What is procurement’s inconvenient truth and why we must finally face it

Posted on November 12, 2024

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In yesterday’s post, How do you eat an elephant one bite at a time if you don’t know it is an elephant? community thought-leader Claude Egli wrote the following:

Great point, Jon W. Hansen.

A few things coming to my mind – neither about tools nor about AI 😉
1. A healthy company has at least two organisations: (1) according to the org chart – the budget holders, (2-n) the grey matter; shadow organisations that keep the company going across functions.
2. Budget cuts normally impact (2); there is a tendency to save at the interfaces, thereby increasing workload for everybody..
3. Having great tools and end to end data visibility will not fix the problem, if no one from (1) is accountable & responsible for end to end delivery. Transparency is great if people are willing to act.”

Claude Egli, excellent points, especially point #3 “Having great tools and end to end data visibility will not fix the problem, if no one from (1) is accountable & responsible for end to end delivery.”

Agent-based before tech-led equation-based development and implementation.

This is also why ProcureTech solution providers must choose their clients wisely – https://bit.ly/3VgcNBn

The real issue is that, as a solution provider, how do you tell a prospective client that no matter how great the tech is, their success is ultimately up to them?

The above is the one point that solution maps, hype cycles, and marketing and sales overlook – procurement’s inconvenient truth! As I said, if we don’t recognize that tech is a supporting player, we will have this “same” discussion 15 years from now (which is 40-plus years of perspective talking).

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Posted in: Commentary