Training a Procurement Team

Special thanks to Charles Dominick, SPSM3 of the Next Level Purchasing Association for this guest post.

In the previous post of this series, I covered how to determine the competencies in which each of your procurement team members should be trained. Today, I will cover the options for procurement training.

Specifically, I’ll cover the advantages and disadvantages of these five options:

  1. Internal Training
  2. On-Site Seminars
  3. Conferences
  4. Online Courses
  5. Certification Programs

Let’s begin …

Internal Training

Internal procurement training is when seasoned members of a procurement team provide classroom-style instruction to less senior members of the team.

Advantages: The main advantage of an internal training approach is that the training can be customized to be laser-focused on the issues specific to the organization. Also, no travel is required, making internal training convenient and low cost.

Disadvantages: There are many disadvantages to internal training. First, just because someone is a good procurement professional doesn’t mean they will be a good trainer. They are two separate professions. And it can be painful to listen to a less-than-expert public speaker drone on for hours at a time. Second, a valuable outcome of training is being exposed to new ideas that can be adapted to the organization. Internal training does not provide for such new ideas. Third, preparing a training event is more time consuming than many non-trainers think. When a procurement professional is spending hours upon hours preparing for training, they are not doing what they were hired to do: deliver value through excellent procurement performance. Fourth, taking an entire procurement team away from its regular duties to sit together at the same time in a classroom could lead to delays or disruptions in business operations.

On-Site Seminars

Holding on-site seminars involves hiring a trainer to deliver live training right at the facility where the procurement team works.

Advantages: Like internal training, on-site seminars do not require the staff to travel, offering convenience. But, unlike internal training, on-site seminars are conducted by expert trainers, which makes a high quality training experience much more likely.

Disadvantages: Like internal training, taking an entire procurement team away from its regular duties to sit together at the same time in a classroom could lead to delays or disruptions in business operations. Also, not all on-site trainers are available for questions after their time on-site is over. Finally, if you want the best trainer in the country or world — not just the best local trainer — it can be expensive as you will have to pay the speaker’s fee and his/her travel expenses.

Conferences

Conferences bring together procurement professionals from multiple organizations and multiple geographies, exposing them to a wide variety of educational sessions and providing them with networking opportunities.

Advantages: Attending conferences is a great way to be exposed to a wide variety of new ideas in a very compressed period of time. The opportunity to network with ambitious procurement peers is a benefit that is arguably just as important as the education.

Disadvantages: Sometimes, conferences have such a variety of topics presented that you don’t get as deep an education in one topic as you’d like. Also, having to be out of the office for two, three or more days is difficult for some procurement professionals.

Online Courses

Online courses provide procurement professionals with on-demand access to educational content. Learners access these courses via computers or mobile devices.

Advantages: This option removes the geographic and time-related barriers to learning from the best procurement training organizations. Procurement professionals can participate on their own and progress at their own pace. Questions can be asked at the time answers are needed most — when learned techniques are being implemented. The education can be consumed in small increments, serving as less of a distraction from normal business activities.

Disadvantages: Unlike conferences, where face-to-face networking is a top benefit, the benefits of online courses are more education-related.

Certification Programs

Certification programs take education to the next level by awarding a credential after the successful completion of training and testing.

Advantages: While many procurement leaders struggle to figure out the best topics on which their teams should be trained, certification programs are based on years of already determining that, providing a turnkey plan for procurement staff education. By successfully completing a certification program, a procurement professional will be awarded the privilege of using a credential — like SPSM — after his or her name. Credentials help procurement professionals prove their value and generate respect among peers, management, internal customers and suppliers.

Disadvantages: The best certification programs are designed to confirm that the best and brightest procurement professionals are, well, the best and the brightest. That means they may be too challenging for lesser performers.

As you can see, procurement professionals have a lot of options for training. The good news is that all of these options have merit. Any time that there are a lot of options, there is a chance of being overwhelmed and getting wrapped up in “paralysis by analysis.” My advice is to choose at least one option every year. Because when it comes to activities designed to increase your procurement knowledge, doing something is always better than doing nothing.

TAMR – Trying to Tame the Data Deluge!

TAMR may be a relatively new entrant in the stand-alone best-of-breed spend analysis space, having been incorporated back in 2013, but — and this is largely due to the pedigree and experience of its founders and senior team — it’s AI-backed probabilistic machine learning engine is on par with any player out there and it’s spend analytics success at some of the Fortune 500 players that have adopted it is on par with companies that have been doing spend analysis for over a decade.

And while, at first glance, TAMR appears to play in a large spend analytics space, when you zero in, you find that the vast majority of players offering spend analytics are (sourcing) suite providers and ERPs, with few companies focussed only on spend analysis or broader analytics. In fact, upon review of 25 major players, only Analytics 8 Spend View, Rosslyn Analytics, Sieveo, Spend 360, and SpendHQ remain in the stand-alone best-of-breed spend analytics space. Moreover, when you look at larger analytics focussed enterprises with spend analysis offerings, only Opera Solutions and PRGX stand out as most of the suite providers are still offering last generation or acquired solutions.

And even though there are only a few standalone providers and a few suite providers that stand out, TAMR, whose customers are primarily large Fortune 500 / Global 3000 customers, is in a class almost its own. Many of the standalone providers left are focussed on the mid-market and many of the leading analytics companies, like PRGX that focusses on audit recovery, specialize in other areas of analysis. At the end of the day, only Opera addresses the full range of analytics that TAMR does.

TAMR is relatively unique because, with TAMR, you can start with spend analysis and then deploy the same platform throughout the enterprise and marry marketing and social media impact analytics with spend to analyze results and outcomes per dollar of spend on a campaign basis, collect NPD and innovation challenge data and measure the outcomes from that spend on a fine-grained level, and compare investment opportunities against spend reduction opportunities and see which has the better outcome for the enterprise long term.

Like Opera, TAMR is built around advanced probabilistic machine learning algorithms that can work on any kind of data and can identify probably related and duplicate data in any domain. When human experts label a small subset of data elements, related data elements, and duplicate data elements, the algorithms can quickly adapt to the data sets and classification can occur quickly and accurately.

With regards to spend analysis, TAMR has built out a complete interface to their platform in Tableau that allows an analyst to see what has been classified, drill down, and see confidences in addition to standard supplier groupings, spend by category, spend by supplier, etc. The demo drill-down reporting suite is already more extensive than the standard offering from most of the pure-play spend analysis players and the alternate view into mappings and confidences will be more familiar to Tableau users than TAMR‘s built-in UI.

For a deeper dive into the strengths and weaknesses of this new analytics platform, check out the deep dive by the doctor, the prophet, and the maverick over on Spend Matters Pro (Part I).

A Sad Day in Journalistic History.

Thirty Five years ago today The Washington Star, which had been published daily since 1852, which had been for most of it’s run had been Washington, DC’s newspaper of record, and whose columnist had racked up ten Pulitzer prizes over its lifetime, ceased publication and filed for bankruptcy.

Considering that there are only 17 newspapers in the US that have run for over 200 years, if it had still been around today, it is likely that it would soon be a contender for the twenty-five longest running papers in the US. That being said, 128 years was a long time, and it was sad to see such a major publication fold, especially before the dawn of the internet.

You see, even though LOLCat can’t live without the web …

Happy 25th, WWW!

That’s right. Twenty Five years ago today, Sir Timothy John Berners-Lee, released files describing his idea for the World Wide Web on the newsgroup alt.hypertext. and the WWW debuted as a publicly available service on the internet.

What do you think of this LOLCat?

One Hundred and Forty Years Ago Today …

Thomas Edison received a patent for the Mimeograph, one of the first low-cost duplicating machines that was commonly used to print small quantities in office work, classrooms, and even churches. It was essentially the predecessor to the modern photocopier and allowed for widespread distribution of information and communication. While primitive by today’s standards, it was advanced by 1870’s standards and a critical step towards the information revolution and a boon to journalism everywhere.

And while SI typically leaves its history lessons to the weekends, this is important enough to be noted on a week day.