Procurement Process Improvement

More than half of Salesforce’s most strategic suppliers — based on the amount the $38 billion software company spends on their goods and services — have agreed to cut their greenhouse gas emissions as part of binding provisions in their contracts. Those clauses are part of the Salesforce Sustainability Exhibit, introduced four years ago in May 2021 as an amendment to the company’s standard contact. Many large companies actively encourage suppliers to reduce emissions through science-based targets, and some offer educational resources and technical assistance to help. Salesforce remains unique in codifying those commitments as part of its procurement process, although customer service software company Zendesk — a Salesforce supplier — was inspired enough by the approach to introduce a similar set of contract clauses in November 2024. Best practices for companies interested in shaping similar programs: ➡️ Get procurement teams involved. They can help prioritize engagement and signal which suppliers might find new requirements difficult to meet. ➡️ Provide technical support. Many companies, especially smaller ones, will need an education on the concept of net zero. ➡️ Offer options. Allow suppliers to choose the emissions reduction path that makes the most sense for their business rather than dictating a one-size-fits all approach.  ➡️ Look for ways to support supplier investments. For example, a corporation could motivate supplier investments in renewable energy or lower-emissions materials through better procurement terms. Lessons from Salesforce’s unique contracting process: https://lnkd.in/eHZ7qGvm Cooper Wechkin Louisa McGuirk Serena Ingre Emily Damon Amy Garber

𝗠𝗶𝗻𝗱 𝘁𝗵𝗲 𝗔𝗜 𝗔𝗴𝗲𝗻𝗰𝘆 𝗚𝗮𝗽 𝗶𝗻 𝗣𝗿𝗼𝗰𝘂𝗿𝗲𝗺𝗲𝗻𝘁 The discrepancy between the promises of technologists and the reality on the grounds is considerable. Take smart AI agents for example. A topic where the gap between what's technically possible and what is reasonably implementable is widening. Reading the comment section in one of my previous posts confirms that beyond deterministic automation such as RPA, work in Procurement remains general a pareto of: 80% human and 20% technology. In many organisations sorting out the fundamental improvement of Procurement Processes, Data and Technology remains the primary challenge, let alone providing a user experience that drives true adoption. As i said at a recent podcast, a scenario were Autonomous Procurement really happens at scale is a great vision but it won’t replace full jobs & people yet. Removal of barriers and adoption of technology in the real world simply happens slower than expected and fragmented in tasks. The fundamentals to narrow the AI gap include: 1. 𝗗𝗮𝘁𝗮 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆 For AI to make informed, autonomous decisions, high-quality, consistent data is crucial and yet Procurement is still often facing data consolidation and quality issues stemming from a variety of unharmonised sources with often incomplete or inconsistent data. Dirty Data as Susan Walsh calls it. Until this data gap is addressed, full AI autonomy scenarios cannot work. 2. 𝗛𝘂𝗺𝗮𝗻 𝗧𝗿𝘂𝘀𝘁 𝗮𝗻𝗱 𝗖𝘂𝗹𝘁𝘂𝗿𝗮𝗹 𝗥𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀 It’s not just a technological challenge, it’s cultural as i mentioned in my last post. It depends on being ready to entrust AI with supplier negotiations or to assess risks on our behalf. Building this trust takes a lot of proof points, time and careful implementation, particularly if it involves stakeholders. 3. 𝗚𝗼𝘃𝗲𝗿𝗻𝗮𝗻𝗰𝗲 𝗮𝗻𝗱 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 With autonomy comes a need for stronger governance frameworks. They are essential to ensure ethical behaviour, compliance, and risk management. Having the right guardrails and risk vetting in place is complex but essential to delegate autonomous decision-making to a machine. 4. 𝗗𝗲𝗲𝗽 𝗰𝗼𝗻𝘁𝗲𝘅𝘁 𝘂𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 & 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 AI needs to understand the context of procurement scenarios and adapt to changing conditions to be effective and flexible. The ability to respond to new information & new inputs or changing requirements requires learning capability and prediction of best action to take. A very human capability. Narrowing the AI agency gap is a gradual journey, not a switch to flip overnight. It takes time & incremental small steps to increase agency as internal conditions and technology synch up. It's about moving from reactive automation to proactive autonomy as an analyst put it. It defines whether AI is just executing instructions or emerges as a real value contributor. ❓Where do you currently spot the biggest gaps.

The most important lesson from Ukraine's defence tech innovation system is not drones. It is the system itself. What they’ve built over the last two years exposes a gap many Western defence organisations still haven’t closed: the distance between battlefield reality and acquisition logic. A few lessons stand out: 1. Speed beats perfection Ukraine stopped waiting for “finished” systems. They field prototypes, accept flaws, iterate fast. Often, things that work at 70% today is worth more than something perfect in five years. Western procurement still treats deployment as a finish line. Shipping beats perfection. 2. Requirements must come from operators, not committees or "procurers". Frontline units define what matters. Range, latency, resilience, repairability. Not PowerPoint specs. When feedback loops are measured in days instead of quarters, bad ideas die fast and good ones scale. If the system permits. 3. Commercial tech wins when rules adapt Drones, sensors, comms, software. Most didn’t come from traditional defence primes. Ukraine changed rules to let commercial suppliers plug in fast. The bottleneck wasn’t technology. It was regulation and contracting models. 4. Attrition is a design parameter Systems are built expecting loss. Cheap, modular, replaceable. Western forces still design for survivability at all costs, driving complexity and price. Ukraine designs for availability under fire. 5. Procurement is operational, not administrative Acquisition teams sit close to operations. Decisions are tactical. What’s procured this month changes outcomes next month. That mindset shift matters more than any single reform. The bottom line: NATO countries don’t lack money or technology. They lack acquisition systems built for conflict tempo. Ukraine is showing what happens when incentives align with reality. (Picture is generated with ChatGPT)

Procurement used to be the focus only when there were supply shortages - but that's in the past! Throughout my career at Porsche AG, I’ve learned that some of the most business-critical functions often operate behind the scenes. Procurement is one of them. State-of-the-art Procurement is far more than just ordering or price negotiation. It’s also about foresight, resilience, innovation, sustainability, and responsibility. For today’s special supplement in the Handelsblatt I spoke about why procurement is now a strategic powerhouse in our industry. Here’s what I believe: 🚗 No car without parts – and no performance without reliable partners. Around 80% of the value creation at Porsche happens in our supply chain. That makes procurement essential – not just for operation, but for innovation and quality. 🌍 Resilience means understanding risk before it hits. We simulate extreme weather events, map cyberattack vulnerabilities, analyze global commodity flows, and evaluate tier-2 and tier-3 supplier structures. Transparency is our currency for resilience. 🔧 Success lies in collaboration. We don’t just “buy” from suppliers – we develop solutions together. From technical feasibility to logistics and sustainability, it’s a cross-functional effort from day one. 📍 Strong local supply chains matter. Especially mid-sized suppliers near our plants offer flexibility, speed, and deep expertise – an advantage that’s becoming more valuable in an increasingly fragmented world. 🤝 New thinking needs new partners. We’re expanding our supplier ecosystem to include start-ups and players from other industries, especially in fields like software, connectivity, and automation. It’s not just about parts anymore. It’s about ideas. I firmly believe: Procurement is a key driver of transformation and an essential function for commercial success. And the more interconnected, transparent, and collaborative we are, the stronger we will be as a company and as an industry. 👉 If you’re interested in the future of supply chains, I invite you to read the full interview in the Handelsblatt supplement – I’d love to hear your thoughts. #Porsche #DrivenByDreams

Recorded on location in Ft. Worth, Texas, I chatted with Mark Kimber, Chief Revenue Officer at Fintech, spoke to #NoVacancyNews to uncover how this decades-old alcohol invoicing powerhouse is shaking things up in hospitality. If you manage hotel operations and are drowning in invoices, this conversation might just change the way you work. 🎙️ Here's what you'll hear in this episode: How #Fintech evolved from alcohol compliance to hospitality-wide invoice automation Why hoteliers are stuck with “garage sale” accounting outside of alcohol—and how to fix it How Fintech eliminates hours of manual entry by integrating with your ERP system (think Birchstreet, Coupa, and more) Real-time visibility into cash flow, invoice accuracy, and vendor compliance A proof-of-concept approach that lets you test the platform with just a few vendors ⏱️ Saving 5 minutes per invoice might not sound like much… until you multiply it across every vendor, every day. Fintech’s model is about efficiency, visibility, and letting your team focus on guests—not back-office chaos. 🎧 Tune in now and hear why this isn't just another tech pitch—it’s a serious opportunity to cut costs and streamline operations.

A Smarter Way to Evaluate Vendors Over the years, I've assessed hundreds of vendors - from global tech giants to niche consultancies — all making bold claims about capability, speed, and impact. To cut through the noise, I developed a simple evaluation lens: the CECE framework. 1. Capability - Does the organisation have the capabilities to deliver what we need - methodologies, research & development investment, frameworks, approaches, quality management - their IP? What do they bring to the table beyond the people and the product? 2. Experience - Have they done the thing we want them to do for similar customers, in similar industries and similar scale? Do they say "we would do it this way" more than "we have done it this way before"? 3. Capacity - Do they have the people, technical scale, and staying power? It's not just about headcount, it's also about their ability to absorb risk and scale when needed, both in size and reach. 4. Expertise - Do they have the smartest people with the skills and qualifications you need? Do they continue to invest in their people or do they rely on what they brought with them when they joined? Keep in mind, this framework evaluates your confidence in the vendor as a partner, and sits above the “requirements vs. proposed solution, price, etc” RFx evaluation. What else would you include?

Analyzing spend data based solely on invoice information may present several challenges: Lack of Detail: Invoice data often lack the granularity needed for a comprehensive spend analysis. For example, invoices might not break down costs in a way that allows for easy categorization or identification of spending patterns across different departments or cost centers. Data Quality and Consistency Issues: Invoices can vary significantly in format, especially from different suppliers. This variance can lead to inconsistencies in how data is recorded, making it challenging to aggregate and analyze spend data effectively. For instance, different descriptions or categorization methods for similar items can lead to inaccuracies in spend analysis. Inability to Capture All Spend: Relying solely on invoice data for spend analysis can result in incomplete visibility into total spend. Not all purchases may result in an invoice processed through the accounts payable system, such as p-card transactions, employee reimbursements, or spend under certain thresholds that may not require formal invoicing. Delayed Visibility into Spend: Invoice processing can be delayed, meaning spend analysis might not reflect real-time or recent spend. This lag can hinder timely decision-making and the ability to promptly identify and address spend issues. Difficulty in Identifying Savings Opportunities: Without detailed and accurate spend data, it can be challenging to identify opportunities for cost savings, such as consolidating purchases to negotiate better prices, identifying off-contract spending, or pinpointing areas with potential for process improvements. Challenges in Supplier Management: Spend analysis based on invoices alone may not provide a complete picture of supplier performance, such as compliance with contract terms, quality of goods or services, and delivery reliability. This limitation can make it difficult to manage supplier relationships effectively and leverage strategic sourcing opportunities. Addressing these challenges often requires integrating invoice data with other sources of spend information, such as purchase orders or contracts to achieve a more comprehensive and accurate view of spend. Additionally, employing advanced data analytics tools and techniques and/or a purchase-to-pay solution can help clean, categorize, and analyze spend data more effectively, leading to better insights and decision-making. #procurement #purchasing #sourcing

Tech Entrepreneur Reinvents Artillery Shell—and How the West Buys Weapons Introduction: Silicon Valley Meets the Battlefield In a bold challenge to traditional defense procurement, Chad Steelberg, a tech CEO turned weapons innovator, has launched Tiberius Aerospace and unveiled “Sceptre”—a next-generation 155mm artillery shell. While its enhanced range and precision are impressive, the real disruption lies in how the system is designed, produced, and delivered. ⸻ Key Highlights from the Tiberius Aerospace Launch 🧠 Open Weapons Platform Model • Unlike traditional arms manufacturers, Tiberius licenses the Sceptre design to governments rather than selling them finished products. • Governments are encouraged to produce the shells locally, which can speed up availability and reduce reliance on centralized supply chains. • The model allows faster updates, akin to software iteration, improving performance over time. 📏 Breakthrough Performance with Sceptre Shell • The Sceptre 155mm round reportedly offers unprecedented range and accuracy, outclassing conventional artillery shells. • Its modularity and upgrade potential may help Western militaries outpace adversaries in a rapidly evolving battlefield environment. ⚙️ From R&D to Rapid Deployment • By focusing solely on research and development, Tiberius Aerospace avoids the slowdowns of traditional manufacturing and bureaucracy. • Steelberg draws on Silicon Valley principles—agility, scalability, and openness—to revolutionize defense development timelines. 🌍 Inspired by Ukraine, Geared for Global Adoption • The model reflects lessons from the war in Ukraine, where nimbleness and tech-forward solutions have proven critical. • Licensing encourages global co-development and operational sovereignty, a significant shift in Western military strategy. ⸻ Why It Matters: A Paradigm Shift in Defense Procurement Steelberg’s approach with Tiberius Aerospace represents a tectonic shift in how advanced weapons are conceived and distributed: • Governments gain more autonomy in defense production. • Weapon systems evolve faster and more efficiently, countering threats with greater speed. • Defense spending can be optimized for innovation rather than legacy contracts. If widely adopted, this open-platform model could mark the beginning of a new era in Western military capability—one defined less by bureaucracy and more by adaptability. https://lnkd.in/gEmHdXZy

Army launches G-TEAD Marketplace. Brigade commanders can buy counter-drone systems in 90 days. No RFPs. No committees. November 24, 2025. Global Tactical Edge Acquisition Directorate Activates Digital Procurement Platform. First vendor: Fortem Technologies with DroneHunter interceptors validated in Ukraine. Translation: Amazon for Army tech just went live. The disruption metrics. • Traditional acquisition: 2-3 years • G-TEAD timeline: 90 days max • Decision authority: Tactical commanders • Budget ceiling: None (draws from existing O&M) This isn't procurement reform. It's a procurement revolution. xTechCounter Strike wrapped in Germany. 15 competed. 5 won. Fortem's DroneHunter killed Russian Orlan-10s in Ukraine last month. Now any brigade commander orders them direct. No middlemen. No waiting. The eligibility gates. • CAGE/NCAGE code required • Master Business Agreement signature • Combat validation preferred • NATO partners included • Delivery in 90 days or contract void Three shifts crystallize. Theater beats Pentagon. Brigade commanders bypass acquisition bureaucracy entirely. Commercial beats custom. Ukraine-proven COTS dominates traditional programs. For contractors: Your competition isn't Raytheon anymore. It's whoever validated their tech in Bakhmut last week. Is your solution marketplace-ready or still chasing 5-year PORs? ---------- Like this content? Join our newsletter. Link located below my name 👆

Procurement leaders breathe dashboards. The infographic shows 6 dashboards for procurement teams: # 1 - Spend by Category Dashboard ↳ A dashboard that shows total spend by category, supplier group, or business unit. ↳ Instantly reveals where the money, leverage, and risk really sit # 2 - Supplier Onboarding Efficiency Tracker ↳ Track average supplier set-up time year on year ↳ Spot process friction early and remove delays before they block delivery # 3 - Spend Trend Dashboard ↳ Visualise monthly spend patterns across the year ↳ Identify seasonality, abnormal spikes, and budget drift before Finance flags it # 4 - Procurement ROI Dashboard ↳ Compare procurement ROI against benchmark and cost of the function ↳ Answer the exec-level question: “Is procurement worth the investment?” # 5 - Cost Savings vs Cost Avoidance Report ↳ Separate realised savings from avoided future costs ↳ Show total financial impact, not just negotiated wins # 6 - Active Contract & Supplier Performance Dashboard ↳ Track active suppliers, % contracted, SLAs monitored, and partner tiers ↳ Shift supplier management from admin to real risk and value control Any others to add? Ready to get 1% smarter at procurement every week and get procurement's value better noticed? Get free weekly insights and all my cheat sheets to download here: https://procurebites.com/