Monthly Archives: September 2025

Simplifying the Procurement One Pager – Procurement Techie Translation!

In our last post we noted that the purpose of Procurement, which is at least the world’s fourth oldest profession, hasn’t changed since the first handbook was written 138 years ago (even though the world has changed), is not hard to figure out or explain, and can be put forward with an explanation so simple that even a hillbilly building a moonshine empire could completely understand it.

We published this because we want to cut the trend of the Procurement One Pager off before every consultant AND influencer does their own version, with their own jargon and KPIs up and down the ying-yang, that isn’t going to help anyone when plain language will suffice for getting someone started and at least 80% of the way to best-practice, if not best-in-class.

To demonstrate this, we are going to translate our hillbilly one-pager into techie and procurement speak so you can see we got it right.

Purpose:

Git ‘R Done!: Support the Organization In What They Need When They Need It

Objectives:

  1. Pinch Those Pennies: Avoid Unnecessary Costs
  2. Don’t Run Out: Supply Assurance
  3. Don’t Be Evil: Sustainability and Human Rights
  4. Stay Classy: Quality, Corporate Social Responsibility, and Supplier Development

Initiatives:

  1. Follow the Money!: Spend Analysis and Category Management
  2. Get Haggling!: Strategic (e-)Sourcing and Contract (Re)Negotiation
  3. Hunt Those Rascally Coons!: Process Analysis, Stockout Analysis, Disruption Analysis, etc.
  4. Regular Barn Dances & Hoedowns: Customer Feedback and Workshops, Supplier Development and Innovation, etc.

KPIs:

  1. Pennies Counted: Spend Under Management
  2. Pennies Saved: Savings and Cost Avoidance
  3. Raucous Reductions: Stockout Reduction, Disruption Reduction, Sourcing Time Reduction, Invoice Processing Time Reduction, Straight Through Invoice Processing, etc.
  4. Supplier Improvement: Defect Reduction, On Time Delivery Improvement, Year-Over-Year Cost Reductions, etc.

Getting to Work

Penny Pinching:

  1. Spend Analysis
  2. Market Intelligence
  3. Category Management
  4. Strategic Sourcing and Procurement
  5. Contract Negotiation Management

No Running Out:

  1. Inventory Planning and Management
  2. Contract Execution
  3. Procurement Automation
  4. Supply Chain Visibility
  5. Risk Monitoring

Not Being Evil:

  1. GHG Carbon Management
  2. Energy and Water Sustainability
  3. Recycling and Waste Minimization
  4. Equality and Equity in your Company and Supply Chain
  5. Human Rights and Worker Wellfare Assurances
  6. No Pollution, including Noise Pollution

Staying Classy:

  1. Quality and Safety Focus
  2. Constant Push to Improve Performance
  3. No-Profit Supplier Development and Customer Workshops
  4. Charitable Donations and Community Building

Simplifying the Procurement One Pager!

Let’s cut this trend off before every consultant AND influencer does their own version, with jargon and KPIs up and down the ying-yang (which you definitely need for system selection, which is something we will discuss in series to come, and partially need to appease management, but need very few of to actually do your job).

Since the purpose of Procurement, as one of the world’s oldest professions (and while a specific instance of sales is claimed to be the world’s oldest profession, which would make Procurement the second oldest, this overlooks the fact that all early societies had astrologers and religious leaders often before they bought and sold, which means it might only be the world’s fourth oldest profession), hasn’t really changed since it started thousands of years ago, and definitely hasn’t changed since the first handbook was written 138 years ago (even though the world has changed), it’s really not that hard to figure out or explain.

To drive this point home, we’re going to capture the core in an explanation so simple that even a hillbilly building a moonshine empire could completely understand it.

Purpose:

Git ‘R Done!

Objectives:

  1. Pinch Those Pennies
  2. Don’t Run Out
  3. Don’t Be Evil!
  4. Stay Classy

Initiatives:

  1. Follow the Money!
  2. Get Haggling!
  3. Go Hunting for those Rascally Coons! (that mess with the systems)
  4. Regular Barn Dances and Hoedowns

KPIs:

  1. Pennies Counted
  2. Pennies Saved
  3. Raucous Reductions
    (because a smooth still is a productive and profitable still)
  4. Supplier Improvement

Getting to Work

Penny Pinching:

  1. Sum the Pennies by Supplier-Product and Supplier-Service Pairing
  2. Eliminate those pairings where there is a contract
  3. Ask Cletus, Earl, Sadie, and Mabel how much they are paying
  4. Eliminate those pairings where you are paying what everyone else is (or less)
  5. Order what’s left from biggest to smallest and get haggling
    1. Get Cletus, Earl, Sadie, and Mabel to share their information at the next trailer park BBQ
    2. Call up the vendors and get those quotes
    3. Set up a few cookouts and meet with the best suppliers
    4. Shake on the best deal

Not Running Out:

  1. Track the inventory utilization by day
  2. Use the curve to plan what you need when
  3. Based on the suppliers lead time, Joe’s delivery time, your order costs, and your supplier’s production costs, figure out the right order size and frequency and plan your orders

Not Being Evil:

  1. Make sure you ain’t wastin’ any water (it’s precious and you need it for your stills)
  2. Make sure you ain’t wastin’ any energy (you need that wood for your barn and that coal for your BBQ)
  3. Make sure everyone is treated the way you treat your trailer park crew
  4. Think about your neighbors (and keep the noise down)

Staying Classy:

  1. Regularly test your product for quality, safety, and performance
  2. Regularly invite your customers to hoedowns to get their feedback and suppliers to barn dances to help them develop their buck dancing, flat footing, clogging, and square-dancing
  3. Give generously to the orphan’s fund and the alligator preserves

It’s stupid simple to get started on good Procurement. Don’t over-complicate it!

Dear Procurement, Your AI ProcureTech Vendor Is Out To Eliminate You!

Here’s the dirty little secret they aren’t telling you. They aren’t building “AI Employees” (which aren’t real, by the way) because they want to give you a better, more complete, team which is able to work 24/7 and constantly process data, run analysis, respond to supplier inquiries, and have fresh insights in your inbox in the morning.

They are building “AI Employees” to replace you! Here’s why:

1. You Are The Hardest Sell!

A. You are the hardest negotiator! It’s what you do for a living.
B. You do your homework! It’s hard for them to bluff that no one else does this or we’re giving you a great deal when you’ve done your research and know 3 other vendors have similar capability, you know the quoted pricing from all their competitors, and you’ve talked to your association members and know what they are paying for the vendor’s solution.
C. You’re smart, and you know it. The LMFAO sales tactics CXO ego-stroking doesn’t work on you, and you question everything that sounds too good to be true. You’re one of the few holdouts preventing the ChatGPT-dystopia that would atrophy your cognitive abilities to the point you’d fall for their half-truths and beg for their system (which takes us one more step towards their dark city vision of the future).

2. IT Tries to Kill All Your Selections

You’re the biggest threat to IT’s total corporate dominance on system selection and management. In most organizations, every other department falls in line and eventually uses IT’s recommendations (allowing them to stay with preferred platforms or vendors that give IT the best software and hardware toys for free), but you question everything. You don’t swallow the one-vendor / one-ecosystem BS, the big volume discount BS, or the we-can’t-support-more-SaaS BS because you know Open APIs allow for ecosystem integration, that it’s not volume discount but ROI, and that, other then providing the API keys to the systems that the SaaS you selected has to integrate with, there’s no ongoing support requirements for IT. As a result, IT goes hard against your picks and tries to turn the C-Suite against you, complicating and delaying the deal process (and the longer it takes to sell, the greater the [opportunity] cost of the sale, and the less deals they can close in a year. Remember, to them, it’s not about the delivery, it’s about the close).

3. Your Budget is Baseline

In most organizations, Procurement is not sexy and is still seen as the biggest cost center (because too many executives believe profit is entirely dependent on revenue when anyone who can do basic math should realize that if P=R-E, then keeping expenses down can also be very profitable, and if the cost of goods sold is 90% of R, i.e. R – E = 0.1R, then it would take 9 times the sales to have the same impact on profit as reducing costs by 10%). As a result, your budget is baseline and there’s no wiggle room there, limiting their profit margins if they sell to you. On the flip side, they see other big enterprise tech companies making 80%+ margins for tech-cr@p they haven’t updated in years and the tech-bros raising millions, or billions, for AI with nothing more than ethereal claims of future capability, and they want a piece of the action.

But how do they get that action? Well, build something you can sell to the two biggest budget owners in the corporation: the CEO and the CXO, both of whom have been marketed to 24×7 for the past 3+ years by the A.S.S.H.O.L.E. and have now been completely brainwashed into believing that AI is going to totally transform their businesses while allowing them to lay off 80% of their cost-center resources (which, in their view, includes you!).

They’re only marketing to you to sneak in through the back-door, get your blessing, and then when you help them get in front of the CFO and CEO, off comes the grandma disguise to reveal the big bad wolf that lies beneath — a wolf intent on eliminating your job and your entire department so they can get 1/3 of the overall Procurement budget for their custom AI employees that will do all the costly functions you do, do them 24/7, and increase savings by increasing spend under management because they can strategically source, quick-quote, or auction everything you need to buy. (Even though this is an extremely bad idea. If you don’t know why, read our article on why real Procurement Leaders Listen To Roxette!)

In other words, if someone reaches out to you offering you an AI Employee, slam that door in their face as fast as you can while screaming at them to never show their face again! Because, if you don’t, you might just end up unemployed on the street corner screaming about how AI is ending the world, because we already know the inevitable that will happen once companies start relying on technology that hallucinates, (purposely) lies, fails at math, commits fraud, compromises your code, proliferates extremist views, blackmails you, maintains hit-lists, encourages suicide, lets you die to save itself, contemplates murder, and makes you dependent to the point of psychosis (so if got a headache, don’t take an aspirin or query an LLM). [Hint: it’s not good. There’s a reason I’m not yelling loud enough even though I’m already screaming at the top of my lungs.]

There’s No Such Thing as a Data Scientist!

Last month, Koray Köse wrote a great must-read post on why data scientists and orchestration officers are part of today’s silicon snake oil sales people and not qualified to solve your supply chain problems (my less-than-eloquent rephrasing of his words).

He was totally right in his rant, but I’m going to go one step further. There is no such thing as a “Data Scientist”. You can’t do “Science” on “Data” you don’t understand. You just can’t.

I don’t care how many mathematical models, statistical techniques, or “AI” toolsets you think you know (see my previous rants there), that doesn’t make you a “data” scientist — that makes you a mathematician, statistician, or new age script kiddie. (No better than the cut-and-paste script kiddies that hit the scene on mass before the dot-com crash, if you are old enough to remember it!)

I say this as someone who would best qualify if there was such a thing — PhD in CS with a thesis in multi-dimensional data structures and computational geometry, industry expertise in (Strategic Sourcing Decision) Optimization modelling (in high dimensions), spend analytics, etc. etc. etc. I was doing “big data” (more BS — we’ve always had more data than we could fit in memory on the machine resources we had available) before that was a term too.

Koray is also dead on with respect to PhDs. Even 26 years ago, you did a PhD to prove you could (or to stay in academia), not because it added anything of practicality beyond what you’d learn in a Masters.

However, I have to fact check him on the 50% to 70% supply chain tech project failure, since the latest Bain study puts the tech project failure rate in general at 88% and most of the partial to full failure is with the big players and Big X implementers (which is the majority of supply chain projects). The rate is higher (unless he’s talking full failure).

I am also going to remind him that this problem resonates through Procurement as well, so please don’t found just another ProcureTech company either. There are well over 700 now (see the mega map, and probably closer to 800 now) and we don’t need 100 “solutions” for the same problem that are almost the same. Get across-the-board experience, or at least spend years working with experts that have it, when developing your solutions if you are coming from a pure tech background.