Category Archives: rants

iZombie: A Prelude Part II

12:59 pm – You settle into your seat in the meeting room, in preparation for an hour of arguing, finger pointing, and general non-performance between the marketing rep, engineering rep, finance rep, and the customer success rep (that represents the account management team).

First off, the customer success rep is p!ss3d that the incumbent supplier, that is supplying four of their five top customers is being invited back as all of the customers are complaining about product quality. The supplier did send out a few bad shipments, but has since re-instituted the mandated quality assurance processes and allowed you to place a quality rep at their site that reports to your organization. Quality has increased to minimally acceptable levels on the last two shipments and things are on the up and up. (But since each customer only gets a shipment every three months, those four customers didn’t get their yet, scheduled for the next two batches.) And the customer success rep would know if engineering had a way to update them.

Next up, the finance rep wants to know why the two lowest bidders have been disqualified because the organization needs to lower costs by 10% and those are the only two suppliers likely guaranteed to do so on the project. It’s pretty obvious why based on the product ratings from engineering and customers and the historical quality ratings across projects, but apparently finance couldn’t be bothered to figure out how to run the reports.

Then the engineering rep wants to know why they can’t just keep using the incumbent, who has already agreed to a 5% price reduction to make up for their quality failure. Especially since Engineering put all this time into qualifying them and building the relationship. (Unaware that this supplier has also performed poorly across sister companies, which you are aware because the PE firm that bankrolls you collects cross-organizational data and builds it into the risk reporting feeds you get monthly — outside the platform.)

Finally, marketing is up in arms that you are not looking for suppliers that can deliver products with new and exciting features they can sell.

Thirty minutes of complaining, ranting, and basic Q&A pass before you can even get down to business.

The RFP was scheduled to go out today, on final review, but the supplier list has yet to be approved, hence the reason for this after-the-last-minute meeting. The incumbent supplier, three previous bidders, and six potential new bidders were invited to the RFI, two new bidders didn’t respond, and two didn’t meet the quality cut. You were ready to send it out to six, but customer success still feels their grievances haven’t been heard on the incumbent, engineering says they will disqualify the previously invited bidders for the same reason, and finance feels the two new suppliers, based on their bids in other projects, won’t be competitive.

Finance wants more suppliers, you need suppliers engineering will consider, and without at least one supplier that tickles marketing, you’ll hear nothing but moaning for months.

So you need to do another discovery project. There’s another 20 hours and 2 more weeks down the drain. And an addendum to the report you just gave your boss less than two hours ago – damn!

Anyway, that’s tomorrow’s project. The meeting has ended, and you have 30 supplier e-mails that you need to review today, or you know they will be repeated tomorrow — plus, one ranting and raving phone call a day is enough.

2:10 pm – Into your tenth supplier e-mail, most inquiring about invoices, event status, etc. — and other inane questions that could be answered through their supplier portal, as awkward as it may be, if they’d just learn to use it, you hit an e-mail from your key widget supplier informing you that the shipment that was supposed to go out yesterday is not complete as they have been waiting on a steel shipment for two weeks. Yikes! If you don’t get widgets in 21 days, your production line grinds to a halt! That will cost the company millions.

3:45 pm – After an hour and a half of frantic calls, you find another — off-contract — supplier that can supply a substitute shipment of widgets that, while not preferred, will work with a few minor production line tweaks and keep you going for six more weeks. If you can’t get regular shipments out of your supplier within that timeframe, you’ll be in trouble. But that’s tomorrow’s problem. For today, you still have 20 supplier e-mail and almost two dozen stakeholder e-mails to get through.

4:25 pm – The remaining supplier e-mails are not critical, a few require clearing up with AP and engineering, but that can be taken care of later in the week.

4:35 pm – Most of the stakeholder e-mails are answers to your inquiries, inquiries as to why Sourcing takes so damn long, or indicates of delay. The usual affair. Time to do a quick check on existing project status.

4:50 pm – Three projects need addressing in addition to the cog project. The axle project has questions from suppliers that need to be answered so they’ll bid. The cylinder project still needs RFI scoring from stakeholders so it can go to auction. The support team project needs more bids for key contingent workforce roles and you don’t understand why your chosen providers aren’t bidding. Fire-fighting for the next few hours.

7:15 pm – You finally get all the questions answered in the axle projects — and hopefully the suppliers will bid in the next few days; you send reminders to all the stakeholders and leave the ones who don’t read e-mails voice mails; and you call all of the contingent workforce providers in the earlier timezones where they are still in the office and discuss how important it is that they bid on the current project if they want to continue to bill you, and most agree to provide more bids tomorrow.

No real progress on anything, but you made it through today.

7:20 pm – You exit the building.

7:21 pm – You realize the headache you obtained during the stakeholder meeting this afternoon is now, as usual, unbearable so you pop a few extra strength Aleve so you can make make it home, have dinner, and rest up for another day … which likely won’t be that much different from today.

iZombie: A Prelude Part I

8:00 am – You arrive in the office and head straight for the coffee station.

8:02 am – You pour a coffee and head for your deck

8:06 am – You scan your e-mail … 30+ from suppliers, probably all complaints … 20+ from project stakeholders, probably all demanding results without providing any additional information … half a dozen or more from executives asking for update … at least one from your boss and …

8:11 am – Your boss charges in demanding the historical spend report for the sourcing event that’s about to start

It’s in the system, but the system didn’t automatically e-mail it on schedule due to a failed update to of the SSL certificate, but it’s three levels down and requires the application of custom filters which, apparently, only you can find

8:21 am – You’ve finished re-running the report and exporting it in PDF and Excel formats with all the raw data and e-mailing (yes, e-mailing) it to your boss

8:22 am – Back to the e-mail queue … you’re about to open the first one from your boss, just to make sure the report will satisfy her for now and …

8:23 am – Your strategic supplier for a key widget calls … you recognize the number … you have to pick up … they are screaming that their invoice, due 30 days ago, still hasn’t been paid and AP won’t give them any answers … you promise to look into it and get back to them within an hour just so you can put the phone down

9:21 am – You call the supplier back and explain you spent the last hour tracking down the issue. AP refused to talk to you because the head of Finance marked the invoice “Do Not Pay” because Engineering refused part of the shipment and said not to pay until the shipment was replaced. The replacement shipment came with a separate invoice, and although it had the same invoice ID, that was miskeyed to a separate invoice — so AP had no clue the shipment was replaced and Engineering never cleared the issue. But the invoice has been deleted, an accepted shipment been rekeyed to the original, and it’s now in the payment stream to be paid on the next processing date in 5 business days with your boss’s approval. (And she is not happy that you interrupted twice in an hour with the management meetings coming up and her not prepared.)

9:22 am – Back to e-mail. The first e-mail you check was from your boss indicating she needed the spend report first thing this a.m. and the second email indicates she needs a progress report on all of your active sourcing projects by noon. Sh!t!

12:15 pm – You finish that progress report, which first required constructing an updated historical spend summary of the historical spend summary across half a dozen key projects to verify the savings projections against the most up to date spend and current market projections; then required running the metric reports to show that 7 of the 11 projects are on time; then it required that you dig into the final 4 projects and call half a dozen stake holders to find out what the delays were; and then summarize the status, and reasons for, of the final four by hand, compile all the information, and hand craft the one page executive summary that is the only thing all of the C-Suite, will read. (However, the CFO’s underling will spot check 25% of your work, and you don’t know what. So all you can be confident of is that two of the last three hours were wasted.)

You have a team meeting on the new cog project at one, so you decide to duck out to the Taco Truck for a quick bite and some fresh air before the usual screaming match between marketing and manufacturing erupts …

Is Procurement the Valley of Lost Souls?

Back in 1990, near the end of the hair metal days, Poison released their third studio album called Flesh & Blood with a deep cut called the Valley of Lost Souls. And since Procurement is the Zombie Function of the Enterprise (it’s dying, it’s dead, but it’s still here), I am nominating this as Procurement’s new theme song. If we analyze it carefully, it fits the bill.

I hit the highway
Touch life barely sixteen

… many Procurement newbies who didn’t get moved into the organization as a pre-retirement “reward” are fresh out of college and brand new to the business world …

No angel of mercy
Coming down to save the soul of me

… Procurement is the black sheep of the enterprise and gets no regard, no regard at all …

I took a Greyhound limousine
Straight to grand central NYC

… after all, we have to practice what we preach and cut costs, to the point it hurts

It was ass, gas, or grass, living fast
Nobody rides for free

… and don’t we know it!

Chorus:
Living it up, giving it up
Living in the valley of lost souls

… we have to give up too much to get our savings

Wanting it all, taking the fall
Living in the valley of lost souls

… and when things backfire, even if we’re ordered to make a suboptimal decision, we still take the fall

Miss Misery come ride me
How I love her company

… we have to love her to love this job

She did Boston justice
And wronged all the right out of me

… at the end of the day it’s no wonder why some Procurement professionals accept “Japanese” auction software where a supplier can bid against itself

The devil wears a black suit
He says I’m livin’ like a bum

… and he’s being nice …

So what I’m looking like I’m half dead
A gypsy on the run

… working OT to meet an unrealistic target …

Chorus

Feels like time’s running out on me
… it’s no wonder the average CPO changes jobs at least every 3 years …

But I wasn’t born to play nobody’s fool
… so gotta get out before they push me out

Ain’t nobody gonna hold me down to play nobody’s fool
Ain’t nobody gonna hold me down

… we got resolve … that’s what it takes to do this job …

I’ve got to roll, roll, roll, roll, roll, roll
… so we change jobs if we must

Chorus

Somebody save me
… because, someday, it may just get too overwhelming …

E-Procurement Benefits … Fact … But …

Last week, Tony Bridger gave us a great two-part series which asked if e-Procurement benefits were fact or fiction because it has fallen out of favour with the academics over the last decade, with few toting its benefits as they did when it first hit the scene.

And Tony had some great points. E-Procurement was touted as the panacea for all Procurement woes, but the first generation of solutions did not deliver. Many Procurement teams use systems to negotiate great contracts, but great contracts don’t deliver improvements — execution against them does. The best spend analysis system delivers zilch out of the box — it takes an educated, trained, experienced, intelligent buyer to sniff out the true savings opportunities. And, most importantly, every single buy is just a tiny bit different. And buys that are far enough apart need different capabilities and solutions.

And, most importantly, the best platform in the world is useless if it is not adopted and use by all of the buyers all of the time.

e-Procurement platforms can deliver the benefits they promise, namely an end to maverick spend, approval control, workflow configuration, and spend under management. But only if they are properly implemented, properly adopted, and properly used.

You can search the archives here on SI and over on Spend Matters for a description of the benefits, as well as a description of necessary platform requirements to get those benefits.

But one thing that is not always clear in our past articles, and that should be made clear as a result of Tony’s posts, is that e-Procurement is more than just platform, it’s process. It’s the process of doing a proper event, recording the contract and meta-data in the e-Procurement system, issuing the POs against the contract, insuring the invoices — and shipments — match the POs, and getting approvals before payments. If there are no contracts, and the buy is not big enough for a sourcing event, but over a certain amount, then it’s critical to get proper approvals. All spend haas to go through the system, and, when necessary, get approvals, according to the organizational policies and processes. A proper e-Procurement platform automates that process, simplifies the m-way matches and comparisons and classifies the spend for easy analysis. It enforces a process that saves money, it doesn’t save money out of the box.

And maybe when the academics realized this, and that they were writing about a solution which had no inherent sorcery, they dropped it like a hot potato. Even though there are dozens of companies that have went on record saying they saved millions with proper platforms (which saved them millions because they implemented, and supported, proper processes).