As procurement leaders continue to navigate varying crises of 2022, we have a host of events and resources on deck to keep your team at the forefront of best practices!
Global Executive Summit
Prepare yourself and your team for the future of sourcing at the SIG PGlobal Executive Summit October 17-19, 2022!
Get ready for amazing keynote sessions, a chance to engage and learn from the brightest industry experts, speed networking, and experience live solution deep-dives from best-in-class providers. Registration is open now!
SIG's Western Regional SIGnature event is almost here! The event will take place in Bellevue, WA and includes a fantastic agenda with some of the best thought leaders in the industry. The day will include an Executive Roundtable, General Session Speakers (offering training and practical, implementable tools), CPO Presentations, Analyst Overviews, SIG Talks and close with a networking happy hour.
Join us for this great day of networking and learning!
As procurement leaders continue to navigate varying crises of 2022, we have a host of events and resources on deck to keep your team at the forefront of best practices!
August Microlearning Event
SIG's On May 18, TD Bank experts, Associate Vice President Michele Wesseling and Head of Cyber Controls Testing Neha Mudalgikar, as they explore cyber risk in today's constantly evolving landscape.
Join your sourcing, procurement, and risk management colleagues in this two-hour interactive virtual environment to be challenged with topics related to our industries!
Prepare yourself and your team for the future of sourcing at the SIG PGlobal Executive Summit October 17-19, 2022!
Get ready for amazing keynote sessions, a chance to engage and learn from the brightest industry experts, speed networking, and experience live solution deep-dives from best-in-class providers. Registration is open now!
SIG's Western Regional SIGnature event is almost here! The event will take place in Bellevue, WA and includes a fantastic agenda with some of the best thought leaders in the industry. The day will include an Executive Roundtable, General Session Speakers (offering training and practical, implementable tools), CPO Presentations, Analyst Overviews, SIG Talks and close with a networking happy hour.
The second half of 2022 is continuing to force procurement leaders to navigate varying crises. Strategies now weigh less on cost and more in favor of supply assurance. We have a host of resources, insights and events to get you prepared!
July CPO & Executive Virtual Series
SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On July 20, Richard Elmore, CPO from The Penn State University, will be joined by AArete experts Tyler Higgins, Gaurav Joshi and John Marchisin. They will explore how to adapt your supply chain for diversity and sustainability. We will close the day with a topic-based roundtable discussion.
Join us for this collaborative and very personal conversation!
My first Op-Ed, Open Letter to the C-Suite, appealed to the C-Suite to hold Procurement accountable for not investing in technology. The blog referenced a Gartner perspective that only 22% of procurement leaders have a long-term digital strategy. I touched a nerve, invoking comments from a few readers suggesting there are procurement leaders - the Magical CPO - that understand how to navigate the C-Suite to get the budget for technology investments.
To give credit where credit is due, Nikesh Parekh, CEO of Suplari (Now Microsoft), is the source for the term Magical CPO. It describes a procurement leader that understands how to build business cases and secure budgets for technology investments that improve their department's efficiency and effectiveness while supporting the needs across all business disciplines. The Magical CPO persona, by definition, is juxtaposed with the technology laggard. If you saw my first Op-Ed, I noted that 78% of procurement leaders are technology laggards without any digital automation strategy.
The Magical CPO persona
Let’s unpack the Magical CPO persona to agree on common qualities. My views are based on my observations and experiences over a 30+ year career in procurement. There is no Wikipedia page for Magical CPO nor a Google search that prompts any relevant hits - I checked. While I understand there are more sources than Wikipedia and Google, the point is that there is generally no standard persona for the Magical CPO. Here’s my interpretation of what the Magical CPO must possess:
Greg Tennyson, SVP of Strategy & Procurement, Fairmarkit
The second half of 2022 is here but constant supply chain problems are diverting procurement’s attention from other business-critical areas. We have a host of resources, insights and events to get you prepared!
June CPO & Executive Virtual Series
SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On June 8, Keith Learn, Vice President of Procurement & Supplier Development at Mary Kay Inc., will deliver a thought leadership presentation that will leave you with many new tools and strategies! Nick Heinzmann, Vice President of Research at Spend Matters will also be presenting his latest learnings. Nick will discuss ESG, regulatory forces, and inflation.
Join us for this collaborative and very personal conversation!
There are no shortages of headlines such as the one above linking supply chain disruption to inflation. While I don't want to oversimplify the current situation, when supply can't meet demand for various reasons, inflation is the end result. External forces such as the above reference to the war in Ukraine and the now seemingly endless COVID-19 pandemic are the most notable contributing factors. And let’s not forget the Suez Canal blockage and its extended impact around the globe.
Undoubtedly, the “interconnectedness of global supply chains” means that these events have far-reaching implications impacting “labor, energy and transport costs.” As a result, the consumer price index (CPI) - which has been somewhat stable for the past few decades, has seen a significant rise in prices.
How significant?
In December 2021, reports indicate that the CPI was “5.4% higher than a year previously in December 2020.” In other words, even though supply chain disruption and its link to inflation are not new, the breadth of its impact globally has created a sense of urgency like never before – at least not in the 21st century. Nor are there any signs of relief on the near horizon, as a recent New York Times article proclaims that we are not likely to see the return to a “normal supply chain” in 2022 (or anytime soon.)
Along with senior buy-side executives, joining SIG’s Stephani McGarry on the call was the Everest Group. In what I can only refer to as a “captivating session,” the discussion focused on what we as an industry have and will continue to face during these inflationary times.
In the last article, we heard from Senior Vice President & Global Chief Procurement Officer at Cigna Express Scripts, Tony Abate, regarding his steps for dealing with inflation.
In this article, we hear takeaways from a recent CPO Roundtable discussion from Michael Koontz, VP, Strategic Sourcing & Business Leader for American Tire Distributors (ATD) Sourcing Solutions. I think you will find his approach to battling inflation innovative and unique.
Before we get to Michael’s fight-inflation strategy, let’s first provide some background information on his company. ATD operates more than 130 distribution centers, including 24 in Canada, serving close to 80,000 customers across North America. Employing 4,000 associates in the U.S. and 600 north of the 49th, ATD offers an “unsurpassed breadth and depth of inventory, frequent delivery and value-added services to tire and automotive service customers.”
Their selection as one of Forbes’ 2021 America's Best Mid-Sized Employers and the reception of a Gold Stevie® Award in the Transportation Company of the Year category of the American Business Awards® provides testimony to their high level of service and success as a company.
An Innovative Model
According to Michael, inflation is “five times more difficult for small businesses.
As the first half of 2022 comes to a close, procurement faces the reality of inflation and what that means for their supply chains. We have a host of resources, insights and events to get you prepared.
May CPO & Executive Virtual Series
SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On May 4 Brian Roche, CPO from Westfield Insurance, will deliver an exciting keynote session on the potential for AI in procurement at the May CPO & Executive Virtual Series. He will be followed by Karen Coker, Director of Third Party Risk & Vendor Management at LendingPoint for A Day in the Life presentation.
Join us for this executive-level conversation with actionable takeaways!
On May 18, Canda Rozier CIAP, Sourcing Executive & former CPO, will share her digitization journey as a CPO. That session will be followed by Daryl Hammett, Global Head of Demand and Operations at Amazon Web Services (AWS), who will lead an exciting deep-dive discussion on the importance of professional development in sourcing.
Join your sourcing, procurement, and risk management colleagues in this two-hour interactive virtual environment to be challenged with topics related to our industries!
Let's start with a bit of a history lesson. Have you heard of Robert Rudzki?
As the co-author of the 2005 book Straight to the Bottom Line®: An Executive's Roadmap to World Class Supply Management, Rudzki knows a thing or two about the subject matter about which he confidently writes. Between 1977 and 2005 – 28 years, he was SVP and CPO for notable brands Bayer Corp. and Bethlehem Steel Corp. Be sure to note his dual finance and procurement role.
Based on his expertise – which includes an MBA in Finance from the world’s oldest and most prestigious business school, Rudzki identified the five critical finance terms every purchaser should know. In short, his bridge between finance and procurement was to have the latter refocus on areas such as ROIC, Cost of Capital, and P/E Ratio.
His reasoning was supported by a 2006 article that asserted, “Too often, finance executives in Corporate America simply don’t believe that purchasing departments are really bringing in the savings they claim" because “financing and purchasing don’t speak the same language.”
This linguistic disconnect was further emphasized in a 2007 news report indicating the following:
Less than 20% of CFOs consider the work of CPOs and their staffs as having a very positive impact on competitiveness.
Additional insights from an excerpt of the research paper referenced in the same news report also indicate that:
Mary Zampino, Vice President – Content, Research & Analytics
One of the significant advantages of the Sourcing Industry Group (SIG) is that members have unparalleled access to industry insights and expertise through our vast and diverse community of practitioners and thought leaders.
Recently we conducted interviews with two senior procurement executives regarding their innovatively practical approach to dealing with inflation and its impact on supply chains.
In the first instance, we talked with Tony Abate - Senior Vice President & Global Chief Procurement Officer at Cigna Express Scripts.
When Cigna closed its $67 billion acquisition of Express Scripts in December 2018 to become what the media called a “$140 billion revenue healthcare colossus,” Tony’s responsibilities expanded considerably.
Responsible for “transforming and integrating two procurement departments into a global, world-class international team, he is accountable for the CIGNA taxonomy research, analysis, and development, including identifying 8000 suppliers with an annual spend of $4.5 billion.
Our second executive is Michael Koontz. Michael is the VP Strategic Sourcing & Business Leader for ATD Sourcing Solutions, whose unique approach to battling inflation we will discuss in a follow-up post.
Creeping Into Supply Chains
Shortly before his interview with SIG, Tony gave a speech to 1500 employees at Cigna on inflation and its impact on supply chains.
 (1).png?quS24NA3sdWwiwHAf_2GR7g4O0vMwm_q= "This Month at SIG – August 2022")
 (1).png?6AGd__rEHabSW77RqfhxN_Qqu2WI7PKK= "This Month at SIG – July 2022")
 (1).png?Mb0gZm18lvgV4rL_d58VbxrPE_kjIt54= "The Magical CPO")
 (1).png?_NmAoYHYa_WR4_jEz7LLoAoUIOvt_IHf= "This Month at SIG – June 2022")
 (1).png?vWEDpN6_l51Qid4r4nfYuoQQvL5YHLyY= "Dealing With Inflation And The Disrupted Supply Chain")
 (1).png?VxPJPxGINJqziAvOoYJga6nIYrr3WpR6= "Using A GPO Model To Fight Inflation")
 (1).png?yBOyCwHxLxPD4ZJGukUXMwtwF5wchs7J= "This Month at SIG – May2021")
 (1).png?gNthXMJckdVju5FHi6RMF8_NBCmMHUfZ= "How Procurement Has Bridged The Gap With Finance")
 (1).png?TGtb94WHdt3D180gFqgho__JdArxiZs_= "Two Senior Procurement Executives Weigh In On The Best Way To Deal With Inflation")
This Month at SIG – September 2022
As procurement leaders continue to navigate varying crises of 2022, we have a host of events and resources on deck to keep your team at the forefront of best practices!
Global Executive Summit
Prepare yourself and your team for the future of sourcing at the SIG PGlobal Executive Summit October 17-19, 2022!
Get ready for amazing keynote sessions, a chance to engage and learn from the brightest industry experts, speed networking, and experience live solution deep-dives from best-in-class providers. Registration is open now!
Western Regional SIGnature Event
SIG's Western Regional SIGnature event is almost here! The event will take place in Bellevue, WA and includes a fantastic agenda with some of the best thought leaders in the industry. The day will include an Executive Roundtable, General Session Speakers (offering training and practical, implementable tools), CPO Presentations, Analyst Overviews, SIG Talks and close with a networking happy hour.
Join us for this great day of networking and learning!