Sarah Holliman Vice President, Marketing,...
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Sarah Holliman Vice President, Marketing, SIG Hartford Regional Roundtable 25 February 2015
Transcript of Sarah Holliman Vice President, Marketing,...
Sarah Holliman
Vice President, Marketing, SIG
Hartford Regional Roundtable
25 February 2015
The supply chain industry is seen as
the strongest it has been in it’s history,
caused by:
• Supply chain innovation and procurement
transformation
• Focus by Wall Street analysts on supply chains
and supplier relationships
• Undergrad exposure to procurement and
supply chain in classrooms
But with a spotlight on Procurement by younger
talent, the industry is under more pressure to
“keep up with the times”
Did you know…
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
…there has never been a bigger force
for change than technology.
IT changes EVERYTHING…
…how we SHOP…
…how we SOCIALIZE…
…even how we TALK!
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
…into a DATA
ECONOMY
150 million babies will be born this year
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
…never has technology
been so focused on the
ACCESS of data.
NEVER has data been SO
important
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
Sometimes…
Size
Size
Siz
e
Size
Siz
e…does matter…
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
3.500.000.000.000.000.000.000
3.5 zetabytes (3.5 x 1021)
of unique new
information
will be created worldwide this year
Combined.
…that is more than the previous
5000 years.
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
The amount of new technical
information is doubling
every two years
For students starting a 4-year
technical degree, this means that
half of what they learn in their
first year of study will be
outdated by their third year of
study!Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
Although it’s difficult to
think this far ahead……it is estimated that
by 2049, a $1,000
computer will exceed the
computational
capabilities of the
ENTIRE HUMAN
SPECIES!
Over 2.4 BILLION
people use the
Internet
More than 50 billion
devices will be
connected to the Internet by the year
2020
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
…there are 100 billion Google searches per month
We are living in EXPONENTIAL times…
There are 500 million tweets sent per day…
…or 5,700 per second!
Over 175 million
people are connected to Facebook every
minute of every day….
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
SO LO MO is continuing to rise…
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
Did you know…
…and so is the desire for VISUAL DATA
…is the 2nd largest search engine in the world?
Every month 24 hours of video is
uploaded to YouTube!Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
Did you know…EVERY DAY…
22 million hours of TV shows and
movies are watched
19 million+ hours of music streamed
1 petatype+ of game content
processedSource: www.vitrue.com http://youtu.be/XrJjfDUzD7M
50% of mobile Internet traffic in the
UK is for…
…imagine what that
means for bad
customer experiences.
Your online reputation’s worst
enemies…
Source: www.vitrue.com http://youtu.be/XrJjfDUzD7M
Social media is often thought of as
something “young people” use…
…but it is growing in
use by even the
oldest segments.The rise
of the
“silver
surfers”
79% of seniors aged 50-65
and 71% of those 65+ use
the Internet every day
65% of seniors aged 50-65
and 49% of those 65+ visit
social networks
Source: Pew Research Internet Project, January 2014
Source: “Did You Know” (Social Media video) http://youtu.be/TQcLRIwSXZU; “World of Social
Media in 2011” video, http://youtu.be/mgp7GwHxV14
Technology influences
opinions…and should be factored
into any Procurement strategy
An education study revealed that online
students outperformed those
receiving face-to-face instruction.
LinkedIn has over 50 million
members worldwide…that’s a
growth of 1 million members per
month since 2009
Source: “Did You Know” (Social Media video) http://youtu.be/TQcLRIwSXZU
34% of bloggers post opinions about
products and brands…do you like
what they are saying about your
brand?
You’d better.
Procurement and sourcing will…
have a seat on the executive floor
involve more outsourcing, both within and
outside of Procurement
evolve from category management to
broader global portfolio management
take more collaborative approaches to
managing key vendor relationships
play a more strategic role in cash
management
Sourcing’s role is expanding beyond its more limited definition in the
past
TrendsProcurement is
no longer just a
gatekeeper,
but is a conduit
to innovation
Procurement
professionals
must be more
global and
mobile than
ever before
Source: Social Media for Procurement & Supply Chain Professionals, Frank Rozemeijer, Nadiine
Kiratli and Ruud Olthoff
2.4 billion
social network
accounts
worldwide
1.5 billion
people using
social network
sites
High awareness:
Facebook 100%
Twitter 80%
90% of American
adults have a
cell phone; 58%
have a smart
phone
So, what does this
mean
Source: http://www.businessesgrow.com/tag/social-media-and-procurement/
“My clients
and/or
colleagues
don’t use it.” “What could I
possibly gain
from it?”
“It takes too
much
time.”
“It’s risky.
Personal/professi
onal lives
become
blurred.”
“It’s unclear as
to what is
acceptable.”
“I can’t access
social media
sites while I’m at
work.”
“I can’t
imagine what I
would use it
for.”
Social media can be used in both strategic and tactical ways
Applications
Demand forecasting
Supply chain monitoring
Best practice sharing
Problem solving
Industry news gathering
Supplier collaboration
Stakeholder communication
Product development
Recruitment and talent management
Risk management
…try these three things on social media to help you see the value
Market intelligence
Exchange key information and best practices
Scan supply markets for new suppliers
Track careers of key vendor contacts
Peer engagement
Connect and join communities
Share information from trusted colleagues
about suppliers and products
Supplier collaboration
Follow Twitter and LinkedIn pages of your key
partners
Use social media as a channel for negotiation,
relationship building and continuous
improvement with suppliersSource: Social Media for Procurement & Supply Chain Professionals, Frank Rozemeijer, Nadiine
Kiratli and Ruud Olthoff
Social media is designed for many to interact with many, and is
often used as a proxy for face-to-face communication
Quick Tips
Spend 15 minutes in the morning and at the end of your day checking
social media sites
Use Google+ to segment the people you follow
Use social media to highlight supplier wins
Read Glassdoor to understand what others say about your company
Use Google+, Yammer or Salesforce Chatter to share best practices or
problem solve internally on categories, suppliers or other issues
Look at Procurious or CorporateBrainz for procurement-focused social
media
Follow your key suppliers on Twitter and LinkedIn, and use those tools to
stay current on industry and economic news
Source: Old St Labs; SpendMatters “Top 4 Ways CPOs Will Use Social Media,” October 2014
So why should procurement professionals really embrace social
media?
Results
Social media is free
Influences decision making
Allows you to share information with the right people
Enables real-time access to information
Can improve service and/or fulfillment levels
Reduces cycle time and supplier lead times
Expands your circle for thought leadership, best practices
and industry news
Creates opportunities for collaboration both internally
and externally
Source: http://www.businessesgrow.com/tag/social-media-and-procurement/
Enhance/improve
your company’s
reputation
Enable others to see how you
respond to supply chain disruptions
Create strong supplier relationships
Showcase you as a leader
Dove produced a 3-minute video with “Real
Beauty” sketches depicting how women view
themselves and uploaded it to YouTube in 25
languages:
Example: Dove
• Most watched online ad ever with over 163
million views globally
• Had 4.6 billion media impressions
• Reached 275,000 followers on Google+
• #1 on the Cannes YouTube Ads Leaderboard
Drive better
practices through
predictive
analytics
Interpret purchasing patterns through
transactional level insights
Create models by understanding current
conditions (example: better delivery
management by tracking weather patterns)
Example: Rolls Royce
Rolls Royce uses Lean Linking as a platform to
measure supplier performance
• Multiple stakeholders from the buying
organization can provide feedback and
comments on supplier performance which
can then be shared in a controlled way with
the supplier through a social media interface
• Performance discussions with suppliers are
almost real-time rather than months after an event
Source: Top 4 Ways CPOs Will Use Social Media, Peter Smith, SpendMatters, October 2014
Drive better
practices through
predictive
analytics
Enhance/improve
your company’s
reputation
Enable others to see how you
respond to supply chain disruptions
Create strong supplier relationships
Showcase you as a leader
Interpret purchasing patterns through
transactional level insights
Create models by understanding current
conditions (example: better delivery management
by tracking weather patterns)
Impact your
organization
negatively
Impact public sentiment based on news
regarding outsourced providers
Affect consumer decisions because of
product quality issues
Example: Lulelemon
Impact your
organization
negatively
Impact public sentiment based
on news regarding outsourced
providers
Affect consumer decisions
because of product quality issues
Example: Lulelemon
In 2013, Lululemon recalled 17% of their stretchy
black yoga pants after store managers raised
concerns that the material was see-through
• Cost them an estimated $60 million
• Word spread through review blogs,
Facebook, Twittter and more
• Product Chief stepped down
What happens in Vegas…
…stays on…
Source: “Did You Know” (Social Media video) http://youtu.be/TQcLRIwSXZU
The importance of
social media cannot be
underestimated…
Recognizes
trends that
impact their
supply chain
Believes that
social media is
not just for millenials
Understands that
social media is
integral to
procurement
Thinks consistently
with a focus on what
part of big data can
impact their decision
making
Lives and works
with a global
focus
Is open to testing
and digesting new
channels for
information
Embraces that data
and analytics are
critical to the success
of their supply chain
Today’s Procurement Leader
