10x Impact: Revolutionizing the Role of Procurement

10x Impact: Revolutionizing the Role of Procurement

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In this episode of the Auto Supply Chain Prophets Podcast, we interviewed Phil Ideson, Managing Director of the Art of Procurement, who is on a mission to revolutionize (10X) the impact of procurement in organizations. Phil emphasizes the need for procurement professionals to think outside the box and reimagine their roles to achieve greater influence and value. He highlights the importance of strategic partnerships with suppliers, especially in the automotive industry, where tight margins and disruptions in the supply chain are common challenges. 

The conversation then focuses on the automotive supply chain, where Phil points out that procurement's role is vital due to the industry's high dependence on cost-efficient components. He highlights that automotive procurement is often measured solely based on cost savings, which neglects other critical aspects like supplier quality, performance, and innovation. 

In a bid to shift procurement from a transactional to a strategic function, Phil advises building empathy with stakeholders and focusing on their needs, rather than solely on individual metrics. Join us in this episode of the Auto Supply Chain Prophets as Phil Ideson also shares his insights from the telecom industry, where strategic procurement partnerships are prevalent, offering guidance to the automotive audience in fostering similar practices.

Themes discussed in this episode:

  • Transforming procurement's impact in organizations
  • Redefining the roles of procurement professionals 
  • Strategic supplier partnerships
  • Securing supplies during Covid-19
  • Cost savings vs. supplier quality and innovation
  • Automotive procurement’s value
  • The importance of building lasting relationships with suppliers
  • How to foster strategic procurement partnerships in the automotive sector

Featured on this episode: 

Name: Phil Ideson

Title: Founder & Managing Director, The Art of Procurement  a company on a mission to 10x the impact of procurement. It promotes the value of procurement within the organization, actively engaging colleagues in the business by offering access to case studies, resources, insights, thought leaders, tools, and technologies that empower confident change. 

About: With over two decades of experience, Phil has successfully developed, transformed, and led procurement teams, generating significant value for stakeholders through cost optimization, innovation, employee retention, and risk mitigation across Direct and Indirect procurement. He has served as a practitioner, consultant, change agent, and Head of Procurement. 

Phil hosts the #1 procurement podcast in the world - The Art of Procurement Podcast

Connect: Linkedin

Episode Highlights:

[01:35] Redefining Procurement's Impact. Phil Ideson's mission is to "10x the impact of procurement" by challenging traditional views and encouraging creative thinking in redefining procurement roles. He highlights the significance of procurement in the automotive industry's supply chain, given its tight margins and cost management challenges.

[05:36] The Importance of Customer Satisfaction in Procurement.  In the automotive supply chain, the discussion revolves around the crucial focus on quality and on-time delivery. Phil emphasizes that timely delivery plays a key role in ensuring customer satisfaction, and he urges procurement professionals to acknowledge and prioritize this vital aspect in their work.

[07:37] Procurement's Role during Disruptions. During the conversation, the focus shifts to the disruptions faced in supply chains during the COVID-19 pandemic. Phil highlights how procurement played a critical role in securing essential supplies and maintaining business continuity, gaining well-deserved recognition in the process. He motivates procurement professionals to continue demonstrating their value beyond just cost management to retain this elevated position within organizations

[10:14] Breaking the Status Quo. They explore the idea of procurement becoming a strategic partner for both the business and suppliers. Phil underlines the importance of showcasing the value that can be derived from nurturing strategic supplier relationships, emphasizing that solely focusing on cost savings can have negative consequences. By shifting the perception of procurement and encouraging a broader perspective, organizations can unlock new opportunities for growth and success.

[11:32] Innovating in the EV and Autonomous Vehicle Era. Phil discussed how procurement plays a crucial role in driving innovation, especially in the evolving landscape of electric vehicles (EVs) and autonomous vehicles. He points out that the supply market holds vast potential for research and development (R&D) and urges procurement professionals to act as facilitators in accessing this potential. By fostering collaboration between suppliers and the company, procurement can stimulate innovation and help stay at the forefront of technological advancements in the automotive industry.

[12:09] Exemplary Strategic Partnership in Procurement. Phil concluded by mentioning the telecom industry, particularly companies like BT, Vodafone, and MTN, as excellent examples of strategic procurement partnerships. He encourages other sectors, including automotive, to learn from their approach and adopt a more strategic outlook for procurement success. 

[23:11] The one thing. Phil highlights that the biggest challenge faced by CPOs is the digital literacy of their teams. He emphasizes the importance of fostering curiosity, interest, openness, and literacy in technology to leverage its advantages. He stresses the need for procurement teams to be supported in their journey towards digital literacy to ensure effective utilization of technology investments and avoid issues arising from lack of adaptability or implementation knowledge.

Top Quotes:

[04:38] Phil: “The rest of the organization suddenly saw procurement in a different light in how they can actually support the business and it wasn't just about cost savings. In fact, right now, it's probably more about cost increase mitigations as opposed to cost savings, but we could play a really leading role in availability of supply.”

[05:41] Cathy: “We can't live in the status quo anymore, especially with how rapidly things are changing.”

[11:32] Phil:  "When you're looking at EV and autonomous vehicles, the number one role that procurement can play is around innovation.”


Delivering on the Promise of Delivery: Automotive Sustainability and Profitability

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White Paper for Leveraging Risk Management in Automotive

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Operational Restart Readiness

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The 24 Essential Supply Chain

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Keep in touch with Auto Supply Chain Prophet's co-hosts Terry Onica and Jan Griffiths on LinkedIn.


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