“Being in procurement is awesome”: CPOs herald an optimistic future for the Lucky Country

Many gently tease procurement people for being rather pessimistic souls. A characteristic drawn from their past focus on compliance. Actually, it is the optimists who are shaping the function of the function in Australia.

70 of the leading movers and shakers of the country’s procurement world gathered together yesterday at our Procurement Leaders Forum in the Sydney Opera House. The session provided a glimpse into function’s future value proposition. ?

Three key insights on the day from me:

Celebrate the function

“Being in procurement is awesome,” noted Chris Sullivan , Global Chief Supply Officer and Ramsay Health Care. “And now is the time to work in the function.”

The function is emerging from a transaction past in Australia – as it has in other regions - to engage in a broader suite of activities across the business. Although we have a compliance-oriented mindset in procurement, we see a shift to broader areas in the company. Procurement teams are tackling emerging technologies, innovative suppliers and new sustainability challenges.

The opportunities this yields for the profession is to provide a rich variety of new roles and responsibilities.

For example, we fielded several cases in which leading executives converted a concern about the Modern Slavery Act into a programme on social sustainability. Improving the working conditions and human rights of thousands of supplier employees deep in the value chain.

Nourish new technologies

The heads of many of those in senior management have been turned by emerging AI. Undoubtedly the potential for new technologies is exciting, but experimental tools are unproven and also largely understood.

This has led to mixed success in implementation. However, old hands in this space advised against a ‘big bang’ approach and to direct solutions to meet internal needs.

“Ask for a sandbox,” counselled Neeraj Chhabra , Regional Sales Lead, ANZ at Ivalua. “The business is looking for a tangible benefit, but that takes time.” Testing and retesting on a small scale can help enhance the impact of a company-wide roll out later.

Unrealistic expectations on new technologies do not only conflate the capabilities of new tools, but also the timelines involved. In fact, by engaging in new technologies and systems, you are starting a new journey

“It’s difficult to get it right the first time,” noted Nikki Symonds , Chief Procurement Officer at Origin. “It’s never just awesome and let’s go. Implementation is just the start. Technology systems need continual nourishment and regular watering.”

Adapt to change

Discussions on current and future trends in AI shaped much of the thinking for the day. Executives feel overwhelmed by both the expectations and the pace of technological change.

“Each week brings another fresh wonder,” said Tané Hunter , founder at Future Crunch. But it is important to focus the team’s attention on the information that helps them in the role, not to crowd out their attention. “Turn peoples’ information diet into something that feeds them and nourishes them,”

The acceleration of automation, however, has led to anxieties. With each innovation, workers fear redundancy. But we need not be concerned. We are seeing new roles in business and those positions are more likely to be augmented by new tools.

“If there is job replacement in AI, it won’t be by the bots," says Hunter. "It will be a replacement by those that use AI against those that do not.”

A major determent of individuals at work will depend on their ‘adaptability quotient’. A measure of a person’s ability to adapt to a new environment. Procurement, its buyers and CPOs will similarly need to adapt to this new world of vibrant technological innovation.

Leaders who adapt to these changes however can feel optimistic about their future value.