Procurement Xmas Wish #3
It is not just the purchase price or the right delivery that matters. The Procurement Manager who loses grip of his wand loses – those are the words of the real Procurement Manager Wizard. Read if you want to know more.
Why Procurement Managers need to practice magic?
Today, companies are handling complex needs and the procurement processes could take few weeks or even few months. This is very costly for all organizations, Muggle Business Community and You-Know-Who (Suppliers). Procurement Manager Wizards are using their magical ability to handle urgent and multiple tasks, to deliver more quality work, to collect information, analyse spend, predict the future, negotiate and engage You-Know-Who effectively. A regular PM is just not accustomed to use appropriate methods and tools. The magical procurement journey that a PM Wizard goes through provides him with wisdom and endurance.
If Procurement Managers possess magical skills, why are they always so busy, running here and there? Why are they not making all problems in procurement disappear?
Despite being an inherent talent, magic is honed through study of various branches of magic and practical training into a skill.*
PM has to go through many examinations on his way to Mastery. He’s exposed to different levels of problems. Some of them could be easily resolved by solving them. Some others, however, should be resized, reframed or their relevance should be reduced. Sometimes, yes, the problems just secretly disappear. It means that PM constantly has to challenge and push himself to learn how to use the right magic in the right situation. These skills can only be developed if they are done through work experience. This is why PM Wizard is not always looking for shortcuts (“You just need to send the Purchase Order”) but he’s in constant pursuit of big ambitious goals.
How could magical abilities help Procurement Managers to improve the way they use data?
PM Wizards are using extremely large volume of structured and unstructured data, called Big Data, which are difficult to process using traditional techniques. Data should be collected from internal (wizarding) and external (Muggle and You-Know-Who) world. To really understand it, it’s useful to have updated information and compare it to some historical background. To implement strategic sourcing, PM Wizards shall develop mighty analytical skills to gather useful data, understand it, structure it, analyse it, focus on relevant information and transform it into concise and understandable message. Muggles like stories and colours so PM Wizards are using the magic powder in presentations – they show the graphs, trends and they forecast the future. This helps Muggles to make the right decisions.
Why PM wizards are not using more often advanced technologies to communicate, collect data and analyse it?
Some aspects of the wizarding world are depicted as being less-than-modern in comparison to the Muggle world, sometimes even old-fashioned or quaint. The technological development of the Wizarding World is substantially behind that of its Muggle counterpart. The Wizarding world has also not embraced modern Muggle modes of information collection and transfer.*
Many Muggle Business Communities are using CRM tools, but they have never heard of Procurement’s SRM neither are aware of e-procurement benefits. Therefore many PM Wizards are still communicating with others via e-mails, documents and Muggles’ ERP systems which often don’t support strategic procurement process. Hence, PM Wizards need additional tools. Usually they are still using available, but less efficient Excel and create Pivot Tables. If the master data is not properly maintained, PM Wizard first needs some time to clean it. Even with magic cleaning cloths, cleaning will take few hours or days. PM Wizards on higher level of Mastery are using modern magical tools, like intuitive SaaS solutions which are based in Magical Clouds. These solutions are storing all documents in endless folders and allow PM Wizards, Muggles and You-Know-Who to exchange information and approach them remotely, from different locations and gadgets.
How can we know which Procurement Manager is a Wizard?
A great deal of effort is expended in keeping the Muggles unaware of magic. Originally the two worlds co-existed; however, persecution of those with magic meant magical laws have been put in place over the centuries, designed to keep the existence of the magical world hidden from Muggles.*
Although Procurement is included in many projects and activities, Muggles mainly don’t understand what PM is actually doing and how he’s contributing to the Muggle Business Community. Of course, it’s clear that if PM doesn’t do whatever-he’s-doing, no goods or services will be delivered, there could be delays in production and they risk very tangible losses. PM Wizards have particular talent for finding pragmatic solutions, which manifests itself in everyday situations, like automation and optimization of procurement process or work on eight requests simultaneously. PM Wizards are also gifted for running strategic and high value requests which are requiring Digital and Analytical Tools, Big Eye for small details and other qualitative methods. They have the unusual ability to speakthe language and manage the needs of Muggle End Users and understand complex relationships between the company and You-Know-Who. Those on higher level of Mastery are able to confront artificial intelligence, virtual assistants, chatbots and robots and put them at the service of Muggles. Real PM Wizards don’t settle into mediocrity and they always choose the higher, more difficult road.
Notice: enchantment of Muggle artefacts is forbidden; under-age wizards are restricted from using magic outside school, and any deliberate revelation of magical ability to the Muggle community is punishable. However, allowances are made for the use of magic in the presence of a Muggle in case of a life-threatening situation (for the wizard or the Muggle).*
Which magical e-tools are available to Procurement Manager Wizards?
Several magical e-procurement tools are available to the Procurement wizarding world.
By far the most popular wizards’ method of creating, distributing and evaluating tenders is via e-Tender tool. E-tenders are used to improve the efficiency of the tendering process and make it easier for both, Muggle Business Community and You-Know-Who. This tool enables evaluation on specific criteria and can be completely automated. The magic dust enables the exchange and management of information, even adding all of the necessary specifications, drawings, terms and conditions and other attachments, without the need to create and manage paper documents. The Workflow functionality of the e-tenders increases visibility and traceability. This functionality can be used to route the documents to Budget Owners, Legal, Finance or other Muggle functions involved in the Approval workflow.
Not only e-tenders can be used. PM Wizards are making use of mysterious e-Auctions on many occasions. How e-auctions are actually functioning will stay a mystery to the Muggles. In some circumstances, e-auctions are very complicated and they are using many secret public and private keys. The Ministry of Magic uses special protocols and Blockchain technology to keep the sensitive information encrypted until they can be published. E-auctions can be monitored and even interrupted. There are several types of e-auctions and PM Wizard has to decide which one is the most appropriate for specific situation.
PM Wizards are more and more focusing on relationship with You-Know-Who, because their impact on Muggle Business Community is huge. Supplier Management tool is helping PM Wizards to keep track of POs, documents and other information about You-Know-Who in one place. PM Wizards are also maintaining regular communication with You-Know-Who, keeping them informed about the processes, plans and making them a part of the Muggle Business. If Muggles are not buying according to the agreements, from approved and contracted You-Know-Who, this means maverick spend, missing data and difficulties in evaluating whether Muggle Business Community receives the right service.
Accurate data in Contract management tool is allowing PM Wizards to monitor how their strategy is implementing within Muggle Business Community. They can easily identify maverick spend and take measures to reduce it. Therefore PM Wizards on higher level of Mastery are getting Muggles on board to evaluate together You-Know-Who’s performance and select those who are reliable, trusted partners.
Because that’s what matters, isn’t it?
I wish you to manage your data effectively and keep your You-Know-Who close. A strong relationship with reliable Suppliers helps Muggle Business to grow.
Alohomora and keep on working on your #ProcurementXmasWish List!
* source: any similarity with Wikipedia is purely intentional.