlete, Rob Halsall has coached, developed and led high performing individuals and teams for over a decade and is passionate about assisting others to achieve their personal and professional goals. Rob has extensive domestic and international commercial experience working within leading Automotive, Chemicals, Aerospace, Telecommunications, Tertiary and Financial Services organisations. This includes providing leadership within organisational structure and operating models, business strategy, commercial project delivery, end-to-end procurement services and delivering strategic business transformation. Rob is a published author within Procurement and in 2011 he was the youngest recipient globally of the Fellowship of the Chartered Institute of Procurement & Supply (FCIPS). In 2015 Rob was a guest lecturer for the Masters of Commerce & Logistics at The University of Sydney Business School. In 2018 Rob received the 2018 Ernst & Young New Zealand Procurement Professional of the Year award, the 2018 CIPS Australasia Procurement Professional of the Year award and the 2018 Asia Pacific Procurement Leader of the Year award by Procurement Leaders. Rob’s greatest pleasure is witnessing the personal and professional growth with the individuals he has worked with. Qualifications FCIPS – Fellow of the Chartered Institute of Procurement & Supply MCIPS – Member of the Chartered Institute of Procurement & Supply MSc Procurement BSc (Hons) Business Information Technology Certifications Certified Neuroleadership Practitioner (The About My Brain Institute) Certified Professional Behavioural Analyst (CPBA) Certified Professional Motivators Analyst (CPMA) Certified Professional EQ Analyst (CPEQA) About the High Performance Procurement Program (HP3) The High Performance Procurement Program will be help on Thursday 27th February 2020 at the Rydges Sydney Central, 28 Albion Street, Surry Hills, NSW 2010 — Australia. Catering is included. Please visit The Executive Athlete website to register for the event. The Program Includes: The Evolution of High Performance Successful Self-Leadership Habits Future Proof Your Operating Model List Management & e2e Talent Experience Data Visualisation Strategies Developing Team Creativity & Agility Building Increased Advocacy & Influence Plus guest speaker Christophe Barriere-Varju, co-host of the

Circular Economy Procurement Circular Economy Procurement is a non-negotiable activity to be undertaken by Government Agencies, Public and Private Organisations for the future of our generations and for the future of our planet. In this Procurement Podcast, Myla Bulaon (NSW Department of Education) and Tania Lalor (Local Government Procurement) speak with Christophe and Andy (Procurement Podcast) and discuss the importance and approaches to embed Circular Procurement as one of the enabler of Circular Economy over the traditional Create + Make + Dispose value creation model. In today’s world, it is now critical to rethink an organisation initial needs and consider social requirements. This no doubt require an important culture change to our behaviour but also educate the procurement profession in considering the final impact of onset product design and increased product utilisation. About Myla Bulaon A procurement professional passionate about social outcomes through procurement. Member of the Australian Mirror Committee for ISO 20400 development representing the NSW Public Sector procurement. Myla has also worked with various NSW government agencies helping them incorporate sustainability in their business approach. Myla has advised many other agencies about sustainability and helping them deliver sustainable outcomes through their contracts. About Tania Lalor As a senior consultant in sustainable procurement with Local Government Procurement, Tania Lalor believes that procurement is the enabler to addressing the world’s sustainability challenges. Tania is a member of the Australian Mirror Committee for ISO 20400 development representing the NSW Local Government Sector. In her role with LGP Tania provides guidance, advice and resources to councils assisting them to embed sustainability into their procurement process and has spoken at number local government events on procurement challenges relating to circular economy. About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Consultant Professionals. Additional Resources: NSW Circular NSW Circular Economy Policy Statement Circular Economy Policy – NSW EPA

The Role of Strategic Procurement In his role of Chief Procurement Officer for the NSW Department of Communities and Justice (Australia), Jean-Michel Carriere discusses the role of Procurement as an enabler to achieve strategic objectives. As with any Government Agency, there is a level of responsibility dealing with public monies and ensuring that value is achieved to the benefits of tax payers. Jean-Michel Carriere also discusses the importance of having a Supplier Development Programme as a conduit for cross-enterprises value creation. By setting the correct Procurement Strategy to enable outcomes around: 1. A customer-centric approach to Procurement; 2. Strong Category Management; 3. Governance & Risk Mitigation; 4. Procurement Capabilities; 5. Continuous Improvement. Finally, Jean-Michel Carriere talks about sharing requirements that the market can understand, assist tenderers, and ensure that Government Agencies have everything at their disposal to deliver value. About the Department of Communities and Justice From 1 July 2019, the Department of Family and Community Services (FACS) and Department of Justice will be a single department, named the Department of Communities and Justice. The new department will enable services to better work together to support everyone’s right to access justice and other help for families, and promote early intervention and inclusion, with benefits for the whole community. The Department of Communities and Justice will be the lead agency in the new Stronger Communities Cluster. The new Stronger Communities Cluster brings together, and replaces, the Family and Communities and Justice Clusters. It brings all government services targeted at achieving safe, just, inclusive and resilient communities under one roof. You can still access up-to-date, reliable information on the existing Department of Justice and Department of Family and Community Services websites. About the Procurement Podcast This episode is brought to you by the Procurement Podcast, with Andy Franks (BrightSky ClearMind) and Christophe Barriere-Varju (BvW Global), two passionate Procurement Professionals. Think your colleagues would be interested? Share this Procurement Podcast! The post

Sustainable Procurement Sustainable Procurement is a growing topic amongst most Australian organisations. Climate Change, Modern Slavery, Circular Economy, Reconciliation are some of the elements that fall within Sustainable Procurement. Sarah Collins – ABC’s Head of Procurement However, many people still do not clearly understand the business imperative that sits behind integrating sustainability into procurement and supply chain management practices. As the Australian Broadcast Corporation (ABC) Head of Procurement, Sarah Collins is passionate about Procurement and Sustainable Procurement. Listen to Sarah Collins talk about Sustainable Procurement and how to implement it within organisations. Brought to you by the Procurement Podcast, with Andy and Christophe. ISO20400.org ISO20400.org is a not-for-profit, free to access platform which aims to develop a global community of practice around ISO 20400 and sustainable procurement. Resources: ISO 20400 – About ISO 20400 – Building the Business Case for Sustainable Procurement NSW Modern Slavery Act 2018 Australian Modern Slavery Act 2018 Think your colleagues would be interested? Share this Procurement Podcast! The post Episode 004: Sustainable Procurement with Sarah Collins appeared first on The Procurement Podcast.

Procurement’s Role in Implementing Business Solutions Andy Franks and Christophe Barriere-Varju from the Procurement Podcast interview Jo Bailey, CEO of Progressive Systems. Jo discusses the role of Procurement and its commercial role in identifying and implementing business solutions. Think your colleagues would be interested? Share this Procurement Podcast! The post Episode 003: Procurement’s Role in Implementing Business Solutions with Jo Bailey appeared first on The Procurement Podcast.

Andy Franks and Christophe Barriere-Varju from the Procurement Podcast interview Rodney Lambert, Procurement Manager of NSW Fire Service. Rod offers fascinating insights of his procurement management approach and the importance placed on having responsive suppliers. Think your colleagues would be interested? Share this Procurement Podcast! The post Episode 002: Responsive Suppliers in Government with Rod Lambert appeared first on The Procurement Podcast.

Listen to our first Procurement Podcast where Andy and Christophe discuss some of the topics they will be discussing during their interviews with leading Procurement Executives. 4:35 What is procurement? What is the greatest value? 5:00 What is the end game of Procurement? 5:30 Your negotiation technique will dictate the long term viability of your contract. 7:23 Do all businesses need procurement? 7:51 How Procurement people are remunerated? 13:50 Should Procurement sit in Finance? or as a stand along entity? 18:34 The impact of category management within Procurement. 21:20 Should you extend an existing contract that is not adequate for the business? Join us as we seek to discuss each (and many more) of these important Procurement topics during our upcoming podcasts with Australian and Worldwide Procurement Executives. Please share this episode with your colleagues. The post Episode 001: The Procurement Podcast with Andy & Christophe appeared first on The Procurement Podcast.