Success, eSourcing and Cips

March 26th, 2006 at 11:27pm Sean Delaney - Iasta UK

A book called A Whole New Mind written by Daniel Pink and published last autumn argues that in order to be successful in the 21st century we need to develop “soft” skills which are prevalent with the right hand side of the brain. It outlines that traditional knowledge based professions which use the left hand side of the brain, like Banking, Law, management and engineering are likely to go the way of Blue Collar jobs. The internet is the common factor as we all have access to the same level of information and thus this knowledge now becomes a commodity.

How does this relate to esourcing I hear you ask? Well esourcing is a rapidly developing area and much of what is discussed in the book is happening in this space now. Take bid optimisation as an example, a new development that automates the analytical decision award process! Another example is Contract Management as it becomes more sophisticated there will be a less requirement for lawyers - Yippee I hear you say! (Maybe they can start to automate the conveyance process and reduce the cost of moving house - now there’s an idea)

I would like to avoid the over used term of Strategic Purchasing but those of us that are more creative will do well utilising the esourcing tools, spending our time on creative solutions rather than on the process.

This led me to think about how our future Procurement Professionals will be prepared for the task that lies ahead? Who else to refer to but the Chartered Institute of Purchasing (CIPS) so I approached the website expecting the worst and well…..I got it. I read through their courses and it concentrated on process, contracts, supply chain etc. I searched for auctions and got good links to local events where auctions had been discussed - saving 20% etc etc. But nothing on eRFX, Contract Management Systems, Bid Optimisation or even auctions.

I even picked up a leaflet on the “Introduction to eAuctions” where in point 3.2.2.1 it says that the customer is focused on price alone. In point 7.1 it gives examples of suitable eAuctions which to be frank were more relevant 6 years ago.

In the spirit of creative thinking let me propose an eSourcing module for CIPS or even a whole course for our Future purchasing professionals:

i. eRFX – Think creatively and propose how you would use your eRFX suite to tackle all your spend areas.
ii. Reverse Auctions & Closed Bids - Propose how you would create a strategy for each area of spend. When would you propose to use a reverse auction? What further tactics would you employ i.e. rank only etc. When would you use a closed bid?
iii. Bid Optimisation - how does it work? Propose an area where it would be suitable. How might this change the approach of purchasing department?
iv. Contract Management – How does it work? How can I utilize the benefits?
v. 21st Century Procurement Organisational Structures – Discuss……

The 21st Century certainly offers us challenges but with these challenges comes opportunities. Esourcing is becoming main stream, freeing our working day from laborious processes. Those who embrace this change will quite rightly as Daniel Pink suggests do very well in the 21st Century.

Entry Filed under: Contract Management, General, Optimization, Reverse Auctions, Supply Management Best Practices, Technology, e-RFx

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